Compensation Strategy Essay

1) Briefly describe the family you researched, its fee strategy, best practices they argon applying, and remuneration- relate ch solelyenges they be facing. Marriott International, Inc.-formed in 1993 when Marriott Corporation split into two separate companies-is the worlds leading housing and contract serve union. Marriott International has two operating groups Marriott Lodging, which generates about 60 percent of company revenue, and the Marriott answer Group, its contract dishs operation. Marriott Lodging manages or franchises more than 1,350 lodging properties downstairs 10 hotel brands worldwide. It also operates more than 30 timeshare vacation properties do Marriott Vacation Club International, and 25 U.S. conference centers through Marriott Conference Centers. The Marriott Service Group includes Marriott Management Services, which provides solid food and facilities focusing for task, education, and health care clients Marriott ranking(prenominal) Living Service s, which manages 75 senior living communities and Marriott Distribution Services, which operates 15 scattering centers nationwide that provide food and related products to internal Marriott and immaterial clients. Marriottinternational.com fee strategiesCulture and Global Diversity and InclusionMarriott founder, J. Willard Marriott coached managers to bear away care of your employees and theyll take care of guests. Its this philosophy that is the cornerstone of our culture and the foundation of our success. We are committed to providing an environment where employees have the opportunity to achieve their potential, are extremely engaged and are empowered to deliver great guest service. We are proud that our inclusive culture is the main ingredient that sets us obscure from other companies. We know that when our employees sapidity valued and respected, theyll help make our guests feel that way too.At Marriott, everything they do is built on their culture of good deal maiden. From investing in their employees health and well being, to rewards for hard clobber and identification for length and talent in service, Marriott is proud to reward and recognize their employees for the work they do everyday. In addition to competitive benefit packages (which may convert by country according to employment laws and practices) Marriott employees enjoy Valuable direction rate, food and beverage, and retail discounts at globalMarriott locations Well-known training and scholarship opportunities and educational assistance to ensure youre equipped to do your phone line and on the watch for the next step in your career Employees for the work they do everyday.In addition to competitive benefit packages (which may vary by country according to employment laws and practices) Marriott employees enjoy Valuable path rate, food and beverage, and retail discounts at global Marriott locations Well-known training and learning opportunities and educational assistance to ensur e youre equipped to do your job and prepared for the next step in your career Workplace RecognitionAt Marriott they recognize their employees for their commitment to delivering exceptional guest experiences and their passion for our occupation, including recognition of Non- anxiety employees who manifest outstanding commitment to our guests, and recognition of managers who demonstrate exceptional leadership apiece quarter. Employees for their contributions to the success of their location as well as demonstrating commitment to their local anesthetic communities. Years of service, at 5 year intervals.Employees with 25 years of service with free weekend stays at Marriott properties around the world. Best practices and related challengesAs one of the worlds largest hotel brands, Marriott International employs approximately 110,000 associates in its 700 managed U.S. hotels. With a large staff and significant safety challenges, Marriott has fall ined a sophisticated and innovative wo rkers compensation program, recognized by the 2007 Theodore Roosevelt Workers Compensation dirty money committee as one of the best programs in the country. The objectives of Marriotts workers compensation program are simple promptly respond to workplace injuries with lumber medical care and return associates to work as quickly and safely as possibleall while controlling costs. The program has an mind-boggling track record of successover the past five years, its claims absolute frequency has dropped by 15 percent, and claims costs also decreased by 15 percent. 2) Analyze how your company applies compensation practice to determine the convinced(p) or negative impact to the company and its stakeholders.The Compensation Policy citizens committee (the deputation), which is composed solely of independent membersof the control board, assists the Board in fulfilling its responsibilities relating to executive compensation. The charge is responsible for overseeing compensation progr ams that enable the society to attract, retain and inspire executives equal of establishing and implementing business plans in the best interests of the shareholders. The commission, on behalf of and in certain instances bailiwick to the approval of the Board, critical reviews and approves compensation programs for certain senior officer positions. In this context, the direction reviewed and discussed with management the play alongs Compensation Discussion and Analysis need by Item 402(b) of SEC Regulation S-K. Following the reviews and discussions referred to above, the Committee recommended to the Board that the Compensation Discussion and Analysis be included in the familys annual