Compensation Portfolio Signature Assignment For HRM667

Compensation Portfolio Signature Assignment for HRM667

Develop a comprehensive portfolio analyzing a specific position within an organization to establish an effective compensation scheme. The assignment is divided into two parts: Part 1 includes a company background, job analysis, motivators, and performance evaluation factors; Part 2 involves designing a performance evaluation system, pay structure, and relation to internal and external equity. The project must flow seamlessly, illustrating the entire HR process from staffing to compensation strategy. Submit as a Word document by the deadline and adhere to APA style and academic integrity standards.

Paper For Above instruction

The development of an equitable and motivating compensation system is vital for organizational success. This portfolio focuses on analyzing a specific position within a chosen organization, developing a comprehensive understanding of the role, and designing a fair and strategic compensation scheme. For this purpose, I have selected Nike Inc., a global leader in athletic apparel and footwear, renowned for its innovative marketing strategies and commitment to corporate social responsibility. The chosen position is a "Sales Associate" in Nike retail stores, a role essential for delivering customer service and driving sales, which aligns with Nike's strategic emphasis on customer experience.

Company Background and Industry Environment

Nike Inc., founded in 1964, is headquartered in Beaverton, Oregon, and operates globally with a mission to bring inspiration and innovation to every athlete in the world. Nike's core values emphasize innovation, sustainability, and diversity, which are reflected in its diverse product lines and marketing strategies. Operating within the highly competitive athletic footwear and apparel industry, Nike faces challenges such as fluctuating raw material costs, intense competition from brands like Adidas and Puma, and evolving consumer preferences toward sustainable products. The industry is characterized by rapid technological advances, aggressive marketing, and complex global supply chains, requiring Nike to continuously adapt its compensation strategies to attract and retain talented employees and maintain a competitive edge.

Definition and Considerations in Job Analysis

Job analysis is a systematic process of gathering, documenting, and analyzing information about a job's tasks, requirements, and context. As highlighted by Brannick, Levine, and Morgeson (2007), it serves as the foundation for assessing job worth and developing compensation schemes. For reward evaluation, job analysis involves identifying the skills, responsibilities, effort, and working conditions associated with the role, which informs job description development and evaluation.

The factors to consider during job analysis include task complexity, required skills, effort level, working conditions, authority, and decision-making responsibilities. Additionally, understanding how the role interacts with other positions within the organization is crucial. For the Nike Sales Associate, critical factors include customer interaction, sales targets, teamwork, product knowledge, and adaptability in a fast-paced retail environment.

The process involves direct observations, interviews with current employees, review of existing documentation, and job participant surveys. Data collection aims to capture both intrinsic motivators, such as skill development and recognition, and extrinsic motivators like pay and benefits.

Organization and Job Description

Nike, operating in an industry characterized by innovation and demographic shifts, emphasizes employee engagement through performance-based rewards aligned with its strategic objectives. The Sales Associate position involves assisting customers, promoting products, and meeting sales goals while embodying Nike’s brand values. The interaction with other positions includes collaboration with store managers, inventory staff, and regional sales teams.

The formal job description includes responsibilities such as greeting customers, providing product information, handling transactions, and maintaining store presentation standards. Skills required include excellent communication, adaptability, product knowledge, and teamwork. The role is vital in fostering a positive shopping experience that directly influences sales performance, which aligns with Nike's customer-centric strategy.

Part 2: Developing a Performance Evaluation System and Pay Structure

Building on the job analysis, the performance evaluation system for Nike's Sales Associate should incorporate measurable factors such as sales volume, customer satisfaction, teamwork, initiative, and adherence to company policies. These criteria align with expectancy theory (Vroom, 1964), which posits that motivation is influenced by expectancy, instrumentality, and valence. The evaluation process involves regular performance reviews, customer feedback, and sales data analysis, providing both intrinsic and extrinsic motivation.

The market data indicates that retail sales associates earn between $12 and $20 per hour, depending on geographic location and experience (Bureau of Labor Statistics, 2022). Benchmarking against competitors like Adidas and Puma reveals the need for a competitive base pay combined with incentive pay tied to performance metrics such as sales targets and customer satisfaction scores.

The proposed pay structure features a salary range with a base hourly wage of $15 to $20, supplemented by performance bonuses linked to individual and team sales achievements. This structure fosters motivation through direct performance rewards (Perry & Porter, 1982), aligning with the internal motivators of recognition and achievement identified in Part 1.

Additional benefits include employee discounts, health insurance, and career development opportunities. These benefits not only attract talent but also promote long-term organizational commitment, consistent with the social exchange theory (Blau, 1964). The pay structure is designed to ensure internal equity by maintaining consistent pay differentials across roles with similar responsibilities and external competitiveness based on industry benchmarks.

Relationship of Pay Structure to Organizational Goals and Market Comparisons

The pay strategy aligns with Nike's strategic focus on employee engagement and customer satisfaction. Internal pay equity is ensured through job evaluation rankings, while external pay competitiveness is maintained through market benchmarking. Compared to other firms in the athletic apparel sector, Nike’s compensation system is designed to attract skilled sales associates and motivate high performance, thus supporting its market leadership.

In conclusion, a well-structured compensation system, rooted in thorough job analysis and aligned with organizational goals and industry standards, can significantly enhance employee motivation, retention, and organizational performance. This portfolio underscores the importance of integrating job evaluation, performance management, and strategic compensation design in HR practices, exemplified through Nike’s retail sales associate role.

References

• Brannick, M. T., Levine, E. L., & Morgeson, F. P. (2007). Job and work analysis: Methods, research, and applications. Sage Publications.
• Bureau of Labor Statistics. (2022). Occupational outlook handbook: Retail salespersons. U.S. Department of Labor.
• Blau, P. M. (1964). Exchange and power in social life. John Wiley & Sons.
• Perry, J. L., & Porter, L. W. (1982). Factors affecting the context for motivation in organizations. Academy of Management Review, 7(4), 616–626.
• Vroom, V. H. (1964). Work and motivation. Wiley.
• Snape, E., Redman, T., & Bamber, G. J. (2017). Strategic human resource management: An overview. In Managing human resources (pp. 21–49). Palgrave Macmillan.
• Gerhart, B., & Rynes, S. L. (2003). Compensation: Theory, evidence, and strategic implications. Sage Publications.
• Milkovich, G. T., Newman, J. M., & Gerhart, B. (2014). Compensation. McGraw-Hill Education.
• Kleingeld, A., van Dijk, F., & van Dick, R. (2018). The impact of reward systems on employee motivation and organizational performance. Journal of Organizational Behavior, 39(2), 234–250.
• Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2020). Fundamentals of human resource management. McGraw-Hill Education.