HB case - MFS
-MFS-
1. Does the MFS system have weak or strong pay-to-performance? What type of behavior does the MFS system motivate?
Basically, culture of MFS is focused on teamwork and community so that MFS manages their employees very fair and its compensation system also reflects this characteristic. For sustaining this team –based culture of MFS, which don’t prefer star(anti star culture), MFS assesses their employees to the ways that not only fund-performance(performance factor) but also contribution to the investment, and contribution to MFS overall(community factor). The portion of performance factor is 60% but community factors are 40%. It is not easy to ignore such a huge portion. In this system, as a result, it cannot be possible to make a good assessments and high rewords without the effort for increasing community factor. So employees have to consider both performance factor and community factors. They should interact with their coworkers frequently, share information they have, and participate in several groups enthusiastically. When MFS recruit new employees, it considers applicants’ feature related with community factors because they don’t want to lose its employee just “high pay level” of competitor companies offering to the employee. MFS want to leave its employee not for pay level but other things such as team work cultures, individual development circumstance in MFS, and fitness between firm’s value and its employees. They assume that the employee who want to get high pay level could have possibility to turnover MFS when other company offer high pay level compared with MFS. Considering this kind of system, factor that can motivate employees is behavior which can contribute to the community. As an example, organization citizen’s action is that kind of behavior. The action can improve coworkers’ efficiency and job atmosphere so it increase whole performance of organization indirectly. In addition, share their skills(재능기부), related with
1. Does the MFS system have weak or strong pay-to-performance? What type of behavior does the MFS system motivate?
Basically, culture of MFS is focused on teamwork and community so that MFS manages their employees very fair and its compensation system also reflects this characteristic. For sustaining this team –based culture of MFS, which don’t prefer star(anti star culture), MFS assesses their employees to the ways that not only fund-performance(performance factor) but also contribution to the investment, and contribution to MFS overall(community factor). The portion of performance factor is 60% but community factors are 40%. It is not easy to ignore such a huge portion. In this system, as a result, it cannot be possible to make a good assessments and high rewords without the effort for increasing community factor. So employees have to consider both performance factor and community factors. They should interact with their coworkers frequently, share information they have, and participate in several groups enthusiastically. When MFS recruit new employees, it considers applicants’ feature related with community factors because they don’t want to lose its employee just “high pay level” of competitor companies offering to the employee. MFS want to leave its employee not for pay level but other things such as team work cultures, individual development circumstance in MFS, and fitness between firm’s value and its employees. They assume that the employee who want to get high pay level could have possibility to turnover MFS when other company offer high pay level compared with MFS. Considering this kind of system, factor that can motivate employees is behavior which can contribute to the community. As an example, organization citizen’s action is that kind of behavior. The action can improve coworkers’ efficiency and job atmosphere so it increase whole performance of organization indirectly. In addition, share their skills(재능기부), related with