· Assignment 3 Total Rewards System ProposalDue Week 6 and wort.docx

· Assignment 3: Total Rewards System Proposal
Due Week 6 and worth 250 points
This research-based assignment focuses on the latest available
information about creating, organizing, and managing a total
rewards program. Envision a service-based (insurance,
telemarketing, or other) profit organization that employs 20,000
employees in 17 different countries. There are 2,000
management-level individuals who speak a variety of languages.
The company employs diverse individuals who are governed by
multiple regulatory environments.
Write an eight to ten (8-10) page paper in which you:
1. Create a brief overview of the company requirements for a
total rewards system.
2. Formulate a total rewards strategy to encompass the
fundamentals of compensation and the regulatory environments.
3. Explain the advantages of the total rewards strategy you are
proposing and how it might satisfy the employees’ needs.
4. Determine the key communication components of the total
rewards system.
5. Indicate your strategy for devising a competitive pay
structure.
6. Use at least five (5) quality academic resources in this
assignment. Note: Wikipedia and other Websites do not quality
as academic resources.
Your assignment must follow these formatting requirements:
. Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins on all sides; citations and references
must follow APA or school-specific format. Check with your
professor for any additional instructions.
. Include a cover page containing the title of the assignment, the
student’s name, the professor’s name, the course title, and the
date. The cover page and the reference page are not included in

the required assignment page length.
Sheet1 Section IV answer templateoption1234commentsdo
nothingexpand existingbuild combinationbuild warehouse on
warehouse on east coastwarehouse/mfg locationwest coast for
weston west coastcoast customerswest coastweekly
unit10,00010,00010,00010,000volumeDIFFERENCE inraw
material inboundfreight from current methodCurrent outbound
freight costs borneby the companyFreight Equilization
recoupment fromcustomersDIFFERENCE in finished goods
shipping costs borne by the companyTotal
ADDED/Decreasedcosts from current method
Sheet2
Sheet3
Key Assignment Draft
The rough draft must be a completed paper, with APA
formatting, all 7 sections complete (using Roman numerals of
each section per the outline), references, and good grammar.
You were recently hired as the VP of Logistics for the ABC
Manufacturing Company. This is a new position. During the
lengthy interview process, the CEO shared her strategic plans
for worldwide growth in the company’s consumer sales.
Previously, sales had been confined to domestic sales only. As a
result of little staff logistics expertise, the company had kept
the traditional logistics model of shipping all finished products
from its warehouse and factory location on the East Coast of the
United States, even though there was a growing market on the
West Coast that competition was serving from a West Coast
warehouse. However, the CEO pointed out that despite its
national popularity from a feature and quality perspective, it
seemed to penetrate poorly on the West Coast because of her
need to charge higher prices as the result of higher shipping
costs.
The marketing manager tried to mitigate this competitive

disadvantage by freight equalization so that end customers
would pay the same amount of shipping costs as West Coast
competition charged, regardless of where they were located.
This met with some insignificant success because timeliness of
delivery was another important issue. Therefore, the CEO had
asked you, as your first assignment, to write a white paper to
address the following specific points. She remembered that you
had quite a bit of experience addressing some or all of these
issues during your career. As a stickler for formatting, she has
specifically asked you to use the following Roman numeral
sections and headings in the paper:
Section I: Introduction (300 words)
A. In general, what are the qualitative pros and cons for
domestic sales of having multiple distribution centers and
shipping locations in the United States?
B. In general, what are qualitative pros and cons of having one
or more international distribution centers for international sales,
as opposed to shipping directly from a U.S. manufacturing
location warehouse?
C. What are the opportunities and challenges of being a supplier
to an internationally based mass merchandiser?
Section II: Decision-Making Criteria (500–750 words)
The CEO is considering either expanding the warehouse next to
the East Coast manufacturing plant; or for the same total
construction and operating costs, building a West Coast
distribution center; or for the same total construction and
operating costs, building a combination manufacturing and
warehouse location on the West Coast. As a completely separate
issue, she is also considering opening a distribution center
overseas, to serve the fast-growing warm weather markets of
France and Spain.
Given the following general information, what are at least 10
criteria that must be considered when locating a new or
expanded shipping warehouse domestically? Internationally?
a. The products are primarily medium- and large-size insulated
coolers, like you might use for a picnic or trip to the beach. As

