A recent economic downturn has seriously affected the auto industry and your company, as well. Your company has merged with two other brake component companies in an effort to gain production efficiencies and lower unit costs. You are the lead HR person for the new entity. Based on your analysis of the three previous executive compensation approaches, you have decided with board approval to redesign the executive compensation for the new combined organization. Describe the components of an executive compensation plan.
Corporate Compliance Report Over the past decade, the nation’s eyes have been opened to the scandalous world of business which has compromised the confidence of the public in the corporate world. This image has triggered a larger emphasis on internal control systems and audits. In section 404 of the Sarbanes Oxley Act, publically traded organizations are required to include a report about the effectiveness of controls in their annual form 10-k. These controls are the means an organization uses to ensure that business functions are performed in compliance of the law and procedures of the company. “Internal control is broadly defined as a process, effected by an entity's board of directors, management and other personnel, designed to provide
Analysis Brief Background Major events have shaped the history of the company in the recent years: first the hostile takeover, 1989, then the loss of key accounts and credibility in the business. Many key senior employees have left in the 2 years following the takeover. The company Vison has been: “just keep doing the same thing, just better”, but the world around has been changing. The marketing business has clearly become more global in nature, with "mergers to form mega-agencies and the concept of transporting brands around the world", and customers are demanding for “more service at lower costs”. Re-creation Technically the type of organizational change Beers has to face as new CEO of the company is called re-creation: it’s a change introduced in response to an immediate demand, in this case the loss of customers and image.
For example, from the text: “the firms four top loan officers made between $250,000 and $300,000 each” (Hellriegel and Slocum, 2010 p.532) When the housing market cooled down in 2004, it affected business at Scott Mortgage and forced the organization to institute change. According to (Leadership and Change, 2009) “Today’s business world is highly competitive. The way to survive is to reshape the needs of a rapidly changing world” (¶ 1). While changes in the industry influenced changes at the organization, there were also technological changes at Scott Mortgage. Change in technology was influenced by the use of Internet tools such as Google search engine used to search potential clients, and the use of web-based software to process borrowers’ qualifications.
Running head: PROBLEM SOLUTION: Remington Peckinpaw Davis Inc. Problem Solution: Remington Peckinpaw Davis Inc. Mary Jacobs University of Phoenix Problem Solution: Remington Peckinpaw Davis Inc. Remington Peckinpaw Davis (RPD) was always a Wall Street force to be reckoned with. A hardware crash forced the brokerage firm to pay $2.7 million in damages to customers who could not log on to their accounts during a 2.5-hour span. The negative feedback gave the management team the drive to create a better online system to compete with the online companies in today’s market. Implementing the 9-step model for analyzing the system issues is put into place to ensure better online access to current market prices.
That means pitching checking-account holder’s new mortgages, mortgage holder’s new credit cards and card holder’s new bank accounts. Wells recently said it sold customers an average of 5.7 different products, up from 5.47 a year ago. But that success has come at a cost. The relentless pressure to sell has battered employee morale and led to unethical breaches, customer complaints and labor lawsuits. To meet quotas, employees have opened unneeded accounts for customers, ordered credit cards without customers' permission and forged client signatures on paperwork.
FI504 – Accounting and Finance Case Study #2 Evaluation of Internal Controls Bruce Van Apeldoorn DeVry University Attention Mr. President, The Sarbanes-Oxley Act of 2002 is a United States federal law which sets new or enhanced standards for all U.S. public companies. The reason that this Sarbanes-Oxley Act of 2002 bill was created was because of a number of major corporate and accounting scandals. When these scandals occurred they cost investors billions in losses because the share prices fell it shook public confidence in our securities markets. That is why it is important to comply with the Sarbanes-Oxley Act of 2002 requirements. This means that LJB would be required to maintain a system of internal control.
Change is usually driven by internal and external factors, some of which leaders in an organization have limited control over. For example, a business might be forced to change its practices because of changes in federal rules and regulations or because a competitor has found a way to improve practices in their field. But there are a number of models and techniques that organizational leaders can use to manage that change and reduce the impact on employees. Some of the effects that change can have on employees range from good to bad. The negative aspects of change are employees wonder how changes will impact them which can create anxiety and decrease their overall productivity, performance and job satisfaction.
The second event deals with eRPD customers filing complaints with the Securities and Exchange Commission (SEC) about lost assets because of not being able to log-in due to eRPD having hardware failure. This forced the brokerage firm to pay-out $1.7 million in damages to the customers who filed the complaints (University of Phoenix, 2009). Finally, when the eRPD customer bulletin boards were reviewed, it reflected a steady flow of customer complaints. These complaints pertained to "eRPD's lengthy lag times in opening accounts, sporadic and inaccurate confirmations of trades, and errors in account information, tracking, and recording" (University of Phoenix, 2009). Stakeholder Perspectives/Ethical Dilemmas There are several internal and external stakeholders that were identified in the RPD scenario.
Citigroup: Restoring Ethics and Imagen Before Growth. BUS 673-11 April 11, 2012 Case Summary: Significant regulatory scrutiny that has been linked to the biggest scandals in the corporate history .Due some irregular activities under the red umbrella that cover the companies belonging to Citigroup, paying out massive legal settlements and a Federal Reserve announcement requiring the company to refrain from mergers and acquisitions until it has cleaned up internal controls. Summary of Recommendation: The Citigroup difficulties are the result of the five problems that will be identified in the next section. These problems can be remedied with three recommendations. First, Citigroup must reconsider its strategic choices and critical tasks in light of its new strategic context.