The human resources director has approached you, in a role as a controller, to assist in the development of compensation methods that would be based upon incentives. In preparation for this meeting you want to discuss some of the financial issues that have surfaced in some informal discussions. The methods of compensation and their impact on the financial model are not fully understood. The types of incentives and how they might relate to revenue generation also not clearly understood.
The human resources director has enthusiastic embraced total quality management and wants to develop incentive metrics based solely on customer satisfaction that produce cash bonuses. In a written communication to the human resources director, describe the financial issues that should be addressed when implementing incentive compensation programs. Type your communication in the response area below using the word processor provided. Reminder: Your response will be graded for both technical content and written skills.
Technical content will be evaluated for information that is helpful to the intended reader and clearly relevant to the issue. Writing skills will be evaluated for development, organization, and the appropriate expression of ideas in professional correspondence. Use a standard business memo or letter format with a clear beginning, middle, and end. Memorandum To:Human Resources Director From:Michael Schell Date: [ 10/7/2012 ] Re: Development of compensation methods based on incentives There are many financial issues that need to be addressed when implementing incentive compensation programs.
Prior to our meeting I wanted to address some of the financial issues that have surfaced in some informal discussions regarding this matter. It is not fully understood what the methods of compensation will be and what their impact will be on the financial model. It also is not clear what types of incentives will be used and how they will relate to revenue generation. Finding the right incentive compensation program for our employees is very important to keep and to attract the best employees but we must make sure we have a solid plan to pay for it.
Basing the incentive on customer satisfaction is important but it should also be tied into increased revenues. Compensation expenses may go up with the incentive program so we must have the revenue to pay for it or find other areas to pay for it. Using cash bonuses is one option for incentives but stock options or stock bonuses are another alternative. It is important to have the employees’ focusing on long term goals for the company and not just on short term gains.
Stock options may help encourage this behavior whereas cash bonuses can lead to short term incentives. One of the drawbacks to stock options is that the stockholders of the company may not approve of it because of the dilutive effect it could have on the stock price. It is important to weigh the options and decide what would be best for the company. I look forward to discussing these and other issues with you at our meeting. Please feel free to contact me with any questions or concerns that you may have.
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.