Human Resource Development Case Study

The pressure for an organization to get it right is the key to competitive success. Companies now look to creative compensation
strategies to create a environment that employees want to work for. Using point form, write a brief description of the organization, its
employees, and its challenges. What is the organization's domain? Fit stop is a new business concept developed by Susan Superset,
who after a serious sports related injury, became aware of a market opportunity in the personal retail sports supply industry.

Susan with her undergraduate degrees in sinology and commerce, recognized that existing sport retailers marketed a limited range of
fitness equipment and employed allegations with very limited knowledge of the equipment being sold and gave little or poor advice on
what to buy and how to use it. Suntan's, business plan is to operate and compete in the existing retail market domain of large retailers.
The domain consists of sporting goods stores, mega store, discount and department stores all retailing some of the same equipment.

Its business objective is to sell all types of training, fitness, conditioning, and exercise equipment to the general public. Susan wants to
start off with large stores creating a visible presence in the existing racetrack, competing along side other large retailers with similar
products. Her goal is to breakout large stores in Ontario and branch into four provinces, her funding does not show a profit for a term of
one or two years.

She wishes to compete by her organizations ability to meet and exceed the demands of consum
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ers in the retail sports industry by providing personalized up to date training, conditioning advise, along with the latest and largest range
of fitness and exercise equipment. The key strategy of the company is to be the most up to date and advanced supplier f new products
and techniques. She believes this business strategy will set her business apart from the rest of the competitors in the retail sector and by
providing information, education and personalized service to customers.

The employees will be knowledgeable and highly motivated. By employing a manager with a Bachelor of Commerce degree and
employing a fulfillment sinology and physiotherapist, to consul clients and to train staff, she will need to hire full time sales staff with a
minimum level of grade 12 education, to engage in the high level of training each staff member will require. Employees will need to
process a strong concern for their customers, be innovative in developing solutions that fit their customer needs, and be continuous
learners in the fitness industry.

Susan challenge includes a needs to develop a compensation system to realize her organizational goals of positioning herself in the
existing similar market place. And by her ability to compete in up to date and advanced range of equipment, and to develop her key
strategy of exceeding customer service expectations by personalized, knowledgeable, techniques, customer service to each individual
customer. What should the goals be for their compensation system (that is, what does the organization want and what do they need
employees to do)? (Hint: see p. 10. What two questions will hav

to be answered when deciding on a compensation strategy? Fit Stops goals for their compensation system is to promote the
organizations growth firstly with their entrance into the existing marketplace and their plans for future growth. The compensation system
must support its management structure for the achievement of those goals. The organization must attract and retain the individuals tit
the attributes necessary for the tasks required. The organization through its managerial system must then support and guide the desired
task behaviors for each individual in the organization.

The compensation system must comply with all laws in the Jurisdiction it operates and be seen as equitable for members of the
organization. The organization must achieve these compensation goals in a cost effective manner. Fit Stops key strategy of competing in
the market place is exceed customer expectations by providing personalized training advice, consultation, and top customer service.
Suntan's initial thought of compensation is to match what her competitors are doing. By matching the compensation systems of
organizations, she will be operating in the same pool of applicants as her competitors.

Fit Stops challenge is to align its compensation system to its organizations strategy by firstly the ability to attract and retain and secondly
to promote the desired employee behaviors'. Fit Stop needs to have fully engaged employees, to provide the personalized service that it
provides to its customers. Their employees need to be highly motivated and knowledgeable with a strong concern for their customers.
Employees must be flexible and innovative to developing solutions, and keeping up with the latest in fitness and training trends.

As trends develop they must also keep up and be motivated to learn and grow and operate as a team within the organization. Fit Stop
must position it self as a organization that promotes the values of the latest in fitness technology and the employees will be seen as the
dominate professionals in the fitness market. What do you think the employee needs are? Separate the needs into those that can be
satisfied by extrinsic rewards and those that will be satisfied by intrinsic rewards. Fit Stop needs to develop an attractive compensation
system to attract and retain the dynamic qualified individuals within a cost effective manner.

Initially the company does not see its profits for a year or two. To satisfy employee needs Fit Stop needs to establish a rewards strategy
that includes both extrinsic and intrinsic rewards to meet the needs of its potential employees, and the plan through which they will be
provided to present to potential employees, and to maintain the employee behaviors necessary for organizational success. Employees
accepting a position with Fit Stop will first recognize the extrinsic rewards he company offers such as pay, general working conditions,
coworkers and supervisory behavior.

Through the compensation system the organization can present the components of base pay, performance pay, and indirect pay to
match or exceed in the market place. Base pay based on time worked is fair to the employee as time is exchanged for monetary
exchange. Performance pay would relate to organizational performance and advancement, and indirect pay such as dental and

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