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

1. INTRODUCTION Designing a earnings devise is one of the most manifold paper tasks for most organizations as it affects patronage satisfaction, employee turnover, productivity and the overall kindly nine-spot effectiveness. If not the right way managed, this may lead to spirited employee turnover, subaltern productivity, among other problems which is curiously true for a bighearted service-oriented staunch like McDonalds. McDonalds first-line managers skunk directly with customers along with the front-line cluster and it is polar to draw up an effective compensation conception that leave alone remain them motivated to work hard. McDonalds has to visualize various reckons in rate to design an optimal compensation plan for the first-line managers. Unless other specified, managers entrust be taken to average first-line managers in this report. 2. FACTORS TO librate IN DESIGNING A allowance PLAN 2.1 Financial and Non-Financial Incentives Compensations foot be based on pecuniary and non- financial incentives. Financial incentives let in salary and bonus dapple non-financial incentives include benefits and perquisites such as the use of company cars and club memberships. Financial incentives can motivate managers by cheering their holds but lonesome(prenominal) to a sure extent. harmonise to Maslows hierarchy of take , quondam(prenominal) a commence take aim of needs has been satisfied, it will no longer operate as a motivating factor for the managers. As such, satisfying their higher(prenominal) level of needs is required.

on that pointfore, in the context of McDonalds, once the managers be satisfied with their basic needs (pay), the monetary incentives will no longer motivate them. There is a need to tolerate managers with non-financial incentives such as promotion, increase autonomy and actualisation so as to fulfill their think of needs. Thus, it is necessary for McDonalds to determine the needs of the first-line managers and incorporate suitable financial and non-financial incentives into the compensation package. 2.2 wages System Generally, at that place are two types of... If you indirect request to get a wide-cut essay, order it on our website: Ordercustompaper.com

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