Case study: Fish to Go Is Going Places Your company, Fish to Go, is a quick serv
ID: 371079 • Letter: C
Question
Case study: Fish to Go Is Going Places
Your company, Fish to Go, is a quick service restaurant specializing in fish tacos.Your success in the United States has been excellent, and your company has decided to develop an international strategy to further develop your market share. As the vice president for human resources, you have been asked to develop an international staffing strategy. The organization has decided that it makes the most sense to hire host-country nationals to manage the restaurants.Your current Fish to Go managers earn upwards of $45,000 per year, plus 2 percent profit sharing. The organization is also looking to you to determine and develop a comprehensive training program for your host-country managers A training program is also needed for employees, but you have decided to wait and develop this with input from the host-country managers. Fish to Go has identified Mexico and the UK as the first two countries that will be entered. Perform the necessary research to prepare a Report to the board of directors.
Answer the Following Questions
Question 01: Develop a compensation plan for each of the two countries, revising the current compensation for managers in the United States, if necessary. The compensation plan should include salary, benefits, and any fringe benefits to attract the most qualified people. The plan should also address any legal compensation requirements for both countries. Discuss how the culture of each country may effect on your plan for compensation and rewards?
QUESTION 2:Develop an outline for a training plan, making reasonable assumptions about the information a new manager would need to know at Fish to Go.
Explanation / Answer
Answer -
The compensation plan is basically the “Pay plan for employee against their employment in the company. The compensation plan is made in such a way that it contains the basic salary heads, allowances head and legal heads. The basic salary head is the base on which the other heads like allowances head and legal heads are calculated in terms of percentage of the basic salary head.
The Allowances head contains the sub head as HRA, managerial allowances, professional allowances, medical allowance, conveyance allowances etc as applicable with respect to the culture of the nations.
Compensation Plan for the manager of these countries is as below -
S.No.
Compensation Plan Heads
UK
Mexico
US
1
Basic Salary Head
Basic Salary
$2000
$1500
$2500
2
Benefits Salary Head
HRA Allowance
$ 600
$ 600
$ 600
3
Managerial Allowance
$ 500
$ 500
$ 500
4
Transportation Allowance
$ 80
$ 80
$ 80
5
Medical Allowances
$ 100
$ 100
$ 100
6
Performance Allowances
$ 1000
$ 700
$ 1200
Sub Total ( A)
$4280
$3480
$4980
7
Legal Salary Head
Gratuity - 15% of Basic Salary
$300
$225
$375
8
Pension Scheme - 5% of Basic Salary
$100
$75
$125
Sub Total ( B)
$400
$300
$500
9
Fringes Benefits
Variable Plan - $5000/ annum /1factor
$417
$417
$417
10
Uniform set/year
$50
$50
$50
11
Canteen Facility
$100
$100
$100
Monthly Total Pay to Manager
Total (A + B + Fringe Benefits)
$5257
$4297
$6127
Yearly Total Pay to Manager
Total (A + B + Fringe Benefits)
$63,080
$51,560
$73,520
The impact of culture on the compensation plan -The culture of a nation has an impact on the compensation plan of the manager. The basic pay, allowances and legal pay head are basically driven from the nation's enevironment. In nation like UK & US the basic pay are higher as they are in developed nation while the basic pay are lower in country like Mexico. The gratuity and pension plans are again nation driven and these are set for nation level.So any organization needs to meet the legal requirements of pay structure. generally the culture helps in understanding the pay structure for the people. these pay structure are basically as common in a nation.
S.No.
Compensation Plan Heads
UK
Mexico
US
1
Basic Salary Head
Basic Salary
$2000
$1500
$2500
2
Benefits Salary Head
HRA Allowance
$ 600
$ 600
$ 600
3
Managerial Allowance
$ 500
$ 500
$ 500
4
Transportation Allowance
$ 80
$ 80
$ 80
5
Medical Allowances
$ 100
$ 100
$ 100
6
Performance Allowances
$ 1000
$ 700
$ 1200
Sub Total ( A)
$4280
$3480
$4980
7
Legal Salary Head
Gratuity - 15% of Basic Salary
$300
$225
$375
8
Pension Scheme - 5% of Basic Salary
$100
$75
$125
Sub Total ( B)
$400
$300
$500
9
Fringes Benefits
Variable Plan - $5000/ annum /1factor
$417
$417
$417
10
Uniform set/year
$50
$50
$50
11
Canteen Facility
$100
$100
$100
Monthly Total Pay to Manager
Total (A + B + Fringe Benefits)
$5257
$4297
$6127
Yearly Total Pay to Manager
Total (A + B + Fringe Benefits)
$63,080
$51,560
$73,520