Question: W . L . Gore & Associates is a company well known for its GORE - TEX fabric for protective outerwear. The company has

"W.L. Gore & Associates is a company well known for its GORE-TEX fabric for protective outerwear. The company has been included in Fortune's "100 Best Companies to Work For" list for 17 consecutive years. Gore has received numerous other recognitions as well, including being ranked in the top five on the 2013 World's Best Multinational Work places list by the Great Place to Work Institute, named as a best workplace in France, Germany, Italy, Korea, Sweden, the United Kingdom, and China, and frequently used as an example of a company that is innovative. Rather than job titles, bosses, and organization charts, Gore uses a team approach, with leaders, sponsors, and team members.
The main objective of Gore's compensation plan is to ensure that employees, referred to as associates, are paid for their contributions to the success of the company. Their compensation plan is focused on both 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. In other words, Gore does a lot of bench-marking to be sure their salaries are competitive with the relevant labor markets. That takes care of the external competitiveness part.
The internal competitiveness part is what is different at Gore. The process works like this: Associates on the same team rank each other based on contributions to the company for the year. Team members provide a numerical ranking, and 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."
Question 1: What would be W. L. Gores compensation strategy? Why?
Question 2: What is the at-risk part in the compensation package at W. L. Gore? In this course, we talked about several individual incentives, such as piece-rate, commission and so on. Which individual incentive does the at-risk pay in W. L. Gore resemble the most? Why?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!