Develop a basic compensation plan for Wal-Mart in China
Wal-Mart has taken a lot of heat for its approach to employee compensation. In 2006 Wal-Mart employees unionized in stores across China. The retailer has pledged to work together with the union. Given information about compensation, as well as what you know about diversity, recruitment, and retention, Please assist me in designing a Basic Compensation Plan for Wal-Mart in China
Please prepare a paper with reference page, to include:
1. Introductory Analysis in which you succinctly address:
Wal-Mart's strengths and weaknesses regarding compensation
Issues regarding compensation plans for international companies in China
Implications of unionization on Wal-Mart's compensation plans in China
2. Outline basic elements of your suggested plan, your rationale for each element, and how each element addresses the challenges that you have identified above. Elements of your plan should include:
Objectives that you recommend for the compensation program:
? Who should be involved in overseeing the program's design and implementation
? Compensation philosophy:
o Compensation committee - who should be involved? How should it work?
o What, if any, differences should exist in pay structures for executives, professional employees, sales employees, hourly versus salaried employees, incentive-based versus non-contingent pay (i.e. salary), China national vs. expatriate employees.
o Should the company set salaries at, above, or below market, and according to which market(s) standards? China local, China national, international, etc.?
o What types of compensation should be included in the plan, and which are most important? To what extent should non-cash incentives and/or benefits replace or supplement cash compensation? Should Wal-Mart use cash incentives in addition to salaries, and if so how?
3. Summation: Evaluate how elements of your proposed compensation plan will help Wal-Mart successfully compete to attract and retain qualified employees in the increasingly tight China labor market. How will it address the issues Wal-Mart is facing in China?
Please:
Draw upon source materials to guide your work, and reference any sources that you use in your work (at least FIVE in this case, please).
Use headings and subheadings to clearly show the structure of your analysis (for clarity).