Organizational strategies in restructure of compensation for production employees
Imagine you are a Compensation Analyst at a large manufacturing organization. The CEO recently came to your boss, the Director of Compensation, to determine how to restructure compensation for certain employees. The CEO wants to make sure that compensation aligns with the following organizational strategies:
1) Continue to make a quality product that our consumers will always choose over our competitors in the industry.
2) Keep production and overhead costs down by working smarter, not harder.
3) Expand into new markets across the U.S.
4) Hire the best people and support them as they develop in their careers.
Put together a proposal memo addressed to the Director of Compensation that shows how the total compensation package can support these strategies.
The 3 specific positions you should focus on are: production associates (who assemble the products in the manufacturing plant), line supervisors (who directly supervise the production associates), and floor managers (who supervise the entire production process at the plant).
Be sure to address the following:
What elements of compensation and non-compensation will be important in supporting the 4 organizational strategies above? Why?
Will organizational hierarchy play a role in your proposal? How?
What challenges did you have aligning compensation strategy with organizational strategy? Be specific.
What aspects of your proposal do you think your Director or the CEO will support vs. reject? Why?