Evaluations, Compensation, and Firm Objectives

Introduction: A company’s mission, vision, and values must be aligned with the company strategy. Then each of the functional areas of the company have their own strategies that align with the overall company strategy. In this Assignment you will explain how a company can link their compensation and performance evaluations to the organization’s innovation objectives. Read the case study below, and respond to all the checklist items.

Case Study: Evaluations, Compensation, and Firm Objectives

Braintrust Toys is a toy maker that has as its mission, “Our purpose is to expand the minds of children 1 month–100 years old.” Currently they use a product development strategy but believe that maybe they need to orient their company towards an innovative strategy.

Their current objectives are to:

Invent 10 new toys every year and reinvent at least 10 more.
Increase revenues by 15% per year.
Employ motivated and committed workers.
Provide safe and intellect-expanding toys for everyone.

Braintrust Toys has operated as a medium-sized company for about 20 years. Their compensation to date has been based on longevity at the company. The evaluations were performed by their managers after reviewing their results based on their influence on: (1) increased department product output (75%), and (2) increased department sales (25%) at the end of the year. With the increasingly mechanized and digitized toys, and now robotics involved in toy making, many employees have been let go or offered early retirement due to their obsolescence.

The new objectives in line with the new innovation strategy include:

Enhance attributes and convenience in at least 20 existing products.
Launch at least 15 new products that appeal to new customers and new markets.
Develop 5 new markets.
Hire personnel that think innovatively.
Hire diverse support personnel and designers who are customer service oriented to support new products and markets.

The 200 remaining employees are beginning to worry, and feel their compensation and evaluation process needs an overhaul.

Checklist:

Explain how Braintrust can link their compensation and evaluations to the company’s new objectives and innovation strategy.
What methods of performance evaluation might they use?
Explain your reasoning for using the methods of evaluation you chose.

Submit your minimum 2-page (i.e., 500-word) expository essay in APA format and citation style with additional title and reference pages. Make sure your paper is logical and insightful, using correct Standard English spelling and grammar. Ensure there is an introductory paragraph, each paragraph has a minimum of 3–4 sentences, and a closing paragraph is provided.

ANSWER 

Evaluations, Compensation, and Firm Objectives

Introduction

Braintrust seeks to grow and expand its business with new objectives that align with its innovation strategy. To ensure that the company meets these targeted objectives, it will need to re-invent its compensation and performance evaluation strategies to meet the interests and expectations of the employees. Also, Braintrust should invest in the Behaviorally Anchored Rating Scale (BARS) and the 360-feedback performance evaluation strategies to assess performance. The primary rationale is to accelerate performance by improving key business areas, training, and motivation.

The link between the company’s compensation, evaluation and the new objectives and innovation strategy

Braintrust should develop and implement improved compensation and evaluation strategies to achieve the new innovation strategies established. The advanced compensation and evaluation approach should focus on improved motivational tactics and progressive evaluation approaches. First, the company should ensure that it adjust its compensation mechanisms to provide increased benefits to its team of professionals. This will enable them to deliver optimal results as they acquire greater motivation in their duties and responsibilities. Also, they can take up learning and developmental plans to boost their knowledge and skills. In line with workforce evaluation, Braintrust should facilitate progressive evaluation to recognize and appreciate highly performing workers while building appropriate motivation for the lesser performing ones. The improved compensation and evaluation strategy will align with its newly established innovation tactics. These new objectives focus on enhancing existing products, launching new ones, developing new markers, selecting innovative personnel, and selecting a diverse workforce. As Lamb, Hair, and McDaniel (2018) reveal, key elements define a firm’s innovative strategy. This is a major way of boosting a firm’s brand image and status in the business environment. The decision to boost its compensation and evaluation strategies will position its team in a better place to achieve the new innovative objectives because of increased workforce motivation and satisfaction. It will enable Braintrust’s team to deliver optimal results that accelerate its growth and productivity.

Methods of performance evaluation to be used

The Behaviorally Anchored Rating Scale (BARS) and the 360-degree feedback are important performance evaluation strategies that the company will utilize. BARS will enable the top leadership to gauge the results, offer constant feedback, and maintain consistency. A fundamental way of understanding their perception and attitude towards the process revolves around understanding the results, providing continuous feedback, and accelerating consistency. This is an effective way of understanding workforce productivity and offering crucial strategies that facilitate better outcomes. The other viable performance evaluation is 360-degree. This will allow the company to acquire confidential and anonymous feedback from the workers. At times, employees might fear to relay information due to the fear of the top leadership level. Thus, this system allows them to provide confidential and anonymous information linked to their performance evaluation. It also accelerates legitimacy, reliability, and responsibility (Hosain, 2016). Leaders react to the information relayed by making strategic decisions that bridge the gaps highlighted in the workplace.

The reasoning for using the selected methods of evaluation

The rationale for selecting these methods of evaluation is to understand areas that require an improvement, further training, improve performance, and accelerating morale in the workplace. Through performance evaluation, companies can learn more about areas that could be improved to accelerate profitability and performance. Also, it helps in advancing morale in the workplace and exposure to areas that could be improved through training.

Conclusion

Braintrust should improve its compensation and evaluation procedures to ensure that it meets the needs and interests of its workers. This will accelerate their motivation and morale thus enabling them to deliver the targeted objectives. Notably, the company will also utilize the 360-degree feedback and BARS to assess workplace performance. These approaches will assist the business to improve key areas, training, performance, and morale in the workplace.

References

Hosain, S. (2016). 360 Degree Feedback as a Technique of Performance Appraisal: Does it Really Work? Asian Business Review, 6(1).

Lamb, C. W., Hair, J. F., & McDaniel, C. (2018). MKTG. Boston, MA: Cengage.