Imagine you work for a company that has recently merged with an overseas company. Write a brief introduction to your company as well as the company that was purchased.
United Moving Company, launched in 1985, is a company that is guaranteed quality moving. As an expert in the moving and storage industry, United offers a wide range of options and services for families on the move. Packing & Unpacking choose the level of service thats right for your move. Well handle the basics and as much packing or unpacking as you need. Make your move-out or move-in easier. We can arrange cleaning services, debris pickup, home-theater set-up and more.
International Movers, we have over 50 years of helping families relocate all over the world which, shows us that good preparation for a big move makes everything work out better. Our knowledgeable move managers, in 250 offices across North America and beyond, are dedicated to providing our customers with a personal service and a successful relocation. Our destination services can help you pick up your whole life and take it with you. We offer immigration and visa support, school search and selection, and career support for relocating partners.For my paper I choose to use Ford Motor Company this is a Company that is based in Dearborn, Michigan. They are the second largest industrial corporation in the world, with revenues of more than 144 billion and about 370,000 employees. Ford Motor Company conducts Operations that are expanded to 200 countries. Although Ford obtains significant revenues and profits from its financial services subsidiaries, the companys core business remains in the design and manufacture of automobiles for sale on the consumer market. Since Henry Ford, the founder of Ford Motor Company, incorporated in 1903, the company has produced over 260 million vehicles with very high customer satisfaction ratings some of with are the best in the market (www.ford.com).
In the last couple of years some of the companies have been dealing with some of the most difficult economical climates as the worlds economy continues to change rapidly. This continues to demand increases in the charges of compensation benefits packages. This has pushed them into taking preventive measures to ensure their compensation policies and Business strategies flow together failure can result in losing valuable employees. If you look at the growing improvements in the economy and the Businesses the biggest issue that needs to be delt with is the ability to effectively install the policies retribution. In order to keep the interest of the employees in there Company one must ensure that they always determine the best policies regarding compensation as this is what can drive an employee out of there company (Miranda, 2010).
For this paper we will analyze their compensation management and the strategy that the company is following. Ford is currently using a flexible compensation method. Every Company that is in business is competing every day to have the best employees in there Company. Some incentives that a company may offer may not always have to do with an employees performance at the work place resulting in a financial result. Such as going a certain amount of days without any safety incidents which can ultimately save the Company millions of dollars.
This Company has built a very strong organizational structure with the work processes around employee incentives which has assisted in the development of a package of various payments to concentrate on, for the direction of the energy of their staff. The same Company is expanding the concept of a reward system beyond the traditional payment systems, including all the company has to offer and that can be evaluated in this context the employee (Spain& Chiavenato, 2009).
There were some challenges that Ford faced regarding the compensation was the HR department of the Company had to reengineer all the packages every year. This was partially due to the company engaging in the making of renowned cars which can be viewed a very technical job. Ford has had a very big challenge in the retention of the skilled employees that they need. The demand for these skilled workers has never declined and other companies including their competitors would love nothing more than to get someone who has worked for their competitor. Sometimes when you talk about a competitor attempting to hire one of Fords skilled employees it can become difficult to retain them as they are offered a great compensation package.
Ford Motor Company provides their employees with a flexible benefit package that includes the following; generous vacation and comprehensive insurance. The insurance benefit includes heath care, dental, medical, medical prescriptions, disability and life insurance. Paid time off is a little different year to year however it can include 15 holidays a year and as much as 25 days vacation after staying with the company 20 years. A salaried employee is automatically put into the employee retirement plan once they are hired. The options are up to the employee as to how to invest this. The Company also has numerous programs for vehicle purchases, tuition assistance and a dependent scholarship program. I would consider this to be a very attractive compensation program.Analyze how your company applies compensation practice to determine the positive or negative impact to the company and its stakeholders?
When you talk about market relations the choice of a compensation package, method of analysis, forecasting, optimization Ford has the best opportunity. Ford has been one of the most renowned Companies and is applying the best compensation strategies for their employees. This strategy is called a Flexible Compensation Strategy. Ford follows a saying He who pays the piper calls the tune. A flexible benefit system if used properly can and will increase the total compensation. The Flexible Benefit System started in the 1980s A flexible benefit system is a way to appeal to unique needs within the employee population as in Fords case needing special skills to accomplish the job (Joseph J. Martocchio 2013).
