Human Resources Onboarding Model

Introduction

Employers have recalcitrance on operational turnovers and employee retentions that hinders their organization profitability and stability. The difficulty of reducing employee turnovers and employee retentions is a common plague among major and minor entities. A discussion on various cost effective employee oriented designs and strategies proposals are elaborated on this presentation, mainly on cost effective methods for new hired employees.  The purpose of this paper is to provide an insight for employers to redesign human resources traditional hiring processes, core competencies, communication styles, evaluation processes, and retrench a diverse incentive program in order to re-gain the power of effectiveness. A human resources development on employee retention strategies to ensure quality assurance and a concrete organization educational core competency framework for newly hired employees to adhere the policies, principles, and guidelines more constructively and productivity are the primary means of HR Onboarding model. 
 Human Resources Core Competencies

            In tradition, there is no official theoretical framework for onboarding executives or lower managers. Human Resources should take overall onboarding management process as it is widely accepted across organization that Human Resources should take a central role in the onboarding process (Wells, 2005, p.3) and that the senior leadership and stakeholders should actively integrated in the process. An effortlessly orientation strategy is given to the unique nature of strategic focus of job tasks. In the past,  onboarding employees in the orientation tend to not to learn the foundation of organization development, organizational identity, the atmosphere, environmental climate, and the décor, and the invention of a feeling of belongingness through the self-actualization stages by learning the people, politics, language, values, and history of the organization, when they should learn all of the essentials of business as researchers has anticipated across studies (Van Maanen & Schein, 1979).

 The probability of achieving the strategic goals would enhance new employee orientation and socialization may be effective for new executives, but not may be effective for subordinates, however, it is recommended that subordinates to acknowledge their co-workers and managers. In Return on Investment (ROI) theory, strategic performance goals move from onboarding process from reactive to tactical and onboarding activities move from proactive to strategic. Thus, higher ROI on organizational performance. See

 table 1

            An effective onboarding model that encompass four key objectives – Preventing derailment, fostering retention, catalyzing, performance acceleration, and achieving strategic optimization.  Corporations faced six critical issues to seize the threats to exclude the onboarding procedures.  Implementating a cohesive initiative plan is usually difficult for new hired executives, as they are not provided a strong feedback from the senior management team on what it needs to improve across departmental operations and onboarding program. Most of the time, the senior management team comply executive’s vision of the objectives than to delegate or share the needs of organization to improve onboarding program.

  Routinely, organizations jumped into the systematic onboarding processes without bringing the economic events into the processes, in which, that impedes the teaching of economic trends in the program. It is difficult for new hires to comprehend the ancient history strategies as the strategic issues are already established, and consider that it cannot be change as the evolution change through time (Dai, G., et .al, 2011).

 Hence, it is likely to overturn newly hired executives and deter their achievement of strategic goals (Conger, et .al, 2004).  Organizational readiness is necessary to make onboarding program changes.

Performance Measures

 Many organizations are pleased with their performance measures outcome. For example, at Leadership IQ Company, in their first 18 months, 46% of new employees learned all ropes of organization's method of business operation, compared to previous 78% of turnovers due to core incompetencies among new employees; Monster.com has 6.2 months break-even point for new managers in the year of 2010; The Wynhurst Group has 22% of staff turnovers within 45 days of employment; Designer Blinds Company reduced turnover rate from 200% annually to less than 8% annually.

Return On Investment Methods

Two business-impact measures (performance impact and retention impact) of Return of Investment (ROI) calculation were assessed throughout the program progress. The performance target were identified and linked to the monetary of value (costs of materials, facilities, new employee’s time, facilitator and coach’s time, and manager time) which total benefits the program with an impact on retention and performance results.  The total benefits of the program are $445,704 for performance and $430,870 for retention that comes to the total of $876,574. Thus, the effect of the ROI equals Net solution benefits as $876,574 minus $278, 304 then divide by $278,304 then multiply by 100 equals 215% of ROI. Thus, for every dollar invested, $2.15 is returned after the costs were assessed, which it is a significant good results for corporations adopt onboarding program. However, there are other factors that may be overlooked for instance, the background of candidate’s education, training, knowledge, and skills competency levels that may set back with time delay on achieving obstacles and barriers (Edwards, J, 2009).

