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U N I T 1 Theoretical Basis for Psychiatric–Mental Health
Nursing114
Note: The greater the number of positive responses, the greater
the
person’s identification with a traditional heritage. The one
exception
to positive answers is the question about family name change.
This
question may be answered negatively.
1. Where was your mother
born?____________________________
2. Where was your father born?
______________________________
3. Where were your grandparents born?
(1) Your mother’s mother?______________________________
(2) Your mother’s father? ______________________________
(3) Your father’s mother? ______________________________
(4) Your father’s father? ________________________________
4. How many brothers _____ and sisters _____ do you have?
5. What setting did you grow up in? Urban _____ Rural _____
Suburban _____
6. What country did your parents grow up in?
Father _____
Mother _____
7. How old were you when you came to the United States?
_____
8. How old were your parents when they came to the United
States? Mother _____ Father _____
9. When you were growing up, who lived with you? _____
10. Have you maintained contact with
a. Aunts, uncles, cousins? (1) Yes _____ (2) No _____
b. Brothers and sisters? (1) Yes _____ (2) No _____
c. Parents? (1) Yes _____ (2) No _____
d. Your own children? (1) Yes _____ (2) No _____
11. Did most of your aunts, uncles, cousins live near your
home?
(1) Yes _____ (2) No _____
12. Approximately how often did you visit your family members
who
lived outside your home?
(1) Daily _____ (2) Weekly _____ (3) Monthly _____ (4) Once
a year or less _____ (5) Never _____
13. Was your original family name changed?
(1) Yes _____ (2) No _____
14. What is your religious preference?
(1) Catholic _____ (2) Jewish _____ (3) Protestant _____
(4) Denomination (5) Other _____ (6) None _____
15. Is your spouse the same religion as you?
(1) Yes _____ (2) No _____
16. Is your spouse the same ethnic background as you?
(1) Yes _____ (2) No _____
17. What kind of school did you go to?
(1) Public _____ (2) Private _____ (3) Parochial _____
18. As an adult, do you live in a neighborhood where the
neighbors
are the same religion and ethnic background as yourself?
(1) Yes _____ (2) No _____
19. Do you belong to a religious institution?
(1) Yes _____ (2) No _____
20. Would you describe yourself as an active member?
(1) Yes _____ (2) No _____
21. How often do you attend your religious institution?
(1) More than once a week _____ (2) Weekly _____
(3) Monthly _____ (4) Special holidays only _____
(5) Never _____
22. Do you practice your religion at home?
(1) Yes _____ (2) No _____
(If yes, please specify)
(3) Praying _____ (4) Bible reading _____
(5) Diet _____ (6) Celebrating religious holidays _____
23. Do you prepare foods of your ethnic background?
(1) Yes _____ (2) No _____
24. Do you participate in ethnic activities?
(1) Yes _____ (2) No _____
(If yes, please verify)
(3) Singing _____ (4) Holiday celebrations _____
(5) Dancing _____ (6) Festivals _____
(7) Costumes _____ (8) Other _____
25. Are your friends from the same religious background as
you?
(1) Yes _____ (2) No _____
26. Are your friends from the same ethnic background as you?
(1) Yes _____ (2) No _____
27. What is your native language? _____
28. Do you speak this language?
(1) Prefer _____ (2) Occasionally _____ (3) Rarely _____
29. Do you read your native language?
(1) Yes _____ (2) No _____
B O X 6 – 1 Heritage Assessment Tool
Source: Spector, R. E. (2000). CulturalCare: Guide to heritage
assessment and health traditions (5th ed.). Pearson
Education/PH College.
Developing Cultural Competence
in Nursing Practice
Developing an understanding of cultural competence requires
paying attention to considerations of global health, cultural val-
ues, cultural phenomena affecting health, and the importance
of cultural assessment as part of the nursing process. Cultural
competence in nursing practice requires practical strategies (in
general as well as specific to a particular cultural group), con-
siderations of community-based health care promotion and
disease prevention programs, and the need to advocate for cul-
tural diversity in nursing practice, research, and education. At
the same time, it is important to be aware that there are varying
degrees of acculturation and individual differences—assess-
1340_CH06 12/31/02 9:38 AM Page 114
The assignment will be graded using the following rubric:
Points: 300
Assignment: Compensation Plan Outline
Criteria
Unacceptable
Below 60% F
Meets Minimum Expectations
60-69% D
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
1. Evaluate the existing compensation plan to determine if it is
the most appropriate for your company. Explain your rationale.
