Jinnikins Jeans has carved out a reputation for itself based on its easy informality of business and product style. But this uniqueness of style is also sometimes the undoing. With respect to HRM practices, especially when it comes to formulating employee compensation programs, the model of ad hoc decision making that had prevailed in the early days can prove counterproductive.
Compensation policies of companies across industries and domains usually have these two facets: firstly, the fixed financial recompense and performance-based incentives; and secondly, the prospects for career growth and promotion.
It is fairly certain that the older reward models employed by Jinnikins ware inadequate in meeting the new visions and aspirations of the company. In the older model, there is an element of randomness and spontaneity of decision making. Breaking away from this tradition, the new HR Director, Etty, took the right measure of applying course correction. She . . . Read More