Compensation Management at FORD

Compensation Management at FORD

Question 1

Briefly describe the company you researched, its compensation strategy, best practices they are applying, and compensation-related challenges they are facing?

In recent years, companies have been faced with a difficult economic climate and substantial increases in the costs of benefits, leading them to take some precautions in aligning its compensation policy with business strategy. As you go observing improvements in the economy and business performance, the challenge becomes effectively implement these policies retribution. Companies always determine best policies regarding compensation in order to grab the interest of employees in the company (Miranda, 2010).

For this research paper we have used Ford motors to analyze the compensation management and the strategy the company is following. The company is following flexible compensation method. Each organization is fighting for the best employees. However, the incentive is not always focused on the performance of work that affects the financial results.

Ford has built their organizational structure and work processes around employee incentive, thereby developing a package of payments in order to concentrate on, and the direction of the energy of its staff. These same companies are expanding the concept of reward systems beyond traditional payment systems, including all the company has to offer and that can be evaluated in this context the employee(Spain & Chiavenato, 2009).

Some challenges which the company had to face regarding compensation is that, the HR department of the company had to reengineer all the packages every year and sometimes in the idle of a year. This is because the company is engages in making of renowned cars whose making is a bit technical in nature. The retention of these skilled employees is one of the biggest challenges for the Ford. Their demand in the market never declines and other companies especially the competitors are looking for that kind of staff who had worked with their competitor. Therefore, sometimes it becomes difficult to retain them and in this regard, the company had to design flexible package system for them so as to entertain the interests and concerns of all(Spain & Chiavenato, 2009).

Question 1

Analyze how your company applies compensation practice to determine the positive or negative impact to the company and its stakeholders?

In terms of market relations choice of compensation package, methods of analysis, forecasting, optimization and feasibility Ford selects the best opportunity. Being one of the most renowned companies Ford applies the best compensation strategy for their employees. They name this strategy as Flexible Compensation Strategy. The company believes in the phrase that "He who pays the piper calls the tune." Under these conditions, there are mandatory for all standards or methods of administration(Ariza, Morales, 2004).

The top management is focused about the efficiency of the communication plan that reports changes in the model management, it is a process of leadership and teamwork team and not a formula imposed unilaterally. It must set compensation policies consistent and coherent to the organization, its culture Business and mechanisms for the provision of each person adding ...