 Human Resources can use sources accords to the quantitative and qualitative research gathered through surveys among corporations across the locales, states and the nation and even globally to argue with managers to adapt change the attitude of the organization culture that was once popularized by our predecessors.

Human Resources can provide managers with resources and rewards in exchange for innovation, productivity, and effective task accomplishment. This exchange and the concept of providing contingent rewards are at the heart of motivation, leadership and management theory and practice (Nahavandi, 2009).  As a leader of an organization, Human Resource Management By Exception (HRMBE) is not what will help organization to succeed in a long run by practicing disciplinary and punishment for those who have not met the goals or commitment to the tasks. 

       Human Resource Competitive Intelligence Analysis

Business Intelligence software is an up-to-date data Management information system (MIS) interdependent database, which is consists of Data Management, Advanced Analytics, Business Performance Management and Information Delivery. Which it is an ideal software for human resources to review variety performance levels (e.g., forecast turnovers, predict possible onboarding talent, tactical business decisions, and "what ifs scenarios" into a component system. An advanced technology to keep abreast with regulatory changes (e.g., the Sarbanes Oxley Act of 2002), which mandates advance and accurate reporting capabilities in corporate setting) and compressed large volume of data on employees, salary information, critical talents, and education levels to one terabytes (1 TB) will be reached in 2020 (Kapoor, 2010).

Online Analytical Processing (OLAP) specialized in MIS and subsystems (including, meta-data management, security management, backup and recovery, and data distribution). The OLAP council teamed up with analysts, managers, and executives on gaining insights on interactive enterprise dimensionality. According to the report in April 2010, BI platforms, analytic applications and performance management (PM) software revenue surpassed $9.3. Billion in 2009, a 4.2 percent increase from the 2008 revenue of $8.9 billion with 64.2% of market share worldwide in 2009 (Gartner, April 2010). 
 Onboarding Oversight Committee

A leader would have an open-end communication with managers and require managers to bring their supporting facts of why they disagreed on implementating on team-based organization and what are their strategies on solving problems and who are the delegates of resolutions. With all of the empirical evidence in hand, a decision will be made based on evidence among sources and the measurement of success of team-based versus individual in charge.

There is a guideline for overcoming barriers to teamwork written by Lauren Keller Johnson of Harvard Management Update article in 2005. Lauren Johnson (2005) has put in a perception of group collaboration at workplace and encourage managers to inject fun in their day-to-day operations and have team players to draw up their expertise and get know one other and acknowledge of who would take the responsibility of every task situations that may arise upon them.

Table 2: A Conceptual Framework of the Executive Onboarding Process for Senior Leaders

Critical onboarding areas	Strategic onboarding activities	Onboarding results
Addressing position imprint of predecessor	Situational analysis	Direct effects
Setting clear expectations	Organizational objectives	Smooth power transition from predecessor to successor
Recognizing non-portable aspects of leadership	Enabling and derailing factors	Self awareness and leadership
Providing ‘outside’ hires with ‘inside’ views	Onboarding plan: Focus, Prioritize, Execute	Strategic understanding of the role
Preparing the organization for change	Key stakeholder involvement: Board and/or HR, Boss, Peers, Direct reports, Important others	Enchanced understanding of organization.
Building an effective senior team		Prepared Organization for onboarding strategies
	Ongoing support: Periodic pulse check, Feedback and coaching	Strategic Outcomes: Shortened ‘breakeven point’ Increased job satisfaction Enhanced retention
	Monitoring the onboarding process: Reanalyze the situation; Reset priorities; Evaluate the effectiveness	Achievement of organizational strategic goals

Reference: Dai, G, DeMeuse, K., Gaeddert, G. (2011) Onboarding externally hired executives: Avoiding derailment –accelerating contribution. Page 11

