VIEWS: 1 PAGES: 12 POSTED ON: 10/19/2011
Survey - Variable Worker Compensation - Dear Survey Participant, First of all, I would like to thank you for taking the time to participate in this survey! The Purpose of this research is to analyze how best to structure and implement wage systems for (blue-collar) workers in order to to maximize the benefit of the amount of money spent on wages. The special focus of the study is on variable compensation, its components, evaluation criteria and the underlying assumptions and intentions. I have managed a JV production plant for ContiTech in China for 4 years. The experiences, positive and negative ones, have motivated me to start this research project (DBA). It is supervised by the Grenoble Ecole de Management and the University of Newcastle. All participants of the survey will receive a copy of the survey results and analyses. In addition, a summary of these survey results and my experiences in restructuring a worker compensation scheme will be presented at the German Chamber HR workshop on November 23rd. I suggest that Plant/General Managers fill in pages 3-5 (about 1 hour) after the HR department has filled in pages 1-2 (about 1 hour). Page 2 is provided in Chinese as well. Please use the language version that is most convenient for your understanding and data entry. While many comments have been linked to the questionnaire itself (red corner as sign for a comment) the worksheet 'Instructions' contains some definitions and additional remarks on how to understand and answer the questions. Any compensation survey raises the question of confidentiality. Each individual feedback will be handled strictly anonymous, and results will only be presented as aggregate results. The answers to this quesionnaire will only be used for the purpose of this DBA research and related publications, the workshop of the German Chamber, and the feedback to participants. No data will be given to other organizations, sold or used for any paid consultancy purposes. In case you still have any hesitations, I would appreciate if you would still participate in the survey and answer all questions you do not feel uncomfortable about. In case of any questions, please contact either: Mr. Michael Bott Phone: 187 0218 1915 Email: email@example.com Mrs. Zhang, JingJing Phone: 139 6233 9720 Email: firstname.lastname@example.org Please return the answered questionnaire until October 15th to the following email account: email@example.com Again, many thanks for your participation in this survey and I hope that the findings of this survey will be of interest and benefit for all participants. Kind regards, Survey - Variable Worker Compensation - Page 1 Remark on Data-entry fields: Enter data or mark 'X' into orange or yellow fields (see below). Orange background = Requested data entry Yellow background = Optional data entry 1.) Contact Details: 1.1) Name of company/plant: 1.2) Name of responding person (s): 1.3) Title of responding person(s): GM ? HR Manager ? 1.4) Can the researcher contact you in case Yes No Yes No of any questions about your answers? Email: Email: 1.5) Contact details: Phone: Phone: 1.6) Location (city) of plant: 2.) Company Characteristics: 2.1) Main type of operation: Production Service 2.2) How many years is this company/plant/JV in operation in China? Years 2.3) Mark type of ownership: 100% WFOE JV 100% Chinese 2.3.1) If JV, what is the shareholding? Foreign shareholding: % Local shareholding: % 2.3.2) If foreign shareholding (WFOE, JV), country of foreign owner(s)? Please enter here country of foreign shareholder(s) 2.3.3) If 100% Chinese, please further indicate ownership: Private State-owned (SOE) Others 2.4) Sales turnover of your company/plant (2009): < 20 million RMB < 100 million RMB > 100 million RMB 2.5) Current number of personnel: Total Blue-collar White-collar 0 workers employees 2.6) Industry classification (see worksheet "Industry classification"): Copy from "Industry classification" & paste here 3.) Evaluation of Importance of Wages in Comparison to Other Costs: 3.1) Please indicate base period the following data is based: Year 2009 Jan-June 2010 Other, which? 