To apply the Compensation knowledge in real-world situation. The Task : Formulating a Compensation Strategy for an organization . use the simulation case posted on eCentennial. Formulate the...

Introduction
The paper outlines a compensation plan and strategy for Zenith Medical Systems. The
company is in loss for the first time in past decade as the sales is low. The company is cu
ently
facing many problems cu
ently cropping up from its workforce. The issues have led to customer
dissatisfaction, loss in sales, and loss in market share and increase in net losses. The assignment
underlines various issues facing Zenith Medical System including the reasons for the same. The
later part of the assignment would develop a pay-for-knowledge compensation matrix for the
company.
Analysis of Cu
ent Issues
The primary issue faced by the company is poor performance of the system installations
and maintenance departments. The issue can majorly be attributed to problems occu
ing in the
systems sold and the delay in resolving the problems by system installations and maintenance
departments. The sales force of the company is failing to deliver on the promises that it had made
to the customers while obtaining the contracts which is resulting in the loss of revenues and
increase in company’s losses.
The second major issue that Zenith Medical Systems is cu
ently facing is lack of
coordination between various departments. The employees in the systems department blame the
incompetence of the personnel in the installations department for installation problems. They
also blame the marketing department for their inability to understand the customer’s
equirements and relaying the promises of services in an efficient way.
The company is not able to achieve their targets achieve their targets as loss of market
share due to decreasing reputation has resulted in marketing team making fancier promises to the
customers which taking the contracts. As a result, the systems department have been spending
most of their time either fixing the crashes of dealing with the customer complaints on the
special features that had been promised by the marketing department.
The company overall is lacking on the front of accountability for various blunders and
indicators. The accountability of mistakes lacks within the department as each department is
laming other for any e
ors and issues. Taking ownership of the tasks and mistakes is very
important for streamlining the inter-department performance of any company.
Another issue with Zenith is that the jobs of the employees within Zenith are not attached
to the key performance indicators of the department or the company. The company had done
initiatives to boost the sales by replacing the delivery manager, however had failed to realize
how having key performance indicators for each of the departments can help the overall
organization as a whole. Also, though the company has listed desirable qualifications for each of
the job, the compensation system used by the company does not employ pay for knowledge plan.
Pay-for-Knowledge Plan
The pay-for knowledge plan has been increasing its acceptance in many companies due
to benefits it
ings to the overall organization....