The Future of Managerial Economics Within the United States Military - Paper Example

Paper Type:  Term paper
Pages:  5
Wordcount:  1203 Words
Date:  2022-12-06

Introduction

The current workplace is in a U.S organization that deals with military issues. Thus, the company is more governmental than privately owned. My position in the company is in the investigation department, and it is an excellent place that has determined my performance up to thus far.

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The company has a system that defines the hierarchy within it such that there are people that all employees answer to and it is necessary for the institution to determine success in this manner. The organizational structure has identified each job, the function and where it is supposed to report to in the organization. The development of the structure has been essential to establish how the entire institution is to execute its goals.

The organizational structure for our company is functional in that there is a division of people into groups that have specific tasks to perform. In that case, there are departments such as investigation, army, navy, airforce, and guards where each of the division answers to the top executive. There are groups working in information technology and others in investigations. In each of the departments, there is a manager or a director who reports to an executive level up in the hierarchy.

The main advantage of having such a structure is that employees get grouped based on the skills acquired and functions thus allowing them to focus these collective energies on executing their roles (Henttonen & Kettunen 2011). The structure has worked for the company for quite a number of years now making it prove no point if it is to be changed. However, there has been a challenge with communication in the departments because the majority of the issues and discussions take place at the managerial levels.

The central agency problem is executive compensation whereby the executive uses the assets of the company to underwrite personal loans. The problem has been consistent, and it should be addressed as there is a severe conflict of interest. The situation has been existing despite the right of employees to participate in giving their opinions and votes. The conflict arises because the managers and directors tend to make a preference for the higher levels of consumption coupled with less intensive work. Managers also prefer to have lower financial leverage to avoid losses on managerial capital and portfolios. Consequently, they do not provide reports for the same in the annual report, and thus details of loans do not come out. Executive compensation in the organization needs to be well defined so that managers do not take advantage.

The job dimensions for the military organization include the main categories under which there are subdivisions. The U.S airforce department has subdivisions such as the human resource laboratory, the military personnel, and the management development among others. The U.S army has the research institute, the investigation department, training institute, and the general staff division. The navy jas the occupational data division, workforce, personnel research, and development center that take part in the appropriate administration of policies.

The functional structure is essential in this context because it arguably achieves higher levels of operational efficiencies. It is because the employees who have shared skills and knowledge are grouped to work together, and so perform similar functions. Specialization is achieved through this structure which is generally adequate for any organization. There is an enhancement in productivity because this type of specialism is to mean that the staff is skilled in the tasks they are to perform. Accountability levels are increased in that there are clear lines of management. Clarity is also ensured where the employees understand the roles they play and those of others as well.

Improvements to the job design should focus on helping the employees be more creative and apply innovative thinking to solve problems when they occur (Salvatore, 2015). Employees will remain motivated to work if they have a variety of skills that are to be attained through training. All the departments need to train for the workforce so that the personnel may use the different skills and talents to perform a variety of tasks and requirements.

Alternative work schedule options will do best for the organization as there is a need for all time surveillance and security provision. I would suggest that the work schedule is designed according to the convenience of the employees so that they balance their work and personal time. It may be in the form of compressed work weeks which implies that there will be a reduction in the number of working days and keeping the hours the same. Flexitime will also be crucial where employees will be allowed flexible scheduling options where they make a decision for the arrival and departure time. Telecommuting is a workable solution to enable the employees to perform from their areas linked to the offices.

Most importantly, there should be a compensation package for the executives and the employees within the firm. The packages are different due to the job descriptions. The salaries are any other benefits get negotiated and are documented through a customized employee contract. In the deal, there is the mention of the compensation method, benefits, performance bonuses severance agreements and any other special terms.

Executive compensation package will include the basic salary that they are entitled to every month for work done, bonuses, incentives, income protection guarantees or types of lump sum payments (Bebchuk, & Fried, 2003). There are also packages like guaranteed severance that will be given to them in the case of employment termination as a result of other reasons other than the cause, perks and the executive-only benefits such as paid vacations, working from home and having a flexible schedule.

The employees in the employment contract are more concerned about the salary and will rarely talk about compensation models because it is difficult for employers to extend their offer up to that level as they worry about the wages being market competitive (Bettis et al. 2018). Employee compensation is regarded as one of the most substantial expenses for any organization, and they will do anything possible to cut on such costs. The compensation package for the employee will include the basic pay, any commissions, overtime pay, bonuses, housing/meal and travel allowance, insurance covers by the organization among others.

Conclusion

In conclusion, the military company in the U.S is doing to their level best to make sure that employees get what they deserve for work well-done. It is necessary that organizations structure their hierarchy in helpful ways for proper management of staff and any other person concerned. Compensation packages for employees and executives reveal steep differences that both parties have to bear with for better performance. I hope that the company will help me develop better skills in the military.

References

Bebchuk, L. A., & Fried, J. M. (2003). Executive compensation as an agency problem. Journal of economic perspectives, 17(3), 71-92.

Bettis, J. C., Bizjak, J., Coles, J. L., & Kalpathy, S. (2018). Performance-vesting provisions in executive compensation. Journal of Accounting and Economics, 66(1), 194-221.

Edmans, A., & Gabaix, X. (2016). Executive compensation: A modern primer. Journal of Economic literature, 54(4), 1232-87.

Henttonen, P., & Kettunen, K. (2011). Functional classification of records and organizational structure. Records Management Journal, 21(2), 86-103.

Salvatore, D. (2015). Managerial economics in a global economy. OUP Catalogue.

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The Future of Managerial Economics Within the United States Military - Paper Example. (2022, Dec 06). Retrieved from https://proessays.net/essays/the-future-of-managerial-economics-within-the-united-states-military-paper-example

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