Compensation and Benefits Essay Example | Topics and Well Written Essays - 2000 words

Compensation and Benefits - Essay Example It wanted to be recognized as one of the finest places to work. To actualize that vision and mission, Nike implemented an incentive program in correlation with the mission. In any organizations including Nike, the workers do their duties for personal motivations like money (salary), but their motivation will get a great boost if they receive additional financial rewards, promotions and recognitions. When the reward component is analyzed from the perspective of organization's mission, it does somewhat supports Nike's mission. That is, Nike's mission is "To bring inspiration and innovation to every athlete in the world" (Nike Business, n.d.). Even though, this mission is customer centric, to achieve that mission the employees have to work effectively. To make the employee at Nike work effectively, the incentive program plays an important role. The incentive program implemented inside Nike perfectly fits with its resources. That is why, Nike has introduced an incentive program called Performance Sharing Plan, which correlates with the company's performance. "Performance Sharing Plan (PSP) - Nike has an annual bonus plan that rewards employees based on Nik e's performance (to reward team success) and individual performance (to reward your contributions to that success)." (The New York Job Source, 2008). As the program rewards the workers who perform up to the expected level, it meets the expectations of the employees. Importantly, this incentive program is fully attracting and retaining the employees. That is, Nike by rewarding and giving incentives to the deserving and 'success achieved' employees through this program and other programs is making them stick to the organization. This system is very flexible because it changes according to the performance of Nike. That is, if the employees perform optimally and raise organizational productivity and profits, they will be rewarded optimally. As this program is applicable to all types of employees, it cannot be tailor made for specific workers. On the whole, this incentive program functions as one of the main motivating factors for the employees, making them stick to the organization and thereby helped Nike reach the status of the world's number one maker of athletic shoes, equipment and apparel. When organizations fail to reward the employees appropriately, it could wean way the workers from the group decision making process and the resultant work teams. That is, some times or even frequently, the management overriding tried and trusted individuals could give important posts and responsibilities to individuals with negative attributes. If this practice is followed in the organisation, it will create disenchantment among the workers and will destroy team work. This ritual of awarding plum posts, rewards, incentives, etc, to the inappropriate members by the leader or the management team is not a norm in Nike. Nike rewards the employees in an unbiased manner. As mentioned above even this main incentive program of Performance Sharing Plan is applicable to all performing employees. Because of this strategy, workers in Nike are not banding together in a kind of mutual pr otection society with a culture of its own, but unite as work teams and are working in unison for the organizations. Unison of workers into teams with an urge to usher an organization into a successful endeavor will actualize, if the