COMPENSATION PLAN FOR AN ORGANIZATION

Identify a total compensation plan for an organization

Compensation Plan Mattel

Introduction

Mattel Inc was founded in 1945, known as one of the world's largest toys manufacturing company which is based on manufacturing toys such as Hot Wheels, Fisher Price, Barbie Dolls, American girl dolls, masters of the universe etc. The company's name was derived from its founder's name, who was Matson and Elliot Handler. In 2002, Mattel started outsourcing its products to different countries such as China and other countries. Since, now it has been able to expand its business in different areas throughout the world. It has a large share in the market due to its management procedures (Batemann, 2010).

Equity Defined

Equity is the central theme in compensation, without equity the compensation system cannot be judged as fair since injustice prevails. For any organization, equity should prevail. In Mattel, the employees should be paid according to the level of work they do. Equity is commonly defined as anything which has a value. In compensation equity can be, when fairness is achieved in paying equally to the employees according to the work performed. Inequity prevails as a result of injustice in work or when the employee is not paid according to the work performed, when the value of work performed and compensation do not match. Equity arises in issues when economic and legal issues of equal pay are used for similar work. Pay differences are also created by the external situations prevailing in the market, pay the difference among the workers also leads equity to be discussed. Mattel Inc also considers equity important according to the programs it implements. Compensation emphasizes more on the external equity prevailing. The external pay rates which are been given to the employees in outside organization, company sets its pay according to it ...