Strategic Compensation-StopNShopToday, Inc


StopNShopToday, Inc. has had difficulty motivating and retaining key cashiers and wants to provide an incentive to them that will generate improvement in several critical areas of store cashier performance, which include the following:

  • Increasing total sales revenue
  • Reducing inventory losses and theft
  • Improving overall customer service and satisfaction
  • Improving store cleanliness and housekeeping
  • Improving attendance and reducing unscheduled absences

Several stores have poor overall sales volume and ongoing chaos because of the staff taking unscheduled absences. Others have issues with inventory and theft. All the stores want to address cleanliness and customer satisfaction problems.Overall, officials with the company feel they can commit no more than an additional $200 per employee per year as an individual incentive and no more than $500 per year for the same store or corporate incentives.

  • You will select one of the critical areas of store cashier performance improvement (listed above), and recommend three components to be included in an individual incentive program for the cashiers. Use information from the Internet research you have done to aid in your understanding of cashiers’ tasks and work values. Tie your ideas to a contemporary motivational theory.
  • Discuss how you might incorporate the ideas you have generated regarding individual incentives.
  • Next, discuss store- or corporation-wide incentives.
  • Generate a recommendation for 2 possible avenues of same-store incentives and 2 possible avenues for corporation-wide incentives.

Present these recommendations in the form of a recommendation to Morry and Mo Gassup, owners of StopNShopToday Inc.
Assignment Objectives
Differentiate between various kinds of performance appraisal programsDescribe the role of compensation and its influence on employee behavior


Strategic Compensation


StopNShopToday Inc. is experiencing tough moment in motivating and custody of vital cashiers and is seeking for an incentive plan that will spawn progress in vital areas of the performance of store cashier. The paper seeks to recommend or generate a solution to Morry and Mo Gassup, owners of StopNShopToday.Inc on growing total sale revenue. The responsibility of a cashier is to keep proper record and generate daily, weekly and monthly reports. A cashier is also expected to act ethically and practice utmost integrity in their job performance (DeNisi, A., & Smith, C. E. 2014). The sales revenue is dependent on how they interact and convince customers to purchase the goods. The company is ready to provide no more than $200 as an additional incentive to an employee annually and no more than $500 annually for the stores and company incentives.

Performance Appraisal Program

The company needs to carry a performance appraisal program to improve the task performance of the cashiers. The performance appraisal is a program that let the employees know how they are doing. If well implemented, the program can increase efficiency of the people the employees. It aids in employee development, motivation and relations. In employee development, the manager discusses employee strengths and plan for growth. The employee should create programs that provide development of skills such as coaching, job development, mentoring, and cross-training.

In job motivation, the company needs to use other means of incentives rather than incentives in monetary form. There are seven strategies of motivation that includes: positive reinforcement, effective discipline and punishment, restructuring jobs, basing rewards on job performance, treating people fairly, and setting work related goals. The last appraisal program is the employee relations. It refers to the company effort to manage relationships between employees and employers. The program explore on the grievances, appeals and methods of solving disputes in the company. In order to motivate the employees, the procedure of dispute resolution should be free and fair. Also, outstanding cashiers should be recognized and their efforts, skills and ideas rewarded.

  Role of Compensation

According to Jacobs, G., Belschak, F. D., & Den Hartog, D. N. (2014), compensation has an enormous role and influence on the behavior of cashiers. A well-orchestrated compensation plan promises huge returns for the company. It can be inform of wages or tips based on viable or fixed pay. The company should ensure that it utilizes equally to ensure an efficient and motivated workforce. Compensation is significant in refining key skills of employees and creating a healthy environment that help increase morale and team spirit.

 Store- or Corporation- wide incentives

The success of an organization is due to its ability to attract and hold dynamic store cashier. StopNShop Today Inc. should establish competitive incentive plan to achieve the objectives. The store- wide incentives are long term and available for full time employees. Profit sharing plan is one such incentive. The company should offer sales commissions incentives. The cashiers should benefit from a salary plus commission on the sales made by him. It will steer a surge for the salesperson to make a higher income. The two possible avenues of same- store incentives include metric measure such return metrics (return on invested capital) and quality of metrics (cash flow) and performance measurement. For corporation- wide incentives, the metrics collaboration that can be measured from individual performance based on target set. Also, they can use performance measurement for high level employees.


In the paper, we have explored on performance appraisal program. The research has explained on the role of compensation and how it affects individual performance. It has also analyzed on store- or corporation- wide incentives. The recommendations in this paper have been submitted to Morry and Mo Gassup, owners of StopNShopToday Inc. It is my hope that it will be of benefit to the company and it will spawn progress in vital areas of store cashier performance.


DeNisi, A., & Smith, C. E. (2014). Performance appraisal, performance management, and firm-level performance: a review, a proposed model, and new directions for future research. The Academy of Management Annals, 8(1), 127-179.

Jacobs, G., Belschak, F. D., & Den Hartog, D. N. (2014). (Un) ethical behavior and performance appraisal: the role of affect, support, and organizational justice. Journal of business ethics, 121(1), 63-76.

Point Factor Job Evaluation