Power Leadership Styles

The term power, influence, and authority are often used interchangeably (Nahavandi, 2009). It involves the position of upper-echelon individual has held and the behavior that affects or influence associations and oneself, in which, exercise the right of rules or regulations that associates has to comply under the direction of upper-echelon leader. There are several commonalities of power that describes a certain behavior, knowledge and abilities of a leader that are depleted by the public as identified below:

1.      Legitimate power –  an ability to convicted the public to comply without depth knowledge

2.      Reward power-  an ability to provide the public a promotion or raise

3.      Coercive power- an ability to punish the public for unproductive work or task

4.      Expert power- an ability to explain in detail of a specialized subject

5.      Referent power- an ability to charm the public and earned respected status

As indicated, all of the abilities of power tends to hold a position, once the abilities are gone, so is the power and the position as well (Nahavandi, 2009).

 Logically, a leader can possess more than two type of leadership power, for instance, delegating a task to a manager is a legitimate power then when a manager goes awry with the operational process, and then the manager may be pressured in getting the task done by the leader, which, that is a mixture of coercive and expert power. Whereas, referent and reward power only comes in when business goes in accord and in excellent shape.

 In addition, as Nahavandi (2009) emphasized by using power and influence tactics combined can be effective or ineffective in collaboration with associates or subordinates. The influence tactics are goal-oriented behaviors that individuals use to obtain desired outcomes. Thus, it is important that managers understand subordinates' use of influence tactics and the effects of these tactics on organizational outcomes (Hochwarter, 2003).

 In practice, the business behaviors antecedents tested included self-reported measures of impression management, Machiavellianism, self-monitoring, locus of control, social identity, intrinsic/internal motivation, and extrinsic/external motivation. Eight influence tactics—ingratiation, rational persuasion, exchanges, coalition building, personal appeals, and inspirational appeals, assertiveness (Barbuto, et. al 2006).

 Each tactics are appropriate in different situations and carries the potential for leading to commitment on the part of the person being influenced. For instance, personal appeal relies on referent power and tends to be appropriate when used with colleagues; it is not likely to lead to a high degree of commitment. Inspirational appeal, which also relies on referent power, leads to high commitment. Rational persuasion relies on expert power and is appropriate to use when trying to influence superiors. The commitment tends to be moderate. Consultation and coalition building relies on all sources of power and are appropriate to use on all levels and tends to a high and low degree of commitment. (Nahavandi, 2009).

Human Resources Management Style

The style that this organization to adopt is the Trompennars’ Cross-Cultural Organization cultures of Incubator, Guided Missile, Family, and Eiffel Tower. Incubator refers an individual oriented which focus on taking care of individual needs; Guided Missile refers a performance- oriented which focus on task completion rather than individual needs- Both Incubator and Guided Missile represents Egalitarian culture; Family refers power-oriented which focus the welfare of employees ; Eiffel Tower refers to roles of managers as rigid and robust, in other words, a disciplinary-oriented which focus on  performance through order and obedience of legal and legitimate authority – Both Family and Eiffel Tower represents hierarchical cultures (Nahavandi, 2009).

             In practice, according to Joseph W. McGuire (1977) elaborated the theory of egalitarianism has only indirectly affected the institution of business. Typically, the egalitarian thrust has been general and diffuse, related more to the development of democratic attitudes, to the disdain for titles of nobility, to the concealed envy and open distrust of elite groups, corporations to the adulation of the common man, the underdog, and the "small" businessman, to the belief that all men are created equal, and to the concept of equality of opportunity. But people, especially leaders and managers should recognize that the attainment of a more equal society requires tradeoffs, and that to make equity a preeminent objective in our society involves the surrender of other important values, among which are freedoms, efficiency and meritocracy. There is, indeed, no such thing as a free lunch. However, leaders can offer incentives for accomplishing each step of management style transformation.

Implications

Across HR literature, many research studies has concluded that 40% of leaders going into new organizational roles fail during their first 18 months. The decisions were implied by the results of methodology and coaching. The idea of having CEO, Managers, and employees to be equal in work environment and be comfortable in working with every level and every department as every member in the organization are in this together and operate effectively daily.

