COMPENSATION AND REWARD MANAGEMENT

2022
Assignment 1
By:

HRM 401

Page|1
Following FashionSia’s shift in competitive strategy, what are some
considerations for the company’s human resource management practices?
The organization must place the highest importance on finding and retaining workers in
crucial functional areas like operations and product development. The entire workforce must
be focused on the new competitive environment. Plans for human resource management
under the low-cost paradigm concentrated on reducing the manufacturing cost per worker. In
the new environment, the company must encourage cooperation and interdependent behavior.
Training will thus be essential to ensuring that workers are productive in the new
environment. Plans for human resource management will follow the expectations for cross-
functional personnel, who need to be flexible and risk-takers. 1987 (Schuler)

I suggest doing first 360-degree assessments of managers, supervisors, and staff. This will
contain a summary of the qualities and talents that are now in demand as well as justifications
for retaining competent workers in order to increase competitiveness in the new market. The
business must assess the abilities of its employees and their suitability for the new market,
which calls for the hiring of capable people with technological know-how. Based on the
study of the staff's skills and abilities and the results of the 360-degree assessment, a retention
strategy, recruiting strategy, and development plan will be provided.

As a Human Resource practitioner, propose a holistic approach towards

designing the compensation and benefits program at FashionSia.
Making a comprehensive incentive system that accounts for pay, employee benefits, and
work-life experiences is one recommended all-encompassing strategy. To be able to acquire
and keep the finest people to support its new business plan, the company must ensure that its
"total incentives" policies and programs are both legitimate and competitive in the Saudi
Arabian market. 2019 (Bubenik)

When deciding how much to pay employees, the company must be internally consistent.
Make advantage of task analysis and job evaluation to maintain internal consistency in
remuneration. Job analysis is the process of gathering, evaluating, and listing facts in order to
define a job. It includes all of the components of a job, the hiring procedure, and occasionally
the workplace. In a company, employee pay is very variable from employee to employee, and
work assessment has a big impact on that. The crucial positions with the highest monetary

Page|2
and goodwill value to the organization must be evaluated by pay specialists. All of the
company's positions are contrasted to accomplish this. 2019 (Bubenik)

Talented employees need to be retained by a business in order to maintain its competitiveness

in the market. Strategic partnerships and compensation surveys are how compensation
specialists construct compensation systems. Building compensation systems that account for
both internal and external market restrictions requires the utilization of strategic alliances.
The company's financial situation, functional capabilities, and human resource capabilities
are examples of internal variables. The firm's profile, rivalry, demand around the globe, long-
term industry forecasts, and analysis of the labor market make up its external market force.

References
Schuler, R. S., & Jackson, S. E. (1987). Linking Competitive Strategies with Human
Resource Management Practices. The Academy of Management Executive (1987-1989),
1(3), 207–219. http://www.jstor.org/stable/4164753

https://www.forbes.com/sites/scholleybubenik/2019/02/18/can-hr-strategies-create-a-
competitive-advantage-for-your-company/?sh=4cf8faba5856

Page|3