3.2) Below data has been provided by: GM HR Manager GM + HR Manager Others, who? 3.3) Wage costs in relation to other personnel or company costs All Personnel White-collar Blue-collar Definition: (employees + Employees Workers Total Cash Compensation Wage/salary+all cash allowances+cash bonuses+over- workers) Costs (TCCC) = time pay + performance pay and any cash reward/pay A B C (TCCC is excl.: non-financial benefits, mandatory social benefits, expatriate costs if possible) 3.3.1) (TCCC) / (Plant's total costs for the period) see comment, left (A = B+C) 0 % % % 3.3.2) (Workers' TCCC) / (Total personnel's TCCC) see comment,left (A = 100% = B+C) 100 % 100 % % 3.3.3) (Workers' TCCC) / (Total variable costs of the plant) see comment, left n.a. n.a. % 3.3.4) (Total mandatory social costs) see comment, left % % % 3.3.5) Monthly average TCCC per person (total annual TCCC / 12) RMB RMB RMB 3.3.6) Monthly average number of working hours / per person; incl. average overtime hours hours hours hours 3.3.7) Average hourly TCCC / per person (3.3.7 = 3.3.5 / 3.3.6) #DIV/0! RMB #DIV/0! RMB #DIV/0! RMB 3.3.8) Minimum (legal) wage per month in your area (determined by local government) RMB 3.4) Which non-cash benefits does your company Dormatory Transportation to plant Free meals during work provide to its workers (if cash -> see Page 2, line 53/54) ? If there are other non-cash benefits, please over-write here 3.5) Comments on the importance of worker compensation in comparison to employee or other costs for your organization: 4.) Development of Total Cash Compensation Costs (TCCC): 4.1) Below data has been provided by: GM HR Manager GM + HR Manager Others, who? Estimated Annual Actual Plan Estimated Annual Increase in Total Cash Compensation Costs (TCCC as defined in 3.3) Average Annual Annual Average 2006 till 2009 2009 -> 2010 2010 -> 2011 next 3 years 4.2) What is your past and estimated future increase in average monthly compensation costs for the following compensation components (in %)? 4.1.1) Average per white-collar employee TCCC % % % % 4.1.2) Average per blue-collar worker TCCC % % % % 4.3) Comments on the expected importance of workers' compensation in the future: How important do you consider workers' wage levels and wage structure for you in the coming years? Will it increase in comparison to other issues? Survey - Variable Worker Compensation - Page 2 5.) Characteristics of your worker compensation system 5.1) Please indicate base period the following data is based: Year 2009 Jan-June 2010 Other, which? 5.2) Detailed information on various wage systems within your plant Wage system Examples 5.2.1) 5.2.2) 5.2.3) 5.2.4) 5.2.5) 5.2.6) 5.2.7) 5.2.8) 5.3.16) A.) Identification of Data Set Maintenance Department/Function Production Production Production Production Production Production Total Plant Total Plant Logistics Quality Quality (Production, Quality, Logistics, etc.) Highest variable pay Lowest variable pay group see comment Largest / average Grinding_Cell 1 All (blue-collar) All blue-collar Further wage Maintenance Description Supervisors Shipping & Inspection Inspection Packaging (e.g. departments, workgroups, skilled/unskilled, workers/supervisors, etc.) group(s) group(s) workers workers groups group group Total number of blue-collar workers in this group Persons 20 15 5 of that men Persons 17 15 2 of that women Persons 3 0 3 B.) Worker Information of that local workers (see comment) Persons 15 11 4 of that migrant workers (see comment) Persons 5 4 1 Are supervisors or workshop line-managers incl. in these data? Yes / No Yes Yes No If 'Yes', how many are included Persons 1 1 0 Average age of this workgroup' personnel Years 26.5 28 22 Average number of years in current position Years 4.25 5 2 Average number of years with current company/plant Years 5.8 7 2 Annual unwanted turnover due to compensation (see comment) % 13% 10% 20% Elementry school or less (6 years) Persons 0 0 0 Education Basic school education (9 years) Persons 18 13 5 High school/vocational schook education (12 years) Persons 2 2 0 C.) Job-Matching Information Others (e.g. driver licence, welding certificate, etc.) Persons 3 2 1 Average training time to get familiar with the tasks Days 40 50 10 Physical