Matching Compensation and Organizational Strategies

The ‘All-Employee Option Plans’ which are currently being regulated in sixteen of the nations where Unilever maintains its presence, the workforce has been granted with an incentive to enhance performance levels and meet targets and objectives so as to become eligible for financial rewards (Unilever Group Annual Report and Accounts, 2003). Accordingly, the company has also designed a plan to cater to the classification of senior and top executives who have maintained their presence in the company for significant periods and thus, have greater tenure. Thus, the plan declares what is defined as a platform that awards senior officials “’ between 0% and 20% of the original conditional award” after the completion of a specified period (Unilever Group Annual Report and Accounts, 2003).
The rationale behind the establishment of an ‘equity-based compensation plan’ that is further subcategorized into six classifications can be explained by associating the concept with Unilever’s policy of fair compensation. In accordance with this agenda, the company aims to continually assess workforce issues, internal mechanisms and labor practices to improve and enhance the transparency of the compensation system on a concurrent basis in 180 nations of operations (Unilever, 2014a). Consequently, the data retrieved with respect to these matters would be compiled the following year so that the formulation of solutions can be conducted to cope with current issues.
&nbsp.According to the research presented by Balken and Gomez-Mejia (1990), the decision-making process regarding internal consistency of compensation system is reliant upon several factors, one of which is characterized by the identification of the organizational strategies that must be maintained to guide the company towards the achievement of objectives. Consequently, from the perspective of employees a fair, just or consistent pay is viewed from the perspective of whether they understand that the number of hours spent at work is being compensated in a correct manner.