Organizational Behavior Essay

Organizational behavior is a valued issue in the circles of corporate world. Firms have in the past structured executive compensation in a manner to influence organizational behavior. Firms usually craft attractive compensation to attract and retain superior executives. In some instances, executive compensation is tied to the performance of the managers, usually reflected on the financial performance. However, the present global financial meltdown has placed executive compensation on the debate table. The big dilemma is should executive compensation programs be shelved in context of the present financial crisis.

Recruitment firms mostly involved in the hiring best-performing executives mostly persuade the interested firms the need to increase compensation levels (McCool, 9). The issue of executive compensation is most times handled in emotive manner other than in logical due process analysis. In pursuit of executive compensation Growth oriented firms normally pursue executive compensation to attract highly qualified managers and enhance retention to assure of succession at the firm. Firms caught at the center of the present global competition for leadership, executive compensation is an issue that executive search team influence to stay ahead.

For example, a 1991 Fortune study on 200 major firms found that 86 percent of the CEOs earn $1M or more

per annum. In fact, the average CEO earned about $1. 4M in base salary and annual bonuses but on counting long incentives and stock options the figure possibly reached $2. 8M (Crystal, 1). It is reportedly that some CEOs while campaigning to have their compensation hiked, they enlist best paying companies on the survey to justify their under-compensation. The level of compensation soared in the 1990’s but in the present decade it has blasted leading to heated debate.