strength Job-related Information 3.5 4 2 Requirements for workers Accept hard work conditions Answer Key 2.5 3 1 Productivity oriented 3.5 4 2 5 (= Very high) Quality oriented 4 (= High) 4.25 4 5 Interpersonal skills 3 (= Average) 2.25 2 3 2 (= Low) Foreign language skills 1 1 1 1 (= None) Others 1 1 1 Average monthly total cash compensation (TCCC) per worker RMB/month 2,175 2,300 1,800 Fixed wage components / TCCC % (of TCCC) 50% 40% 80% Basic wage (incl. 13th-month pay if applicable) % (of TCCC) 39% 28% 72% Guaranteed bonuses (e.g. guaranteed minimum bonus) % (of TCCC) 0% 0% 0% Composition of fixed wages Allowances - For shift work % (of TCCC) 4% 5% 2% Fixed-wages Allowances - For work conditions (e.g. heat) % (of TCCC) 0% 0% 0% Allowances - Food, transportation % (of TCCC) 0% 0% 0% D.) Total Cash Compensation Costs (TCCC) Allowances - Others % (of TCCC) 0% 0% 0% Guaranteed holiday & vacation pay % (of TCCC) 4% 4% 4% Paid sick-leave % (of TCCC) 1% 1% 1% Seniority pay % (of TCCC) 2% 2% 1% Other fixed components % (of TCCC) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Variable wage components / TCCC % (of TCCC) 50% 60% 20% 100% 100% 100% 100% 100% 100% 100% 100% 100% Performance-based wage / TCCC % (of TCCC) 37% 45% 12% Output-related performance wage / TCCC % (of TCCC) 26% 35% 0% Criteria Quality-related performance wage / TCCC % (of TCCC) 11% 10% 12% % (of TCCC) Variable wages Other criteria-related perf.wage / TCCC 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Composition of variable wages Individual-related performance wage / TCCC % (of TCCC) 30% 40% 0% Group/Team-related performance wage / TCCC % (of TCCC) 7% 5% 12% Base Plant-related performance wage / TCCC % (of TCCC) 0% 0% 0% Other base-related perf.wage / TCCC % (of TCCC) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Over-time pay % (of TCCC) 8% 10% 3% Bonus - Non-guaranteed bonuses(e.g. year-end bonus) % (of TCCC) 5% 5% 5% Other variable components % (of TCCC) 0% 0% 0% 100% 100% 100% 100% 100% 100% 100% 100% 100% Top criteria Ranking: E.3.1 E3.1 E2.3 Performance-based pay (each >= 40% of total) E.2.3 From most (=top) E.) Criteria for Important criteria Please select codes E.2.1 E2.1 (each >= 25% of total) from the table on E2.2 E2.2 the right Minor criteria E4.1 E4.1 E3.1 (each < 25% of total) least important E3.1 E4.1 How many different criteria do you use at maximum to evaluate the performance of a workgroup? 5.3) Any comments on the above data/questions? 调查问卷 工人的浮动薪酬 Page 2 5.) 工人薪酬系统的特征 5.1) 请您选择所提供数据的时间年度: 2009年 2010年1-6月 其它时间，请注明 5.2) 您工厂不同岗位的薪酬系统信息: 薪酬系统 举例 5.2.1) 5.2.2) 5.2.3) 5.2.4) 5.2.5) 5.2.6) 5.2.7) 5.2.8) 5.3.16) 工厂全员 工厂全员 职能部门 Production 生产 质量 A.) 数据分类 (生产, 质量和物流等) 质量 物流 维修 生产 生产 生产 生产 人数最多或最具代 浮动薪酬最低的组 浮动薪酬最高的组 所有蓝领工人 所有蓝领工人 打磨_单元 1 其它薪酬组别 质检组 组别描述 质检 包装和发货 表性的组别 (如, 部门, 工作站, 有技术/无技术岗位, 工人/主管等) 维修组 主管 别 别 此组别的全部工人 人数 20 15 5 其中,男性 人数 17 15 2 其中,女性 人数 3 0 3 其中, 本地工人 (见注释) 人数 15 11 4 B.) 工人信息 其中,外地工人 (见如上注释) 人数 5 4 1 主管和生产线管人员是否已包含在此数据中? 是/否 Yes Yes No 如果是,有多少 人数 1 1 0 此组别的平均年龄 年 26.5 28 22 在本岗位的平均工龄 年 4.25 5 2 在本公司/工厂的平均工龄 年 5.8 7 2 由于薪酬原因的年度离职率 (见注释) % 13% 10% 20% 小学(6年) 人数 0 0 0 教育程度 初中 (9年) 人数 18 13 5 高中或技校 (12年) 人数 2 2 0 其它 (如, 驾驶执照和焊接证书等) 人数 3 2 1 C.) 岗位匹配度信息 上岗前培训 天 40 50 10 体力强度 3.5 4 2 接受艰苦工作环境的程度 2.5 3 1 职位相关信息 以产量为导向 5 (= 非常高) 3.5 4 2 要求条件 4 (= 高) 以质量为导向 4.25 4 5 3 (= 平均) 沟通技巧 2 (= 低) 2.25 2 3 外语技能 1 (= 没有) 1 1 1 其它 1 1 1 每个工人的月度平均TCCC 人民币/月 2,175 2,300 1,800 固定薪酬部分 / TCCC % (of TCCC) 50% 40% 80% 固定工资 (如有13薪，请包含在内) % (of TCCC) 39% 28% 72% 保证奖金 (例如，约定的最低奖金额) % (of TCCC) 0% 0% 0% 倒班津贴 % (of TCCC) 4% 5% 2% 工作条件津贴 (如:高温工作环境) % (of TCCC) 0% 0% 0% 固定薪酬部分 固定薪酬 餐补和车贴 % (of TCCC) 0% 0% 0% 其它津贴 % (of TCCC) 0% 0% 0% 带薪节假日 % (of TCCC) 4% 4% 4% D.) 全部现金薪酬成本(TCCC) 带薪病假 % (of TCCC) 1% 1% 1% 年限工资 % (of TCCC) 2% 2% 1% 其他固定工资 % (of TCCC) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 浮动薪酬部分 / TCCC % (of TCCC) 50% 60% 20% 100% 100% 100% 100% 100% 100% 100% 100% 100% 绩效薪酬 / TCCC % (of TCCC) 37% 45% 12% 以产量绩效部分 / TCCC % (of TCCC) 26% 35% 0% 浮动薪酬各部分与TCCC的比率 标准 以质量绩效部分 / TCCC % (of TCCC) 11% 10% 12% 其他相关标准 / TCCC % (of TCCC) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 浮动薪酬 个人绩效 / TCCC % (of TCCC) 30% 40% 0% 组成部分 团队/小组绩效 / TCCC % (of TCCC) 7% 5% 12% 工厂绩效 / TCCC % (of TCCC) 0% 0% 0% 其它相关部分 / TCCC % (of TCCC) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 加班费 % (of TCCC) 8% 10% 3% 奖金 -非约定性奖金(例如：年终奖) % (of TCCC) 5% 5% 5% 其它浮动薪酬 % (of TCCC) 0% 0% 0% 100% 100% 100% 100% 100% 100% 100% 100% 100% 非常重要标准 排序: E.3.1 E3.1 E2.3 E.) 