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    Describe Stock Holders Perspective On Compensation.: John Carl S. Maravilla Wsaladm

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    Stockholders are concerned with executive pay relative to company performance. Between 1990 and 2001, share prices increased 300% and corporate profits increased 116%, but CEO pay increased 535%. In a year when returns declined 14% for one company, the CEO's pay increased 452%. An egalitarian structure has advantages over a hierarchical one, including equal contribution and recognition for all workers without confusion from authority figures claiming responsibility. Organizational structure improves efficiency by providing clarity to employees on reporting relationships and responsibilities.

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    Describe Stock Holders Perspective On Compensation.: John Carl S. Maravilla Wsaladm

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    JohnChristianMaravilla
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    Stockholders are concerned with executive pay relative to company performance. Between 1990 and 2001, share prices increased 300% and corporate profits increased 116%, but CEO pay increased 535%. In a year when returns declined 14% for one company, the CEO's pay increased 452%. An egalitarian structure has advantages over a hierarchical one, including equal contribution and recognition for all workers without confusion from authority figures claiming responsibility. Organizational structure improves efficiency by providing clarity to employees on reporting relationships and responsibilities.

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    Stockholders are concerned with executive pay relative to company performance. Between 1990 and 2001, share prices increased 300% and corporate profits increased 116%, but CEO pay increased 535%. In a year when returns declined 14% for one company, the CEO's pay increased 452%. An egalitarian structure has advantages over a hierarchical one, including equal contribution and recognition for all workers without confusion from authority figures claiming responsibility. Organizational structure improves efficiency by providing clarity to employees on reporting relationships and responsibilities.

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    18 views2 pages

    Describe Stock Holders Perspective On Compensation.: John Carl S. Maravilla Wsaladm

    Uploaded by

    JohnChristianMaravilla
    Stockholders are concerned with executive pay relative to company performance. Between 1990 and 2001, share prices increased 300% and corporate profits increased 116%, but CEO pay increased 535%. In a year when returns declined 14% for one company, the CEO's pay increased 452%. An egalitarian structure has advantages over a hierarchical one, including equal contribution and recognition for all workers without confusion from authority figures claiming responsibility. Organizational structure improves efficiency by providing clarity to employees on reporting relationships and responsibilities.

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    John Carl S.

    Maravilla
    WSALADM

    1. Describe stock holders perspective on compensation.


    - Compensation is viewed by society as a measure of justice as well as a
    cause of increased taxes and price increases. Stockholders are concerned
    with executive pay relative to company performance. To stockholders,
    executive pay is of special interest. In Canada, pay for executives is
    supposed to be tied to the financial performance of the company.
    Unfortunately, this does not always happen. For example, between 1990 and
    2001, share prices increased about 300 percent; corporate profits increased
    116 percent, but CEO pay increased by 535 percent. Consider the high pay
    low performance of BCE Inc.s CEO Jean Monty in 2001. In a year when
    returns to BCE shareholders declined by 14 percent, Montys pay increased
    by 452 percent.
    2. What are the different ways in which employees see compensation?
    - A standard base pay program offers fixed salary ranges for each position type
    for employees performing the standard duties of their jobs. Set up minimum and
    maximum levels within those pay ranges to account for variations in experience
    and skill levels. When setting the base pay structure, determine where your
    company falls within your own industry as well as competing industries that may
    also offer job opportunities for your employees. Set up your pay levels to be
    competitive, or else you risk losing employees. You can use the Internet to find
    industry-standard salary levels for specific jobs in specific geographical areas
    3. What are the different ways in which pay can influence employee
    motivation and behaviour?
    -Pay can influence employee motivation and behaviour because when employee
    didnt get the right amount of their hardship, employee will think that, they should
    not work very hard because company didnt pay the right amount of employees
    compensation.
    4. Describe the various returns receive from work.
    -When you work so hard you should receive a right payment or compliment to
    your boss because it can help to boost your skills and knowledge. It can help you
    to work very hard because in your mind your boss will pay you and say
    compliment.

    5. What are the advantages of an egalitarian structure over a hierarchical


    structure?
    - The primary advantage of an egalitarianism company is the opportunity for all
    workers to contribute equally and share recognition for success. Each individual
    worker is responsible for personal and team tasks without a chain of authority
    figures to confuse communication, deliver orders and claim responsibility for
    positive results that others worked for. This type of workplace culture promotes
    individual accountability. It also gives workers more freedom. Finally, an
    egalitarianism company can use its structure as a recruiting tool, attracting
    workers who are dissatisfied with traditional workplaces.
    6. Describe the importance of an internal structure?
    - Without a formal organizational structure, employees may find it difficult to know
    who they officially report to in different situations, and it may become unclear
    exactly who has the final responsibility for what. Organizational structure
    improves operational efficiency by providing clarity to employees at all levels of a
    company. By paying mind to the organizational structure, departments can work
    more like well-oiled machines, focusing time and energy on productive tasks. A
    thoroughly outlined structure can also provide a roadmap for internal promotions,
    allowing companies to create solid employee advancement tracks for entry-level
    workers.
    7. Write short notes on virtuous and vicious circles.

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