a result, no matter what mode of shipping is used, transportation
firms charge by space, or cubic feet, rather than weight, which
is the more normal method.
b. The coolers are made of 3 components, which are all
produced by suppliers solely on the East Coast.
c. The market is very competitive with generally stable or
decreasing marketplace prices because of this competition.
d. In states and countries that are warm year-round, sales are
pretty steady; in countries and states that have seasons, 90% of
sales occur in the May–August period.
e. The raw materials to make this product are bulky, and
inbound shipping from the East Coast suppliers currently
represents 20% of total raw material costs.
f. Domestic demand is expected to increase 5% annually;
international demand is expected to increase 15% annually.
g. Right now, to keep West Coast customers happy, the CEO
says that they only charge those customers the local freight cost
of shipping, which is $200 for anything up to half a truckload.
h. The current exchange rate is 1 euro = $1.50.
Section III: Metrics to Assess Success (300–400 words)
A. Identify and describe at least 5 metrics that you would use to
assess the success of any logistics plan involving you as a
manufacturer and an internationally based mass merchandiser.
B. Why did you pick these?
Section IV: Quantitative Factors(Excel Spreadsheet)
What is your quantitatively based recommendation based on the
data in section II and below as to whether you should open a
West Coast distribution center to address West Coast customers,
just add on to the existing East Coast factory and warehouse,
or build a combination West Coast manufacturing location and
warehouse?
Use this template to show your numeric calculations. Without
calculations shown for how you reached your conclusion,
section IV will earn 0 points. REMEMBER: Decisions like this
are based on a comparison of option A versus current methods,
or option B versus current methods.

a. The products are primarily medium- and large-size insulated
coolers, like you might use for a picnic or trip to the beach.
Each cooler occupies 2 cubic feet of trailer truck space; trailers
are 10 x 10 x 40’ long and cost $1,000 to ship from the East
Coast to the West Coast.
b. The coolers are made of 3 components: 1 lb of raw material
A, 1/4 lb of raw material B, and 1 gallon of material C,
weighing 10 lbs. Based on this information, the added freight
cost to get raw materials to a West Coast manufacturing
location would be $0.20, $0.20, and $0.60 per finished-good
unit, respectively.
c. The mass merchandiser location on the West Coast will be
purchasing 10,000 units per week, but in lots of only 1,000 at a
time because of their retail store space constraints.
d. The market is very competitive, with generally stable or
decreasing marketplace prices.
e. In countries that are warm year-round, sales are pretty steady;
in southern countries and states or those that have seasons, 90%
of sales occur in the May–August period.
f. The raw materials to make this product are bulky, and
inbound shipping from the suppliers to the manufacturing plant
represents 20% of total raw material costs. These raw materials
are supplied in the United States from the East Coast; they are
not available elsewhere.
g. Domestic demand is expected to increase 5% annually;
international demand is expected to increase 15% annually in
France and Spain, but only 2% in Northern European countries.
h. In the past, to keep West Coast customers happy, the CEO
agreed to freight equalize customer shipping charges to be
competitive with West Coast competition. She says that they
only charge those customers the local freight cost of shipping,
which is $200 per delivery for anything up to half-truckload
quantities.
Section V: nonquantitative Factors (400–500 words)
Identify at least 5 subjective, nonquantitative factors to also
consider in the section IV recommendation.

