Case Study Hrmn 300

Compensation Changes at JC Penny

Why the Solution for JC will Work

By:

HRMN 300

15 October

The solution to JC Penny’s problem will work because they were able to come up with a solution that impacts the employee right away. Things weren’t working before because employees weren’t being rewarded right away. The only time they were rewarded was when they had stayed with the company for a certain amount of time. People need to be rewarded right away after they have done something well. Shrmindia.org says that, “Also, HR can help improve productivity by rewarding employees who produce at and above par. This will be an incentive not only to the high performers but to the employees who perform in a less than stellar manner” (np). The case study shows how JC Penny has been able to reward employees on time because of career bands.

Another thing that will make this work is as the case study said, “Use of career bands were designed to identify career paths for employee throughout the company and to better link compensation to all of the jobs.” The Human Resource Management textbooks states that, “Compensation is an important factor affecting how and why people choose to work at one organization over others. Employers must be reasonably competitive with several types of compensation to attract and retain competent employees” (372).

The last and most important thing that is going to make this work is the communication JC Penny used. They let all their employees know how important these changes were and they included them in the process so they would all know what was going on. Everyone likes to be in the loop, especially when it involves their job.

JC Penny’s new plan will work because they are rewarding their employees based on performance and time, giving more compensation, and keeping them informed as to what is happening with all of the new changes.

Works Cited

Mathis. R.L., & Jackson, J.H. (2011). Human resource management....