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Services improving company Essay

BBC’s decision of changing compensation plans will greatly influence the actions and behaviors of the employees more than anything. The commission-based salary plans might either contribute to the organization by motivating employees to deliver more quality work outputs and services improving company performance, or it might fail to meet the target profit or financial situation of the organization due to the limitations and failures of the company’s staff to render high quality services expected by the organization.

Commission-based salary plans are highly dependent on the ability of the employees to produce quality work outputs and excellent services, and if they fail to do so, they will not only fail to obtain compensation but will also fail the organization in terms of accomplishing goals and objectives. With this in mind, BBC needs to look into the strengths and weaknesses of its employees to ensure that despite the changes in payment schemes, employees will still continue to perform for the company.

For the staff or employees of the company, the change in the compensation plans might affect how they take their work and regard the organization in terms of trust and loyalty. BBCs decision to withdraw profit sharing and change the flat-rate payment scheme

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to commission-based salaries may either motivate or dishearten them to continue working for the organization.

Since profit sharing motivates team work and collaboration (Krauter, Basso & Kimura, 2004), eliminating it and changing it to a commission-based payment plan might break up the working relationships and loyalty of the staff to the organization, consequently leading to low and unmotivated performance and productivity. On one hand, other employees might feel threatened by the situation of losing their jobs or their source of income.

The compensation-based payment plan will motivate them to perform better, as is the problem with profit sharing – that is, although it motivates collaboration, it does not always ensure high standard and quality work outputs – allowing them to gain compensation that is appropriate for the kind of services they provided for the company.

Although the changes BBC made will either make or break the position of the company within the corporate arena, it can do so well in ensuring that employees are motivated by the changes and not disheartened by the compensation packages that were implemented to eliminate profit sharing and the flat-rate payment scheme. References Krauter, E. , Basso, F. C. , & Kimura, H. (2004). The Relationship Between Profit- Sharing/Gain-Sharing Plans, Productivity and Economic Value Added. Retrieved December 12, 2008, from CBS Interactive Inc.

Website: http://findarticles.com/p/articles/mi_m0OGT/is_1_3/ai_n8690365/pg_2 Nelson, K. (2008). Profit Sharing. Retrieved December 12, 2008, from eNotes. com. Website: http://www. enotes. com/management-encyclopedia/profit-sharing Pitt, D. (2008). Recession may Jeopardize 401(k) Plan Contributions. ” The Associated Press. Retrieved December 12, 2008, from Freep. Website: http://www. freep. com/article/20081105/BUSINESS07/811050372/0/BUSINESS07 “Profit Sharing. ” (1999). Retrieved December 12, 2008, from HR-Guide. com. Website: http://www. hr-guide. com/data/G444. htm

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