JVA Corporation Simulation Problem Solution Essay

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In analyzing the current position of JVA Corporation and its future performance projections, the best strategy to employ so as to save and preserve the overall net profitability of the company is reviewing the corporation’s performance and revenue after every six months. Under this strategy, the corporation will either increase or reduce the employee pay and review their performance after six months (Noe et al 2010).

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The corporation’s employees will get a pay increase twice a year depending on individual performance, if the strategy is adopted, unlike the current strategy where employees with satisfactory performance are compensated once in a year. Employees who do not perform will have their compensation package subsequently reduced twice within a year. This will encourage the employees to work hard and improve their performance since; none of them will wish to have their individual pay reduced (Noe et al 2010).

The strategy should be in place for a period not exceeding a year given the expected improvement in the performance of the JVA Corporation. It is expected that after this duration, each employee will have improved their performance and thus leading to an upward compensation during the package review. After attaining the required performance standards, it will be wise for the corporation to switch back to annual pay review (Noe et al 2010).

The half- year pay and performance review strategy will be applied to both employees within and outside the United States. This is because a very small fraction of the international employees are the managers, who are entitled to a full time salary. Out of the 185,000 corporation employees, 3,500 are management staff employees.

This shows that they take a very small percentage of the wage bill to achieve the overall objectives of JVA Corporation. However, the review should be based on the location of the employee since the product market trends differ from one geographic region to another.

Proper implementation of the strategy will benefit the corporation in several ways as the corporation will be in a position to evaluate its performance half way through the year. Therefore, it will be able to adopt new performance approaches or continue with the existing ones. The corporation, will also save the cost incurred in compensating employees whose performance are unevenly distributed within a year; those that perform highly either in the first half of the year or the second (Noe et al 2010).

The result will be a motivated and improved performance by employees throughout the whole year since each employee will target a double upward pay review. As mentioned earlier, the corporation should swiftly switch over to annual review once the required set standards are attained. In this regard, JVA will be in a position to save a lot from downward pay review on underperforming employees during the initial implementation of the strategy (Noe et al 2010).

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On switching over to the annual review, again substantial savings will be made since the compensation packages; earlier paid twice in a year will be available once a year but with same or better performance standards. The strategy is bound to have subsequent effects on the community if adopted.

The double pay review will encourage more people to seek employment in the corporation, especially the temporary staff. The motivation given to the employees will automatically lead to better and improved product quality. The community members also stand a chance of getting more job opportunities should the strategy lead to expansion of the corporation, as a result, a need for more labor force. In conclusion, the strategy will be the best remedy for the upward revival of JVA Corporation’s overall profits (Noe et al 2010).

Works Cited

Noe, Raymond, John Hollenbeck, Barry Gerhart and Patr Wright. Fundamentals of Human Resource Management. New Jersey: McGraw Hill, 2010. Print

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IvyPanda. (2018) 'JVA Corporation Simulation'. 27 December.

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IvyPanda. 2018. "JVA Corporation Simulation." December 27, 2018. https://ivypanda.com/essays/jva-corporation-simulation/.

1. IvyPanda. "JVA Corporation Simulation." December 27, 2018. https://ivypanda.com/essays/jva-corporation-simulation/.


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IvyPanda. "JVA Corporation Simulation." December 27, 2018. https://ivypanda.com/essays/jva-corporation-simulation/.

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