 The distinction of cultures that has imposed upon us domestically and globally, in which, it affects each and one of us all to accept ones difference and attain goals for the organization without ambiguity and vagueness of who’s who are responsible for certain problem or situation in question without biasing one another. Human Resources leaders and managers have distinctive roles, however a mixed of both roles and responsibilities can lead the organization to succession. Team members are accounted for their opinions, suggestions, and whatnots as these are the valuable tools for innovation and creativity to the existing policy or a program in development.

 For example, managers are to host a departmental meeting to inform new employees how much they have appreciated their work and recognize at least 10 employees monthly to instill their esteem and good work performance instead of recognizing 3 or 4 employees. Recognizing 10 employees motivates the lower 10 onboarding employees and leads them to work at their best ability on the job.  Thus, their intrinsic and extrinsic values overall improves their dignity and integrity for the members of the organization and the organization itself.

Difference in Leading and Managing for onboarding employees

Improve managers-Employee relationship build a charter on the area of strengths and weakness. Improvise a temporal leadership and servant leadership to influence the organizational culture and philosophy as obliged by vision and mission statements. A leader is an objective-minded that visualized the mission of an organization and emphasizes the concept of organization culture and norms that is reflected by the mission statement, while a Manager is a task processor accords by the book following the guidelines, policies, standardization, and procedurements.

 Author, Nahavandi (2009) defines leaders have long-term and future-oriented perspectives and provide a vision for their followers that looks beyond their immediate surroundings whereas managers take short-term perspectives and focus on routine issues within their own immediate departments or groups.

Chief Executive Officer Role

According to the Standard and Poor’s Index in their 2008 article, representating approximately 1300 firms, 28% outsourced for hiring new employees through agencies, from outside of the company (Tuna, 2008). The main goal for this presentation is to comprehend the components of all of organizational psychology as managers or leaders to execute the ability of delegation, collaboration, and power sharing. Leaders must possesses leadership skills of technical, interpersonal and conceptual skills, in which, they guide the employees, public and other businesses to visualize the organizations’ culture that is delved by vision and mission statement.

Chief Executive Officer (CEO) is the top of the line of an organization. It could be the owner of the business or the president of the business who oversees all operations, finances, and resources and budget with discretion of board of directors.  CEO is leading and managing the change initiatives because this is his or her organization as he or she wants the best for the business internally. As a CEO acting as a leader – is to lead the  managers to the objective of the team-based collaboration in order to have higher productivity, higher revenues and profits whereas CEO acts like a manager, CEO is to give the guidelines of how managers delegate their subordinates into a certain tasks or positions. Path-Goal Theory, for instance, the leader clears obstacles in exchange for follower motivation by providing structure to the task or by being considerate (Nahavandi, 2009)

Onboarding Program Design

Employee learning and Development

            In the terms of contribution, the expectation of new hires to contribute at their optimal level of performance are highly desired, however it is not always the case that at least 10% percent of those new hires are able to accomplish that objective. Hence, the remaining 90% of new hires should be proactively to make a successful transition into their new position and adapt to the setting as early as possible. During the transition phrase, trainees should interact with organizational stakeholders on dynamic business requirements (Dai, et .al, 2011).

According to the CU research study, a partnership with academia institution or a Faculty does help many corporations on customizing an organizational curriculum that designs organizational content and development of five dimensions of organizational learning. For example, Motorola University in China collaborates with 21 Chinese higher education institutions to deliver executive management programs such as MBAs and specialized technology training. General Motors offers a customized MBA program with Indiana University (Li, J & Abel, A, 2011).

Increasingly, new employees would supersede their knowledge of employee learning and development functions after complete the program and they have the advantage to bring the company the competitive intelligence and positive financial performance.