Weight: 15%
Did not submit or incompletely evaluated the existing
compensation plan to determine if it is the most appropriate for
your company. Did not submit or incompletely explained your
rationale.
Insufficiently evaluated the existing compensation plan to
determine if it is the most appropriate for your company.
Insufficiently explained your rationale.
Partially evaluated the existing compensation plan to determine
if it is the most appropriate for your company. Partially
explained your rationale.
Satisfactorily evaluated the existing compensation plan to
determine if it is the most appropriate for your company.
Satisfactorily explained your rationale.
Thoroughly evaluated the existing compensation plan to
determine if it is the most appropriate for your company.
Thoroughly explained your rationale.
2. Determine the most beneficial ratio of internally consistent
and market consistent compensations systems for the company
you selected.
Weight: 15%
Did not submit or incompletely determined the most beneficial
ratio of internally consistent and market consistent
compensations systems for the company you selected.
Insufficiently determined the most beneficial ratio of internally
consistent and market consistent compensations systems for the
company you selected.
Partially determined the most beneficial ratio of internally
consistent and market consistent compensations systems for the
company you selected.
Satisfactorily determined the most beneficial ratio of internally
consistent and market consistent compensations systems for the
company you selected.
Thoroughly determined the most beneficial ratio of internally
consistent and market consistent compensations systems for the
company you selected.
3. Evaluate the current pay structure used by your company and
assess the recognition of employee contributions.
Weight: 20%
Did not submit or incompletely evaluated the current pay
structure used by your company and did not submit or
incompletely assessed the recognition of employee
contributions.
Insufficiently evaluated the current pay structure used by your
company and insufficiently assessed the recognition of
employee contributions.
Partially evaluated the current pay structure used by your
company and partially assessed the recognition of employee
contributions.
Satisfactorily evaluated the current pay structure used by your
company and satisfactorily assessed the recognition of
employee contributions.
Thoroughly evaluated the current pay structure used by your
company and thoroughly assessed the recognition of employee
contributions.
4. Make two (2) recommendations for improving the
effectiveness of the discretionary benefits provided by the
company you selected.
Weight: 20%
Did not submit or incompletely made two (2) recommendations
for improving the effectiveness of the discretionary benefits
provided by the company you selected.
Insufficiently made two (2) recommendations for improving the
effectiveness of the discretionary benefits provided by the
company you selected.
Partially made two (2) recommendations for improving the
effectiveness of the discretionary benefits provided by the
company you selected.
Satisfactorily made two (2) recommendations for improving the
effectiveness of the discretionary benefits provided by the
company you selected.
Thoroughly made two (2) recommendations for improving the
effectiveness of the discretionary benefits provided by the
company you selected.
5. Evaluate the types of employer-sponsored retirement plans
and health insurance programs provided by the company you
selected and compare them to that company’s major
competitors.
Weight: 15%
Did not submit or incompletely evaluated the types of
employer-sponsored retirement plans and health insurance
programs provided by the company you selected. Did not submit
or incompletely compared them to that company’s major
competitors.
Insufficiently evaluated the types of employer-sponsored
retirement plans and health insurance programs provided by the
company you selected and insufficiently compared them to that
company’s major competitors.
Partially evaluated the types of employer-sponsored retirement
plans and health insurance programs provided by the company
you selected and partially compared them to that company’s
major competitors.
Satisfactorily evaluated the types of employer-sponsored
retirement plans and health insurance programs provided by the
company you selected and satisfactorily compared them to that
company’s major competitors.
Thoroughly evaluated the types of employer-sponsored
retirement plans and health insurance programs provided by the
company you selected and thoroughly compared them to that
company’s major competitors.
6. 3 references
Weight: 5%
No references provided
Does not meet the required number of references; all references
poor quality choices.
Does not meet the required number of references; some
references poor quality choices.
Meets number of required references; all references high quality
choices.
Exceeds number of required references; all references high
quality choices.
7. Clarity, writing mechanics, and formatting requirements
Weight: 10%
More than 8 errors present
7-8 errors present
5-6 errors present
3-4 errors present
0-2 errors present
Running head: COMPENSATION PRACTICE
1
COMPENSATION PRACTICE
9
Compensation Practice
Name
Instructor
Course Title
Date
Abstract
Compensation practices have been used by the Apple Company,
which is a multinational company based in America with its
headquarters located in Cupertino. The Apple Company is
known for developing, designing and selling computer software
such as iTunes, iOS operating systems, among other consumer
electronics. Their popular products in the Mac line are
computers, iPads, iPhones, and iPods. The company is ranked
number three in the phone making category, after Nokia and
Samsung. The company has penetrated in more than 14
countries making it, by market capitalization, one of the largest
publicly traded global companies.
