Compensation Of The Walt Disney Company

Each employee will be paid based on their capabilities rather than on the characteristics of their job. This will provide an incentive for employees to develop their skills and move into other roles.

Base pay will be determined according to the value of the skills and competencies an employee has acquired on the production floor, there will be the incentive for skill development as employees base pay will increase as their skill proficiencies enlarge. This will also create mobility between jobs in the organization as many members will be proficient in numerous jobs.

Which type of pay plan rewards employees for the range, depth, and types of abilities they are capable of applying productively to their job?

My research below will start with salary compensation which can easily be defined as a set monetary amount that an employee receives for the work that they do based on their specific job classification/coding only. I’ll follow that with performance-based compensation which pays and rewards employees based on their individual performance which allows for individual growth. Lastly I’ll provide research on longevity pay which focuses on additional pay or wage adjustments based solely on an employee’s length of service.

A Performance-Based Pay system is an increasingly popular compensation method used by organizations to increase productivity. A goal for all companies is to try and remain competitive and control costs, this is a reason for performance-based pay systems becoming more popular. This type of system attempts to link compensation to performance. (Gena Richter, 2002) These systems are directly tied to organization or individual performance and are most effective when based on objective measures of quantity or quality of performance. If we wish to have a direct impact on work motivation, it must be linked directly to the performance of desired behaviors. In order for to put this type of system into place, performance evaluations must be conducted regularly , as well as training and development for those with performance that isn't quite up to par. These additional resources will be necessary for our organization if we implement a performance based pay system. (William B. Bernathy, Ph. D., 2004)

Hence, person focused pay systems typically have higher average hourly wages than traditional pay systems. Since skill-based pay systems give everyone the opportunity to learn multiple skills, a large investment is made in training and, of course, training is costly in terms of paying trainers and losing production time. Furthermore, the more serious problem is that when individuals are constantly learning new jobs, production losses and problems result because inexperienced people are performing the work. Because employees are always trying to leam new skills under this kind of pay system,

Finally, pay grades and ranges had to be established. Pay grades are groups of jobs that are similar in level of skill and comparable in value to the company. The decision was to have five pay grades based on the five natural groups of jobs: department directors, upper managers, middle managers, individual contributors and lowest level support staff. This decision was

The intent of this assignment is to develop a user-friendly tool that may be applied in the workplace to document Compensation processes and to guide a practitioner in completing the critical steps of each process. The purpose of this assignment is to assist in describing each component of a compensation management system, to develop a practitioner's guide for several of the key compensation management tasks covered in HR511 Total Rewards.

Performance based pay strategy is a variable pay system which is intended to increase employee productivity by rewarding employees based on their performance rather than paying based on the time that an employee spends at work (Wisegeek). Due to the fact that performance based employees have a vested interest in the success of the company their productivity is likely to improve which can lead to the need for fewer employees to maintain production levels leading to a reduction in labor costs to the employer. Studies have shown that time based employees only produce 50 to 60 percent of the output of performance based employees (Atchinson).

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

Pay-for-knowledge plans reward managerial, service, or professional workers for successfully learning specific curricula. This program awards employees for the range, depth, and types of skills or knowledge they are capable of applying productively to their jobs. (Martocchio, pg. 104, 2011) Based on the pay-for-knowledge pay concepts, the three jobs for which this basis for pay is inappropriate are: bus drivers, cashiers, and janitorial services. Bus drivers are all paid around the same pay scale and the compensation may

Walt Disney Company is an expanded global company with operations in four major business segments i.e. Studio Entertainment, Media Networks, Consumer Products and Parks and Resorts. The company has a workforce of more than 15,000 employees in more than 40 countries across the globe. In addition to having a huge workforce, the firm is largely renowned for its success and profitability in all its business segments on an annual basis. One of the most important aspects that have contributed to its growth and profitability throughout the years is its compensation program. The firm has compensation programs for all its employees because of its consideration of employees as one of the major stakeholders of its operations. However, Walt Disney Company has experienced significant challenges in relation to its compensation program because of the various peer groups used in this process. As a result, the company's compensation program has significant structural flaw because of its size and complexity.

Pay for performance systems have further been proven to have two advantages for organizations: attracting more high-quality employees and motivating employees to exert more effort at their jobs. (Gordon, Kaswin) This paper will show the positive benefits of performance pay as

In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experience high turnover rate, the constant shifting in the job market will always be a contributing factor as well as employee’s moral. Mayhew, R. (2016), explains that an “employee compensation plan” refers to all the components offered as well as the way in which they are paid, and the reason behind the employees getting the compensation case bonuses, salary increases and incentives. The fact that there are voluntary and mandatory benefits that organization provides to their employees give employees the freedom of choice, as well as the option to make the whether to stay with or leave an organization based on the benefits it provides. Variable Pay is also an option that some employers offer their employee which is performance based or results oriented. Whether it is profit sharing, merit based programs or incentive bonuses; it all comes down to which organization can provide employees with the compensation or benefits packages that best satisfy their needs.

There are three main types of incentive plans an organization can be practiced. These are individual incentive plans, group incentive plans and company-wide incentive plans. Moreover, suggestion plans and positive reinforcement programs can be considered as incentive plans (French, 1990). Flexible reward systems linked to an individual employee performance called individual incentive plans. Merit pay, piece-rate pay, bonuses and special