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Marshall and Gordon Designing an Effective Compensation System A Case Solution

Solution Id Length Case Author Case Publisher
2367 1016 Words (5 Pages) Heidi K. Gardner, Kerry Herman Harvard Business School : 411038
This solution includes: A Word File A Word File

The concept of competency-based pay should be followed when rewarding the top performers in the organization. Under this concept the employees are paid for their skills and relevant knowledge and responsibilities. In the old compensation plan Marshall & Gordon focused more towards individual numbers rather than the capability of the employees and hence their competency. When this type of pay system will be used, the employees will be qualitative in their work related outputs. 

Following questions are answered in this case study solution:

  1. Evaluate the Marshall & Gordon compensation system: What are its strengths and weaknesses?

  2. What should the revised compensation system look like? How should it change to support the firm’s strategic shift and motivate consultants to change their approach?

  3. How should the company’s system reward and retain top performers?

Case Study Questions Answers

1. Evaluate the Marshall & Gordon compensation system: What are its strengths and weaknesses?

  1. Marshall & Gordon is one of the most well known brands in the world.

  2. In addition the organization has a developing clientele base due to which the organization is growing over the years.

  3. Since the culture of the organization is focused more towards innovation, the leadership of the organization in the industry is facilitated. 

  4. The organization is targeting various segments in the domestic market. The revenue source is diverse in nature due to a diverse product and brand portfolio. 

  5. Marshall & Gordon PR has a loyal client base due to which the launch of new products will be taken positively by the customers. As per past analysis and performance, it is quite clear that the firm can compete with its competitors in an international market. 

  6. The partners and principals are compensated with a mix of salary and annual bonus.  

  7. As per the tiered compensation system, the expected bonus could be calculated by the employees themselves at any point in time. 

  8. Marshall & Gordon can invest in other revenue streams in order to make profit because of a strong financial position in the market. 

  1. Since Marshall & Gordon is a premium brand, the related products in the product portfolio are expensive and highly priced.

  2. The organizational culture is dominated by wars within different divisions. Due to this the managers keep most of the information hidden. This can result in missed opportunities in the market place when information is not effectively shared. 

  3. The demand for products have not gone down yet there is a sense of dissatisfaction amongst the customers. The organization should work towards improving the purchase experience and the post purchase experience of the customers.   

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