Human Capital Concepts

Human Capital Concepts Worksheet

Concept Application of Concept in the Scenario Reference to Concept in Reading

Performance-Contingent Pay

"Currently, the sales force excels at demonstrating and selling product, but under the newly proposed solutions/service model, reps will be grouped into multi-functional teams prepared to support InterClean's high-quality products with high-quality service" (University of Phoenix, 2007, p. 1).

This is also the perfect time to launch a new pay structure based on performance. Base pay should be a small part of the sales force's salary. The majority should come from new customers, current customers signing up for new services, and continuing use of services by current customers. However, based on the next concept, there should be a build-up to the new system.

"Making pay (or other valued job outcomes) contingent on performance should enhance instrumentality perceptions and employee motivation. The performance-contingent rule can be at the individual, group, or organizational level" (Dreher & Dougherty, 2001, p. 54).

Performance measurement system attributes ~ types Over the next few months, the sales force will "be instructed in development of full-range service packages tailored to individual accounts. They'll be trained to engage directly with facilities managers, health care professionals, and operational executives . . ." (University of Phoenix, 2007, p. 1) "Results-oriented measurement systems count the outcomes of work or the time taken to complete. These systems tend to be used to allocate scarce resources like money or promotions. Process-oriented systems rate the way work is completed. Typically, process-oriented systems provide employees with feed-back about work with the intent of improving performance" (Dreher & Dougherty, 2001, p. 62).

Managing the restructuring process "Over the next four months, we will be working to merge about 60 EnviroTech sales staff and operations specialists into the InterClean structure," (University of Phoenix, 2007, p. 4).

Employees are the backbone of InterClean and in order for them to perform to the best of there ability InterClean needs to find different ways of motivating them. Employees will need to work together as a team in order for the change to be effective.

The scenario spoke about recruiting key sales team leaders to get the message across that no employee will be terminated with the new transition in order to motivate the employees. (University of Phoenix, 2007, email to Janet Durham from Carol Stanley). "The need for the change and the vision for the new company must be thoroughly communicated to all employees. Next, the organizational structures and work processes need to be specified for the new merged organization. Then, the new enterprise needs to be staffed. This is a complex process whereby early retirement and severance packages

are typically used in conjunction with targeted layoffs to identify and retain

the individuals who will be needed to take the new organization forward. Related to these staffing issues is the need to provide career support for displaced employees. Finally, compensation, benefit, and training systems must be integrated and deployed in a way that will contribute to new organizational objectives" (Dreher & Dougherty, 2001, p. 117).

Behavioral Impact of HRM Practices Message