Background
Jeff Hyman, Chief Talent Officer of Strong Suit Executive Search, in his 2016 opinion piece in Entrepreneur, titled ‘Why paying your team members the way Tesla pays Elon Musk will improve their performance', suggests the following:
Top performers should earn outsized bonuses and raises as compared to poor performers.
Consider using stock or stock options in addition to cash to reward exceptional people who are vital to organisation's success.
The peanut butter approach (spreading bonus money around so that everyone gets something and no one gets too much) does not encourage superior performance.
Compensation plan must support a culture that allows rock stars to flourish and weeds out poor performers.
In light of the above, critically evaluate the current compensation practices in your organisation or an organisation you know well. Address the following tasks in your assignment using relevant concepts and principles outlined in this subject.
Task
You are required to:
Provide a brief description of the organisation and the current compensation/pay and benefits offered in your chosen organisation.
Briefly discuss the advantages and disadvantages of variable compensation pay policies and practices in an organisation.
Analyse some of the variable compensation pay/benefits used in the chosen organisation to motivate or encourage superior performance by applying relevant motivational theories. Evaluate the pros and cons of ‘peanut butter approach' in rewarding and motivating the employees.
Apply relevant pay and remuneration concepts in the subject to recommend a suitable compensation plan that builds a high-performance culture in your organisation.
State the benefits your organisation will achieve when the recommendations are implemented in the chosen organisation.
Reference
Hyman, J 2016, Why paying your team members the way Tesla pays Elon Musk will improve their performance.
ASSIGNMENT REQUIREMENTS
Important assignment instructions
The required word length for this assignment is 3000 words (plus or minus 10%).
Your assignment will be marked according to the criteria outlined in the assessment grading criteria see supporting files.
In terms of structure, presentation and style you are normally required to use:
AIB standard report format
AIB preferred Microsoft Word settings
author-date style referencing (which includes in-text citations plus a reference list).
These requirements are detailed in the AIB Style Guide.
Reference lists for AIB assignments/projects normally contain the following number of relevant references from different sources: 6-12 (for MBA assignments).
All references must be from credible sources such as books, industry related journals, magazines, company documents and recent academic articles.
3000 Words (+/- 10%)
12 References (Minimum)