Question

In: Operations Management

Respond to the following statement: Compensation does not affect a company’s performance. Do you agree or...

Respond to the following statement: Compensation does not affect a company’s performance. Do you agree or disagree? What is the rationale for your perspective?

Solutions

Expert Solution

The statement "Compensation does not affect a company’s performance" is a controversial statement, where it depends on ones personal views. There exists a almost equal ration of people on both sides. Let us analyze the both.

1. Agree that Compensation does not affect a company's performance: The main rationale behind this is that, most companies believe in providing healthy work environment and satisfactory work and rather than moentary benefits. This kind of situations most likely favours Companies and profiles like Analytics, IT and other in house jobs, where the empoyer majorly strive to provide quality of work with excellent working conditions and try to come up with innovation in catering to physcological needs.

2. Disagree that the Cmpensation does not affect a company's performance : The main rationale behind this is that, the companies belive in providing more monetary benefits and keeping less concentration on the improvement of inhouse environment. Majorly the sales companies and service oriented provide these benefits, these benefits motivate the employees to stretch their abilities to the farthest to get the exceptional results.

Conclusion: The companrision and rationale vary from industry to industry.

Do comment, if you need any additional information or explanation.


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