Compensation Management for Intrinsic and Extrinsic Motivation

Question: Discuss about theCompensation Management for Intrinsic and Extrinsic Motivation. Answer: 3M Canada is a company with diversified business operation system. The company manufacture products in different industries so as to satisfy the demands of the market. The company applies managerial strategy to plan most of the operations within the scope of its operation. The managerial strategies applied by 3M involves five areas. That is their environment, their strategy, their technology, their size and their workforce. In this paper, we consider the workforce of 3M Canada. Therefore, compensation system needs to be applied to improve workforce in 3M Canada. Typically, compensation refers to benefits achieved by employees of a company as a result of extensive work. Therefore, the main aspect of a compensation system that needs to be improved by 3M Canada is workforce. This aspect has a perfect positive correlation towards achieving goals and objectives in the 3M organization. In order to fully demonstrate the managerial strategy to be applied in the workforce, we consider the present relationship between 3M Canada and the employees. From the case study, it is very clear that 3M Canada has a close relationship with employees. There are a lot of privileges granted to employees by the company. From the case study, the workforce in the company is relative older with an age average of 46-year-old. For that reason, 3M employs 80% of workers on a permanent basis. The other 20% is under contract. The company provides the employees with career growth and development. This is achieved through annual reviews, training and equal opportunities. 3M provides leadership training to high potential employees. Other benefits granted to employees include improved infrastructure, retirement benefits, and incentives plans, medical and dental benefits. However, despite all these benefits, there are changes that need to be improved so as to build a better workforce. The first issue relates to policy regarding paid absences. The employee gets 3 weeks paid vacation after one year of employment. This policy needs to be improved. 3M needs to reconsider this policy and provide equitable services to all employees (Kelly, 2014). For this policy to be effective, 3M needs to pay employees equally on vacation regardless of years of work. This strategy should be guided by Bill 148 of Employment. Another aspect that needs to be improved in the workforce is minimum wage. 3M needs to increase the minimum wage for employees. This will assist the company to maintain differentiation of different grades of workers. This strategy should be formulated by 3M compensation team so to provide the best base salary for workers. The compensation team needs to re-evaluate the budget so as to initiate a new pay grid for employees. This strategy should be guided by Pay Equity Legislation. Another aspect of a workforce that needs to be improved is wage rate adjustments. There are cases of minimum wage hiking in Alberta and Ontario. 3M needs to review the minimum wage adjustments in these areas (Senger, 2005). This requires a compensation system where compensation team needs to initiate legislative changes in all provinces in Canada. Lastly, a better compensation package for employees needs to be improved. This should be achieved through job rotation, diversifying skills for workers, intrinsic and extrinsic motivation to employees. References Kelly, D. (2014). The Book on Incentive Compensation Management. Compensation Architect. Senger, J. (2005). Designing a Not-for-Profit Compensation System. Wiley.