Group assignment on compensation
Question 1
The reward strategy of a company depends on the life cycle stage of an
industry. In the following table you will find a sample of reward strategy linked
with HR strategic focus, Organizational performance measures and
organizational priorities in a pioneering stage of the organization. Kindly fill the
table for the other three stages.
STAGES
ORGANIZATIONAL ORGANIZATIONAL HUMAN
PRIORITIES
PERFORMANCE
RESOURCE
MEASURES
STRATEGIC
TOTAL
REWARD
STRATEGY
FOCUS
PIONEERING Capital
Requirements
Cash Flow
Key leadership
Aggressive pay
Raising Capital
Hiring quickly
Positioning to
attract
Investment
Hiring the best
Capital
Deployment
Talent
Revenue
Aggressive
Strategy
compensation
Minimize cash
Formulation
payout, attract
Retention hooks
Prototype
Completion
High leverage*
with long-term
payment plans
(employee
stock
ownership/longterm
incentives)
Augmented
benefit scheme
with tenurebased tie-in
(e.g., car,
medical
scheme)
Growth
Maturity
 Cost cutting
 Innovation
 Try to reenter the
market with a
new product
 Upselling and
cross-selling
to existing
customers
 Huge
investments
 Diversity is
achieved
 Cash flow
management



Stability of
profit
Brand
recognition
Strong
customer
base
 Creating
benchmark
s with peer
firms.
 Revenue
share from
new
product
 The owner
can now start
receiving
regular
salaries from
the firm.
 Objectives
are set clearly
for the
employees
 HR acts as a
talent
architect in
contributing
to business
productivity
 Create a
budget to
develop
world-class
employee
experience
 Digital
transformatio
n adaptation
 Wellness
program
 Talented
management
team
 Employees are
free to set their
own career path
 Introduction of
ESOP facility to
employees.
 Productivitybased pay
structure
 Employee
loyalty
 Introduction on
online work
system

Decline
Question 2
With reference to raw salary data in the excel sheet of the case Sushma
Industries, please identify the problems in its salary structure.