Apple Company has an objective for employees on the platform
of compensation. The company aims at attracting and retaining
their executives since they ensure succeeds in the market
competition. The company strives to achieve the objective on
the company’s stakeholders. Compensation committee in the
company determines the compensation for the executives of the
company as well as overseeing the compensation program.
Executive compensation strategy has been the greatest tool in
the achievements of the company. Another compensation
strategy used by Apple Company is performance-based cash
incentive. Apple’s compensation committee determines the
compensation plans of its employees and executives.
The company employs competitive strategies in finding out the
compensation effects on the senior officials, employees, and
stakeholders. There are three major challenges facing Apple
Company, as well as attracting new employees, who have strong
talents, controlling the labor costs and multinational operations
challenge. Apple Company has employed compensation
strategies that conform to compensation laws used globally and
at the local country it operates. The traditional base for pay
focuses on giving merits on seniority and therefore becomes
effective since it facilitates a common ground to control
compensation matters.
Compensation Strategy of Apple Company
For any company, they need to focus on the efficiency of
operations since they pay their employees in return for the work
done (O'Grady, 2009, p. 67). To avoid employee frustrations
and bond frictions, a company and employees need to have a
broad agreement on binding documents about the compensation
package. Therefore, in that perspective, Apple Company has an
objective for employees on the platform of compensation. The
company aims at attracting and retaining their executives since
they ensure succeeds in the market competition. The company
strives to achieve the objective on the business’s stakeholders.
Compensation committee in the business determines the
compensation for the executives of the company as well as
overseeing the compensation program. Through a good
compensation program, the company believes that financial
performance can improve in the challenging macroeconomic
environment if compensation management is effective.
Executive compensation strategy has been the greatest tool to
the achievements of the company. The strategy involves rewards
such as base salaries, yearly bonuses out of the performance and
long-term equity rewards. Notably, the strategy has ensured
retention of performing executive leaders, as well as attracting
the most outstanding executive team. Besides that, the strategy
aims at determining supplementary rewards that stimulate the
performance of the employees. The company rewards the
mentioned employees with long-term equity rewards after every
two years. The company does not stress so much on the overall
monetary compensation but on equity rewards, thus, shaping its
annual performance-based cash bonus from the named executive
employee ("Apple, Inc. Executive Salaries & Other
Compensation | Salary.com," n.d.).
Another compensation strategy used by Apple Company is
performance-based cash incentive. The strategy has help Apple
Company in attaining its goals, objectives as well as attaining
better financial performance as compared with its competitors.
How the Compensation Practice Has Determined
Positive/Negative Impacts to the Apple Company and Its
Stakeholders
One way of indicating fair and equal plan effectiveness is
through compensation impact. Employees show that they are
satisfied with compensation programs through their behavior, as
well as presenting a positive work attitude. Thus, the company
benefits from the employee’s actions of higher performance and
improved effectiveness. Apple Company has a compensation
committee that determines the compensation plans of its
employees and executives. The compensation plans are
reviewed every year. The company employs competitive
strategies in finding out the compensation effects on the senior
officials, employees, and stakeholders. Besides this, the
company has employed different governance techniques as well
as charters so as to determine compensation impact.
Occasionally, the committee reviews the policy on
compensation to consider if it is still appropriate for use.
Moreover, the committee approves the incentive, benefits
policy, and the entire compensation policy of any employee, but
more so, that of senior executive officers ("AAPL Apple, Inc.
Executive Compensation," n.d.).
Also, compensation impact is assessed by the committee
through annual performance evaluation. The same is also done
by the governing board of Apple Company. Through this, the
efforts of hard working executive members are acknowledged,
as well as the individuals that partake in the financially based
impact of the company.
Challenges Related to Compensation Strategy Used by Apple
Company
There are three major challenges facing Apple Company. To
begin with is retaining, as well as attracting new employees who
have strong talents. Due to high competition in the labor market
for employees, the Apple’s compensation committee must
recognize that and factor in the increasing competitive salaries
and talented employees. The competition has raised wars in the
multinational companies dealing with computer and software
technologies. Therefore, Apple’s compensation committee is
expected to aim higher and come up with a good enticing
compensation plan for qualified and talented employees. Again,
the compensation committee should aim at enhancing employee
retention by developing a more complicated compensation
strategy ("Apple, Inc. Executive Salaries & Other Compensation
| Salary.com," n.d.).