Section VI: Conclusion (200–300 words)
What are the 3–5 most important points that you want the CEO
to understand about this entire decision-making process?
Review the recommendations of your instructor and classmates
for your Key Assignment, and make the appropriate changes to
your draft. Then, respond to the following in 250–300 words,
and add it as Section VII:
a. Describe how what was learned in this mass merchandising
industry could be applied to the logistics challenges in some
other industry.
b. Would the logistics criteria for decision making be the same
as for mass merchandising? Why or why not?
c. Would the logistics metrics be the same as for the mass
merchandising industry? Why or why not?
PAGE
1
Head Running: - Total Rewards Systems Proposal
Total Rewards Systems Proposal
Your Name here
Name of the University
Instructor Name here
HRM 533- Total Rewards
Date
Abstract
This paper is provided to create, organize, and manage a total
rewards program for an insurance company. First, it indicates
the requirement of a total rewards system for the company.

Then, it formulates a competitive strategy and explains it. Since
the communication of a strategy is as important as the strategy
itself, the paper includes a communication plan of the strategy.
And last but not least it studies devising a competitive pay
structure.
1. Create a brief overview of the company requirements for a
total rewards system.
Company A is a holding company that provides financial
protection, insurance and asset management services that
employs 20,000 employees in 17 different countries in Europe,
North America and Asia Pacific (The Datamonitor Group,
2011). There are 2,000 management-level individuals who speak
a variety of languages. The company employs diverse
individuals who are governed by multiple regulatory
environments.
Company A’s business finds its primary source of strength in
human competencies. The company believes in the power of
talented and dedicated employees to make difference on the
quality of the service delivered at the market. The company
aims at gaining the preference of its customers and shareholders
as well as its employees. Because the employees are at the core
of purpose, the company intends to build its collective success
around a relationship in which the needs of itself and of its
employees are mutually satisfied.
The company needs a comprehensive total rewards strategy
because it wants to:
* inspire and empower employees who continuously seek and
adopt better ways to do his or her job to achieve their best.
* be competitive on the market with recruiting the best
workforce. The expectation from employees is performing at

high standards and aiming to exceed customer expectations.
* built a learning culture which fosters personal development,
professional mobility, openness to change and willingness to
learn.
* have employees who value individuals and their diversity,
respect others and openly share information, knowledge and
views to help colleagues succeed.
* act in line with its values of professionalism, innovation,
pragmatism, team spirit and integrity.
2. Formulate a total rewards strategy to encompass the
fundamentals of compensation and the regulatory environments.
A well-articulated compensation philosophy drives
organizational success by aligning pay and other rewards with
business strategy. It provides the foundation for plan design and
administration and anchors current and future plans to the
company's culture and values (Kaplan, 2006, p.32). Recognizing
and rewarding achievement is the cornerstone of the company
A’s compensation philosophy. The mission of the company is to
attract, select, place and promote all individuals based on their
qualifications. The company believes that performance-based
compensation helps attract, develop and retain talented
professionals. In addition to base pay which based upon local
market conditions and targeted to be above market, the company
provides the following types of potential compensation to
reward performance:
* Annual Merit Increases (all exempt and nonexempt salaried
employees are eligible)
* Annual Promotions (all exempt and nonexempt salaried

* Annual Spot Bonuses (all exempt and nonexempt salaried
* Short-Term Incentive Compensation (all exempt and
nonexempt salaried employees are eligible)
* Long-Term Incentive Compensation (all exempt salaried
Because of the compensation programs must adhere to specific
laws designed to provide fairness in how employees are paid,
the compensation system of the company sticks to laws and all
of the regularities of the laws are followed well by the company
(Worldatwork, 2007). There is no discrimination based on race,
colour, religion, sex, pregnancy, national origin, and disability
at hiring, firing or promoting. There are regulations about
working conditions and workplace safety. Nonexempt
employees’ wages, overtime pays are in unison with FLSA
regulations. There is no child labour in the company.
Besides the compensation there are comprehensive benefit
programs that the company offers to its employees which
reward them for their hard work. The programs give them the
opportunity to accumulate wealth, and provide for their
protection and well-being. There are:
* Health insurance (all exempt and nonexempt salaried
* Vision and dental insurance (all exempt salaried employees
are eligible)
* 401 (k) plan (all exempt and nonexempt salaried employees
are eligible)

