Bus409 Compensation Practice Paper
Compensation Practice
Lisa McCaulley
Prof. Lezlie Banks
BUS409 Compensation Management
November 2, 2013
Company Description
Owens-Corning (NYSE: OC), a Fortune 500 Company for the last 59 years was established in 1938. They are a leading global producer of residential and commercial building materials, glass-fiber reinforcements and engineered materials for composite systems. OC is celebrating it's 75th anniversary in 2013 and has over 15,000 employees in 27 countries on five continents.
Compensation Practices
Based in Toledo, OH, they have 190 HR employees who were tasked with developing a total compensation plan that would eliminate the current culture of entitlement within their employees, …show more content…
Along with sales targets, he wanted the company to embrace new core values: customer satisfaction, individual dignity an shareholder value. In response to the new direction, the HR team came up with a compensation solution 迭ewards and Resources a variable compensation and flexible benefits plan that is tied to performance. New HR vice president, Greg Thomson, had this to say 展ith Rewards and Resources, we tried to design a program that reflects those three core values and most obviously ties into the last …show more content…
If the company does not reach or exceed it's performance goals, the compensation bonuses will not be paid. In the past, low sales figures and lawsuits affected the company's cash flow. The change in strategy, moving from the entitlement mindset to one of performance, helps combat any poor market conditions that might be going on and challenges it's employees to stay motivated even in poor economic conditions.
Traditional Pay Bases
At Owens-Corning, merit pay programs are the guiding principle. Martocchio tells us in chapter 3 that 杜erit pay programs assume that employees' compensation over time should be determined, at least in part, by differences in job performance.As the Rewards program at OC is totally based on performance, everything related to the compensation plan for each employee is part of a merit pay plan.
Sources
Solomon, C. (1998) Using cash drives strategic change. Workforce, 77(2), 78.
Rose, K. and Ahrens, A. (1996, Fourth Quarter). The Changing Nature of Work/Life Benefits: Owens Corning's Experience. Benefits
Lisa McCaulley
Prof. Lezlie Banks
BUS409 Compensation Management
November 2, 2013
Company Description
Owens-Corning (NYSE: OC), a Fortune 500 Company for the last 59 years was established in 1938. They are a leading global producer of residential and commercial building materials, glass-fiber reinforcements and engineered materials for composite systems. OC is celebrating it's 75th anniversary in 2013 and has over 15,000 employees in 27 countries on five continents.
Compensation Practices
Based in Toledo, OH, they have 190 HR employees who were tasked with developing a total compensation plan that would eliminate the current culture of entitlement within their employees, …show more content…
Along with sales targets, he wanted the company to embrace new core values: customer satisfaction, individual dignity an shareholder value. In response to the new direction, the HR team came up with a compensation solution 迭ewards and Resources a variable compensation and flexible benefits plan that is tied to performance. New HR vice president, Greg Thomson, had this to say 展ith Rewards and Resources, we tried to design a program that reflects those three core values and most obviously ties into the last …show more content…
If the company does not reach or exceed it's performance goals, the compensation bonuses will not be paid. In the past, low sales figures and lawsuits affected the company's cash flow. The change in strategy, moving from the entitlement mindset to one of performance, helps combat any poor market conditions that might be going on and challenges it's employees to stay motivated even in poor economic conditions.
Traditional Pay Bases
At Owens-Corning, merit pay programs are the guiding principle. Martocchio tells us in chapter 3 that 杜erit pay programs assume that employees' compensation over time should be determined, at least in part, by differences in job performance.As the Rewards program at OC is totally based on performance, everything related to the compensation plan for each employee is part of a merit pay plan.
Sources
Solomon, C. (1998) Using cash drives strategic change. Workforce, 77(2), 78.
Rose, K. and Ahrens, A. (1996, Fourth Quarter). The Changing Nature of Work/Life Benefits: Owens Corning's Experience. Benefits