Another challenge the Apple Company is facing is controlling
the labor costs. The company’s budget has constraints in the
countries that have constricted economies; meanwhile, war
arises among information technology companies. Thus, the
labor costs go up than the amount paid to the employees. As a
result, the creation of effective compensation strategies
becomes challenging.
Finally, Apple Company is facing a multinational operations
challenge. Apple being a multinational company operating in
different countries, it should, therefore, have strategies that
balance expectations and employees’ needs in the various
countries. Again the compensation strategies chosen should
conform to the local customs and laws against global corporate
policies. Sometimes adjusting this has been a significant
problem for Apple Company.
How Laws, Market Factors and Labor Unions Impact
Compensation Practices of Apple
Apple Company has employed compensation strategies that
conform to compensation laws used globally and at the local
country it operates. In this case, compensation laws and
regulations become critical to Apple Company as it can
undermine or improve compensation strategies used. Therefore,
any established compensation strategy must conform to the law.
Again, Apple should agree with the country’s compulsory leave
to employees, bonuses, working hours, and minimum salaries
for both permanent and temporary employees ("Apple, Inc.
Executive Salaries & Other Compensation | Salary.com," n.d.).
Again, the compensation strategies should also consider the
workers are working overtime. According to the law
established, then all workers working overtime should be
compensated effectively. For instance, the National Labor
Relations Act states that private employees must be protected
against the unfair labor practices of employers. Federal Labor
Law is formed to regulate unions, employers, as well as
employee relations. Labor unions have a greater impact on
compensation since they have employees’ bargaining power.
Therefore, they can directly affect employees’ wages, salaries,
and total compensations. Through effective labor unions,
employees can get the best compensation for the work done.
The market factors have impacted compensation strategies of
Apple Company. Due to increasing competition in the
information technology market, Apple Company must compete
favorably by setting aside some finances for compensation. By
doing so, evaluation reports are given by the compensation
committee every year which says that the employee performance
is increasing since they are motivated.
Effectiveness of Traditional Base for Pay approach
According to Need (2006), compensation strategy aims at
motivating, retaining and attracting the most talented employees
to the Apple Company. To ensure consistent financial success
for the company, choices on compensation strategy must be
made right. A traditional pay approach is perceived to be
consistent and fair. The same approach can produce either
productive or non-productive results. The truth of the matter is,
with merit pay calls for binding to the ongoing employee
training that can result in high costs.
The traditional base for pay focuses on giving merits on
seniority and therefore becomes effective since it facilitates a
common ground to control compensation matters. The approach
provides a company with good criteria based on compensation
evaluation. Reports should be drawn to show whether
employees are rewarded more than necessary. The approach also
serves as an important assessment tool on the company’s
internal pay equity. Since all jobs in practice are based on a
single system, it enables the company to compare what
employees are getting across the board. More on that, the
approach facilitates company market testing on the
competitiveness of the pay scale. Again the approach allows all
jobs to be scored using methods equitable to the other practices
("AAPL Apple, Inc. Executive Compensation," n.d.). Thus
making the approach quite objective and again makes the paying
system dependable as well as consistent. Hence employees
won’t see compensation program as arbitrary.
Unlike other compensation approaches, such as incentive-based
and person-focused, traditional base for pay may have some
shortcomings. The approach emphasizes an upward career
orientation, and senior executives continue getting the
compensation. It also emphasizes on bureaucracy as well as the
hierarchy in an organization. Finally, this approach fails to
accurately compensate for the performance of talented
employees.
In summary of the above discussion, Apple Company’s
compensation strategy is not just to build a strong competitive
edge, but supports human resource processes and helps the
company in becoming highly efficient in these processes and
leading in the information technology industry. The strategy has
managed to attract top talents from global job markets to the
company; therefore, retaining the talents for the best outcome of
the company.
References
AAPL Apple, Inc. Executive Compensation. (n.d.). Retrieved on
October 29, 2016, from
http://insiders.morningstar.com/trading/executive-
compensation.action?t=AAPL
Apple, Inc. Executive Salaries & Other Compensation |
Salary.com. (n.d.). Retrieved on
October 29, 2016, from http://www1.salary.com/APPLE-INC-
Executive-Salaries.html
Need, W. C. D. H. P. (2006). Human resource management:
Gaining a competitive advantage.
