Variable compensation policies by performance (VCMP) as a tool to get success in agribusiness

Abstract

Variable compensation models for performance (VCMP) are presented as a tool to contribute to improving the work of general business, and agribusiness in particular. This document seeks to establish an empirical relationship between the implementation of the VCMP models and the improvement of the performance of the companies analyzed. There are two previous research conducted by the author in different moments: - A case study of a Honduran company dedicated to the production and marketing of shrimp, - A survey of a nonrandom sample of seven agro companies located in several countries of Latin America. The data analysis led to the conclusion that there is a benefit perceived by managers and owners of the companies studied, both at production and finance level, and in terms of human resource management (HRM), sales and marketing, and work quality. However, the study should to go into depth of various aspects to establish a representative pattern in the industry, so it is necessary to do a random sampling in the future, bounded by geographical area and adjust the methodology to eliminate bias caused by other aspects that could influence the indicators measured, in addition to the CVD's. One aspect that must be staked, is the influence of the high unemployment in the implementation and effectiveness of VCMP's models.