Strategic Decisions : The Fundamental Directions That An Organization Chooses

1108 Words Sep 17th, 2016 5 Pages
Strategic choices refer to the fundamental directions that an organization chooses. The chooses are what and what not to do (Milkovich, 2014, p. 42). "Compensation alludes to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship" (Milkovich, 2014, p. 13). Smart HR leaders regularly ask themselves a fundamental question when planning a human resources compensation strategy, “Have we positioned ourselves well for the market?” an organization has to know how competitive it wants and need their compensation plan to be. Then, they can construct pay ranges in alignment with their competitive compensation strategy. In this paper will be examples of three Fortune 500 companies and their compensation policies and if they seem to be satisfied with their effectiveness.
First, let’s reflect on Walmart, Walmart is known for low prices and low wages. These low wages are frequently under criticism for inadequacy in supporting employees’ needs. They have a minimum hourly wage at $7.25, which is significantly below the national average. “Walmart wants to engage their employees are helping to hold costs down because the only way to offer low price is to keep costs down” (Panmore Institute, 2016, n.p). However, Walmart is restructuring compensation strategy. As such, the business plans to improve their minimum wage from seven to ten dollars. The new plan will place Walmart in the game with other competitors. For example, the…

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