employee stock ownership can create a burden of long-term planning for the sustainability and repurchase program; not all employees can be able to purchase stock. According to the case, Atul believes in a total compensation between 0-10 percent based on employee’s salaries could play as a “trade-off” for a “supportive and respective work environment” (Calo et al., n.d.). Selection of and Justification for Selected Alternatives According to Hitt et al. (2014), acquisition helps to achieve a greater market power and market size since a firm will be able to sell its products and service to a much larger consumer base. In this case, the acquisition of TTI would help TEOCO to increase its client base from primarily domestic (North America) to …show more content…
Since the company was slow in both innovation and growth, it was time to make a life-changing decision for the company. Atul insisted on keeping the culture of debt-free and not accepting any external capital (for the past 15 years), however, the company was not doing great during that time. The case described that TEOCO primarily focused on North America telecom carriers, because of globalization, the company needed to expand its business worldwide. Therefore, TA Associates was the right choice for TEOCO in favor of equity investment. Partnering with TA Associates will help to strengthen TEOCO’s current financial condition as well as provide a strong support for the global network of relationships, according to Calo et al. (n.d.). What are the expectations of both parties? How can the companies ensure that these expectations will be met? Accordingly, both parties wanted to achieve a positive ROI and high profit. TEOCO expects the new proposal will help the company to provide new innovative products, help its shareholders to look for partial liquidity, and not be able to change the culture of the organization. To ensure these expectations will be met, two companies can maintain a strong position in the market and stable internal cash flow as well as concentrate more on innovation and opportunities to enter the global market. Discuss TEOCO’s strategy. What challenges does the TTI acquisition pose for the
Through out his tenure at Sunbeam,Al Dunlap’s advocated profit by firing many employees and shutting down many factories.If we look at it in the short term ,this approach seems very attractive as it brings in quick short term gains.In the long term ,however, such a decision would not ensure the sustainability of the company. Profitability and responsibility can and should be combined in an ideal world, however it is clear that they are at least partially contradictory. Shareholder pressure should not force a company to make short-term decisions that might be detrimental to the long-term profitability of the company.
At a high school in Piscataway, NJ two teenage girls got caught smoking cigarettes in the bathroom. The girls reported to the assistant principal, Theodore Choplick’s, office. A freshmen in high school, T.L.O. (the student's initials), denied the allegations even though her friend confessed.
CEO compensation has been a heated debate for many years recently, and it can be argued that they are either overpaid or that there payment is justified by the amount of work they do and their performance. To answer the question about whether CEO compensation is justified it must be looked at by the utilitarian viewpoint where the good of many outweighs the good of one. It is true that many CEO’s are paid an exorbitant amount of money; however, their payment is justified by the amount of money that they bring back to the company and the shareholders. There are many factors that impact the pay that the CEO receives according to Shah et.al CEO compensation relies on more than just the performance of the CEO, there are a number of factors that play a rule in the compensation of the CEO including the fellow people who help govern the corporation (Board of Directors, Audit Committee), the size of the company, and the performance that the CEO accomplishes (2009). In this paper the focus will be on the performace aspect of the CEO.
In my opinion, firms can minimize or manage the bumps, hurdles, or conflicts by setting up a meetings every time the firms needed to. Also by sharing the reports to minimize any risks and find a solution. Also by updating each firm by the other part activities will minimize the
In recent decades, share-based compensation has been increasingly used as a part of employee compensation. According to a survey conducted by SSR regarding the share-based compensation for companies in the S&P 500 index, the charts above shows that share-based compensation expense as a percentage of both selling, general and administrative expenses and total revenue increase substantially from 2005 to 2010. One of the main reasons is the changes in international accounting standard, which require all public companies to record share-based compensation expense on their income statement or balance sheet if settled in cash. Besides, the increasing trend also tells that there are several positive impacts of adopting the share-based compensation by those companies.
The first incentive plan this author will discuss is “stock option”. “Stock Options” according to Dessler (2011) is normally the type incentive received by executive and sometime lower lever employees of a company. When employees have stock option it give them the right to procure a...
Remuneration management is defined as the sum received for an employment or service delivered, this includes the money received on a monthly basis as well as benefits given as rewards (investopedia,para.1 ). Individualism need to be taken into account when implementing these remuneration structures or reward schemes, equal pay plays a role in balancing earnings among the diverse workforce (Shen, Chanda, D’Neetto and Monga,2009,p.241). The Woolworth’s Holdings uphold remuneration policies which have the purpose of making sure to attract and hold on to the best talent, that they are congruent with the strategies of the company and are the determinants of performance during the short and long phases. The policy considers the board members and the employees. This policy manages employees of the company by giving...
Rynes, S. L., Gerhart, B., & Minette. K. A. (2004). The importance of pay in employee
The organization is able to manage a high coverage of risks at relative low costs owing to the availability of highly skilled personnel in the company’s team of employees. This benefit also brings about another advantage of easing the financial burden of the organization (Johnson, 2016). Besides, effective employee benefit system offered by the organization could improve the general productivity. This benefit is attributed to the fact that employees tent to be more effective when they are given assurance of job security. In addition, workers become more productive when they and their families are given the desired security by the employer. The other benefit to the organization if it employs an effective compensation and benefits system entail benefits from premiums (Wayne, Shore, M., Bommer, & Tetrick, 2002). These premiums are typically tax deductibles as corporate expense. As such, a company that has an effective compensation and benefits system is likely save extra money for other
Formalized compensation goals serve as guidelines for managers to ensure that wage and benefit policies achieve their intended pur¬pose. The more common goals of compensation policy include to reward employees’ past performance, to remain competitive in the labor market, to maintain salary equity among employees, to motivate employees’ future performance, to maintain the budget, to attract new employees, and to reduce unnecessary turnover. It is important for the organ...
Tomax Corporation has 400 employees and wishes to develop a compensation policy to correspond to its dynamic business strategy. The company wishes to employ a high-quality workforce capable of responding to a competitive business environment. Suggest different compensation objectives to match Tomax’s business goals.
OLLIER-MALATERRE, ARIANE; ROTHBARD, NANCY P.; BERG, JUSTIN M. Academy of Management Review (Oct2013), Vol. 38 Issue 4
Tyco International was founded in 1960 and was regarded as an important electrical and electronic components provider, fire protection system maker and electronic security service provider. It is a diverse producing and serving corporation. Tyco has done business in over 1000 locations in 50 countries and hires 69,000 employees around the world (TYCO, 2012). Tyco International has expanded rapidly and broadly since its IPO in 1973 and has numerous companies among the Fortune 500. The firm’s revenue increased from $3.1 billion in 1992 to over $40 billion in 2004, with the firm’s market value estimated at over $100 billion (TYCO, 2012). Tyco has made numerous acquisitions, including 40 acquisitions since the 1980s.
Organizations are working hard in today’s world of business, not only to remain competitive, but also to focus on stability and structure. Employees are the backbone of an organization. It is becoming more important to offer quality HRM programs to staff, in order to support the retention of trained and experienced staff. Employees have always been concerned with salary however, there is a new focus emerging that looks at compensation as a whole entity. Monetary wages are now just as important as other benefits such as paid time off, medical and dental offerings and retirement. This paper will discuss the importance of the total compensation program which includes many aspects, not just salary. Attention must be paid to equal pay, pay
...vate and increase performance on the job as well increase employee morale. Increasing the compensation and benefit system will allow Holland Enterprise to reach it current goals.