Speech class Essay Example | Topics and Well Written Essays - 500 words

Speech class - Essay Example To one estimate over 90 percent and above enterprises and business organizations have resorted to variable pay schemes in order to minimize the chances of further damages and losses that may be incurred in the longer run. The case and practical example presented relates to the power point slide number 8 in such a way that it is a practical demonstration of the managerial terms and concepts that are often used for in management courses and programs. The variable pay scheme may also be taken into account keeping in view the HR functions such as the clients satisfaction, the overall level of interaction between the top management, middle and lower administration along with the interaction between the inside of the organization and the supply chain outside. Variable pay method is subject to various factors consideration. These factors pertain to the past history of the organization, the cultural trend and the clients’ adaption to the new concept as well as the legal aspects fulfillment in this regard. Business cycle must also be taken into account and the overall forecast considerations in terms of the small level forecast to medium and long term forecast procedures undertaking. Caterpillar Inc in 2013 took up the variable pay scheme in the light of prevailing circumstances and global recession (Harrer). The variable pay scheme was introduced in the wake of the overall low profits and low investor responses recorded in the recent years. The responses so incurred and recorded were as low as 40 percent compared to the previous year performances and the subsequent gains and benefits from it. Caterpillar Inc found relative stability in its ranks after undertaking the variable pay scheme for the purpose of handling the employees concerns and overcoming the risks of global recession and low sales in the recent years and recent