Strategic Decisions and Compensatory Practices

Strategic Decisions and Compensatory Practices

Strategic decisions are the decisions that are made with regards to the whole environment of a company’s operation. It seeks to encompass the resources within the company and the relationship of other resources with the human resources. Notably, key among these decisions touches on the compensatory practices and in this instance the decisions made touch on the payments that should be made and similarly ensure that the payments do not impede the conducting of company’s businesses.  It is prudent to note that the compensatory practices of the company are that the plan available only covers the paid employees.

Currently, I work as a truck driver at the Harvest Hope Food Pantry and the strategic decisions within my workplace touching on compensatory practices are made in order to ensure that there is a development of the business. This is because; most of the finances of the company is directed towards the operation of the business and not necessarily facilitate compensation plans for the employees (Harvest Hope Food Bank, 2020). The advantages of compensation practices include the fact that the company is able to achieve its objectives and also achieves clarity on who can receive compensation. The only disadvantage of the compensatory practice is that they are not very attractive to prospective employees who would prefer other organizations to Harvest Hope Food Pantry

The organization that I work with is a non-governmental organization that seeks to provide help, in form of food, in charity. This is, therefore, an indication that the company depends on goodwill and well-wishers for donations. Notably also is the fact that volunteers form the heart of the organization and therefore, the organization is able to maintain a minimal number of paid staff (Harvest Hope Food Bank, 2020). The compensation plan can, for that reason, be said to be a good fit for the business strategies of the organization. The rationale for this position is given that food bank is a charity organization and the purpose of operation is to provide aid in form of food, then making use of volunteers to minimize spending on salaries, compensation and other benefits is the proper option for the food bank.

Reference

Harvest Hope Food Bank. (2020). Retrieved 11 January 2020, from https://www.harvesthope.org/

The Routledge Companion to International Human Resource Management. (2014). United Kingdom: Taylor & Francis.