Student’s Name
Institutional Affiliation
Part 1: Organizational Environment and Employee Compensation
One of the environmental factors affecting an organization is competition. Competition happens when business that are dealing with specific goods or services compete to get the same market (Aswegen et al, 2006). Each business may want to get the highest market share so as to make more profit. For this reason, competition remains a factor that influences the performance of any organization. Competitors may be organizations dealing with the similar type of goods or services. They may also be organizations dealing with identical goods or services. It may lead to the company’s growth or failure. Healthy competition is that competition that enhances a company to be innovative and creative to stand out from the rest (Hellriegel & Slocum, 2011). When this happens, a company grows and prospers. If the opposite happens, any company is eliminated from the competition through closure.
Another factor is customers. Customers are usually the ultimate target for any type of organizations. Customers indicate whether any organization is achieving their core objectives (Bean et al, 2009). They are the most important group of people in all organizations because they define the existence or discontinuation of any business depending on their response. The response from the customers here is the vital indicator of whether any organization is making progressive steps in their quest to achieving their goals or objectives. It is important to note that customer’s tastes and preferences change unexpectedly or suddenly (Hellriegel & Slocum, 2011). Therefore, an organization is forced to closely examine the changing customer demands and respond appropriately. Failure to which, a company to make loses and finally halt its operations.
Another factor is culture and cultural beliefs. Cultural beliefs indicate all those values that are considered to be morally acceptable to any society. Before any organization sets up their firms, it is important to evaluate the cultural beliefs of that society to confirm whether they conform to the organization’s activity. It is an important factor because they affirm the organization’s presence and existence (Hellriegel & Slocum, 2011). It is very difficult to turn around the cultural beliefs of any organization to suit the organization’s goals or objectives. Therefore, for growth, any organization is expected to perform all those tasks that are generally accepted by the society. It is an important and only choice that any organization has to avert any possibilities of social hostilities.
Steps setting employee training program
The first step involves identifying or establishing the need for training. The need for training process seeks to answer the questions of who, where, when and how (Werner et al, 2012). After that has been achieved, the company then develops the program manual based on the job descriptions of each and every employee. This seeks to rightly address the right employee with the right skills. The third step involves delivering of those program manuals to the designated employees. The objectives of that training are employed in this stage to the employees. The final step in this analysis is the evaluation of those programs. This stage seeks to find out the effectiveness of those programs. If the programs did not achieve the desired goals they are reviewed (Chitale et al, 2013).
Part 2: Employee Compensation in an advertising agency
In an advertising agency there are important factors that are considered, when considering a compensation plan for the employees. These are; the educational level and skills, experience in the same field, social security, commissions, sick or maternity leave and finally the geological considerations establish the cost of living (Peter & Adrian, 2003). First is the education level of the employees employed by the advertising agency. This is closely linked to the skills that they bring to the agency. According to the plan, the most educated and the one with the highest level of skills will earn more than those with lower educational level and skills. The second factor to consider is the experience. The employee with more years of experience will be compensated more than the first time employees.
An effective compensation plan is important for the employees; two secretaries, a graphic designer, three sales representatives and an office coordinator. All these employees should get a salary based on their educational levels, experience in their particular field and finally the market price of similar positions of the same company size in that area. Bonuses should also be provided as per the policy of the company (Bean et al, 2009). For example, an annual leave will be awarded to every employee who applies, with a 100% pay. Bonuses will be awarded depending on the company’s profit of the previous year.
However, the secretaries should be awarded bonuses depending on their attendance and their efficiency at work. The office coordinator should be awarded bonuses based on how well he relates to customers and the efficiency of the office. When designers win huge contracts with high market value of their particular designs, they are supposed to awarded bonuses equivalent to the prevailing market price. Finally the sales representatives are only awarded commissions on top of their salaries.
References
Aswegen V.S., Pilbeam E, Kieynhans, R., Markham L., & Meyer, W. (2006). Fresh Perspective: Human Resource Management. Johanesburg: Perason Publisher
Bean T. B, McFadden, J. J 476 (2009). Employee Benefits. London: Dearborn Publishers.
Chitale, K,A, Mohanty P.R 375 (2013). People, Processes, work, human resource and management. New Delhi: Kogan Page Publishers.
Hellriegel, D., & Slocum, J. (2011). Principles of Organizational Behavior. Nashville, Tennessee: South-Western Publishing
Peter A., & Adrian W. (2003). Understanding Work and Employment: Industrial Relations in Transition. Oxford University Press
Werner, S., et al. (2012). Human Resource Management. Stamford,: Cengage Learning