DIVINE WORD COLLEGE OF LAOAG

SCHOOL OF BUSINESS AND ACCOUNTANCY

Name: Jarell A. Pascual

Course&year: BSMA-3

1. Imagine that you just joined the leadership team

of a large financial services company that wants to improve its
financial performance. The rest of the leadership team wants to
reduce the company’s workforce through outsourcing or selling
some business units and then hire back come of the former
employees as contract labor so it can pay them less and not provide
benefits. Essentially, they want to find ways to pay people less for
doing the same work without benefits and with fewer legal
obligations. What would you recommend?
It's crucial to remember that cutting back on staff by outsourcing or selling off
company divisions, then bringing again a few of the former workers as contract
workers, might not be the greatest course choice for boosting financial
performance. It could save expenses in the short run, but over time, it might hurt
the business's credibility and staff morale, which might have a bad effect on
output and profitability.
I suggest the following instead:
 Instead of eliminating positions, the leadership team should put their
attention on increasing operational efficiency, which may reduce costs
without compromising quality or employee morale. Process streamlining,
waste reduction, and the detection of ineffective regions can all be part of
this.
 Invest in staff training and development: By enhancing the workforce's
abilities and productivity, businesses can produce better-quality products
and increase consumer satisfaction. Providing possibilities for growth and
promotion inside the organization can also aid in employee retention.
 Examine benefits and compensation plans: To make sure the company's
benefits and compensation plans are fair and competitive, the
management team ought to look into them. The success of the firm may
suffer if it is unable to recruit and retain top employees due to inability to
offer competitive compensation and perks.
 DIVINE WORD COLLEGE OF LAOAG

SCHOOL OF BUSINESS AND ACCOUNTANCY

 Before making any choices that may affect the employees' jobs, it is crucial
to get the opinions of the staff. The leadership group may use this to learn
how staff members feel about proposed changes and see potential
problems before they happen.

In conclusion, the management team ought to put emphasis on improving the

effectiveness of operations, making investments in training and growth for staff
members, revising salary and benefit plans, and soliciting employee feedback
rather than cutting the labor force by contracting or disposing business units.
These actions can aid the business in enhancing its financial performance
despite preserving a favorable working environment and reputation.

2. Imagine that your CEO recently read about another company

focusing its training and compensation resources on the highest-
performing 10% of its employees and asks for your opinion.

A typical strategy employed by many businesses to inspire and retain their

finest personnel is to concentrate training and pay resources on the top 10% of
performers. This strategy is predicated on the idea that top-performing workers
are the business' most valuable assets and have the capacity to have the most
influence on its success.
However, it is crucial to take into account any potential drawbacks of this
strategy. The remainder of the staff may feel unfairly treated and dissatisfied if
top performers receive too much attention, which will lower morale and
motivation. Additionally, it may foster a culture of rivalry rather than cooperation,
which might be detrimental to internal teamwork and collaboration.
The standards of performance that are applied for determining top-performing
personnel must also be fair, impartial, and in line with the principles and goals of
the business. The success of the strategy may be harmed by the use of
subjective or biased criteria that identify the incorrect employees as high
achievers.
The unique context and objectives of the organization ultimately determine
what decision to make to concentrate training and reward resources on the 10%
 DIVINE WORD COLLEGE OF LAOAG

SCHOOL OF BUSINESS AND ACCOUNTANCY

of employees who do the best. Other strategies that examine a wider spectrum of
employee efficiency, which include collaborative benefits or a focus on enhancing
and growing the abilities of all employees, may be worthwhile to take into
account.

3. Imagine that you are starting a new online marketing company and
are trying to establish the compensation system for your employees.
In percentages, how much more would you pay the highest paid
employee than the lowest paid employee? Why?

Generally speaking, the balance among the highest and lowest paid
employees can change based on a number of variables, including the size of the
business, the industry, the duties and responsibilities of each position, as well as
the qualifications and experience needed for each. Some businesses opt for flat
pay structures, where all workers receive the same salary regardless of their
position or level of seniority. This strategy can lessen the possibility of animosity
or envy between employees by fostering a feeling of equality and impartiality
between them. Other businesses, on the other hand, favor a more centralized
system of wages in which the highest-paid worker receives a wage that is greater
than that of the lowest-paid worker. If the highly paid employees have greater
responsibility, experience, and skill, and significantly contribute to the success of
the organization, this strategy can be justified. Fairness and openness in the
payment system should ultimately be prioritized. The goal should be to create a
system that treats each employee equally and respectfully while rewarding them
for what they do to contribute to the growth of the business.