* Disability plans (all exempt and nonexempt salaried
* Adaption programs (all exempt salaried employees are
eligible)
* Educational assistance programs (all exempt salaried
* Life insurance (all exempt and nonexempt salaried employees
are eligible)
* Day care service (all exempt salaried employees are eligible)
3. Explain the advantages of the total rewards strategy you are
proposing and how it might satisfy the employees’ needs.
The purpose of this strategy, like every other rewards strategy,
is to enhance recruitment, retention, and performance levels
within the company. The company wants to be the first choice
of potential employees to work which also affects its reputation
in a good way. The company makes an emphasis on its wide
benefits packages to show the value that it gives its employees
as well as its compensation strategy. It drives organizational
success through greater talent attraction, engagement and
retention.
I believe that this strategy is helpful to create employee
commitment. Employee commitment comes from employees
who believe their future is tied to that of the organization and
their willingness to make personal sacrifices for the
organization. The more the company is dedicated to taking care
of its employees, the more likely it is that the employees will
take care of the organization (O. Ferrell, Fraedrich, and L.
Farrell, 2011, p.18). With the strategy, employees will feel their
selves and their families valued by the company. Thus, they will

have intellectual and emotional attachment to the company. It
will reduce employee turnover within the organization. They
will feel their selves as a member of the company. Employees
will feel that their work contributes to the success of the
organization and have a clear line of sight between their roles
and company objectives. They will want to do their best, which
will be increased profitability, and recommend their company as
a good place to work which will affect the reputation of the
company.
4. Determine the key communication components of the total
rewards system.
A competitive and desirable total rewards system will not be
effective if employees and prospective employees don’t know
what is in it. This makes communication of the system just as
important as the system itself (Nelson, 2010, p. 4). Before the
company starts to communicate the strategy with employees, it
needs to figure out some issues, like:
* How to communicate with different level of employees?
(exempt- nonexempt)
* When to communicate?
* Which media should be preferred?
* Who will communicate with employees?
After the company clarifies its mind about these issues, it can
start to communicate the strategy.
There will be two teams to communicate different levels of
employees. Because of a need of different communication styles
and media, team 1 will communicate all exempt employees,
while team 2 is taking care of nonexempt employees. Team 2

will give detailed information to nonexempt employees about
the strategy during the recruitment process. They will make the
emphasis on implementing of the strategy and the policies.
Team 1 also gives detailed information to exempt employees
during the recruitment process but they will make emphasis on
tailored rewards to motive them.
Also both team 1 and team 2 will be provided written
explanation of the strategy to both exempt and nonexempt
employees. Additionally, there will be audio about the strategy
for nonexempt employees. There is a toll free lines are available
to guide both exempt and nonexempt employees about the using
of benefits.
Additionally, advisors will be available at the company for
existing employees who wants to tailor the received benefits.
For example, an employee who just had an accident and had
some disabilities can start to benefit disability programs on
guidelines of the company’s advisors. Also, the job of those
advisors is to create a career path for the employees and guided
them who want to have reimbursement opportunities as well as
providing trainings within the company. So, employees can have
verbal communication with them whenever they need.
When changes happen on one of the component of the program,
the company gathers employees in a conference room to let
them know about the changes. Also depends on the level of the
employees it provides e-mails or flyers about the changes.
Communication at the every stage of the program is too
important for the company.
5. Indicate your strategy for devising a competitive pay
structure.
First of all, to build a competitive pay structure the company
has to develop an accurate description of the jobs to be

evaluated. The job description is used to ensure accurate
comparison with published market surveys and for internal
comparisons with other jobs within the company. The job
description should state the reason the job exists and list the
key duties and responsibilities. It should spell out the
qualifications needed for competent performance of the job
duties, including educational and experience requirements,
skills and abilities needed to do the job, as well as any physical
demands and environmental exposures encountered (EarthLink
Inc., 2012).
External equity is more important for the company than internal
equity. Thus, the process of collecting data via surveys is really
important process for the company. At the hiring process the
rate is higher than market but over time, when a commitment
was gained from employees over years with helping of benefits
of the company, the rate is kept in line market price during the
seniority years of employees. So, the minimum salary of the
jobs is higher than market but midpoint and maximum are in
unison with the market. Also the company considers internal
equity somehow. There are different salary minimum, midpoint
and maximum ranges for some nonexempt jobs according to the
importance of the department that the job performed within the
organization.
References
EarthLink Inc. (2012). Sample compensation study. Retrieved
February 8, 2012, from
http://home.earthlink.net/~hrpartners1/id12.html
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business
ethics: ethical decision making &
cases. Mason, OH: Cengage Learning

