HR Essay Example | Topics and Well Written Essays - 500 words

HR - Essay Example ations on the base pay, which include external competition, employee equity, the Equal Pay Act of 1970, communication strategy, and use of point-factor rating and definition and evaluation of benchmark jobs. In the contingency pay reward structure, the main proposal is to disregard the current system in place (contribution pay) with a combination of Competence Related Pay and Individual Performance Related Pay reward schemes. The section also proposes several cost-cutting measures and exercises. Part three of the report highlights the non-financial rewards and an overall reward recommendation, including learning and development, performance management, career development, and work environment. Part four of the report contains all the possible alternative retention plans and cost cutting strategies that are applicable in MB’s environment, including Employment Stock Ownership Plan, time extension of paying bonuses, and enhancement of job designations. The fifth and final part of the business report concludes with specific recommendations on a cost-effective reward structure for MB that will enhance the commitment of the workers, raise the morale of the employees, and thus increase the profitability of the company. The combination of low profitability, a lack of performance culture, low morale, and commitment in MB is the result of embedded complacent attitude, irrelevant reward structure, and multiple shortcomings in HR practices multiplied by too hierarchical structure and remote location of departments from each other and the Head Office. The changes offered below are vital to stay afloat. 1. Increasingly popular in job evaluation is a method of combining of two analytical schemes: using point-factor rating to define and evaluate benchmark jobs (jobs which can be used as points of comparison for others), and evaluating the remaining jobs by means of analytical matching (Armstrong pg 254 - 263) 2. External competitiveness: it is necessary to operate exact