Performance Compensation Management for ShareIt - myassignmenthelp

Question: Discuss about thePerformance Compensation Management for ShareIt Program. Answer: Strengths and weaknesses of the ShareIt program Strength The ShareIt program is certainly an effective one to bring positive change in the operation. Firstly, such practice could increase the level of profitability and the employees become more concerned about their roles and responsibilities. The employees given more hours in their job and earn profits. Moreover, the managers and the employees have the opportunity to utilize their own skills and talents to run the operation. They do not have to depend on the traditional corporate practices to run the operation. The managers are empowered to promote the brand and services in their own way, which increases values of the individuals working in the organizations. As the store manager is given the empowerment of running the operation, they could develop their store cultured based on their preferred choices. In addition to this, with such culture, when the manager runs the operation for a long time, he/she gains an in-depth understanding about that particular market and trends. Therefore, it be comes easy for the managers to take decision and implement them in their own way. The decision-making process does not get delayed. Weaknesses Even though ShareIt program provides a set of opportunities to operate the business with increasing profitability, this program has certain shortcomings. Firstly, not all store managers have ability to run the operation under such culture with the highest profitability. Managers experiences and skills are also the essential requirements for such program implementation. Moreover, the organizations might have to bear the risks of internal biasness. This means as the managers have the authority to run the operation with an autonomous culture, he/she could be biased towards some particular organizational members. In addition to this, the restaurant might not be able to implement a corporate culture in the operation. Furthermore, the manager of the store might observe the facts that his/her subordinates are not intended to perform in accordance to the needs. They work under an autonomous culture, where they lag behind the corporate culture. Going forward, they might raise questions and do ubts about their own profitability. Therefore, the employees might remain dissatisfied with the work. However, employee satisfaction is essential to run an organizational operation. As put forward by Block (2011), there are certain needs such as job security, physiological needs, self-belonging needs that employees seek and want them all to be fulfilled. According to Maslows hierarchy of needs theory, safety and security needs are about putting roof overheads and keeping the individuals safe from the possible damage (Lester 2013). Therefore, under the ShareIt program, the employees might go through such state of feelings where, they are not sure about the security of their jobs. Consider the results achieved by the two pilot stores. Would you say that the plan succeeded in both pilots? The table 3a and 3b provided in the case study indicate that the plan partially succeeded in both pilots because the profitability increased in both the restaurants. Compared to the performance of last six months, Santa Monicas performance has increased to 21.3% to 40% and likewise, Costa Mesas benefits increased to 33% from 23%. However, compared to Santa Monicas performance, Costa Mesas performance is poor. Costa Mesa has only increased 10% of profits in last six months. Nonetheless, the restaurant Santa Monica has performed well and increased by almost 20%. Both the results are presented here and it is found that both the stores observed the profits but compared to industry benchmark, the profits did not reach the expected margin. In addition to this, the recorded profits would have been higher if the managers would have put more attention to the program. On the other side, it can be also be mentioned that as the profits are not higher compared to the expectation, the documented p rofits Costa Mesa of last six was easy to achieve without the programs. If the compensation and benefits of the managers were increased, they would probably have performed effectively to reach the desired expectation. In hotel industry, employee turnover in general remains high due to the low compensation and other related benefits. Thus, to retain the employees, it is necessary for the hotel organization to provide the employees with high benefits and compensation package. Therefore, the investment on the implementation of ShareIt remains as an experiment or a trial initiative of the strategies. Furthermore, the case study indicates that the associate manager Tiler of Costa Mesa is not necessarily dedicated to the operation as she mentioned that she cannot continue the operation and supposed to leave the job after a certain period. Such scenario indicates that the organizational members such as manager and the associate managers themselves are not determined about the program. Therefore, it can be mentioned that to some extent, the organizational members were not satisfied with the programs, which affected the overall organizational operation. What should Ryese recommend? Should WrapItUp roll out the ShareIt plan as is, make modificationcs, or abandon it for something else? The program ShareIt mentioned in the case study is effective if it is implemented appropriately. This means the programs carry efficiencies but it is not implemented properly in the operation. Therefore, the restaurants did not observe the expected profits after the first quarter of operation. Thus, to implement the program properly and record the desired benefits, WrapItUp should incorporate the following strategies. Performance Evaluation- The CEOs of the company could modify the strategies by developing a performance evaluation system. This means the CEOs or the directors will not apply or add any strategy to the existing program, but they should supervise the performance on a frequent basis rather than recording the performance on a quarterly basis. Therefore, the founders of WrapItUp should evaluate the performance in every two months. In every two months, the performance will be supervised and if any gaps found in the operation or in the profit margin, the owners should communicate with the respective managers of the store. In addition, the founders should usually communicate with the managers on a daily basis regarding the ongoing operation. This would probably motivate the managers to work more enthusiastically on the project. It could increase the sense of responsibility of the managers towards their jobs and organizational goals. Training and development programs- Even though, the managers perform the operation by applying their own strategy, general level employees should be provided with appropriate training and development programs. This could help to enhance the standard of customer service. In food sector, customer service is a significant aspect that restaurant must take into the consideration. Moreover, the scenario presented in the case study indicates that the customers are not satisfied with the services of the restaurant. Thus, obtaining a training session, the employees could learn the value of each customer. They could be more concerned about the organizational goals and objectives. References and Bibliography Block, M., 2011. Maslows hierarchy of needs. InEncyclopedia of child behavior and development(pp. 913-915). Springer US. Daley, D.M., 2012. Strategic human resources management.Public Personnel Management, pp.120-125. Guest, D.E., 2011. Human resource management and performance: still searching for some answers.Human resource management journal,21(1), pp.3-13. Jiang, K., Lepak, D.P., Hu, J. and Baer, J.C., 2012. How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms.Academy of management Journal,55(6), pp.1264-1294. Lester, D., 2013. Measuring Maslow's hierarchy of needs.Psychological Reports,113(1), pp.15-17. Thompson, P., 2011. The trouble with HRM.Human Resource Management Journal,21(4), pp.355-367. Wright, P.M. and McMahan, G.C., 2011. Exploring human capital: putting humanback into strategic human resource management.Human Resource Management Journal,21(2), pp.93-104.