Analysis of Advantages of Discretionary

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

MANAGEMENT
1
Table of Contents
Analysis of the Compensation Philosophy of Maersk and Influence of Market on Their
Philosophy..................................................................................................................................2
Analysis of Value of Salary Surveys to Organization...............................................................2
Analysis of Advantages of Discretionary Benefits to Maersk...................................................3
References and Bibliography.....................................................................................................5

MANAGEMENT
2
Analysis of the Compensation Philosophy of Maersk and Influence of Market on Their
Philosophy
The philosophy related to compensation of Maersk helps in describing the
comprehensive policy related document which has been established by human resource in the
collaboration with line managers for providing the different guidelines for the compensation
of employees in the organization. In addition, the philosophy of compensation tries in
describing commitment on how the company Maersk values their staffs (Groysberg and
Abbott, 2012).
In the respective case, Maersk utilises policy of compensation for explaining how the
rewards are being structured in the relationship in current market scenario in the relation to
the current market related prices. Maersk’s compensation policy comprises mainly
components such as remuneration of management related board, cash incentives for short
span as well as long-term kind of incentives along with different discretionary benefits. In
case of the remuneration management executives, the overall philosophy of the compensation
helps in allowing the different members of management to receive the fixed amount of
salaries (Groysberg and Abbott, 2012).
The short-term type of cash related incentives helps in enabling Maersk in
incentivizing the members who are performing excellently. On the other hand, compensation
philosophy can be changing as per the market values of the job change of Maersk. The entire
HR section of Maersk can be increasing benefits as well as compensation of the employees
when the positions of the job becomes highly competitive in market. It will be increasing the
potential for retaining the old employees and it will be capable of attracting new employees
effectively.