IBM's Compensation Strategies



IBM's Compensation Strategies

Introduction

Any company, organization or business cannot survive without its employees irrespective of the revenue it generates or capital it holds. Therefore, it is essential for any company or organization to keep a balance between its employee's rights and responsibilities. The company should keep a check on the performance of every individual with the help of various judgment criteria. However, the company should also make sure that the employees offering their services to the company are also satisfied and every requirement or complaint they have regarding any working condition or any operational strategy of the company should be dealt immediately. Therefore, to deal with the employee's issue and problems and encourage the hardworking employees for their performance, every company plans various Compensation and Appraisal strategies (Berger, 2000). Therefore, throughout the globe, organizations plan effective strategies for guaranteeing employees satisfaction. One of such employee friendly company is IBM.

Discussion

Founded in the year 1911, IBM or International Business Machines Corporation, with headquarters in New York (USA), is an American multinational consulting and technology corporation. The wide range of services offered by the company in the field of science and technology, the speed with which the company is expanding its business radius is the proof of the satisfied employees and as a result the remarkable performance they show that works for the combined benefit of the company and the employees.

Current Statistics

Although the company experienced a major drop in the recruitment department in the year of 2003. However, since then the company revised its strategies regarding various employee recruitment and management departments. As a result, in the year of 2010, a total of 105,000 more employees were hired and effectively managed by the Human Resource Department of the company. The various strategies and policies planned by the Company's policy makers made sure that effective Compensation Plans are designed in order to ensure Employees satisfaction and motivation. The results can be seen openly as IBM becomes one of the most highly recruiting corporate giant of the planet with its Compensation strategies being appreciated by its employees and followed by various market rival and competitors throughout.

Therefore, IBM is no longer known and recognized as a straight-laced organization, with a rigid top to bottom hierarchy and inflexible rules oriented company for its employees as it was once. The cultural changes that ultimately resulted in the changes in its Compensational Strategies did a great deal of good to the company. Recognized throughout as a name with most attractive salary packages and appealing additional benefits and facilities, IBM now has all the potential of attracting and keeping all the talented and promising employees and individuals (Richter, 1998).

The company has also openly announced several times of the up gradation of its conventional salary grades and the traditional job evaluation and rigid performance evaluation criteria. One of the chief reasons behind these constant open promotional campaigns are the few minor mishaps that the company has faced regarding the complaints of some of its former ...