绩效薪酬的标准排序 (>= 40% 绩效薪酬) E.2.3 从高 重要标准 E.2.1 E2.1 请从右侧表格中选 (>= 25% 绩效薪酬) E2.2 E2.2 择代码 次要标准 E4.1 E4.1 E3.1 (< 25% 绩效薪酬) 到低 E3.1 E4.1 在评估各组别的绩效时，您最多设置多少个考核标准? 5.3) 您对此页问卷的整体评价和建议: Survey - Variable Worker Compensation - Page 3 5.) Characteristics of your worker compensation system (continued): 5.1) Please indicate base period the following data is based: 0 Year 2009 0 Jan-June 2010 0 Other, which? 5.2) Detailed information on various wage systems within your plant Continued from Page 2 Wage system Examples 5.2.1) 5.2.2) 5.2.3) 5.2.4) 5.2.5) 5.2.6) 5.2.7) 5.2.8) 5.3.x) Largest / averagegroup see comment A.) Identification of Data Set Maintenance Department/Function Production Production Production Production Further wage groups Production Production Total Plant Total Plant Logistics Highest variable pay group(s) Quality Quality Lowest variable pay group(s) (Production, Quality, Logistics, etc.) All (blue-collar)workers Inspectiongroup Grinding_Cell 1 All blue-collar Maintenance Description Supervisors Shipping & Inspection Packaging (e.g. departments, workgroups, skilled/unskilled, workers/supervisors, etc.) workers group Reduce costs per output unit 4 4 3 Which objectives, and with which priority, would you 'ideally' like to achieve with your compensation system Reduce material use 2 3 1 Cost reduction Reduce energy use 2 2 1 Reduce machine downtime & wear 3 3 1 Others, please enter Others, please enter Promote product quality (see comment) 4 4 5 (compensation system as a tool to achieve objectives)? Reduce scrap rates 4 4 3 Quality Reduce rework of parts 4 4 3 Answer Key Reduce claims from customers 3 3 5 F.) Management's Objectives Others, please enter 5 = Absolute must Others, please enter 4 = High priority Increase output/worker 4 4 2 Output Increase output capacity of plant 3 = Medium 3 3 2 priority Others, please enter Faster/more reliable delivery times 2 = Low priority 3 3 3 Promote flexibility to change task sequence 1 = No priority 3 3 3 Promote teamwork and cooperation 2 2 3 Promote training/learning of new skills 3 3 2 Reduce voluntary/unwanted turnover 3 3 3 Others Reduce pay-related griefances or stoppage 2 2 2 Compliance with all laws & regulations 5 5 5 Safety standards 5 5 1 Others, please enter Others, please enter Others, please enter 5 = very good How satisfying/successful would you rate your current Rate 1-5 3 = satisfying 3 2 4 wage systems overall, and for the individual groups? 1= Very poor Average amount of cash compensation 4 4 3 Overall Total non-cash benefits 3 3 3 Fixed-percentage of total cash compensation 2 2 2 Basic wage & guaranteed bonuses 2 2 3 Fixed pay components Fixed pay to make on your current wage system(s)? Allowances 3 3 2 (Questions aim at averages per person) Answer Key Which changes would you propose Seniority pay 3 3 3 Other fixed-wage components 5 = Increase G.) Evaluation of your Wage System 3 3 3 strongly Variable-percentage of total cash payment 4 4 4 Performance-based variable pay 4 = Increase a bit 4 4 4 Output-related performance pay 3 = No change 4 4 3 Performance pay Variable pay components Quality-related performance pay 3 3 4 Variable pay components 2 = Reduce a bit Individual-related performance pay 4 4 3 Group-related performance pay 1 = Reduce 3 2 4 strongly Company-related performance pay 3 3 3 Over-time pay 3 3 3 Others variable pay components 3 3 3 Others, please enter Others Others, please enter Any other comments on your wage system(s) or on what you would like to change? Survey - Variable Worker Compensation - Page 4 6.) Process of Design/Modification & Implementation of Compensation Systems Who was, is or should be involved in the design process of your Other functional heads e.g. Logistics, Quality (e.g. Hewitt or others) e.g. production planer compensation system and to which degree? External consultants and/or Deputy GM Production manager Financial manager/ (Foreign/Regional) General