Explain how companies link compensation and evaluation to organizational objectives.
GEL-1.02: Demonstrate college-level communication through the composition of original materials in Standard English.
Introduction: A company’s mission, vision, and values must be aligned with the company strategy. Then each of the functional areas of the company has its own strategies that align with the overall company strategy. In this assignment, you will explain how a company can link its compensation and performance evaluations to the organization’s innovation objectives and strategy.
Read the case study below, and respond to all the checklist items.
Case Study: Evaluations, Compensation, and Firm Objectives
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.
[Inovative strategy: According to Nagji and Tuff (2012), an innovation strategy includes adding convenience or new
packaging to lure existing customers and motivate new customer purchases, expanding into
new markets, creating new products/services, and entering new markets.]
Their current objectives are to:
– Invent 10 new toys every year and reinvent at least 10 more.
– Increase revenues by 15% per year.
– Employ motivated and committed workers.
– Provide safe and intellect-expanding toys for everyone.
Braintrust Toys has operated as a medium-sized company for about 20 years. Their compensation to date has been based on longevity at the company. The employee evaluations were performed by their managers after reviewing their results based on their influence on (1) increased department product output (75%), and (2) increased department sales (25%) at the end of the year. With the increasingly mechanized and digitized toys, and now robotics in toy making, many employees have been let go or offered early retirement due to their obsolescence.
The new objectives in line with the new innovation strategy include:
– 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 five new markets.
– Hire personnel that thinks innovatively.
– Hire diverse support personnel and designers who are customer service oriented to support new products and markets.
The 200 remaining employees are beginning to worry, and feel their compensation and evaluation process needs an overhaul.
Checklist:
– Explain how Braintrust can link its compensation and evaluations to the company’s new objectives and innovation strategy. Describe how compensation and evaluations work together to help the company achieve its new objectives and innovation strategy.
– What methods of performance evaluation might they use?
– Explain your reasoning for using the methods of evaluation you chose.
Submitting Your Assignment:
Submit your minimum 2-page (i.e., 500-word) Microsoft Word expository essay in APA format and citation style with additional title and reference pages. Make sure your paper is logical and insightful, using correct Standard English spelling and grammar. Ensure there is an introductory paragraph, each paragraph has a minimum of 3–4 sentences, and a closing paragraph is provided.
** There are no limits for the sources. I put 4 but you are more than welcome to use more or less. But please, include in-text citations throughout the paper. **
** Rubric Attached**
Thank you
