Internals and externals factors impact on compensation
Bus assignment # 1 |
Internal factors affecting the best buy co Inc new compensation strategy 2
Best buy financial capital affect on compensation 2
Internal structure affect on compensation: 3
Employees’ acceptance of the new compensation 3
External factors affecting BEST BUY CO INC. compensation strategy 6
Economy factor on compensations: 6
Legal compliance on the compensation strategy: 6
Competitors impact on compensations strategy 6
Best buy summary 8
Median salary by job..…………………………………………………………………5
Median bonus by ...view middle of the document...
These internal issues are the organization financial wellness which is if the organization has enough capital to pay for the new compensation. Next, the organization internal structure of the organization because best buy inc must be careful on what type of compensation they are offering to their retail store managers because they must make sure their supervisors managers don’t get lower compensation than retail store managers. And finally employees’ acceptance is also a key factor. The next step are the external factors that affect best buy new compensation strategies which are, macro economic factors such as recession, Competitors’ strategies, legal compliance. Each and every one of these issues has a great deal in the implementation to best buy co new compensation strategy. We will now get into the details of these issues and develop the right compensation strategy to get a competitive edge against competitors.
Internal factors affecting the best buy co Inc new compensation strategy
Best buy financial capital affect on compensation:
As we just mentioned best buy is developing new compensation strategy just for their retail store manager to boost consumer satisfaction, higher sales, and reduce retail sale associates. Of course developing better compensation strategy for those managers may achieve those goals. But before any implementation the organization must ask itself if they have enough financial capital to be able to actually deliver those compensations. One of the worst thing an organizations can do is developing compensation strategy and not able to deliver them. This will actually kill the motivation of these managers, it may even lead them to sabotage.
Internal structure affect on compensation:
Due to its financial cost best buy is only implementing this new compensation strategy to its retail store managers. By doing so best buy must be very careful not to demoralize other manager within the organizations. As we can see in the chart best buy co Inc is employing numerous levels of managerial positions: retail store manager, retail store assistant mangers, retail sales manager, operations manager, general operations managers, and operations retail managers. Therefore the organizations must consider these employees when developing compensation for just one set of managers. So the organizations must develop better compensation strategies for those employees at a later time. And also make them understand that new compensations for retail store managers will be strictly based on performance and productivity and there will be more expectation from those managers. The point I’m trying to make is that some of these managerial positions have as much impact on the organization over productivity, and best buy updating just one set of managers is likely to disrupt the organization internal alignment strategy. So best buy must find ways to work around these issues to deliver their new compensation strategy to their retail...