Las ferreterias

Managers and other staffs may work very hard only for the purpose of earning the bonuses in the new compensation plan without necessary aiming Las ferreterias improve the performance of the company. This would have made the plan makers to consider Las ferreterias the issues like bonus pool allocation, performance measures to be used and other important issues that may affect the implementation of the plan.

The involvement of these two departments was important in order take care of financial and human resource considerations during the plan implementation.

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This means that the plan will not motivate all the workers together since it only covers some of them and not all of them. Gonzalez ought to look for a method of measuring performance that will be fairer to all the managers. This would have ensured issues like how the bonus will be allocated among the managers.

This may involve manipulating their revenue and expenses in order to report high Las ferreterias figures at the end Las ferreterias financial period. Thus managers should be held accountable for the outcomes of the variables they control.

Thus rewarding managers using ROI earnings which do not consider such factors will be unfair to some managers who may come from those regions that are not favourable. Clarity of the compensation plan means that the plan has little or no ambiguity and uncertainty about the standards that will be used to measure the performance of the beneficiaries.

Bonus pool is allocated among store managers according to the percentage of ROI they have earned in their stores. It is difficult to measure the amount of fixed asset that was used to generate a given level of profit.

Employees ought not to be penalized when things fail because of bad luck as well as not being rewarded when things succeed because of good luck. In addition, a good reward system ought to be timely where employees are rewarded immediately without any delay.

Using this method to measure the performance of managers in the corporation may pose a number of challenges to Mr. However, this does not mean that the increased performance of the managers would not increase the profit of the corporation.

The allocation of the bonus could have been agreed by all departmental managers before the implementation of the new plan. However, managers are usually in a position to make decisions that may make the uncontrollable factors affect result in a positive way. Again, the formula is fixed and it may not be possible for those people who will be assessing the performance of the managers to show any bias or favouritism.

Finally according to the new compensation plan, bonus pool for the corporate staff would be divided by the CEO, depending on the ROI earnings of the corporation in that year.

The advantage of this method is that managers can be held accountable for the areas they are intended to influence. However managers should also be rewarded for those factors they do not control and yet affect the outcome of their division outcome.

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Las ferreterias
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