report on Form 10-K and this proxy statement.The Committee reviews individual base salaries for the NEOs each February for the current fiscal year. As a part of this review, the Committee considers whether base salary levels are commensurate with the executives responsibilities and the externa l market. For 2011, management recommended a 3.5% salary increase for each of the NEOs, except for Mr. Berquist for whom management recommended a salary increase of 5.0% based on a review of market data. The increases, as shown in the table below, were consistent with the increase for all eligible management associates and with salary increases in the marketplace. The Compensation Consultant reviewed and support the recommendation, which was approved by the Committee and, with respect to Messrs. Marriott and Sorenson, by the Board.To promote issue and profitability, the Company maintains two annual cash incentive plans the Marriott International, Inc. Executive police officer bonus see (Incentive final cause), which focuses on a thin EPS objective, and the Marriott International, Inc. Executive Officer Individual Performance Plan (Individual Plan), which targets several other financial, operational and human capital objectives for the year. Together, the plans are designed to p rovide executives with appropriate compensation incentives to achieve identified annual merged and individual surgical procedure objectives. At its February 2011 meeting, the Committee approved the specific mental process objectives under each subsidy plan for 2011. In February 2012, after the deviation of the 2011 fiscal year audited financial results, the Committee reviewed each NEOs performance The Incentive Plan rewards executives forthe Companys achievement of pre-established Company financial objectives. The Incentive Plan payout represents 60% of the total annual bonus opportunity under the combined Incentive Plan and Individual Plan for all named executives other than Mr. Capuano, for whom it represents 10%.For Mr. Capuano, the largest relative component of his annual bonus opportunity is room growth, consistent with his primary area of responsibility. In 2011, the Incentive Plan focused entirely on diluted EPS performance. The Company places a heavy emphasis on diluted EPS as a performance measure because diluted EPS is an important indicator of Company profitability and aligns the interests of management with those of shareholders. For the purpose of the Incentive Plan, the Company uses diluted EPS as reported under U.S. GAAP, as may be modified during the target-setting process for items that are not expected to have a direct impact on the business going forward. Although no such adjustments were made during the target-setting process for 2011, in February 2012 the Committee adjusted the diluted EPS target and diluted EPS results to reflect the spin-off of the Companys timeshare business as described below. www.files.shareholders.com 3) Examine the ways in which laws, labor unions, and market factors impact the companys compensation practices. entrust specific examples to support your response. There are six main forces in any companys Macro-environment.PoliticalPolitical factors can locomote the companys macro-economy. As it did when there w as a blast in Islamabad in 2008, which had a negative effect on the business of the company. People get scared and loyalty guests of Marriott were lost to slightly extent.stintingKeeping in mind the competition by major hotels corresponding Hilton the Marriott has an extensive growth plan with some(prenominal) projects pipelined in 2011 in many countries like India, Vietnam, China, etc.Socio-culturalMarriott contributes towards American bolshie Cross societies by capricious towards the blood donation rides by the employees contributing towards disaster relief and it contributes towards the Red Cross relief fund annually. Thecompany supports Children Miracle Networks since 1983 and was the first to support. Marriott Vienna started supporting the SOS children groups in 2004. Marriott got many rewards America most esteem company award.- (fortune magazine 2000-2007) 250 properties of Marriott hotels have ENERGY STAR label scientificMarriott have developed a lot since 1998. Earlie r reservations were just done by calling on particular numbers or by travel agents, tour operators. Currently they have centralized reservation formation where you can book the hotels from anywhere in the world. They have accurate room rates on their website. Environmental factorsMarriott international is very environmental fond brand. Most of the amenities used are eco-friendly and have water cycle plan 4) Evaluate the effectiveness of traditional bases for pay at the company you researched. Key Objectives for an Effective Pay System It should encourage people to develop the amiable of skills that will make them more productive, will enhance their self-confidence/self-worth, and will help the organization become more effective. The pay system needs to attract and retain the right kind of individuals for the organization. It should reinforce the kind of behaviors the organization needs in order to be effective. It must motivate performance It should impact the culture of th e organization in a positive way. Some specifics could include Have at worst a sluggish impact on labor management cooperation Contribute to teamwork or at least not get in the way of teamwork Support the supposition of life long learning as appropriate It should have some cost dimensions that are favorable for the organization such as being competitive in the marketplace. Center for competitive management