MT: Human Resource Management – 203
A company’s strategy is essentially the foundation of it’s success. In fact, the company strategy is defined as the combination of all the decisions taken and actions performed by the company to accomplish the goals and to secure a competitive position in the market. In the Case Scenario, Braintrust toys is a toy maker that uses a product development strategy but believes that maybe they need to orient their company towards an innovative strategy. Unfortunately, their current objectives have not balanced the compensation and evaluation for their company. Therefore, I’ll explain how Braintrust can link their compensation and evaluations to the company’s new objectives and innovation strategy.
As mentioned in the Case Study, “Braintrust Toys is a toy maker that has as its mission, “Our purpose is to expand the minds of children 1 month–100 years old.” Currently they use a product development strategy, but believe that maybe they need to orient their company towards an innovative strategy.” Usually, a product development strategy is used to bring new innovation to existing products. It is a quick and cheap method of using products that have already been made rather than completely inventing a new one. On the contrary is an innovative strategy. That is where a company will pursue a competitive advantage by creating a unique product that hasn’t been seen. If BrainTrust plans to move towards an innovative strategy, then its objectives will be analyzed.
Braintrust created new objectives in line with the new innovation strategy. They included; Enhance attributes and convenience in at least 20 existing products, Launch at least 15 new products that appeal to new customers and new markets, Develop 5 new markets, Hire personnel that think innovatively, Hire diverse support personnel and designers who are customer service oriented to support new products and markets. At this point, they are recommended to commit to those goals and incorporate them into the company’s strategy. If they plan on having a successful outcome, then perhaps they can compensate their employees. According to TP, “Compensation is the results or rewards that the employees receive in return for their work…Compensation includes payments like bonuses, profit sharing, overtime pay, recognition rewards and sales commission, etc.” By proving compensation, their goals will be the primary focus of their current employees. They will put forth all their effort and strive for the best results to attain the incentive.
The evaluation process will come shortly after the goals are attained. Since the employees were offered compensation for their contribution to the company’s strategy, they will be given a score. As mentioned in the Case Scenario, “Their compensation to date has been based on longevity at the company. The evaluations were performed by their managers after reviewing their results based on: (1) their influence on increased department product output (75%) and (2) increased department sales (25%) at the end of the year.” Assuming that the remaining 200 employees improved the company’s product output and increased the department sales, nearly all employees should receive a very good evaluation score. A recommended method of performance evaluation for this scenario would be the comparative method. According to Jadhav, “Under the paired comparison method, the overall performance of one individual is directly compared with that of the other on the basis of a common criterion. This comparison is all evasive and not job-specific.” If every employee is working towards the same goals, then they should all be reviewed for their comparison amongst each other. At the end of the day, they all contribute to the company’s new objectives and innovation strategy.
Jadhav, Aparna. (Dec, 2017). Workspirited. 13 Proven Performance Evaluation Methods to Use for Appraisals.
Retrieved from: https://workspirited.com/performance-evaluation-methods
TP. (N/A). Tutorials Point. HRM – Compensation Management