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Business units of organization


The main motive of the paper is to highlight the pay structure and benefits of leadership approaches in relation to the two business unit of the firm. Besides this, some recommendation is also provided on the forms of recognition and also on the additional considerations in accordance with both the business unit of the organization.

The pay structure of each business unit

The organization possesses two types of business unit one is an established or mature unit that generally manufactures products in accordance with the competitive advantage and the other one which is a brand new startup that possesses a high level of technology and regulated by the Federal government. Therefore, the pay structure of both these business units is different from one another. As become the senior HR professional of the organization, it can be suggested that different pay structure should be used in order to enhance the business growth in accordance with both business units. In relation to the mature or established unit, the firm should use step structure for pay procedure because it helps this business unit to be stable in terms of the business procedure (Liu, Tian & Keatley, 2015). In other words, this pay structure also helps the firm to maintain a competitive advantage in accordance with the production and manufacturing process that help them to maintain their position in the particular market.

This stepped structure of paying procedure will move from one fixed point to another on the basis of a pre-arranged schedule (Lucifora & Origo, 2015). The structure is often based on tenure that means if the worker gives their best effort then by step by step their pay structure will improve that totally based on their performance period. In addition, these pay structures are often considered to be too rigid for today's companies and it depends generally on the position of the industry in the market. Therefore, by following this structure, the mature business unit can easily enhance the employees’ business performance that helps to maintain their competitive advantage in the market. In addition, after changing few technological procedures the business unit should use this pay structure because it eventually help the firm to maintain their employee's position in terms performance rate and thereby no such loses should be faced by the firm. 

In other words, the brand new start-up busyness unit those possess a high level of technological use for production purposes must use grades and changes pay structure because it considers as the today's environment pay structure (Downes & Choi, 2014). Grades are considered as a set of ranges that are aligned mathematically in accordance with one another. Therefore, by flowing this the business unit will make the pay structure in relation to the level of responsibility and duties and also on the value to the organization. In this pay structures, the ranges become narrower because it generally depends on the performance growth rate of the employees working under that business unit.

Besides this, the grade and ranges pay structure alignment will change in accordance with the various level of positions in relation to one another (Martin & Ottemann, 2016). Therefore, with the help of this pay structure the start-up business unit can easily set up their employees pay structure and thereby it does not produce any sorts of problem to enhancing the business growth by their employees working in the particular business unit of the organization (Grimshaw, Bosch & Rubery, 2014). Hence it is recommended that step structure should use for mature business unit whereas the grade and ranges pay structure should be used for the start-up business unit.                                             

Benefits of leadership approach in relation to each business unit

Both business units of the organization are different from one another because one unit is mature that changes some technological while the other unit fully depends on the technology and regulated by the federal government (Bolden, 2016). Therefore, the benefits of leadership in both business units are different. In the case of the mature business unit, the leaders can enhance their employee engagement by motivating and encouraging them for their job roles. In other words, it is recommended that if the leaders should give feedback to their employees regarding their responsibilities towards work and praise them for any sorts of good effort then it provides huge benefits to leaders as well as the organization too.

In addition, it helps the leader to easily maintain their group members that eventually help in increasing the productivity of the firm. Besides this, in case of start-up business unit, it is recommended that if the leaders provide specific solutions in relation to working procedure with the help of technology then it easily provide them benefits to manage the team easily (Shamir & Eilam-Shamir, 2018). In addition, as this business unit use high levels of technology so the leaders should train their employees so that it helps in increasing of productivity that eventually enhance the leadership qualities of the corresponding leaders of every section of the firm.  Therefore, these are benefits that should be recommended in accordance with the leadership approach of the organization with respect to each business unit.             

Recommended recognition

In terms of mature or established business unit the forms of recognition that should be recommended are as follows:

It is recommended that recognition is given on the employee’s personal performance goals. This recognition procedure will thereby appreciate the employee to give their best efforts so that they can maintain their business performance and competitive advantage too.

Besides this, it is also recommended that the management of the corresponding business unit should arrange appreciation programs for their employees that generally reflects the positive qualities of the workplace. In this appreciation program the employee is awarded for a simple task and thereby it easily enhances the employee motivation of working with the firm. Therefore with the help of this appreciation program, they maintain a good relationship with their employees that eventually help them to manufacture process with any sorts of technological changes that may occur in future days.

Apart from this, in accordance with the start-up business unit the forms of recommendation that should be recommended are as follows:

As the business unit is highly dependent on technological procedures, therefore, it should be recommended that not only a single employee but the team or department should be rewarded for their performance role. This recognition procedure of the management team will thereby encourage the employees to work together as a team and not just as an individual worker.

It is also recommended that financial compensation in terms of both annual and quarterly bonus should be recognized by this corresponding business unit. The annual financial compensations will gradually base on the overall performance of an employee that generally reflects their growth from the starting to the end of the financial year. In addition, the quarterly financial compensation will base on the heavily performance-based compensation model that demonstrates the employees’ quarterly basis. Hence this recognition procedure will encourage the employees to give their best as per the business requirement. 

Additional considerations in terms of each business unit

The additional considerations that should be made for each business unit are as follows:

·         In the case of a mature or established business unit, the management team should divide the employee’s role in accordance with their demographic differences (Graham, Ziegert & Capitano, 2015). in today's environment, labor forces are changes and thereby with these considerations the management team will provide retention in accordance with several demographic factors

·         In addition, the management team will provide flexible work schedules for various generation of workers so that all types of employees can give their best effort for the corresponding business unit

·         Apart from this, the management team will provide rewards for the dedicated employees on the basis of their performance level and this eventually results in a positive manner in terms of production procedure (Hammond, Lester, Clapp-Smith & Palanski, 2017)

·         On the other hand, in case of start-up business unit, the management team should recruit those employees that are well experienced and have the skill of technology so that it can provide a positive impact on the business performance

·         Besides this, proper training facilities for the employees should be considered so that every employee will know the use of the technological approach in the corresponding business procedure. With the help of training, the employees can eventually get an idea about the various technological program and thereby use it in future according to the business needs of the organization (Loster, Zuo, Naumann, Maspfuhl & Thomas, 2017)

·         In addition, as it is a start-up business unit that highly based on technology so that older group of employees cannot be appointed by the firm because technology is improving day by day that may sometime cause the older generation employees to face various sort of difficulties in the workplace

·         Another consideration is that the management should encourage their employees for a small piece of work and always motivated them to set their goals for the advancement of the company in the market. With this technique, the business unit can easily improve their position in the corresponding market (Wojdynski & Evans, 2016)                               



The paper concluded that both business unit provides a various advantage to the organization if the pay structure and the forms of recognition are made according to the individual unit. In other words, the recommendation is provided on the benefits of leadership approach of the organization in terms of each business unit.

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