peer responses

Anonymous

Question Description

attached is the peer response instructions and posts. please respond substantively to the other students posts using the reading material to support claims. please let me know if you have any questions.

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Peer Responses: Discussion 1 Instructions: Select an organization with which you are familiar and describe the type of compensation strategy it uses. Response Instruction: Respond to two of your peers’ posts using the reading material to support your claims. Student 1: An organization that I am very familiar with is the telecommunications company T-Mobile. While T-Mobile does pay their employees on a hourly bases, retail employees are also commissioned employees which is indicative of direct compensation. The compensation strategy of T-Mobile closely resembles that of a business strategy with emphasis on a differentiation strategy. A compensation strategy aligns “with the company’s overall strategic vision and goals” (Weathington, B. L. & Weathington, J. G. 2016). T-Mobile uses this strategy by catering to a smaller, younger audience targeting those who do not want to be stuck at their current wireless provider (Shepard, 2019). A differentiation strategy is when a “firm sets itself apart in the marketplace by offering unique and unusual products or services” (Weathington, B. L. & Weathington, J. G. 2016). “A strategy of differentiation is usually developed around firmspecific and product-specific innovations and marketing effort that may not be easy to imitate quickly” (Banker, R.,D., Mashruwala, R., & Tripathy, A. (2014). The differentiation T-Mobile displays is that of listening to their customers, eliminating pain points within the industry, and offering a personal connection that other companies fail to understand (Shepard, 2019). TMobile has branded itself the “Uncarrier” because they want to set themselves apart from every other wireless provider in the market. The U.S. market has 4 major cell phone providers as it is a small niche market. The compensation strategy for T-Mobile is as follows, “Our executive compensation program is aligned with our business strategy and is designed to attract and retain top talent, reward shortterm and long-term business results and exceptional performance, and most importantly, maximize stockholder value.” (Explore T-Mobile, 2019). This is the ultimate goal in a compensation and benefits program according to Weathington, & Weathington. While hourly wages are a constant at T-Mobile, meaning each employee receives an hourly wage set by human resources, commission is not a guaranteed amount. At T-Mobile, employees determine the amount of their commission, it depends on how hard the employee works. The more employees put in, the more money employees make. Goals are closely aligned to business initiatives which pay accordingly. Often times if the company is pushing a certain product or service, employees are able to earn an additional incentive which is called a spiff. Overall, the employees of T-Mobile are paid very well. Student 2: According to our book, a compensation system “is a systematic approach to providing rewards to employees in exchange for work provided, with the goal of helping organizations attracts, motivate, and retain the best talent” (Weathington, B. L. & Weathington, J. G. 2016). I recently worked for Amazon Fulfillment for five years. Amazon is a great company to work for considering they have an extensive compensation benefit. The compensations Amazon offered for full-time where medical, dental, vision, 401K, stock plans, monthly bonus (based on production), employees appreciation day, monthly raffles and Christmas giveaways, vacation, personal time and more. With this being a challenging warehouse to work for, they provide competitive pay to out bid other competitors. Amazon really strives to keep their employees happy, which keeps the employees searching for growth and long-term careers. Unfortunately, I had to resign from Amazon because we were required to work sometimes 55+ hour weeks and I was unable to maintain my grades here at Ashford University. I shortly settled for a security company that opened my eyes to the gratefulness of Amazons compensation. As a full-time employee at this security company, there were no additional compensation applied, other than the minimal wage pay. I then observed the high turn over rates, lack of motivation, and unprofessional acts at this security company. Discussion 2: Instructions: Compare and contrast compensation and benefits strategy of the “people department” of Southwest Airlines to overall strategies of two other airlines. What distinguishes each approach from the others? What are the strengths and weaknesses of each? Response Instruction: Respond to two of your peers’ posts using the reading material to support your claims. Student 1: Southwest Airlines The "people department" of Southwest Airlines utilizes a low-cost differentiation strategy. With this strategy the airline is required to operate efficiently and effectively (Weathington & Weathington, 2016). Employees are compensated and rewarded for their performance and customer service through employee reward systems. The strengths to this approach is when the company has a talented workforce, it is easier to keep and maintain the workforce as long as the reward systems are consistent. Employees are easier aligned with its mission statement "The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit (Southwest Airlines, 2019). If Southwest were to encounter financial difficulties, reward systems could possibly be cut and employees would lose the incentive to provide over the top customer service. Spirit Airlines Spirit Airlines claims to be the fastest growing airline in the country (Spirit Airlines, 2019). Spirit follows the low cost business strategy because it operates on the lowest possible cost. Similar to Southwest, Spirit Airlines attracts talent by advertising careers with a unique culture, promised company growth, and a fun, friendly, collaborative results friendly atmosphere. Both Southwest and Spirit offer their employees benefits and compensation for being extroverts and extremely friendly. However, this type of strategy requires the company to continue to be profitable in order to compensate its employees well. Employees have to believe in the strategic vision of the company in order to maintain their loyalty. American Airlines American Airlines falls more under the Human Resource Strategy. American uses this strategy to plan, organize, lead, and use controlling of people who are needed to support their organization (Weathington & Weathington, 2016). American's employment webpage uses descriptive language to describe the talent they are looking for to align with their strategic vision. American's CEO Doug Parker states "we welcome people to our company who want to be part of restoring American to the greatest airlines in the world" (2019). American does not use language to describe employee performance reward systems on their employment webpage. American does offer medical/dental, and vision coverage. They also offer health spending accounts, life and accident insurance, a 401k, and auto/home/legal insurance (Fucci, 2019). Compared to Southwest, American does not offer long or short term disability insurance. The strength to this approach is the compensation and benefits strategy of American saves the company more money, but it could possibly lose talent by not offering comparable packages as its competitors to employees. Student 2: Southwest Airlines= Southwest Airlines has a great health benefits package that includes,, dental, vision, and medical insurance as well as long-term disability, a health savings account, the company will match dollar per dollar up to 9.3 percent for the 401k, and a flexible spending account in which employees can save money making tax free contributions. They also include vacation time, tuition reimbursement and life insurance up to 50,000. They include free unlimited travel privileges for the employee and dependents. Delta Airlines= Delta airlines provides medical, vision, and dental coverage for their employees. It also provides life insurance up to 50,000, disability benefits, a flexible spending account, and a 401k with an automatic contribution of 2 percent. Paid vacations including holiday and personal time. Other rewards that Delta airlines include are an adoption assistant program and an employee scholarship fund. The offer worldwide travel privileges for the employee and dependents. United Airlines= United Airlines provides its employees with paid time off including sick time, bonuses when the airline performs well, medical, vision, and dental insurance. They also provide a 401k, which the company can match, and a wellness plan. They provide discounted rates on airline tickets. One major difference is that Southwest Airlines provides free unlimited travel privileges their dependents, which can be an incentive since flying is very expensive nowadays. United Airlines provides bonuses when the organization does well. All of the airlines I chose have medical, vision, and dental insurance for their employees, which is very important to have. When looking for an organization to work for employees need to make sure that the company will provide them with great benefits to make it easier for them to want to work there. Most of the time employees will rather get paid less if it means the benefits are better. ...
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VvianJ
School: University of Virginia

