Essay Sample on BSG's Organization Performance and HRM Strategy

Published: 2019-10-28
Essay Sample on BSG's Organization Performance and HRM Strategy
Categories:  Management Strategy Human resources
Pages: 5
Wordcount: 1258 words
11 min read

Organizational performance defines the analysis of the company's performance as compared to its goals strategies and objectives. It consists of the actual outputs or what results are found from the organization as measured against the intended outputs which include the companys goals and objectives (Chanda & Shen, 2009). Moreover, in every company for the success of efficient operations, there must involve the employees and the employers. They work in hand to achieve the organizational objectives. Thus, a good relationship between the employees and the employers must be established. For every employee to work efficiently, the employer must provide a conducive environment for them to work.

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Also, the incentives and compensation must be rewarded to every employee to motivate and enable them to work towards achieving the firm's goals. BSG operations deal with PC-based exercise, exhibited to reflect the real-world character of the globally competitive athletic footwear industry. BSG is structured in a way you can run a company in head-to-head competition against companies run by other class members. Moreover, being an athletic footwear company BSG operates as a neck-and-neck race for global market leadership, competing against opposing athletic shoe companies run by other class members.

The company has a mission, and it is optimistic in manufacturing and selling their footwear in various branded markets around countries such as the North America, Europe, Latin America and Asia. Also, they are competing for supplying private- label footwear to North America chain retailers whereby transportation will be conducted using three different channels. They include independent shoe retailers, direct online sales which will be done on the BSG website and company- owned and operated retail stores. The BSG operations believe that with correct procedural measures in minimizing cost and inputs will lead to achieving their objectives as long as there is the maximization of the outputs leading to increasing of the revenues.

There are various approaches to the workforce compensation which the managers use to reward their staff. Companies such as BSG have formed different methods to ensure the workforce compensation is accomplished appropriately. The first approach in which the corporation used to compensate the workforce was the annual financial or operational results (Rothaermel, 2013). It includes the achievements that relate to annual profitability, production, sales, return on investment and so on. Managers identified these accomplishments best with a lump-sum bonus. It means that a significant amount of money was given to the hardworking employees besides their salary. It resulted in increasing in productivity since the scheme motivated the workforce. However, financial success in one year wont guarantee success in the next year. Therefore, the BSG operations company shouldnt consider rewarding the employee with guaranteed salary.

Another approach to the workforce compensation was the exclusive projects award. The company developed a strategy of compensating their workforce in that they established a one-time special project that predetermined time frame which added activity and responsibility to the work for a temporary period. During this period, the manager rewarded the employees with lump-sum bonuses for taking into consideration of the special-project performance. Also, the company added additional skills the employees to ensure they are competent in providing and handling their work. Other skills confirmed that the employees were in a good position to deal with different activities in the organization thus increased productivity. Therefore, the manager increased the basic salary of the staff since they had to carry out various activities compared as before with inadequate skills.

Also, additional of responsibilities was used in the workforce compensation. The employees were added responsibilities which gave them job security in the company. The managers rewarded the employees with a base salary increase which indicated new responsibilities that augment the employees expected contribution to the enterprise. Job promotion was not left out since it was seen as a contribution of the employees motivation towards achieving the organizational strategies. Therefore, all these approaches were used to ensure there is the workforce compensation. However, the BSG operations did not introduce the lump- sum bonus scheme immediately to every staff since it would lead to the company becoming less profitable. It offered increment of the salaries and bonuses of the employees yearly ensuring that it would still run without making losses.

The BSG operations workforce compensation strategy has worked since it has improved the productivity of the company. For instance, in the market growth, the prospects for long-term growth in the sale of athletic footwear has become successful after using the bonus scheme as a motivation to the employee's hard work. It is evidently seen in the percentage increase in sales for the footwear. In North America and Europe, sales rose from five per cent to 7 per cent showing that there has been an increase of two per cent in the branded footwear market. Also, in Asia and Latin America, there has been an increase of two per cent of sales in the branded footwear market showing that the compensation approach for the workforce has worked excellently.

Following the results from the private- label footwear market, it demonstrates that the workforce compensation strategy worked applicably. Also, there was discovered an increase of three per cent in the companys sales in both North America and Europe. Similarly, Latin and Asia acknowledged 3 per cent increase which showed that the approach was a success. Moreover, considering the factors that affect the workers efficiency shows evidently that productivity gains resulted in adjusted labour costs. Whenever the employees worked overtime, the company guarantees them overpay for the time they have worked. Therefore, it evidently showed that the employees worked hard to acquire an increment in their salaries.

Moreover, it is clear that labour costs per private- label pair produced over time are always higher than at regular time because BSG pays its workers at least two times the hourly base pay equivalent for all overtime productions. It showed that the productivity in the private- label footwear increased as a result of the adjusted labour costs. Also, the labour cost per private- label footwear is based on the pairs produced after rejects are reduced rather than on total pairs produced. It shows that the employees productivity in producing private- label footwear is the same as in providing branded footwear. Due to the increase of output, which led to the increment of BSG operations in their revenue resulted to the addition of labour cost to the employees. Thus, it is evidently seen that the productivity gains in the BSG operations led to the adjusted energy costs.

Moreover, based on the earlier discussed approaches it is clear that the workforce compensation strategy was successful in the BSG services. For instance, the annual base pay increase of two per cent led to higher levels of productivity because higher pay scales aid the company attract and retain workers with better skills and work habits. Therefore it can be concluded that the experienced increase in the level of productivity resulted from the established workforce compensation strategies. Moreover, BSG operations have planned on ways to improve and better their sales despite the benefit workforce. The company has developed good raw materials to boost the level of output and sales.

Also, it has planned to create an incentive scheme which will benefit its employees and motivate them in working towards achieving the organizational goals. Therefore, with such schemes the footwear company will grow worldwide and recognized as the best athletic footwear organization in both branded and private- label footwear.


Chanda, A. & Shen, J. (2009). HRM strategic integration and organizational performance. Los Angeles: Response Books.

Rothaermel, F. (2013). Strategic management. New York: McGraw-Hill Irwin.

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