Evaluating Organizational Total Rewards Plans

Most organizations are composed of numerous operations that are multi-faceted, interrelated, and intertwined. Like a line of dominoes, if you tap one forward or backward, many of the other dominoes will be affected. In this context, consider total rewards to be the first domino in a line. When pushed over, it would impact the next domino, the employees, and cause consecutive dominoes to fall until the last and most important domino, the competitive advantage of the organization, is affected. This “domino effect” can carry a positive or a negative message with it. For example, if employees feel appreciated and rewarded for their efforts, they will probably remain with the organization and seek to strengthen it and achieve organizational goals. However, if employees feel underappreciated or discontent with their work environment, their productivity could suffer or they might choose to seek a better situation elsewhere, possibly weakening the competitive advantage of the organization. HR professionals should carefully consider how total rewards packages can affect all facets of their organization prior to implementation. For this assignment, review Chapter 2 of the course text, Compensation and Benefits, and additional provided resources to assess the importance of strategically aligning compensation and benefits with organizational goals. Then, select an appropriate organization of personal interest to further evaluate how compensation, benefits, and total rewards can be strategically aligned to an organization’s goals. Before finalizing your selection, be sure that you are able to find and access information on the compensation and benefits offered at the organization, as well as the organization’s mission and strategic goals, usually found on the organization’s website. Create a cohesive and scholarly response based on your readings and research this week that addresses the following: • Assess the importance of strategically aligning compensation and benefits with organizational goals. o Identify two benefits (besides those already presented in the narrative content of this course) of strategically aligning compensation and benefits to the goals of an organization. • How can these benefits enhance the day-to-day operations and/or long term advantage of the organization? o Identify two challenges that might result when attempting to align these two facets of the organization. • Propose a solution for each of these challenges that could help mitigate negative consequences. o Determine whether the practice of providing compensation and benefits can ever be completely aligned with an organization’s goals. • Can an organization maintain its competitive advantage without this type of alignment? • Support your answer with real-world examples and information from these Resources. RESOURCES: Carey, J. A. (2008). A resource-based look at compensation strategy: Application and implementation of competitive advantage. Journal of Business & Management, 14(2), 131–147. (Attached) Meehan, R. H. (2011). Talent management and rewards. WorldatWork Journal, 20(3), 54–70. Contents (c) 2010/2011. Reprinted with permission from WorldatWork. Content is licensed for use by purchaser only. No part of this article may be reproduced, excerpted or redistributed in any form without express written permission from WorldatWork. (attached) Milkovich, G. T., Newman, J. M., Gerhart, B., & Martocchio, J. J. (2011). Compensation and benefits (custom text). New York, NY: McGraw-Hill Irwin. • Chapter 2, “Strategy: The Totality of Decisions”