 In the industry training, Alliger (1989), elaborated the traditional Kirkpatrick hierarchical training model that consists of four different levels are widely used in the corporate world. The first level is the reaction as in the form 'liking of' and 'feelings for' as a first step to understand the reason of the participation in the training program. Most trainees assumed that each level is more informative than the last. However, some training includes rewarding, spirit building, or perquisite in nature. First impression may be misjudged as a result in the last level of training. The second level of training is learning, trainees get to absorb the organization's concepts, facts, and principals and to be understood. As the trainee grow in knowledge, often managers or evaluator can observe causality and decide to approve or disapprove of trainees' temporal behaviors. Trainees perform an above average of demonstrating temporal behaviors are more likely to move to level three to level four (Kirkpatrick, 1959a).

For example, trainees may be good at attending the training but not good at learning. Thus, it is deleterious to learning. The third level of training is behavior, defining the role-playing the learned principals on the job and techniques on how to tackle on tasks issues. The 4th level is called, 'results', which dissembles the organization's objectives and goals into simplified quotes or motto for trainees to remember organizational desired results, goals, and the ends of production or service line. Employee demonstrates an ability to be independent and interindependently on-the-job training based on the knowledge job responsibilities level ranks.

                In addition, they emphasizes on reduction of costs; reduction of turnover and absenteeism; reduction of grievances; increase in quality and quantity of production; or improved self-morals. However, it is difficult to assess the reactions between learning like most researchers has anticipated, over 55 articles has indicated that there are no correlations report between levels (Kirkpatrick, et .al, 1959).

               The onboarding taxonomy training model evaluation criteria is of essence to the power of simplification. The proposed model provides very comprehensive evaluation criterions for trainees to easily adopt vocabularies and numbers, than to re-create the false assumptions of how trainees evaluate themselves at their work site. Evaluators assessed trainees' learned behaviors through first level to fourth level of training to determine the effectiveness of trainees' instilled organizational knowledge, adaption skills, and intragroup skills. The key areas for corporate executive to learn the organizational strategies: (1) Alignment and Execution: How quickly and how effectively the new hire is in line with organizational direction. A real time technology can assist executives on decisions on what to do and what they should do and what work they should be doing in order to prioritize the interruptions and unexpected requests for their time and attention. This strategy attempts to reduce time-consuming with minor issues, and manage time with other important issues better. (2) Development of skills that supports business needs: How quickly the new hire can be immersed in the daily operation of their successful work. Developing the skills of forecasting the next action to take, where to start, and what to next, and how fast to go. A self-discipline would discord the law of entropy; (3) Evaluation of learning and performance: measuring return-on-investment of learning efforts and learning transfer are clearly identified. A sustainable practice to adopt the repeatable methodology, accountability coaching, execution system, and community learning are what to grow organizational capacity to execute strategy to the onboarding employees. (4)  The use of technology to support the learning functions: multiple delivery formats such as intranet modules, CD or DVD programs, podcasts, webcasts, simulations, and Web 2.0 technologies. As described in the business intelligence segment that has sub-component data systems for each level of management to access to the MIS system and real-time conference video streaming network. This strategy attempts onboarding executives to analyze the results and review the results to the senior team and narrowed the action alternatives more effectively. (5)  Partnership and collaborate with Academia: customize organizational content and organizational learning through their existing knowledge base on supported system.  They can cultivate a HR design for onboarding executives to read a summarized and easy-to-read agenda more efficient and effectively for overall organizational behaviors and health (Harpst, 2008).

Human Resources Code of Conduct

In the policy, the people who are affected by the policy are included in the policy as to exercise the understanding of effects of the disciplinary actions or violations this incumbent held responsible, including termination may occur. In addition, the HR code of conduct procedure include the guide for internal members, colleagues, students, or stakeholders dealing with external organizations like the university, national, and the international community. These individuals shall complete a Conflict of Interest Form and other forms if other interests change the course of employment. In the Conflict of Interest form, a guideline offering staff members to question the conflict that arises: Avoiding or dealing with any situation that an individual or a group may have or may not have seen the incident or involved in the incident due to conflict of interest relationship with another employee or trainee. The hope of employees to resolve the issue regarding to personal setback, delayed commercial delivery, any HR familial, or other significant relationship. The same for supervisors to employees of other employees should apply Conflict of Interest form.  Any obligations that is the lieu of HR shall be free of debt.