Kaplan, S. L. (November 1, 2006). Answer these questions for a
sound compensation
philosophy. Business source complete. (Accession No.
23652229) Retrieved February 7, 2012, from, https://web-
ebscohost-com.libdatab.strayer.edu/ehost/pdfviewer/pd
fviewer?sid=57b31a86-3d7d-43e1-a86f-
705a41503b34%40sessionmgr15&vid=11& hid=123
Nelson. A. H. (2010). Total rewards: it’s more than just a
paycheck! Total Rewards Instructor’s
Manual. Retrieved February 7, 2012, from,
http://www.shrm.org/Education/hr
education/Documents/Nelson_Total%20Rewards%20Its%20Mor
e%20Than%20Just%20a%20Paycheck!_IM_FINAL.pdf
The Datamonitor Group, (2011, October 1). AXA SWOT
analysis. Business source complete.
(Accession No. 67304364) Retrieved February 7, 2012, from,
https://web-ebscohost-
com.libdatab.strayer.edu/ehost/pdfviewer/pdfviewer?vid=6&hid
=123&sid=57b31a86-3d7d-43e1-a86f-
705a41503b34%40sessionmgr15
Worldatwork (2007). The worldatwork handbook of
compensation, benefits & total rewards.
Hoboken, NJ: John Wiley & Sons, Inc.
Running head: TOTAL REWARD SYSTEM

1
INFORMATION SYSTEMS
TOTAL REWARD SYSTEM
10
Total Rewards System
Name
Institution
Date
Total Rewards System
Currently, most organizations are operating reward programs
that are not current, no updates of new developments hence
should be out of question especially in this era of
competitiveness. These plans were developed for a labor force
compared to that of old age that has moved to retirement,
leaving a new world in its wake. In the last two decades, the
workforce has become more diverse and less likely to stay at
similar company for extended duration of time. It has also
become more sophisticated about compensation hence rendering
traditionally pay plans ineffective at best and in most cases
counterproductive. It is noted that most organizations reward
strategies has not met its objectives because organizations are
hesitant to change their policies because they are uncertain on
the way of doing it, they are afraid of change, too inflexible, or
unable to respond fast enough to changes in the business (Manas
& Graham, 2003).
Thompson (2004) defines total reward as all the employer’s

available tools make employees get interested in doing their
work, excite and appease them. Armstrong (2012) asserts that
definitions of total rewards typically encompasses not only
traditional, quantifiable elements such as salary, variable pay
and benefits but includes also more intangible non cash
elements such as gaining knowledge and growth, ability to
acquire and act or take responsibility, progress in career and
the conducive environment provided by the organization.
One way that many organizations define their total reward
strategy is through the development, communication and
maintenance of a rewards policy. It communicates how the
organization plans to reward people including pay, benefits and
work environment characteristics, how the system will be
designed and maintained and the philosophy of what rewards
are supposed to accomplish. Components of a reward system
consist of financial rewards and employees benefits which
together constitutes total remuneration. It also incorporates non
financial rewards such as praise, recognition, achievement,
responsibility and personal growth and most performance
management processes. Total Reward system comprises the
financial rewards, employee benefits and non financial
compensation.
Basically, the premise of total rewards system is that there is no
more to rewarding people than throwing money at them. This is
the reason why every organization requires total rewards
system. Issues initiated by recruitment and retention as well as
means of influencing behavior is addressed well by total
rewards strategy as this may influence workers to work towards
achieving the organizational goal and objectives depending on
how they have been rewarded. It also encourages or excites
employees to work towards achieving their needs. It also
motivates them towards redoubling their efforts hence
addressing the broad of issues and spending reward money in
areas where it is required and effectively address shifting values
of workers. Finally, creating a challenging and conducive

