HR MANAGEMENTASSIGNMENT TASK: Reading the Paper “Say on Pay at the Walt Disney Company” as a reference, and then applying suitable HRM theories and your experience to: 1. Identify a problem in the compensation system of your current company or a company you know well. 2. Analyze the reasons of the problem and its negative consequences. 3. Propose some solutions to solve the problem. Professor: Dr. PHAM HUNG Class: MBAOUM 0514 K14C Student: Hoang Chi Sy Hồ Chí Minh City, March 2015 Brief about Company Page 1 they faced a problem regarding to the compensation policies that we built. cable harnesses. Thermtrol proves wire. Specially. Their salary hierarchy in 2007 as hereunder 1. They always have over 5000 direct labors and over 200 indiecr staffs. So. To attract a large number of employees for company at the first years (2007 & 2008). I would like to introduce briefly about the company that I knew.HR MANAGEMENT The first of all. thermal protector. They succeeded in the first years with that policy. it was salary hierarchy for factory labors. a US company located in Vietnam Singapore Industrial Part. Keeping stable labor work force is always importance task with them. which the other companies in the around could not been done. and subassemblies. perators Page 2 . they wanted to have a good working environment through compensation system and policies to satisfy employees. but in 2012. they quickly had the desired number of employees and annual employee turnover rate just about 10%. it is Thermtrol VSIP. its factories need low labor cost more than high technologies machines and equipments. while annual increasing salary rate for old employees were lower than them. thier policy alowed Board Managemnet to pay for new comers higher than other companies in their region. Identify a Problem from Salary Hierachy Policy As most of the other companies. 00 0 80.110.080.000 1.000 4 2.00 0 80.000 2.000 120.000 50.730.00 0 80.550.780./ Leader/ QC Service Year Basic Salary Housing supporting Transportation support Frequency Total 1 2.610.850.860.000 50.930.000 120.990.000 3 2.000 3.000 2.000 4 2.040.00 0 80.HR MANAGEMENT Service Year Basic Salary Housing supporting Transportation support Frequency Total 1 2.000 2.000 50.000 2.000 50.00 0 80.910.00 0 80.950.000 120.000 130.980.00 0 80.000 3 2.00 0 80.00 0 80.800.000 50.000 130.000 Page 3 .820.000 5 2.000 50.000 120.000 3.000 50.000 2.000 2.000 50.000 50.000 130.670.000 130.000 50.000 5 2.660.000 2 2.000 2 2.000 3.730.00 0 80.000 120.700.000 2. Tech.000 130. The comparing with new comers thay thought that company was unfare to them becuase: 1. They can train for new comers. 9. Their output is higher than new comers.. They can do multi-jobs. they used stactistical techniques. 3. they established a checklist for questionnaire and interviwed carefully each quitted employee. Productivity decreased 3 times. To find out the root causes. Shipping cost was increased 3 times compared with budget.… They analyzed and discovered that 80% quitted employees didn’t satisfy the salary hierarchy even if their income is still higher than around comapies. 4. the peak is in 2012 with the employee turnover rate is 200%. Customer claimed over million per year. 2.. The high rate of employee turnover is factor of many issues such as 1. QC members increased 5 times.HR MANAGEMENT However. Processes PPM: 7000. Page 4 . Their quality performance is better than new comers. External PPM: 2000. Only met 50% on time shipment compared with customer requirement. Raw material losed 3 times compared with BOM.. 6. That is a big problem for them. 4. And of cause. 3. 5. 8. Analyze the root causes of the problem and its negative consequences. But their income is not difference compared with new comers. 7. company was lossed. not fair to them. the employee turnover rate was increased continuously in the years after that. 2. 5. For above case. I thought that the root causes should be: BOM of the Thermtrol didn’t review to modify and update their policies at the appropriate stages because there are nothing right forever. Operators Page 5 . Proposed Hierchacky 1. company should have appropriate methods to measure ending results of implementation and have proper actions base on the results. they should modify the hieracgy with the gap between 2 years should be over 200. 2. In the other hand. I would like to propose some solutions to above problem.000VND. In general for documentation system and particular for the salary policies. 1.HR MANAGEMENT With the above analyzations. didn’t measure and have any proper action until they got a big problem for the issue. 000 300.000 120.000 180.00 0 180.000 120.589.000 6.989./ Leader/ QC Service Year Basic Salary Housing supporting Transportation support Frequency Total 1 4.000 4.00 0 180.000 4 5.000 3 3.000 3 5.596.000 120.000 300.539.000 300.396.000 180.000 330.000 120.000 4 4.696.000 120.766.000 330.000 4.00 0 180.214. Quarterly bonus: The quarterly bonus should be based on the criteria. particularly as the below policies: a.000 5.000 1.764.996.000 5.000 180.039. Beside that.366.00 0 180.000 330.000 4.066.000 5.000 2 3.296.000 300. Page 6 .000 120.000 120.000 2 5.000 330. the most importance thing is to promote the best employees.000 6.000 5 5.000 180.000 180.364.000 120. to keep experienced workers.139.000 120.000 5.666.439.HR MANAGEMENT Service Year Basic Salary Housing supporting Transportation support Frequency Total 1 3.000 330. company also should establish other supported policies.966. Tech.000 5 4.000 120.000 4.814.00 0 180.000 3.000 300. The staff should be divided into 4 groups. iv. It should be celebrate for the Company day. Page 7 . It does not mean that every employee can received the bonus. iii. Beside the quarterly bonus. Encourage employees catch the productivity and quality performance and the quarterly budget can equal 25% of basic salary. B (70%-75%) and the remaining is C range. Present for children on International Children iii. All employees will not have the bonus if company is not b. company should have other policis such as: i. O (0-2%).HR MANAGEMENT i. A (12%-15%). ii. The bonus should not equal for each employee but should base on their performance. Gifts for fot the female employees in the International Women Day. ii.