The top level managers are focused into the efficiency of the communication plan that identifies the changes in the model of management. This is a process of leadership and teamwork of a team. A company must come together as a team or this process will be a very frustrating process. Ford will set the compensation policies to be consistent and coherent to their organization, the culture is Business and mechanisms for the provision of all people involved. The Compensation with special factors is the issue that a Company performs as reward work. Also it will be faced with the difficulty of policy a design variable compensation. Such a payment system the company goes for variable pay packages for the support of technical staff that are called for some special tasks (Larousse, 1994).
At the corporate level Ford uses various methods to engage with their stakeholders. The creation of forums to gather stakeholder input on current activities, An outreach on emerging and ongoing issues of particular importance to stakeholders, An engagement with the local stakeholder in such communities that they operate as a part of our code of human rights, they consult with organizations that have a campaign targeting Ford, an engagement with a rating and ranking organization into the investment community, and lastly they offer new product testing. Fords compensation package is having a positive impact on the stakeholders that they have. Ford is using a market strategy and the view is to determine the compensation policy very clearly in order to avoid any issues coming up in regards to compensation. Since they are the best automaker company in the world they must at all costs involve and take care of all stakeholders. The most common compensation package they have is a 401K.Examine the ways in which laws, labor unions, and market factors impact the companys compensation practices. Provide specific examples to support your responses?
When a company is attempting to decide a compensation package the biggest thing that needs to occur is that they will need to ensure that everyone is in agreement to include upper level management. The personnel that needs to agree at a minim is labor unions, and the other regular bodies. Such regular bodies of people are those external stakeholders while the labor unions include the internal stakeholders the company needs to ensure that the both of them are in total agreement with said compensation package or it will become a very difficult task. The reasoning behind such a large impact on the compensation packages is because all the labor and workers are under their control and they are fighting for their rights. They all must attempt to align their objectives with the labor union and this synergy among them creates a great impact on the compensation package of a company (Martocchio, 2013). The legal environment for the compensation practices consists of Federal and State regulations that were imposed by the government. The Fair Labor Standards Act is one of the oldest labor laws it can be often called the wage and hour law. The provisions that do affect compensation programs are; minimum wages overtime pay, record keeping requirements, and equal pay.Evaluate the effectiveness of traditional bases for pay at the company you researched?
The traditional bases for pay packages for Ford motors are as follows: experience, skillfulness and nature as well as level of work. The human multi-criteria problems are encountered more often than not which can be caused by the increasing complexities of a situation of decision-making when it becomes necessary to take into account many different factors. According to a lot of different studies, there are two main groups of strategies that are to be used by personnel in issues involving muli-choice which is the strategy and compensation strategy exception (Martocchio, 2013). The compensation strategy was designed by experts and analysts whom tend to compare multiple assessments of one alternative to make an estimate of another. The definition of the utility of each alternatives (identification or the preference), and then you compare the strategy of the additive model. A comparison of the utility assessment of alternatives for each criterion is separate then you sum these differences which are the additive model difference.
In conclusion leaders in all different types of companies must make important decisions regarding compensation practices. Each decision comes from the management which defines policies that attempt to direct the future. A compensation strategy is one of the main subjects that can either attract or push away an employee. This is the thing that is directly related to the effectiveness and performance of the Business. A company in todays Business is taking a strong
stride toward this issue as failure to do so could end in bankruptcy when they lose all employees. Ford Motor company is conducting a very competitive compensation policy that in my opinion is very competitive across the board. By keeping their stakeholders involved and listening to their input they will continue to keep them happily involved with their company for years to come. There are specific laws in place to ensure employees are receiving a fair compensation package at a limit. However this doesnt mean a company cant go to a better compensation package. After my evaluation of Ford Motor Companys compensation program I can confidently say that there compensation program is above average and I would be thrilled to work under them.ReferencesLarousse,Mexico. Milkovich, George, Boudreau, John. (1994)
Martocchio, J. J. (2013) Strategic compensation: A human resource management approach (7th ed. ) Upper Saddle.
Miranda July (2010) Challenges of Development and Management of People
Spain. Chiavenato, Idalberto (2009) Resource Management Human Third Edition
Joseph J. Martocchio (2013) Strategic Compensation: A Human Resource Management Approach, Seventh Edition
www.ford.com