manager Other employees representatives Work council Other worker Teamleaders HR manager Supervisors/ Headquarter Please indicate involvement with the following answer keys: Unions or controllers 5 = Key decision maker, 4 = Involved in decision making, 3 = Consulting function only, Others 2 = Only informed about design/decisions, 1 = Not involved at all 6.1) Who was in the past involved in the design of your compensation? (use 1 - 5) 6.2) Who should be involved in case of a future update or modification? (use 1 - 5) 6.3) If 'Others', please indicate who: 6.4) How has your current wage system mainly been developed? Designed to Designed Take-over, e.g. HQ standards locally JV history 6.5) Did you check external wage systems and wage levels in your area? Yes, in detail Yes, somewhat No 6.6) For the effectiveness of your wage system, how important would you consider the role of communication (information exchange, not decision making) between management and workers during: 6.6.1) The design stage: Very important Important Little important No importance 6.6.2) Why? 6.6.3) How to communicate? 6.6.4) The implementation stage: Very important Important Little important No importance 6.6.5) Why? 6.6.6) How to communicate? 6.7) Has the structure (not amount) of your wage system changed over Yes, significantly Yes, slightly Basically not the last 5 years, e.g. ratio fixed/variable pay or performance criteria? Is your current wage system satisfying or do you plan to make Basically final Small changes Large changes 6.8) changes? 6.9) Above data has been provided by: GM HR Manager GM + HR Manager Others, who? 7.) Influence factors on performance-based compensation schemes: How would you judge from your experiences the general impact of the following factors on Influence on the effectiveness of performance- the effectiveness/functioning of performance-based pay components? based pay scheme As these factors get stronger, do they increase or decrease the effectiveness of performance-based pay components? Decrease Neutral / decrease Strongly Strongly Don't Increase increase red corners to read comments and mark your choice then with an None (Please click on 'X') know 7.1) The education of a worker 7.2) The experience level of a worker Individual related 7.3) The physical strength of a worker 7.4) The age of a worker 7.5) Face - Importance a worker pays to the concept of 'Face' 7.6) Living standards and wage income of a worker 7.7) System simplicity: The simpler and more understandable 7.8) System complexity: The more details and different aspects are considered 7.9) Transparency - Workers can see what other workers earn and why Wage system 7.10) Distributive fairness: Clear & fixed rules based on which wages are determined related 7.11) Procedural fairness: Equal treatment and chances for all workers 7.12) Clear relationship between performance and wage amount 7.13) Pay criteria are fixed and measurable, not subject to supervisor evaluation 7.14) Time to reward: The faster the pay follows after performance (monthly <-> annually) 7.15) The amount of the variable pay (e.g. the higher the RMB amount/output unit) 7.16) Corporate culture and leadership emphasizing and living performance orientation 7.17) Alignment between company strategy and performance criteria for workers 7.18) Support: Supervisors / line managers support of the wage system Company (culture) 7.19) Support: Functional managers (HR, production, ...) support of the wage system related 7.20) Support: Unions/work council support of the wage system 7.21) Support: Top management's involvement and support of the wage system 7.22) Trust: Pay standards will not change once performance improves (e.g. RMB/unit) 7.23) Guanxi - Relationships between a worker and superiors or other influential people 7.24) Management's willingness to modify system if workers identify flaws 7.25) Profitability of the company Which other influences would you consider as important for the effectiveness of a variable compensation system for workers? 7.26) 7.27) Others 7.28) 7.29) 7.30) Survey - Variable Worker Compensation - Page 5 7.31) Do you believe that the gender (man/woman) of a worker makes a Yes No difference Don't know difference for the effectiveness of a performance-based pay system? 