Strategic Human Resources

Strategic Human Resources Research

Faced with slumping sales, low morale and shrinking staff, the management team at Riordan is seeking a new method to increase sales, revenues, keep current customers and gain new, motivate and retain good employees. A direction to move to sales teams is imminent. It is also understood that an analysis of the current compensation policy is needed. As with all endeavors, there is a right way and wrong way to accomplish these tasks. Riordan can learn lessons such as customer satisfaction, compensation and motivation practices, career development programs, ethics regarding the compensation plans, as they relate to organizational strategies, from the below company research. Each of the following research topics touches on the important issues that enable and to some extent ensure a company's success.

Customer Service and Dell - Joseph Cash

Recently honored by the new Forum for People Performance Measurements, Dell has been recognized for "Setting the standard for customer service and satisfaction." The forum was seeking organizations that incorporate their employees in their brand and selling strategies. Dell calls its corporate philosophy "The soul of Dell" and bases its sales around types of customers who include: consumer sales, corporate computers, and storage servers. Sales channels include the internet, catalog sales, inside, outside and corporate account salespersons. The goal is to filter the customer to the appropriate sales channel, rather than "stealing" the sale. (Keenan, 2000).

The central premise is the satisfaction of the customer in all interactions. The salespeople act as the single point of accountability, and will work with the customer until the product is delivered. If there is a problem with the unit after the sale, the culture continues with the Support person working until the issue is resolved. The salesperson is constantly learning all new product offerings and receives training on such topics as sales, communication, and general people skills.

Sales incentives vary depending on the segment, even though all sales personnel are paid a base salary and are further compensated by sales commissions. Additional perks include simple perks such as a pizza party, to extreme merits such as lavish vacations, and rental on luxury cars. (Walker, 2002). These types of perks, along with the training session are all an effort for Dell to give its sales force a greater incentive to serve the customer.

It is this dedication to the customer, and indirect incentives that can be modeled by Riordan to improve sales and departmental moral.

Ethics and United Healthcare - Jeffrey Oliver

United Healthcare has been one of the most profitable companies in America behind the likes of Exxon-Chevron and Wal-Mart. United Healthcare CEO Dr. William McGuire has guided the company to record profits. When discussing the impact of ethics on the determination of compensation and the rewards system, the 58-year-old Dr. McGuire who will relinquish his position as chief executive officer of United Health Group Inc., the nation's second largest health-care company. Dr. McGuire is leaving due to his "huge awards of stock options which got a boost in value because they were issued on one day but priced as if they'd been issued earlier, when the stock price was lower. The report said his option grants were likely backdated" (CBNNews.com - Health and Science, 2006).

Nevertheless, in leaving UHG, Dr McGuire who earned $8 million a year in salary plus bonus, enjoyed perks and he amassed one of the largest stock-option fortunes of all time 1.6 billion. He is guaranteed "$6.4 million exit fee, $5.1 million for life, and if he dies his wife receives $2.55 million a year for life and life-time healthcare coverage, healthcare for his kids until age 25, use of his supplied aircraft, company paid office and secretary for three years, company paid allowance for tax-planning financial planning, and finally company paid allowance for security." (Westby, 2006). Unfortunately, Dr. McGuire is no different than other CEO's who have taken advantage of their position and receive eccentric compensation and bonuses; such as past CEO for General Electric, Jack Welch.

In summary, Dr McGuire who had an exceptional legacy running United Healthcare and making it one of America's top healthcare companies is leaving the company due to his involvement in the stock purchase scandal. However, as CEO he implemented "employee value plans", "excellent pay for performance", and exceptional executive pay plans all of this to benefit or pad his own portfolio.

Motivation, Career Development and General Motors - Anthony Bertram

Total rewards packages supplied by corporations are often reasons why employees stay with the company or decide to work for the company in the first place. Reward and benefit packages include but aren't limited to health care coverage, pensions, pleasant work atmosphere and competitive wages. These "perks" as they are called help the employee feel more a part of the company and help to motivate the employee to take more care in his/her job and provide a better product to the consumer. However when employers are no longer able to uphold their part of the deal, workers become unsatisfied and there is a loss of company revenue and employee turnover.

GM is the biggest supplier of automobiles the United States and the second largest publicly owned company in the world. GM has been plagued in recent years with declining profits and increasing costs. These problems stem from a variety of issues. "GM's product mix in the U.S., heavily weighted toward trucks, pickups, and SUVs, is on the wrong side of gas prices. It is up against a formidable and sometimes militant union whose ability to accept the full reality of GM's problems is not assured and gravely, it is burdened by health costs, which it supplies for a population bigger than Detroit's--that is, for a total of 1.1 million employees, retirees, and dependents" (Loomis, 2006). Employees and the Union are unwilling to change their rewards packages. GM is looking for a way to change the company's total rewards packages in order to return the company to profitability and keep employee moral positive in order to produce a quality product. These changes need to be inline with keeping the union happy while being financially beneficial to GM.

Ethics, Compensation and Wal-Mart - Dawn Coffinberry

"We're all working together; that's the secret. And we'll lower the cost