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Running head: PEER RESPONSES

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Peer Responses
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PEER RESPONSES

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Discussion 1 Responses
Student 1

This is a well-researched discussion. It is true that a compensation strategy should align
with the company's overall goals and objectives. T-Mobile is efficient in the use of this strategy
since it focuses on younger audiences that do not want to be stuck with their wireless provider.
Since the market is dynamic hence this compensation strategy allows T-Mobile to match the
changes in the needs of their customers (Weathington & Weathington, 2016). In this manner,
their differentiation strategy enables the firm to innovate and market-specific approach that is
unique to the market. It does this by exposing their customers to the list of their products and
hence create a close link to the markets. The compensation strategy in this company allows
customers to determine their commission. All in all, the customers in T-Mobile are well
compensated for their work. Generally, this discussion is well aligned with the chapter readings
and meets the requirements of the question in my view.
Student 2
This is an excellent discussion. A compensation system as described in our books is a
rewarding strategy for customers that are aligned with the goals of the organization and the needs
of the customers. It is true that Amazon has an extensive compensation strategy for its
employees. Their compensation is made up of full-time payments together with medical, visions,
dental and monthly bonuses (Weathington & Weathington, 2016). This compensation is well
designed to meet the requirements of the employees and in this manner, and in this manner
employees are encouraged to work more efficient. This strategy keeps the employees happy, and
they are therefore seeking long term growth for the company. However, the downside of the firm

PEER RESPONSES

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Anonymous
Good stuff. Would use again.

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