In todayâ€™s dynamic and fiercely competitively markets it is of great importance that management pay special attention to the design of its reward system which should be align with the companyâ€™s strategic goals and objectives. A reward system can be defined as a structured method of evaluating and compensating employees base on their performance. Additionally, the reward system can help to enhance the companyâ€™s morale, as well as productivity levels which in turn increase overall revenue for the company. Management of YouTube in its attempt to remain competitive and effective should be also be cognizant of the many factors which should be scrutinized before venturing out on this new assignment.
Another important factor which the management should pay care attention to is the ...view middle of the document...
It should be also noted that pay affects the macro environment. In regards to the macro environment the pay level can have an impact on the level of consumption and demand, level of inflation as well as strikes. Additionally, it is very important that management do not overlook the legislation in the European countries in which it plans to operate.
Base on the information at hand it is very imperative that the organization implement an individual based approach for this undertaking. The reason for such is a statement is because there are several advantages that accrue to this approach. According to the Compensation Management Course material, some benefits are 1. Labour and total cost per unit of output can be estimated more accurately in advance. 2. Less direct supervision is needed to keep output to a reasonable level. to low, workers morale and productivity may be comprise . Additionally, the amount and cost of clerical work increases, if done manually.(Webb2005).
Although the incentive pay can be quite beneficial to several organizations I am of the view that YouTube should align itself with a traditional pay, preferably a merit base pay. As it relates to the organization employing a merit base pay, it serves as a mechanism for increase creativity and an open mind to novel ways of approaching work. It also boosts employee motivation. A monetary reward is deem as a better pay and is the strongest incentive for an employee who is working with a greater enthusiasm and skills than his counterparts. It is my belief that the organization in their efforts of establishing the criteria for which performance should be judge are 1.Sastisfied customers, system should be implemented in the short term as this act to give workers a sense of urgency which will transpire into now results.