Johnny Ch Lok

Nowadays Traditional HRM Strategy How Changes Johnny Ch Lok

A good reward strategy can develop a philosophy of compensation that builds a framework for base pay and incentive tailored to the special values, goals, and needs of the particular family firm. Hence, one family or small firm's compensation -reward strategy can be explained to be needed, due to these factors: the firm can compare pay and performance levels with those of businesses with whom which compete for employees, the firm's goal is to provide total compensation between median and the percentage of comparable groups, base salary will be made more accurate decision at or high or below the median level for the comparable groups, individual salaries will be made more accurate decision within how much percent of the midpoint for the firm's comparison group's salary range, the firm can make more accurate decision on emphasizing whether performance -based incentives ought be spent at the expense of the salary, whether annual incentives ought be exceed those of comparably sized competitors, whether long-term incentives ought be based on results that add shareholder value. However, culture can influence some business owners how to make compensation issues, culture means beliefs, values, assumption, habits and behavior patterns of the organization. The reasons staffs are paid the way, they are may be partly unconscious and may arise from the personal and family history and the deeply felt personal needs of the business leader or leaders. So, any family or small business will ought try to develop a philosophy of compensation ( reward) strategy, which may learn a great deal about itself in the process. For example, a entrepreneur has confidence in her or his ability to manage compensation on a case-by-case basis and maintain tight personal tight personal control over each individual pay, perks, incentives, dividends, and gifts in order to encourage its employees can raise more effort to increase the sale number to its different kinds of product in its shop. Otherwise, if a family member working in this kind of culture asks for a raise, the business owner will not talk to about how to raise compensation to his/her salespeople in Christmas period. Hence, culture seems to influence the large organization and small organization how to make itself compensation to salespeople in Christmas period.