A Perky Way to Productivity

a. Describe the importance of employee benefits as a strategic component of fulfilling the goals of HRM.

HRM is designed to put people into positions suited to them to help the company grow. Employee benefits enhance productivity and effectiveness of organizations.
Employee benefits attract employees to join a company and or make them decide to stay long in the company they are in to achieve higher compensations and more benefits.

HRM designs benefits that are useful short term and long term to the employees.
Benefits provided by employers to their employees have changed and increased. Modification of such is to cope with the employee competition in which companies strive to get and maintain quality employees that serve as assets to the company (Allen & Lucero, 2006).

Maintaining employees is to treat them well. Providing good benefits build trust that makes them assured to get something worthy on benefits releases and use.
Great compensations encourage employees work harder and improve efficiency towards their work.
Employing personnel trainings, participations and security to name a few of the common employee benefits allows the company to achieve goals as it improves the performances of its workers.
b. Explain how Genentech and Zappos are using employee benefits as a motivating tool.

Both companies have seemingly manipulated the ideals of an employee benefit. Offerings were “innovated” to receive high employee satisfaction.
Employee benefits provided by both companies are unique from other companies. Having these kinds of benefits hold employees tight under the company.
Through the broad range of benefits, employees strive to do better in leverage to the compensations being offered. This is hence due to employees’ fear that the companies may reduce benefit privileges.
c. Do you believe the incentive benefits such as those offered at Genentech and Zappos can be used in other organizations? Why or Why Not?

Benefits offered by Genentech and Zappos can be used in other organizations. If they really want to establish a maximum employee satisfaction, that is.

However, there are risks. The stakes on hand in actually giving the benefits are quite costly and time and labor wasting. Extensive compensations become drastically unrealistic as it stated from the situation, (Cascio, 2008) “[…] but any discussion of how great Genentech is always circles back to benefits that show a real respect for employees.” This proves that what makes the company stand out is the employee satisfaction. Benefit is turning to seemingly be the sole achievement of Genentech. It had been recognized for its Best Place to Work 2009.

The recognition of Genentech is not the measurement of the overall company standing. Its recognition lies only internally. According to Balking et al (2007), the usage of benefits must be utilized appropriately. This means that expenditures spent in providing those benefits must gain the company a higher benefit. While the company spends on its employees to improve job performance and increase satisfaction like free trainings, extended leaves and beneficiaries and so on, it is expected that the employees, in return will function better. The obligation here is to reciprocate the things employees gained to return the satisfaction to the employers and afford the company a reputable image.


Allen, R., Lucero, M. (2006). Employee Benefits: A Growing Source of Psychological Contract Violations. Journal on Human Resource Management, 33.

Balkin, D., Richebe, N. (2007). A Gift Exchange Perspective on Organizational Training. Journal on Human Resource Management Review, 17, 52-62.

Cascio, W. (2007). Managing Human Resources, 8th ed. McGraw-Hill: Colorado.

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