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"Corporate Benefits and Compensation: Ford Motor Company and Toyota of North America, Differences in Compensation related to Overall Corporate Strategy"
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Still, about 22 percent of American workers voluntarily leave their jobs in less than one year. Turnover quickly becomes expensive for large corporation, and an immediate financial punch for smaller enterprises. This phenomenon causes employers to focus their attention and demand to small details, when hiring. The result is the marathon hiring process which is now very familiar to job seekers nationwide. The question becomes why such high turnover in major corporations. What Can be done to keep employees interested in their jobs? It certainly is not the strategy That Ford Motor Company is taking. According to Business Week Online, the auto Maker “lost 7.24 billion dollars the first three quarters this year and is cutting thousands of jobs and closing plants to cut costs over the next few year.” Therefore, it should not come as a shock that cuts are employee health care benefits and merit raises for salaried employees are next. Employees will pay an increase of 30 percent toward their health benefits. Retirees will no longer be eligible for health benefits. On a positive note, Ford has reinstated its matching 401K plan, contributing 60 cents on each dollar, up to 5 percent of the employees gross wages. Ford claims the cost cutting measures are necessary to maintain competitiveness in the automotive market. It plans to cut “10 thousand salaried from its current 25-30 thousand and 25-30 thousand blue collar jobs from the current 75 thousand” (Online Newshour.)
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Ford has been in crisis for some years now. The reasons that have lead to this crisis are many. There are external factors as well as internal factors that lead to the present crisis situation. But it is found that the center of all the issues of Ford is the serious mismanagement which has been undergoing in the company for years.
The research approach consists of different views, opinions and beliefs. The information was gathered from newspapers, magazines, articles, etc. The annual publication from the Toyota motor company also provided much of the information about the technology Toyota motor company in utilizing, how many cars Toyota is manufacturing and how the company is growing all over the world.
The top most management level of a company reserves the right to design and communicate a compensation strategy that will give the company a competitive advantage. Indeed, how a company defines its compensation strategy is fundamental in attracting, engaging, and retaining employees.
In the past decade and especially in 2009-2010, the company had faced serious crisis situation with its quality problems regarding sticking gas pedal and uncontrollable acceleration that had led to human casualties and severe dent to its market reputation.
One of the industries that have attracted quite a number of firms is the motor vehicle industry. This is based by the increased demand for motor vehicles not only in the emerging market but also by the consumers in the developed countries. Similarly, the demand for eco friendly automobiles has gone up in the international market thus calling for the manufacturers to emulate modern technology to produce brands that have lees impact on the environment.
The flow of communication in all directions establishes harmony in operations besides keeping the stakeholders and other related resources up to date, to achieve the organizational objectives, which reflects Toyota’s global image, brand recognition and reputation.
The market assessment job will compare compensation for our organization's jobs to the marketplace rate for comparable jobs. This method necessitates precise market-pricing surveys.Market pay is the compensation paid for an exact job...
The emphasis is on communication which is considered to be an important part of landscape in the business and cannot be taken for granted.
Mercer.com is offering the insight to the attitudes of workers including the factors that drives the engagement in the state of Australia, Canada, Brazil, France, India, Germany, Mexico, Japan, Korea, Singapore, Portugal, UK, Sweden and the United States (Mercer.com, 2007).