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Problems with compensation and benefit system

Select an organization that either has or is experiencing challenges with its compensation and benefit system. The student will provided a brief historical view of the organization, an assessment of their current challenge, a review of other organizations who had a similar situation and the strategy they devised to address the issue, theories and strategies that should be contemplated to address the situation and, finally, a recommendation to management on how to address/resolve the situation. Importantly, the student should ensure any recommendations are based on solid research and analysis and reflect a comprehensive solution to the problem.

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Please find guidelines and ideas for Compensation & Benefit System in the attached file.



Compensation & benefit system refers towards the rights that made by organization for welfare of employees at the time of employment and after the retirement. For deep determination, this paper discusses such issues that have faced by General Motors. General Motors (GM) is an American multinational automotive corporation that manufactures auto vehicle. It introduced in 1900s, started to invest in Buick 1903 & started its global expansion in 1925. GM introduced with new products such as ventures in China, Korea, Western European, and other markets. But in 2008, the recession & credit crisis affect GM vastly and results short of operating cash. In June 1, 2009 the company filed for bankruptcy (General Motors, 2010).
Challenges faced by General Motors
Due to bankruptcy process proceeds from many years, GM faced several issues among organization. One of the big issues that were faced by GM is violation of planned compensation & benefits system. This reaction of GM among employees' benefits result down fall in the moral of employees. GM has also denied paying further retirement benefits to employees after bankruptcy. Overall, at that time, GM denied to pay compensation to employees that spread insecurity among employees (Workers Comp Insider, 2008). Such behavior among human resources create further problem, as it faced problem to recruit skilled staff with the offer of compensation & benefit plan. No new person want to link with GM at the time of recovery because of its previous behavior regarding compensation plan.
GM not only bluffed ...

Solution Summary

This solution provides a detailed discussion of the given corporation that has challenges with its compensation and benefit system.