O'Grady, J. D. (2009). Apple, Inc. Westport, CT: Greenwood
Press.

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  • 1. U N I T 1 Theoretical Basis for Psychiatric–Mental Health Nursing114 Note: The greater the number of positive responses, the greater the person’s identification with a traditional heritage. The one exception to positive answers is the question about family name change. This question may be answered negatively. 1. Where was your mother born?____________________________ 2. Where was your father born? ______________________________ 3. Where were your grandparents born? (1) Your mother’s mother?______________________________ (2) Your mother’s father? ______________________________ (3) Your father’s mother? ______________________________ (4) Your father’s father? ________________________________ 4. How many brothers _____ and sisters _____ do you have? 5. What setting did you grow up in? Urban _____ Rural _____ Suburban _____ 6. What country did your parents grow up in? Father _____ Mother _____
  • 2. 7. How old were you when you came to the United States? _____ 8. How old were your parents when they came to the United States? Mother _____ Father _____ 9. When you were growing up, who lived with you? _____ 10. Have you maintained contact with a. Aunts, uncles, cousins? (1) Yes _____ (2) No _____ b. Brothers and sisters? (1) Yes _____ (2) No _____ c. Parents? (1) Yes _____ (2) No _____ d. Your own children? (1) Yes _____ (2) No _____ 11. Did most of your aunts, uncles, cousins live near your home? (1) Yes _____ (2) No _____ 12. Approximately how often did you visit your family members who lived outside your home? (1) Daily _____ (2) Weekly _____ (3) Monthly _____ (4) Once a year or less _____ (5) Never _____ 13. Was your original family name changed? (1) Yes _____ (2) No _____ 14. What is your religious preference? (1) Catholic _____ (2) Jewish _____ (3) Protestant _____ (4) Denomination (5) Other _____ (6) None _____ 15. Is your spouse the same religion as you? (1) Yes _____ (2) No _____ 16. Is your spouse the same ethnic background as you? (1) Yes _____ (2) No _____
  • 3. 17. What kind of school did you go to? (1) Public _____ (2) Private _____ (3) Parochial _____ 18. As an adult, do you live in a neighborhood where the neighbors are the same religion and ethnic background as yourself? (1) Yes _____ (2) No _____ 19. Do you belong to a religious institution? (1) Yes _____ (2) No _____ 20. Would you describe yourself as an active member? (1) Yes _____ (2) No _____ 21. How often do you attend your religious institution? (1) More than once a week _____ (2) Weekly _____ (3) Monthly _____ (4) Special holidays only _____ (5) Never _____ 22. Do you practice your religion at home? (1) Yes _____ (2) No _____ (If yes, please specify) (3) Praying _____ (4) Bible reading _____ (5) Diet _____ (6) Celebrating religious holidays _____ 23. Do you prepare foods of your ethnic background? (1) Yes _____ (2) No _____ 24. Do you participate in ethnic activities? (1) Yes _____ (2) No _____ (If yes, please verify) (3) Singing _____ (4) Holiday celebrations _____ (5) Dancing _____ (6) Festivals _____ (7) Costumes _____ (8) Other _____
  • 4. 25. Are your friends from the same religious background as you? (1) Yes _____ (2) No _____ 26. Are your friends from the same ethnic background as you? (1) Yes _____ (2) No _____ 27. What is your native language? _____ 28. Do you speak this language? (1) Prefer _____ (2) Occasionally _____ (3) Rarely _____ 29. Do you read your native language? (1) Yes _____ (2) No _____ B O X 6 – 1 Heritage Assessment Tool Source: Spector, R. E. (2000). CulturalCare: Guide to heritage assessment and health traditions (5th ed.). Pearson Education/PH College. Developing Cultural Competence in Nursing Practice Developing an understanding of cultural competence requires paying attention to considerations of global health, cultural val- ues, cultural phenomena affecting health, and the importance of cultural assessment as part of the nursing process. Cultural competence in nursing practice requires practical strategies (in general as well as specific to a particular cultural group), con- siderations of community-based health care promotion and disease prevention programs, and the need to advocate for cul- tural diversity in nursing practice, research, and education. At the same time, it is important to be aware that there are varying degrees of acculturation and individual differences—assess-
  • 5. 1340_CH06 12/31/02 9:38 AM Page 114 The assignment will be graded using the following rubric: Points: 300 Assignment: Compensation Plan Outline Criteria Unacceptable Below 60% F Meets Minimum Expectations 60-69% D Fair 70-79% C Proficient 80-89% B Exemplary 90-100% A 1. Evaluate the existing compensation plan to determine if it is the most appropriate for your company. Explain your rationale. Weight: 15% Did not submit or incompletely evaluated the existing compensation plan to determine if it is the most appropriate for your company. Did not submit or incompletely explained your rationale. Insufficiently evaluated the existing compensation plan to determine if it is the most appropriate for your company. Insufficiently explained your rationale. Partially evaluated the existing compensation plan to determine if it is the most appropriate for your company. Partially explained your rationale. Satisfactorily evaluated the existing compensation plan to determine if it is the most appropriate for your company. Satisfactorily explained your rationale. Thoroughly evaluated the existing compensation plan to
  • 6. determine if it is the most appropriate for your company. Thoroughly explained your rationale. 2. Determine the most beneficial ratio of internally consistent and market consistent compensations systems for the company you selected. Weight: 15% Did not submit or incompletely determined the most beneficial ratio of internally consistent and market consistent compensations systems for the company you selected. Insufficiently determined the most beneficial ratio of internally consistent and market consistent compensations systems for the company you selected. Partially determined the most beneficial ratio of internally consistent and market consistent compensations systems for the company you selected. Satisfactorily determined the most beneficial ratio of internally consistent and market consistent compensations systems for the company you selected. Thoroughly determined the most beneficial ratio of internally consistent and market consistent compensations systems for the company you selected. 3. Evaluate the current pay structure used by your company and assess the recognition of employee contributions. Weight: 20% Did not submit or incompletely evaluated the current pay structure used by your company and did not submit or incompletely assessed the recognition of employee contributions. Insufficiently evaluated the current pay structure used by your company and insufficiently assessed the recognition of employee contributions. Partially evaluated the current pay structure used by your company and partially assessed the recognition of employee contributions. Satisfactorily evaluated the current pay structure used by your company and satisfactorily assessed the recognition of
  • 7. employee contributions. Thoroughly evaluated the current pay structure used by your company and thoroughly assessed the recognition of employee contributions. 4. Make two (2) recommendations for improving the effectiveness of the discretionary benefits provided by the company you selected. Weight: 20% Did not submit or incompletely made two (2) recommendations for improving the effectiveness of the discretionary benefits provided by the company you selected. Insufficiently made two (2) recommendations for improving the effectiveness of the discretionary benefits provided by the company you selected. Partially made two (2) recommendations for improving the effectiveness of the discretionary benefits provided by the company you selected. Satisfactorily made two (2) recommendations for improving the effectiveness of the discretionary benefits provided by the company you selected. Thoroughly made two (2) recommendations for improving the effectiveness of the discretionary benefits provided by the company you selected. 5. Evaluate the types of employer-sponsored retirement plans and health insurance programs provided by the company you selected and compare them to that company’s major competitors. Weight: 15% Did not submit or incompletely evaluated the types of employer-sponsored retirement plans and health insurance programs provided by the company you selected. Did not submit or incompletely compared them to that company’s major competitors. Insufficiently evaluated the types of employer-sponsored retirement plans and health insurance programs provided by the company you selected and insufficiently compared them to that
  • 8. company’s major competitors. Partially evaluated the types of employer-sponsored retirement plans and health insurance programs provided by the company you selected and partially compared them to that company’s major competitors. Satisfactorily evaluated the types of employer-sponsored retirement plans and health insurance programs provided by the company you selected and satisfactorily compared them to that company’s major competitors. Thoroughly evaluated the types of employer-sponsored retirement plans and health insurance programs provided by the company you selected and thoroughly compared them to that company’s major competitors. 6. 3 references Weight: 5% No references provided Does not meet the required number of references; all references poor quality choices. Does not meet the required number of references; some references poor quality choices. Meets number of required references; all references high quality choices. Exceeds number of required references; all references high quality choices. 7. Clarity, writing mechanics, and formatting requirements Weight: 10% More than 8 errors present 7-8 errors present 5-6 errors present 3-4 errors present 0-2 errors present Running head: COMPENSATION PRACTICE 1 COMPENSATION PRACTICE
  • 9. 9 Compensation Practice Name Instructor Course Title Date Abstract Compensation practices have been used by the Apple Company, which is a multinational company based in America with its headquarters located in Cupertino. The Apple Company is known for developing, designing and selling computer software such as iTunes, iOS operating systems, among other consumer electronics. Their popular products in the Mac line are computers, iPads, iPhones, and iPods. The company is ranked number three in the phone making category, after Nokia and Samsung. The company has penetrated in more than 14 countries making it, by market capitalization, one of the largest publicly traded global companies.
