Trader Joes Adventure Trade is a two-way function that depends on input (effort) and output (income). However, traders are over excited by the notionof steady profits, making them forget the value of their input. As described in the case study, human resource management is a profound method of contribution into a business’ success. Compensation and Benefits is the most sensitive area of human resource. This area of specialization deals with control, setting of rules and procedures applied in salary and benefit determination. Compensation and benefits is a function of human resource management, which determines the competitive advantage of a business.
The aspect is cited as a significant element of success in business. According to trader Joe’s, success in business is largely dependent on the level of satisfaction among its workers. Satisfied employees dispense their duties to their level best thus improving their business performance (Lewis 137). This creates a pool of satisfied customers leading to increased sales and profits. For instance, Coulomb, (a sales staff) says that he intends to transform Joe’s place a shopping paradise where all people wish to spend their money.
At Joe’s place, all employees are respected and accorded appropriate titles. For instance, store managers are regarded as Captains while assistant managers are referred to as First Mates. This reference helps to avoid discrimination and to promote self-confidence among employees who are then compelled to improve their performance. Compensation as applied in human resource denotes a form of reward for labor or effort of an employee. Thus, compensation or salary should be equivalent to the effort of an employee. Indeed, compensation is a measure of an employee’s performance at their workplace.
Although trader Joe acknowledges awarding competitive salaries to employees, he warns employers against the repercussions of over-payment. The case study talks of a fair compensation whereby employees are compensated according to their effort. Finally, Joe argues that salaries and remuneration have ceased to be part of competitive advantage in a business. He claims that modern day employees are concerned with extra value or services gained from their workplace. Such values and services include training, refereeing, medical insurance schemes fitness and sporting activities. The example effectively represents interaction between different forces in an ideal business environment.
In addition, the case study demonstrates the relationship between different economic variables in an ideal business environment. Human resource management defies exploitation of workers through poor, commonly practiced in most businesses (Lewis 137). According to the case study fair remuneration, leads to satisfied employees who in turn create satisfied customers. Arguably, customers are the most valuable assets in a business. Thus, traders who value their customers should promote the welfare of their staff. On the other hand, salaries and wages are not sufficient in promoting satisfaction among employees.
Businesses should therefore invest in other value added services such as holidays, health insurance policies, and motivational titles. Works Cited Lewis, Len. The Trader Joes Adventure: Turning a Unique Approach to Business into a Retail and Cultural Phenomenon. London: Kaplan Publishing, 2005.