            Consulting activities of HR policy requires any of financial of interests that benefits the organization shall benefit of the finances.  For example, Receipt of gifts, gratuities, loans , or special favors (including trips or speaker’s fees) from research sponsors or vendors; Holding an ownership of employee or the employee family in any real or personal property leased or purchased by the organization; Holding of an equity, equity, royalty, or debt instrument interests of financial support including research purposes may be directed benefit the organization. Including, Receipt, directly to the employee from other sources, of cash, services, or equipment provided in support of the employee’s job task activities; Some memberships on board of directors, committees, advisory groups (or similar bodies) of governmental, for-profit or not-for profit entity, and use of information received as a company’s employee for general purposes.

Business Incentive Plans

A corporation is to provide benefits of goods in order to have high volume of marketing sales, and benefits for star talent employees to make it possible, and benefits for stakeholders who faithfully to persuade private and not for private entities and prospects to invested their time and money into the organization.  Moreover, understandings on business foundation processes are the key for onboarding employees to acknowledge the organizational objectives and goals incentives (David, 2007).

Business Objectives

Formulating a mission and vision statements for your business is the foremost important design to establish business objectives. One of the benefit objectives is the employees’ incentive benefits. In order to acknowledge what incentive plans are appropriate for employees to value their productivity and their performance. When implementating incentive plan, CEO and Board of Directors and Human Resources leaders provide an assessment on strengths, weakness, opportunities and threats of products/services activities and performance scorecard. Including, the guidelines for employees to adhere business objectives, and commitments and cooperation, and opportunities for growth, and measurements and differenation of problem solving tactics (David, 2007). 

In which, these business components are part of the essentials in all aspects of an organization. Most companies utilizes two popular cost-effective incentive programs –Individual incentive plans and Organizational wide incentive plans (Ebert, et .al, 2005)

 Vision statements should instilled goals to all members of organization and scrutinized on the tasks to reach the goals. Onboarding executives and subordinates must take into account for their performance and actions as they contributed their service at the organization. Managing stakeholders’ commitments and cooperation on improvise company’s financial portfolio is the priority goal for all members of organization to perform as stakeholder themselves.

 For example,  A “high-quality” salespeople is efficient in selling over 100 products within a day, managers are more likely to obtain greater results for teaching salespeople on marketing skills than of those managers bequeathing the same management effort for not helping the fewer “terrific” salespeople to effective. Onboarding employees shall receive information on how sales people accomplish the sales mark goal during onboarding training. Thus, incentives are given with an additional quality time. In which, this strategies are considered as an objective of mission and vision statements, and one of incentive attributes.  Thus, it is wise to evaluate various management/employees situations and apply the Pareto Principle appropriately – and wisely (Principle Management Associates, 2005).

The HR guideline comply the federal, state, and local laws and the legalability of work conditions. The  

Pareto Principle

The Pareto principle is used in prioritizing objectives in the orderly manner during the implementation processes.  Pareto principal is known as 20-80 rules, the law of organizational behavior results, the principle of internal factors, in which, states that for many phenomena 80% of consequences stem from 20% of the causes. An internal organizational behavior rule-of-thumb is simple, but it is also commonly unexplainable for some areas of business. For instance, creating a guideline for employees to earn incentives by contributing their economic attributes on time, stewardmanship, teamwork effort, and ensured that product has a good quality assurance as their primary responsibilities as the part of objectives. Another perspective of 20-80 Pareto principal is a setting goal of 20% of work productivity effort, along with the 80% of given product performance. Lastly, maintaining the minimum of 20% of undefective products and goods as a baseline, and evaluate the consumer purchase parities outcome of 80% of satisfied/loyal consumers (Pareto Principle 80-20 Complete Information, 1995).  All of the objectives can be used for evaluating incentives.