workplace in which employees can use their talents, abilities,
skills and experience to meet targets that translate to receiving
appreciation by the employer hence enhancing motivation and
greater performance.
Total Rewards Strategy
Employee rewards system comprises of policies, processes and
practices for compensating its workers according to their skills,
performance, and contribution to the organization. It is
established within the framework of reward philosophy,
strategies and policies, structures put in place, processes and
practices of the organization.
The strategy includes the process of measuring the value of
jobs, personal contribution in the job, the coverage and benefits
provided to employees. The processes consist of market rate,
job evaluation, analysis and performance management. The
reward strategy will be achieved by: developing practices that
excite people through monetary and non monetary rewards.
Financial rewards include base and variable pay and employee
benefits, and allowances. Non financial rewards are provided
through sound leadership and management, work and benefits
given to employees to develop their careers. Also have
structures in place associating payment and opportunities to the
Company by providing monetary rewards to workers according
to individuals, group or organizational performance. In
addition, establish procedures for maintaining the system for
ensuring that it provides monetary value and operates in a
flexible and efficient manner (Armstrong, 2012).
The other reward strategies are:
· Reviewing the work environment and analyze current reward
policies and practices. Researching different models or
approaches and benchmark rewards practices elsewhere,

especially those to do with selecting and defining elements of
total rewards and methods of introduction.
· Involving stakeholders such as senior management, line
managers, workers and their deputies in coming up with the
approach of total reward and ideal phases.
· Selecting a reward model to adopt
· Prioritize the introduction of elements as necessary and
integrate the total rewards strategy with the human resource
strategy and plan and implementing the program.
· Making sure those in management are provided with necessary
requirements to play their role in total rewards program and
finally communicate throughout the program on what is taking
place and how well can be accomplished.
Tanke (2001) suggests that to formulate total rewards strategy
that encompasses the fundamentals of compensation and the
regulatory environments should follow fair labor standards act
practiced by the federal law. Fair labor standards act includes
information and regulations on the following compensatory
areas: Minimum wage law, employee meals and meals credit,
equal pay, overtime, child labor, tip-tip credits and tip- pooling
procedures, uniform and uniform maintenance, record keeping
among others. He maintains that it is necessary to be flexible as
opposed to being rigid as well as accommodating changes in
attitude and demographics. He suggests the following as best
reward strategies: Providing a promotional incentive that would
motivate employees to seek the opportunities your company
provides, compensation for quality work to encourage
employees and assure them that the organization works towards
achieving provision of quality goods and services, an equitable
system that all employees view as fair, establishing standard
procedures on compensation that ensures it attains and

maintains the integrity of reward system as well as having in
place an effective method for controlling compensation costs.
Advantages of total reward strategy.
Gone is the era when reward was about cash and benefits and its
place is where organizations have put together increasingly
sophisticated reward packages in order to hold on to their most
valued staff. The emphasis in leading organizations is on a total
reward approach that reflects the fundamental acceptance of
people to business success. Total rewards explain current
models, investigates the changing employment landscape and
demonstrating that employees are critical to business success
and outlines why organizations need an integrated approach to
reward strategies (Thompson, 2004).
There are numerous advantages of total reward strategy as
indicated below among others:
1. Greater impact. The combined effect of different types of
rewards will enhance the employment relationship and make a
deeper and long- lasting impact on motivation and performance.
2. Flexibility to meet individual needs. Relational rewards are
assumed to be strongly binding individuals to the organization
since they provide solutions and answers to special individual
needs. Armstrong comments that companies today are managing
much more heterogeneous population, and for each diverse
workplace, no one component can have a significant value as
employees have to make choices and need for greater
flexibility.
3. Attraction and retention. Relational rewards help to deliver a
positive psychological contract. The organization can become
an employer of choice and a great place to work hence
attracting and retaining talented people it needs.
· Improves employee’s perception of the value of their reward

