In today’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 company’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 company’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 demand and supply of labour markets. This is tied to the classical wage theory which states that both the supply and demand of labour is fixed at least in the short term. Therefore, supply and demand assumes to converge in an equilibrium price for a certain type of labour, which is the pay rate ( Wooton, 1992). In light of this, the organization should change their pay rate accordingly to the supply and demand of the labour market.
Governments play a critical role in the compensation system as just as much as an employer does for a country’s labour market. 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...