  • 10. Apple Company has an objective for employees on the platform of compensation. The company aims at attracting and retaining their executives since they ensure succeeds in the market competition. The company strives to achieve the objective on the company’s stakeholders. Compensation committee in the company determines the compensation for the executives of the company as well as overseeing the compensation program. Executive compensation strategy has been the greatest tool in the achievements of the company. Another compensation strategy used by Apple Company is performance-based cash incentive. Apple’s compensation committee determines the compensation plans of its employees and executives. The company employs competitive strategies in finding out the compensation effects on the senior officials, employees, and stakeholders. There are three major challenges facing Apple Company, as well as attracting new employees, who have strong talents, controlling the labor costs and multinational operations challenge. Apple Company has employed compensation strategies that conform to compensation laws used globally and at the local country it operates. The traditional base for pay focuses on giving merits on seniority and therefore becomes effective since it facilitates a common ground to control compensation matters. Compensation Strategy of Apple Company For any company, they need to focus on the efficiency of operations since they pay their employees in return for the work done (O'Grady, 2009, p. 67). To avoid employee frustrations and bond frictions, a company and employees need to have a broad agreement on binding documents about the compensation package. Therefore, in that perspective, Apple Company has an objective for employees on the platform of compensation. The company aims at attracting and retaining their executives since they ensure succeeds in the market competition. The company strives to achieve the objective on the business’s stakeholders. Compensation committee in the business determines the compensation for the executives of the company as well as
  • 11. overseeing the compensation program. Through a good compensation program, the company believes that financial performance can improve in the challenging macroeconomic environment if compensation management is effective. Executive compensation strategy has been the greatest tool to the achievements of the company. The strategy involves rewards such as base salaries, yearly bonuses out of the performance and long-term equity rewards. Notably, the strategy has ensured retention of performing executive leaders, as well as attracting the most outstanding executive team. Besides that, the strategy aims at determining supplementary rewards that stimulate the performance of the employees. The company rewards the mentioned employees with long-term equity rewards after every two years. The company does not stress so much on the overall monetary compensation but on equity rewards, thus, shaping its annual performance-based cash bonus from the named executive employee ("Apple, Inc. Executive Salaries & Other Compensation | Salary.com," n.d.). Another compensation strategy used by Apple Company is performance-based cash incentive. The strategy has help Apple Company in attaining its goals, objectives as well as attaining better financial performance as compared with its competitors. How the Compensation Practice Has Determined Positive/Negative Impacts to the Apple Company and Its Stakeholders One way of indicating fair and equal plan effectiveness is through compensation impact. Employees show that they are satisfied with compensation programs through their behavior, as well as presenting a positive work attitude. Thus, the company benefits from the employee’s actions of higher performance and improved effectiveness. Apple Company has a compensation committee that determines the compensation plans of its employees and executives. The compensation plans are reviewed every year. The company employs competitive strategies in finding out the compensation effects on the senior officials, employees, and stakeholders. Besides this, the
  • 12. company has employed different governance techniques as well as charters so as to determine compensation impact. Occasionally, the committee reviews the policy on compensation to consider if it is still appropriate for use. Moreover, the committee approves the incentive, benefits policy, and the entire compensation policy of any employee, but more so, that of senior executive officers ("AAPL Apple, Inc. Executive Compensation," n.d.). Also, compensation impact is assessed by the committee through annual performance evaluation. The same is also done by the governing board of Apple Company. Through this, the efforts of hard working executive members are acknowledged, as well as the individuals that partake in the financially based impact of the company. Challenges Related to Compensation Strategy Used by Apple Company There are three major challenges facing Apple Company. To begin with is retaining, as well as attracting new employees who have strong talents. Due to high competition in the labor market for employees, the Apple’s compensation committee must recognize that and factor in the increasing competitive salaries and talented employees. The competition has raised wars in the multinational companies dealing with computer and software technologies. Therefore, Apple’s compensation committee is expected to aim higher and come up with a good enticing compensation plan for qualified and talented employees. Again, the compensation committee should aim at enhancing employee retention by developing a more complicated compensation strategy ("Apple, Inc. Executive Salaries & Other Compensation | Salary.com," n.d.). Another challenge the Apple Company is facing is controlling the labor costs. The company’s budget has constraints in the countries that have constricted economies; meanwhile, war arises among information technology companies. Thus, the
