Compensation Management

Posted: August 29th, 2013

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Compensation Management

            Elliot has to work with, and manage a group of six professionals so that he can meet the target. The six professionals have a low morale, and Elliot realizes that this will be a problem. He has to look for ways to motivate the professionals so that they can work together, and reach the target. All the professionals in the company work extremely hard. However, there is a culture of individuality in the work place, and the people do not work together. There is no element of teamwork in the department. Some of the professionals have worked together in the same company for several years, but they do not know each other. This problem was largely enhanced by the previous manager, who encouraged specialization and did not recognize his subordinates’ achievement. Elliot has to come up with a different style of management that will incorporate employee compensation, so that he can motivate the employees.

The problem seems to be in the specific department where Elliot works. Elliot has already identified some of the problems within his group. The team needs to work together so that they can realize maximum benefits. Conrad reveals that some of the departments make more money using the same services. His partner is new and he does not know how the company works. Conrad has not had any time for him and this has affected their performance. There are problems of orientation, as the department does not seem to have a system of introducing and enabling new employees to fit in with the rest of the department. Some businesses such as those in the oil industry do not seem to do well, and some countries such as Canada, have low business in investment banking.

One of the ways of motivating the employees would be to ensure that they are recognized for their achievement. Elliot needs to put the group together and inform them of the importance of teamwork. The department can only benefit and become profitable once all the people involved stop working individually. The new employees need to be properly inducted in the company. Elliot should detail their roles and responsibilities. Jerry and Conrad should work together to ensure that they come up with an innovative product for the company. Elliot should introduce a compensation system for the employees, which should be separate from their normal pay. He can introduce compensation such as payment for overtime, bonuses, recognition, and departmental awards. Elliot needs to use the components of a compensation system. He has to conduct a job analysis, and review the salary and pay structures. For every success made, the people responsible should be recognized and rewarded. Elliot should recognize the person who comes up with the most creative concept in the department. He can also motivate the employees by rewarding the person who makes the biggest deals. Compensation will ensure that the employees are motivated since they are assured of recognition and reward. It will boost their self-confidence and their self-esteem, and it will increase their job satisfaction.

Elliot is bound to have trouble when initiating some of his proposals. The concept of teamwork may not work well with some people in investment banking. This is because the employees have their own contacts, and each one of them wants to make as many deals as possible. They might object to the idea because of insecurities. The employees know that they have to make as many deals as possible, if they are to receive the huge bonuses above the nominal amount. This can cause major problems for Elliot and he has to identify ways of overcoming it. Elliot needs to meet with the other workers before making any decisions. He should explain what he intends to do, and the measures he will take to ensure that he has achieved his goals. He should then ask for their opinion concerning the issues. He should create an environment, where the employees are free to raise their objections. They should resolve all the conflicts and objections raised during the initial meeting. Elliot should then ensure that there is a feedback system. This will involve meeting with the rest of the group after they start working under the new system. They will then identify and review the progress made by the group, and solve any problems that might have occurred after implementing the changes.