package.
· Increased organizational performance through greater
workforce commitment and motivation in the organization.
· Improved recruitment arising from a quantified total
employment package.
· Supporting the objective of becoming an employer of choice.
· Promoting flexibility in pay delivery.
· Helping in managing costs and maximize the return on
investment in Human Resources.
· Mixing intrinsic and extrinsic rewards to encourage employees
discretionary effort.
· Relocating effort to match the individual employee needs.
Communication components
Communication defines the relationship between employees and
employer and in most cases; employee can terminate the
relationship as a result of poor communication. It also motivates
employee to increase productivity. Ineffective communication
breaks a deal. A company can have most of the well-conceived,
elegantly designed programs, but if the word does not get out to
the current and prospective employees then it is of no value as
the recipient defines the significance of total rewards program.
Communication approach should be: Comprehensive to cover
the totality of rewards and addresses all employees needs and
queries; it should be personalized to meet expectations of the
day; searchable so that they can get what they are searching
when there is need, it should also be human as technology can
sort out multiple issues but communication on employees
rewards should not depend on technology.

Strategy for devising a competitive pay structure
Now days, there is stiff competition in various organizations
across the globe especially in the age of 21st century. Therefore
in order to remain competitive, companies need to develop
reward packages that satisfy people. These reward packages
also referred to as total rewards include all the monetary and
nonmonetary rewards provided by an organization to attract,
motivate and retain employees. Sudhir (2009) asserts that for a
pay system to be successful, it will depend on linking the
organizations’ objectives and strategies to compensation so that
individuals are encouraged to work in a way that generates
income to the firm and its stakeholders. The concept of total
rewards requires a much broader understanding of pay or
compensation traditionally occurred in business organizations.
The total rewards concept emphasizes both direct and indirect
compensation which strengthens a company’s ability to
motivate employees particularly in challenging financial
situations as faced by some companies.
Chingos (2004) notes that, the pay structure must respond to the
company’s compensation philosophy, policies and strategies.
Therefore, the following is the strategy for devising a
competitive pay structure:
· Comparing actual pay levels versus market which will help in
identifying completive gaps
· Evaluating the alignment of the executive pay structure with
the organization’s compensation strategy.
· Evaluating the pay performance relationship degree to which it
reflects the organization’s strategy.
· Identifying the change necessary in either the pay program or
compensation strategy.
· Providing a market basis to help in guiding the development of
changes made.
Jensen & McMullen (2007) point out that for an organization to
be in a better strategic position in achieving total reward, it

should put into consideration the following among others: Know
the organizations pay philosophy, its reward program and how
the various reward elements operate. The next is to identify
employee attributes that the company encourages, supports and
rewards these could constitute the organization’s culture. It is
significant to understand your company’s leadership to people
approach whether it is top-down or inclusive, whether it is
focused on managing functions, individuals, teams or units.
They also mention that it is vital to be aware of how to lead
people, contact with employees, its growth and working
conditions. Identify opportunities that can help employees
develop be it one time work assignments, new positions, or new
responsibilities. Also be sensitive to staff members’ needs and
flexible in how to engage with them. Finally, staff recognition
for some of the everyday things that go without being realized,
and when there is need provide response and training on how
people can perform better.
The company will adopt Towers Perrin Model of total reward
where three elements of total reward are used. These elements
are compensation which includes salary, performance based
bonus, and stock options. Benefits such as non-contributory
pension, life cover, private health care, perks and cars and work
experience which is defined as all elements providing one with
an environment that enables one to optimize and achieve full
potential while maintaining balance of your personal and
professional life.
The structure will be in designed as follows: Compensation or
pay which constitutes base pay, annual bonuses, long term
incentives, shares and profit sharing. Other benefits include
pensions, holidays, perks and flexibility. The next is learning
development which involves on the job training ensuring that
goals or objectives are met effectively and efficiently, career
progress and succession planning. Work environment
incorporates organizational culture, leadership,

