Business goals and compensation strategy are often recognized as essential strategic issues in an organization. Linking compensation and business goals comprehensively play a key role in determining the performance of a business and economic success. Effective alignment of a business strategy and compensation strategy prompts an organization in securing a competitive edge in a particular market. A developing company like Midwest toys requires effective management to ensure that innovation and expansions plans are successful in the long run. Performance evaluation of a business is an essential way of examining the progress of the business. An assessment provides information about what is happening in the business and the factors considered in the implementation process. The paper describes how the company can achieve the association between the compensation and evaluation of the objectives of the business.

Linking compensation and evaluation to the new objective

Compensation approaches in business are often changing randomly, and hence the link between strategies of compensation and the business objectives may be affected by the numerous transformations in the business world. Midwest toys can successfully align compensation strategy and business strategy by articulating the short term and long term business strategies (Demirer & Yuan, 2013). Selecting the compensation approach that best reward the articulated goals of the company and evaluating the approach of compensation against the business strategy to examine if the goals are achieved and the necessary adjustments to be made.

Articulating business strategy

The company must first be able to understand the plan that they wish to apply in the business, and the company can achieve this through training and development of the remaining employees. Compensation is used towards the end of business performance so that the best behavior is rewarded.  When the business strategy is well articulated, Midwest toys will be able to offer the right amount of pay to the remaining workers so that they are motivated to perform and avoid feeling insecure about the compensation and evaluation process applied by Midwest toys. The behavior that should be reinforced by the reward system is the insecurity that is experienced among the remaining employees which can eventually affect their performance (Demirer & Yuan, 2013). Shifting from the traditional production process within the company into the innovation requires that the company provide an improved customer and knowledge and this is only possible through exploring more consultative selling skills. The shift obliges the remaining 200 workers to become more sensitive to the services they provide to the customers.

Selecting the right approach to compensation

The company is expected to come up with systems of reward that will reinforce and support the goals and strategies of the Midwest toys. When the company can modify the job structure and effect a good pay to the workers imparts enthusiasm among employees in the company (Lamb, Hair & McDaniel, 2018). The effective approach of compensation that Midwest Toys can adopt is to determine what employees can take charge of and how their commitment can contribute to the success of the business. Midwest management changed their strategies to acquire new customers by providing a variety of product lines and quality to the customers. The reward system of the company should be refurbished to accommodate the new goals of the company.

Evaluation of the link with business strategy

Periodically the company should review the association between business strategy and the approach of compensation to ensure that the two are not defecting from one another. The company is likely to determine the success of the compensation approaches that are used in the company. When Midwest toys realize that there is no alignment between the objective of the business and the results, a more strategic planning process, and analysis should be considered. Understanding how the different areas of a company are running is essential information and puts the business in an excellent position to proactively manage performance. Evaluation of the link of objectives and business strategies make it easier for visions to be communicated and also control the process of delivering to the company. The evaluation process makes the company get on top of the financial measures, and hence it becomes easier to manage and invest for the growth of the business (Lamb, Hair & McDaniel, 2018). Midwest Company is in a position to examine its profitability and in case of any deficits; they can apply an improved system to enhance the processes. Evaluation is a perfect strategy to retain the customers, and this is achieved through understanding the expectations of the customers and providing the best to them. When the business is growing the company must also consider increasing the number of employees, and this is achievable through performance appraisals and qualitative measurement of the performance of employees.

In conclusion, compensation and evaluation is a critical tool for assisting Midwest toys to achieve its strategic goals. The company is however expected to acknowledge that compensation operates in a dynamic strategic planning and execution process like achieving the new objectives. Aligning strategic goals with compensation makes a company at a better position of achieving its objectives and maintaining a competitive advantage in an industry.  Evaluating the link between the goals and strategies allows the company to select the best ways of rewarding the employees so that they provide the best services to the customers and create a positive relationship.

 
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