Compensation Plan Research Paper Example | Topics and Well Written Essays - 1500 words

Compensation Plan - Research Paper ExampleFor example, the All-Employee Option Plans which are currently being set in sixteen of the nations where Unilever maintains its presence, the workforce has been granted with an incentive to enhance performance levels and meet targets and objectives so as to become eligible for financial rewards (Unilever Group one-year Report and Accounts, 2003). Accordingly, the partnership has also designed a think to cater to the classification of senior and top executives who have maintained their presence in the participation for significant periods and thus, have greater tenure. Thus, the plan declares what is defined as a the platform that gifts senior officials between 0% and 20% of the original conditional award after the completion of a specified period (Unilever Group Annual Report and Accounts, 2003).The rationale behind the establishment of an equity based compensation plan that is further subcategorized into six classifications can be expl ained by associating the concept with Unilevers policy of fair compensation. In accordance with this agenda the company aims to continually evaluate workforce issues, internal mechanisms and labor practices to improve and enhance the transparency of the compensation system on a concurrent basis in 180 nations of trading operations (Unilever, 2014a). Consequently, the data retrieved with respect to these matters would be compiled the following year so that the formulation of solutions can be conducted to cope with current issues.2. According to the research presented by Balken and Gomez-Mejia (1990), the decision-making exhibit regarding internal consistency of compensation system is reliant upon several factors, one of which is characterized by the identification of the organizational strategies that must be maintained to guide the company towards the achievement of objectives. Consequently, from the perspective of employees a fair, just or