Human Resources Final Ppaer

Final Paper Outline

Lyndsey Burton

BUS 681: Compensation and Benefits

Instructor: Richard Thompson

November 6, 2016

General Motors’ compensation and benefit system challenges.

Compensation and benefit systems are guidelines made by organizations towards their employees’ welfare during their working years and after they retire. A company can go through varying challenges in connection with the compensation and benefits system (Martocchio, 2011). An example of a company that has undergone such challenges is General Motors Corporation.

General Motors is an American automotive corporation headquartered in Detroit Michigan that fabricates auto vehicle. This company designs, assembles, markets, and dispenses vehicles and their parts, as well as sell financial services. The present corporation, General Motors Company LLC, was established in 2009 after the old General Motors Corporation went bankrupt (Keller, 2009).

Challenges faced by General Motors

General Motors’ went through some challenges as a result of its bankruptcy. First, the company violated its compensation & benefits system. Due to a collapse of payment and compensation scheme, the workers of the company became unethical and moral issues arose. During this period of set-off and benefit denial, the workers of this company suffered insecurity. Without the plan, it also became hard for the company to hire skilled workers.

Organization that had similar issues and strategies used.

Wall Street is an example of a company that also went through the same issues of compensation and benefits issues just like General Motors did. To solve it matters the company came up with some strategies that include: The Company applied the segmentation and differentiation strategy, where employees are paid for their productivity. The company introduced health and wellness programs to ensure they have a workforce that is healthy. Lastly, the company came up with a transparent policy where pay philosophies were communicated directly to workers (Ward, 2011).

Recommendation to Management

Compensation practices in an organization have positive effects on the firm’s competitive advantage. General Motors should create compensation plans that align with strategic plans. Compensation practices further influence recruitments, labor productivity, turnover, etc. in companies. This company should realize that a considerable amount of employees’ job satisfaction depends on compensation amounts that they receive and benefits derived from the firm.

References

Keller, M. (2009). Rude Awakening: The Rise, Fall, and Struggle for Recovery of General Motors. New York: Morrow

Ward, B. (2011). Compensation & Benefits Survey: Moderate growth in registered dietitian and dietetic technician, registered, compensation in the past 2 years. J Acad Nutr Diet

Martocchio, J.J. (2011) Strategic compensation: A human resource management approach (6th

Edition). Upper Saddle River, NJ: Prentice Hall.