Compensation Plan and Practice Term Paper

Pages: 7 (2228 words)  |  Bibliography Sources: 5

SAMPLE EXCERPT:

[. . .] These territories are characterized by varying labor laws and unions, levels of development and living standards. For instance, influence of unions may influence wages in Australia where the unions and government negotiate wages that are applied to workers nationally. In contrast, Hong Kong's unions are very weak and wages are determined by the market (Fisher et al., 1999). These varied factors all influence international compensation systems. Finding the right compensation models for MCNs therefore becomes a problem (Wetlaufer, 1996).

The administrative policy makes reference to the duties of compensation managers in coming up with and implementing a compensation program. Considering the mentioned 3 policies, these managers must choose what is to be included in the compensation program i.e. The incentives, benefits, base pay and incentives for employees at various levels of employment. The management also determines whether that program is competitive enough to ensure employee retention and whether the employees view the compensation as fair and how such compensation compare to the competition. Compensation must also support the organizations objectives. Increasing completion has resulted in sweeping changes in strategies and compensation in the corporate environment. For instance, Ford's insistence on customer care as a marketing and competitivestrategy in the 1990s. Ford was forced to alter its prevailing incentive program to persuade dealerships to also shift their focus as well. Incentives began being customer-service centric whereas they had been previously hinged on sales. (Advameg, 2014).

Base pay is two times monthly salary and is determined competitively with adjustments made according to performance, responsibility, rank and scope of job. Base salary puts into consideration skills, market value and experience. Employees should give an allowance of ten to twelve business days following being hired or rehired to receive remuneration for the first remuneration period. Workers are always remunerated on a "current" basis. The 15th or end month date is usually the payday for GSRs. If the day falls on a holiday or weekend then it is pushed to the preceding business day. Not unless specified by law, payday shall be on the last working day of the month. Employees are encouraged that their paychecks be deposited into the bank or institution ofchoice. This is achieved by having them complete a Salary Deposit Form. Benefits and Compensation form part of the company's relationship building programs. Others include rewarding of good work and career growth prospects as well as being a part of a great and diverse company. Ford has consistent pay programs for all its international concerns that are affordable. Pay based on results is key in the company. Individuals are rewarded based on their contribution to the company.

Ford's compensation and benefit programs are competitive with other leading companies in the countries it operates. That employees are the people from whom the company draws strength is the philosophy of Ford. Pay rewards employees in their contributions in the areas of teamwork, efficiency, satisfaction and growth. Ford's philosophy is grounded on the practices that follow:

The company's policy is to provide continuous feedback to employees which includes:

o

Review of employees' responsibilities, accomplishments and objectives twice a year

Evaluation of competency, performance, counseling and couching on the betterment of job skills once a year

Merit allocations shall be a portion of base salary payroll that is made available for that specific program. That allocation shall be based on the competitive salary analysis and Ford's capability to pay. This allocation shall be reviewed once every year.

Bibliography

Advameg. (2014). Compensation administration. Retrieved from http://www.referenceforbusiness.com/encyclopedia/Clo-Con/Compensation-Administration.html

Casey, B., Dodge, J, & ., Dodge, Horace. (2010). Ford henry and innovation. Retrieved fromhttp://www.thehenryford.org/education/erb/HenryFordAndInnovation.pdf

Financial Stability Forum. (2009). FSF Principles for Sound Compensation Practices. Retrieved from http://www.financialstabilityboard.org/publications/r_0904b.pdf

Ford Motor Company. (2003). Measuring the impact of knowledge management. Retrieved from ftp://public.dhe.ibm.com/services/us/gbs/bus/hcm/rbtt/ford.pdf

Ford Motor Company. (2011). Summary of compensation and benefits for ford motor company. Retrieved from http://corporate.ford.com/doc/r-full-time-benefits.pdf

Ford Motor Company. (2014). Ford Motor Company Recognized Among World's Most Ethical Companies. Retrieved from http://corporate.ford.com/news-center/press-releases-detail/pr-20140320-ford-recognized-among-worlds-most- ethical-companies

Ford Motor Company. (2014). Sustainability 2011 / 12. Retrieved from http://corporate.ford.com/microsites/sustainability-report-2011-12/people

Fisher, C. D, Schoenfeldt, L.F., & Shaw, J.B. (1999). Human Resource Management. (4th ed.). Houghton Mifflin Company.

Kotzegger, U.H. (2010). Ford motor company: Learning from the automotive industry. Retrieved from

Padilla, J, J. (n.d.). The business case for diversity. Retrieved from https://www.nae.edu/File.aspx?id=10147 [END OF PREVIEW]

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