Compensation in WL Gore and Associates Case Study

User Generated

Oveq_8

Writing

Description

CASE STUDY

Chapter 10 - Compensation At W. L. Gore

W.L. Gore & Associates is a company well known for its GORE-TEX fabric for protective outerwear.  In 2006, the company ranked fifth on Fortune's list "100 Best Companies to Work For.” It was the eighth year in a row the firm had made the list.  One of Gore's hallmarks is innovation.  Rather than job titles, bosses, and organization charts, Gore uses a team approach, with leaders, sponsors, and team members. 

The goals of Gore's compensation plan are internal fairness and external competitiveness.  Gore uses two approaches to achieve these goals.  The first is straightforward and typically used by companies: comparing pay at Gore with pay for comparable jobs at other companies.  That takes care of the external competitiveness part.  It is the internal competitiveness part that is different at Gore.  The process works like this: Associates (co-workers) on the same team rank each other based on contributions to the company for the year. Team members can provide comments to support their rankings and identify strengths or areas for improvement of the associates they rank.  This information is then used for determining raises.

Answer the following questions by applying the concepts learned in Chapter 10. Also, conduct literature reviews on the subject of discussion and use to support your case study answers:

  1. Provide a critique of the compensation practices at Gore, indicating the pros and cons of each approach.
  2. Do you think that Gore can achieve its goals of internal fairness and external competitiveness with the two approaches used?
  3. Would you want to work for this company? Why or why not?

Explanation & Answer:
3 Questions
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running header: COMPENSATION

Compensation
Student’s Name
Institutional Affiliation
Course

COMPENSATION

2
Compensation in W.L. Gore & Associates

Gore company has been receiving awards many times, for being among the best
companies. The company does not use a structure that is based on a traditional approach,
comprising of bosses, inferiors, superiors and so on. Instead, the company has sponsors, leaders
and team members. In terms of gaining a competitive end, W.L. Gore & Associates uses a higher
payment structure. The workflow procedure is also different. The team members in the company
get involved to support their ranking and in turn improving these ranks (Lepak, 2010).
W.L. Gore & Associates compensation practices
For a long time, W.L. Gore & Associates has been implementing a compensation plan of
external and internal farness. This implies that inside the company, there is a transparent and fair
policy on compensation. At the same time, when we look at the pay scale in W.L. Gore &
Associates, we realize that it is comparatively higher. The associates in one team rank one
another on the basis of their contributions. The other team members provide feedback, in support
of ranking, wi...


Anonymous
Awesome! Made my life easier.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags