Case Study: McDonald's Corporation - Designing an Incentive System

1. INTRODUCTION Designing a compensation plan is ane of the most manifold tasks for most organizations as it affects job satisfaction, employee turnover, productivity and the overall social club stiffness. If not properly managed, this may lead to high employee turnover, subaltern productivity, among other problems which is especially consecutive for a large service-oriented staunch like McDonalds. McDonalds first-line managers deal nowadays with customers along with the front-line crew and it is polar to draw up an effective compensation plan that leave alone keep them move to work hard. McDonalds has to consider various factors in order to radiation pattern an optimal compensation plan for the first-line managers. Unless other specified, managers provide be taken to mean first-line managers in this report. 2. FACTORS TO librate IN intent A COMPENSATION PLAN 2.1 Financial and Non-Financial Incentives Compensations foot be based on financial and non-financial incen tives. Financial incentives let in salary and bonus while non-financial incentives include benefits and perquisites such as the use of company cars and club memberships. Financial incentives can travel managers by cheering their holds but only to a legitimate extent. According to Maslows hierarchy of involves , erstwhile a take off level of needs has been satisfied, it leave no longer persist as a motivating factor for the managers. As such, unanimous their higher level of needs is required.

Therefore, in the context of McDonalds, formerly the managers are satisfied with their basic needs (pay), the mon etary incentives will no longer motivate the! m. There is a need to provide managers with non-financial incentives such as promotion, increased autonomy and realization so as to fulfill their esteem needs. Thus, it is necessary for McDonalds to con the needs of the first-line managers and incorporate suitable financial and non-financial incentives into the compensation package. 2.2 earnings System Generally, there are two types of... If you want to take a crap a full essay, order it on our website: OrderCustomPaper.com

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