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  • Essay / Proposed Compensation Plan for Nike, INC. - 1347

    Since the 1980s, it has been established that there should be a strong association between employee compensation and business strategy (Hufnagel, 1987). However, developing a strategically oriented compensation system is a complex undertaking that requires consideration of many factors. Some of these are changing employee needs, changing employee and societal demographics, changing gender composition of the workforce as well as changing qualifications of job applicants. employment (Dawson, 1995). It cannot be emphasized enough that strategic compensation allows an organization to align the interests of employees with those of the company's owners (Santone, Kevin and Britt, 1993). Indeed, numerous studies attest that effective compensation systems can be tools for motivating employees, high levels of which can lead to excellent organizational performance. However, the unfortunate reality is that not all organizations have strategic compensation programs aimed at aligning the interests of employees with those of the company. This article presents a proposed compensation system for Nike, Inc. (Nike), a company that has experienced problems with employee compensation, particularly for offshore factory workers (Taibi, 2013). Nike, Inc. (Nike) is one of the world's leading designers. , distributor and distributor of sports shoes, clothing, equipment and accessories for different sports and fitness activities (MarketLine, 2013). Nike is one of the most powerful brands in the world and the company sells its products in 190 countries in America, Asia-Pacific, Europe, the Middle East and Africa (MarketLine, 2013). Headquartered in Beaverton, Oregon, Nike currently has 44,000 employees. Nike has a global market share in the international paper industry, namely (i) they adhere to US laws; (ii) they promote improvement in performance, particularly in terms of sales; (iii) they take customer satisfaction into account; (iv) they are competitive; and (v) they encourage the retention of top performers. However, such a compensation system could have drawbacks if Nike is not careful, particularly with regard to individual incentives. For example, the company could set unrealistic standards for employees and could serve to promote lack of flexibility for affected workers. In light of these elements, a main proposal for Nike management is to support such a compensation system with the necessary needs assessments, performance evaluation processes and appropriate training and development. Through these measures, employee interests align with the goals and objectives of the organization..