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Visioning Before Strategizing

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Imagine that you are the HR manager for a new company just opening its doors in your community. The owners have asked you to prepare a vision for compensating the staff. They do not want specific policies, but guiding principles that will help them collect data and write specific HR policies later. Complete the following:

Describe the type of business, number and types of employees, such as exempt and non-exempt, and the customer base you will use as your example company for this assignment, as well as the state and city or area of the state where your company is located.

Create a list of essential guideposts for developing a total compensation policy. In your vision, include statements that can be made public to your customers and employees. Also consider whether your vision will be strategic in a strong economy, as well as in a down economy. Will you be able to adapt your vision during various economic conditions?

Using Exhibit 2.3 (Tailor the Compensation System to the Strategy) in your text, identify which of the three business strategies is most appropriate, and include an analysis of why you believe this is the case.

Discuss the appropriate business response, HR program alignment, and compensation system for this new business.

How will other existing businesses in your community affect the compensation vision and strategy of this new company? You can use the Overview of BLS Wage Data by Area and Occupation Web page from the Bureau of Labor Statistics Web site and linked under Resources to help you research information for your response.

Refer to the text’s example in Exhibit 2.4 (IBM’s Strategic Principles and Priorities in Strategy Execution) outlining IBM’s strategic principles and priorities. Do not be limited by IBM’s choice of words.

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