Thompson Technology: 1988-2006: A Software Success Story - Essay Sample

Introduction

Thompson Technology was founded in the year 1988 (Gusdorf, 2012). Its founder was Thompson, who was an idealistic man who always embraced technology and constant evolutions. Thompson had a background in the banking industry at the time he started his own company. Thompson Technology deals with software. It was the main company in designing and offering specialty maintenance software in the entire financial industry. From 1988, the time it was founded, until 2006, the company had a substantial financial accomplishment, growing swiftly from a subtle startup to a visibly traded organization with about 800 employees (Gusdorf, 2012). However, there is an economic recession forcing the company to increase regulation on the financial industry, making Thompson get reduced revenues. The case has concentrated on the attempts by the company in controlling the costs by reducing expenditures.

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What should be done about the numerous employee requests for compensation review?

Scott Montgomery, who is the chief human resource officer (CHRO), should address these requests appropriately. The buttress of many requests regarding the compensation review is an indication of a prevalent perception from the employees showing how inequitable the reward system is, which fails to properly reciprocate the amount of work being offered. The new management should thus address these requests to ensure that the reward systems are attractive, can retain as well as capable of motivating the employees. The employees thus request the reviews to evade lowering their morale, productivity, and turnover, which comes from employee displeasure.

How can Thompson Technology ensure equity in the compensation system?

Thompson Technology may enhance equity in the compensation system. Firstly, it is through readjusting employee workloads to guarantee equity as well as sensibleness. Many employees were lost from the lasting hiring freeze brought about imbalance within the organization, which pointedly altered the workloads for the other employees. It is crucial to involve the entire combination of the HR managers as well as the employees in conducting an audit focused on the workload changes that arose. It is possible to find that there are employees who took the workload of others who left. The analysis should thus help to identify those who were affected, and then readjust the workloads accordingly and sensibly. Secondly, the company should consider conducting a job assessment. A job assessment involves evaluating the comparative value of one job relative to a different organization. Its main purpose is ensuring that the is inner equity within the organization (Saranya, 2017). Besides, the company needs to evaluate its compensation strategy to make sure that it is suitable within the existing conditions.

How can compensation at Thompson Technology reinforce the organization's strategic advantage of product innovation and exemplary customer service?

Firstly, Thompson Technology can embrace a payment system based on performance within its entire rewards packages. Studies reveal that many employees have great interests in their compensation, getting tangled to their financial performance. For instance, a big portion of workers in America has their payments linked to their performances, and they believe that they would perform best if they had more in their companies, which hire by means of benefits like profit sharing. If Thompson links the employee compensation to their performance, it will probably intensify its sales revenue significantly (Gupta & Shaw, 2014). Secondly, Thompson Technology can incorporate a profit-sharing plan to the present rewards system. This will motivate its employees to have the owner's perspective, thus increasing their knowledge on the way to link their individual performance to the productivity of the company. There is also a practical advantage offered by this strategy for low costs in case fiscal difficulties.

References

Gusdorf, M. L. (2012). Thompson technology: A case study in controlling labor costs-scenario c: hot-desking. Society for Human Resource Management (SHRM).

Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research. Human resource management review, 24(1), 1-4. Retrieved from http://www.polyu.edu.hk/mm/jason/editorials/Gupta%20and%20Shaw%202014%20HRMR.pdf

Saranya, R. (2017). Impact assessment of fringe benefits in job satisfaction and employees' attitude. International Journal of Management, IT and Engineering, 7(6), 150-162. Retrieved from http://www.indianjournals.com/ijor.aspx?target=ijor:ijmie&volume=7&issue=6&article=014&type=pdf