communications, involvement, work life balance and non-
financial recognition. Pay and other benefits are transactional
tangible benefits or rewards that are essential to recruitment and
retaining staff. Working environment and learning and
development are relational intangible rewards referred to as
rewards and cultural brand which is more difficult for
competitors to copy.
References
Armstrong, M. (2012).Armstrong’s Handbook of Reward
Management : Improving
Performance through Reward, Fourth edition. London: Kogan
Page.
Armstrong, M. & Brown, D. (2006).Strategic Reward: Making it
Happen. Great Britain: Kogan
Page.
Chingos, P. T. (2004). Responsible Executive Compensation for
a New Era of Accountability.
New Jersey: John Wiley & sons, Inc.
Jensen, D., McMullen, T., & Stark, M. (2007).The managers
guide to Rewards: What you need
to know to get the best for and from -your employers. USA: Hay
Group, Inc.

Manas, T. M. & Graham, M. D. (2003).Creating a Total
Rewards Strategy: A Tool kit for
Designing Business- Based Plans. USA: AMACOM.
Sudhir, A. (2009). Human Resource Management: A textbook
for the hospitality industry. New
Delhi: McGraw-Hill.
Tanke, M. L. (2001). Human Reource Management for the
Hospitality Industry. USA: Cengage
Learning.
Running head: Assignment 3
1
Assignment 3

4Assignment 3
Name: Anna Stephen
For Dr. Larry Byrd
HRM533Date: 11 August, 2014
(Title)Organization Overview
This paper will discuss the total rewards program for (Name
of the Company, real or otherwise). This company is (Complete
this paragraph briefly describing the multinational company and
its requirements/needs for a total rewards system. You should
remember that this company is diverse and in multiple
countries.)Total Rewards Strategy
In order to meet the HR needs of this company, HR must
accomplish the elements discussed in the succeeding paragraphs
that address the fundamentals of this type of total rewards
system while complying with the regulatory environments. (See
pages 24—27 for strategy development. Check the index in the
back of the book for Compensation regulatory programs to get
an idea of the regulatory environments. A strategy is a
roadmap, so in the following paragraphs layout the steps that
HR should take to meet these requirements.)
The first element is (Complete the paragraph stating the
first thing HR needs to do.)
The second element is (Complete the paragraph stating the
next thing HR needs to do.)
(Continue writing paragraphs with this beginning until you
have fully explained the elements that must be accomplished by
the compensation system.)
System Advantages
There are several advantages to this total rewards system as
described above, and they are discussed in the succeeding
paragraphs.

The first advantage is (Complete the paragraph stating the
advantage and how it meets the employees’ needs.)
The second advantage is (Complete the paragraph stating
the advantage and how it meets the employees’ needs.)
have exhausted the advantages.)Communicating the Plan
For a total rewards system to be successful, it must be
clearly and widely communicated. The succeeding paragraphs
describe the richness of the communications plan that must
reach such diverse people and geography. (See pages 64—71;
you should find 5 components.)
The first component of the plan is (Complete the
paragraph.)
The second component of the plan is (Complete the
paragraph.)
have exhausted the components of the plan.)Ensuring the Plan is
Competitive
Additionally, for a total rewards plan to be successful,
external equity must be ensured. The succeeding paragraphs
describe the steps that (Company name) will take to ensure the
competitiveness of the plan for the multinational company. (see
chapters 8 and 9)
The first step is (Complete this paragraph describing the
first step the company needs to take to ensure competitiveness.)
The second step is (Complete this paragraph describing the
first step the company needs to take to ensure competitiveness.)
have exhausted the steps for ensuring the competitiveness of the

plan.)
(Do not forget your references. For detailed APA instructions,
see the Additional Resources at the bottom of the Student
Center.)

· Assignment 3 Total Rewards System ProposalDue Week 6 and wort.docx

Recommended

Recommended

More Related Content

Similar to · Assignment 3 Total Rewards System ProposalDue Week 6 and wort.docx

Similar to · Assignment 3 Total Rewards System ProposalDue Week 6 and wort.docx (7)

More from LynellBull52

More from LynellBull52 (20)

Recently uploaded

Recently uploaded (20)

· Assignment 3 Total Rewards System ProposalDue Week 6 and wort.docx