  • 13. labor costs go up than the amount paid to the employees. As a result, the creation of effective compensation strategies becomes challenging. Finally, Apple Company is facing a multinational operations challenge. Apple being a multinational company operating in different countries, it should, therefore, have strategies that balance expectations and employees’ needs in the various countries. Again the compensation strategies chosen should conform to the local customs and laws against global corporate policies. Sometimes adjusting this has been a significant problem for Apple Company. How Laws, Market Factors and Labor Unions Impact Compensation Practices of Apple Apple Company has employed compensation strategies that conform to compensation laws used globally and at the local country it operates. In this case, compensation laws and regulations become critical to Apple Company as it can undermine or improve compensation strategies used. Therefore, any established compensation strategy must conform to the law. Again, Apple should agree with the country’s compulsory leave to employees, bonuses, working hours, and minimum salaries for both permanent and temporary employees ("Apple, Inc. Executive Salaries & Other Compensation | Salary.com," n.d.). Again, the compensation strategies should also consider the workers are working overtime. According to the law established, then all workers working overtime should be compensated effectively. For instance, the National Labor Relations Act states that private employees must be protected against the unfair labor practices of employers. Federal Labor Law is formed to regulate unions, employers, as well as employee relations. Labor unions have a greater impact on compensation since they have employees’ bargaining power. Therefore, they can directly affect employees’ wages, salaries, and total compensations. Through effective labor unions,
  • 14. employees can get the best compensation for the work done. The market factors have impacted compensation strategies of Apple Company. Due to increasing competition in the information technology market, Apple Company must compete favorably by setting aside some finances for compensation. By doing so, evaluation reports are given by the compensation committee every year which says that the employee performance is increasing since they are motivated. Effectiveness of Traditional Base for Pay approach According to Need (2006), compensation strategy aims at motivating, retaining and attracting the most talented employees to the Apple Company. To ensure consistent financial success for the company, choices on compensation strategy must be made right. A traditional pay approach is perceived to be consistent and fair. The same approach can produce either productive or non-productive results. The truth of the matter is, with merit pay calls for binding to the ongoing employee training that can result in high costs. The traditional base for pay focuses on giving merits on seniority and therefore becomes effective since it facilitates a common ground to control compensation matters. The approach provides a company with good criteria based on compensation evaluation. Reports should be drawn to show whether employees are rewarded more than necessary. The approach also serves as an important assessment tool on the company’s internal pay equity. Since all jobs in practice are based on a single system, it enables the company to compare what employees are getting across the board. More on that, the approach facilitates company market testing on the competitiveness of the pay scale. Again the approach allows all jobs to be scored using methods equitable to the other practices ("AAPL Apple, Inc. Executive Compensation," n.d.). Thus making the approach quite objective and again makes the paying system dependable as well as consistent. Hence employees won’t see compensation program as arbitrary.
  • 15. Unlike other compensation approaches, such as incentive-based and person-focused, traditional base for pay may have some shortcomings. The approach emphasizes an upward career orientation, and senior executives continue getting the compensation. It also emphasizes on bureaucracy as well as the hierarchy in an organization. Finally, this approach fails to accurately compensate for the performance of talented employees. In summary of the above discussion, Apple Company’s compensation strategy is not just to build a strong competitive edge, but supports human resource processes and helps the company in becoming highly efficient in these processes and leading in the information technology industry. The strategy has managed to attract top talents from global job markets to the company; therefore, retaining the talents for the best outcome of the company. References AAPL Apple, Inc. Executive Compensation. (n.d.). Retrieved on
  • 16. October 29, 2016, from http://insiders.morningstar.com/trading/executive- compensation.action?t=AAPL Apple, Inc. Executive Salaries & Other Compensation | Salary.com. (n.d.). Retrieved on October 29, 2016, from http://www1.salary.com/APPLE-INC- Executive-Salaries.html Need, W. C. D. H. P. (2006). Human resource management: Gaining a competitive advantage. O'Grady, J. D. (2009). Apple, Inc. Westport, CT: Greenwood Press.