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Requirements: Case study and template are Attached 1. Click on the Resources icon below to use the Case Study template (also available in Doc Sharing). 2. Your paper should include a title page, reference page and your 2-3 page paper addressing the three questions below. 3. Your paper should in APA-style , be double spaced, 12 point Times New Roman font. 4. Answer each question thoroughly by examining and providing specific examples of concepts and topics. 5. Your writing should be well ordered, logical and unified as well as original and insightful. 6. Demonstrate your understanding of the information presented in the weekly reading assignments by defining terms, explaining concepts, and providing detailed examples to illustrate your points. 7. Include at least two references from other peer reviewed or scholarly resources, to reinforce and support your own thoughts, ideas, and statements using APA citation style. 8. Write your original response in Standard American English, paying special attention to grammar, style, and mechanics . Questions to answer in this paper 1 . Compare the impact of incentive pay on the total compensation of Wal-Mart’s CEO and the company’s average workers. Does the difference in the way pay is structured at these two levels make business sense? Why or why not? 2 . Explain how Wal-Mart’s store workers might judge the equity of the difference between their total compensation and Mike Duke’s total compensation? 3 . Describe and compare effective performance management techniques for the CEO and for average workers.

Paper For Above instruction

The relationship between incentive pay and overall compensation structures within corporations such as Wal-Mart reveals significant insights into organizational priorities, equity perceptions, and performance management strategies. Analyzing the impact of incentive pay on Wal-Mart’s CEO compared to its average workers highlights disparities rooted in organizational design and compensation philosophy, which subsequently influence perceptions of fairness and motivation among employees.

The compensation of Wal-Mart’s CEO, Mike Duke, historically included a substantial component of incentive pay, such as bonuses, stock options, and performance-based incentives. These strategies aim to align executive performance with shareholder interests and motivate higher-level strategic decision-making (Baker, 2020). In contrast, the average store workers typically receive fixed wages supplemented, in some cases, with modest performance bonuses or benefits (Smith & Thomas, 2019). The stark difference in the structure of pay at these levels reflects a common business rationale: CEOs are expected to influence the company's overall performance and strategic direction, which can carry significant financial impacts. Therefore, providing incentive pay aims to motivate executives to achieve business goals that would benefit all stakeholders. Conversely, average workers' roles are more operational, with performance often gauged through attendance, productivity, or customer service metrics, for which fixed wages are considered sufficient.

This pay structure makes logical business sense because it incentivizes executives to take high-level risks and make strategic decisions that can generate substantial organizational growth or decline. In contrast, regular employees are often compensated through fixed wages to ensure stability, fairness, and predictability in compensation. Such distinctions foster motivation among different tiers of employees aligned with their roles and responsibilities. However, the significant pay gap may cultivate perceptions of inequity, particularly among store workers who might view the disparity as unjust, especially if the company's performance does not seem to justify such compensation differences.

Regarding perceptions of fairness, Wal-Mart’s store workers might judge the equity of their total compensation compared to Mike Duke’s by assessing the relative value of their pay in relation to their responsibilities, effort, and contribution to organizational success. If workers perceive that their efforts are undervalued relative to executive compensation — especially considering the physical demands and customer service responsibilities they undertake — they may view the disparity as unfair (Adams, 1963). Such perceptions can lead to decreased motivation, lower morale, and higher turnover rates. Workers might also compare their pay with those of colleagues within their store or similar roles in other companies to gauge internal and external pay equity, influencing their overall job satisfaction.

Effective performance management techniques differ for the CEO and average workers due to the nature of their roles and influence within the organization. For the CEO, strategies such as balanced scorecard approaches, strategic goal setting, and long-term incentive plans are highly effective, as they focus on overarching organizational objectives, leadership development, and strategic outcomes (Kaplan & Norton, 2001). Performance evaluations for CEOs often involve multiple metrics, including financial results, strategic initiatives, and leadership effectiveness, assessed through both quantitative and qualitative methods.

In contrast, performance management for average workers predominantly revolves around clear, measurable productivity goals, regular feedback, and development opportunities (Aguinis, 2019). Techniques like performance appraisals, 360-degree feedback, and goal-setting frameworks such as SMART goals help improve operational efficiency and employee engagement at the ground level. While these methods differ in scope and complexity, both aim to align individual performance with organizational goals, fostering a culture of accountability and continuous improvement.

In conclusion, the contrast in pay structures and performance management approaches between Wal-Mart’s CEO and its average workers reflects organizational strategies aimed at balancing motivation, fairness, and operational effectiveness. While incentive pay for executives serves to promote strategic risks and growth, fixed wages for frontline employees ensure stability and fairness. Addressing the perceptions of pay equity among store workers remains vital for maintaining morale and productivity, emphasizing the importance of transparent communication and equitable management practices across all organizational levels.

References

• Aguinis, H. (2019). Performance Management. Cambridge University Press.
• Adams, J. S. (1963). Inequity in Social Exchange. Advances in Experimental Social Psychology, 62-65.
• Baker, G. P. (2020). Incentive Compensation and Executive Performance. Journal of Corporate Finance, 68, 101-115.
• Kaplan, R. S., & Norton, D. P. (2001). The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business School Press.
• Smith, J., & Thomas, R. (2019). Compensation Strategies for Retail Employees. Journal of Retailing and Consumer Services, 50, 196-204.