Hence, it supporters claim that since 20% of employees are likely to produce 80% of production. In which, results that time and money are accounted for. A part of managers’ incentive is to be critical with production and processes with good time management. When the productions are above the quota – they are considered so-called “superstars”.  Furthermore, an implementation plans designing the Pareto’s Principle philosophy to the mission/ vision guidelines is flawed for many organizations. Because of its nature of complexity on what is applicable and what does not apply to the incentive program(s). This principal is considered useful. Otherwise, it would not be effective in all areas of operations.

Organizational incentive program. Robert J. Ebert and Ricky W. Griffin (2005) recommended variety of incentive programs for employers to consider the options as long the plans are effective in all areas of operations. This incentive program that is consists of three different incentive plans, which are: Profit-sharing, Gainsharing plans, and Pay-for-Knowledge plans.  All of these plans are based on the employment levels in combination with training, education, and experience.

Profit-sharing. Profit-sharing and Pay-for-Knowledge plans are for all employees, whereas the Gainsharing plans are for executive positions. Profit-sharing incentives are purported for distributing equivalent bonus pay to all employees when the company’s financial health is above the certain P/E ratio level of financial portfolio.

Gainsharing plan. This plan is an optional benefit for employees. A stock-option plan that divides the dividends to all executive employees or operational cost-savings through greater work efficiency.

Pay for Knowledge plan. Some companies preferred that Pay-for-Knowledge incentive plan to be designed for employees to learn new task skills other than their initial job description duties and cover other employees’ job tasks as needed.  an incentive benefit.

Variable pay. Similar to the Gainsharing plan, but, this plan is designed for middle managers, for production outputs exceeding the costs of bonuses. Managers must be on exempted salary rate that does not include the compensation time, overtime pay, and or added merit based pay. This incentive benefit can be transferred to retirement benefits by the time a middle-level manager retired. Moreover, then the company has to pay out retirement benefits.

Individual Incentive Plans. Under the Individual Incentive program, there are two forms of special payments for employees earning their highest performance potential and demonstrating an ability to influence other employees to motivate to earn their performance incentive benefits.

Salary Bonus. In the private-for-profit sectors, service employees receive sales bonuses—the number of goods sold above the baseline in a year. A bonus earned that is not succeeding is described, as the numbers of goods sold are less than the minimum sales mark baseline (e.g., 10% of unsatisfied consumers). A guideline on salary bonus system should be brief with less than 100 words without any discretion (Ebert, et .al, 2005)

Merit salary system. A system designed for manufacturing, factory, and Not-for-Profit sectors employees earning through the performance rank levels. Some companies would design an incentive plan for employees in service for 1-5 years, 5-10 years, and 10-20 years. The first twenty years of services, employees receive a 1% to 5% raise, including the scores of 100% to 90% performance scorecard results. Any exception to the incentive rules, according to the guidelines as indicated, would take in account considerably. Such as, the objective of Social responsibility--- gains more stakeholders --- influences the power of products/services that benefits the community and organization as whole. Thus, those employees gain its recognization for its accomplishment and they are entitled to incentive benefits as a part of companywide incentive program. Hence, it depends on the all aspects of organization’s health including internal/external exposure during the year of services rendered (Ebert, et .al, 2005).          

Recommendations

Managers get to participate to the assembly line and perform the task productivity, and join lunch with assembly liners to hear out the pros and cons of the work procession, which may help managers to get the idea of how each employee act, behave, react, and think toward to the job duties.  If managers see employees help one another on an assembly line, which shows that they are working, together as team without knowing they are doing it. It is recommended that all employees are rewarded for their hard work on quotas met for the time frame based on the evaluation and performance results. Provide a continuing education for managers and employees to keep up the corporation trends and society trends and laws or regulations and all of the environmental factors or business factors to prevent from costly fixed or flexible assets and liabilities. In the reference of the 20-80 rules, an organization shall always review and reevaluate strategy objectives that is imposed by internal /external environment or environmental factors that may affect one or two incentive objectives. The measurements of objectives are best described as a guideline for employees to perform their best potential (e.g., the survival, growth, and profitability) based on performance.

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