7.32) If 'Yes', why do you think it makes a difference and in what way? 7.33) Do you believe that it makes a difference for the effectiveness of a Yes No difference Don't know performance-based pay system whether workers are local or migrant workers? see comment 7.34) If 'Yes', why do you think it makes a difference and in what way? 7.35) Data in section 7) has been provided by: GM HR Manager GM + HR Manager Others, who? 8.) Basic assumptions and beliefs related to (variable) compensation systems: Agree - Disagree Don't know Please indicate whether and to which degree you agree or disagree Please comment Disagree Strongly Strongly disagree Neutral Agree agree with the following statements why you agree or disagree Workers' main motivation is to earn money. Therefore, financial incentives can be helpful to 8.1) motivate workers to produce more/better outcomes? Financial incentives are not as effective to improve workers' performance 8.2) as "intrinsic motivation" (e.g. feeling of achievement and fulfillment) Motivation (Expectency theory): People will perform if they think that they 8.3) can influence/achieve s.th. and that this will give them what they want. Motivation (Equity theory): Workers do not only care about their own wage, they pay high 8.4) importance to the effort/wage ratio of co-workers (fairness!) A compensation system can create a win-win situation between companies 8.5) and employees. It's not a zero-sum game where one party has to loose. To determine worker wages, it is better to use financial criteria (e.g. firm 8.6) profit) instead of operational criteria (e.g. output, quality level) In order to improve the performance of workers, it is enough to influence 8.7) workers behavior and efforts; it is not required to change their attitudes. The way workers perceive their wage system is more important than how the system 'really' is 8.8) and functions (perception more important than 'reality') HR practices influence firm performance-> It's a one-direction causal chain 8.9) Intended Actual Perceived Employee Firm HR practice HR practices HR practices reactions performance HR practices do not influence performance much. 8.10) Rather, if a company's performance is good then it can afford to implement more HR practices that provide benefits to employees and workers. The effectiveness of wage systems depends on the situation of each firm. 8.11) There is no "one best way" and "best-practices" can only offer guidance. There may very different blue-collar wage systems today in China. But over time they will 8.12) become more and more similar. To motivate Chinese workers, one has to use different tools, actions, 8.13) incentives, etc. than for workers in Western countries. Performance-based financial incentives are more important/suitable to motivate workers in 8.14) China than in Western countries Performance-based incentives should not be capped at a max. amount. The higher a worker's 8.15) performance, the higher his/her pay should be. 8.16) Data in section 8) has been provided by: GM HR Manager GM + HR Manager Others, who? 9.) Interest in further cooperation and information exchange: I plan to conduct later on, as main part of my doctoral research, in-depth investigations in 3-4 companies' wage systems. During this investigation, I would bring in my own experiences in restructuring and implementing worker compensation systems. Yes, please contact us 9.1) Would you be interested to further cooperate with me on an in-depth case study research of your Maybe, please contact us worker compensation? No End of survey Thank you very much for participating in this survey !!! Please post this survey upon completion to the following email: firstname.lastname@example.org Shanghai, September 15th, 2010: Instructions - Page 4 I.3) Business Classification (NACE) A. Agriculture, Forestry and Fishing A01 Crop and animal production, hunting and related service activities A02 Forestry and logging A03 Fishing and aquaculture B. Mining and Quarrying B05 Mining of coal and lignite B06 Extraction of crude petroleum and natural gas B07 Mining of metal ores B08 Other mining and quarrying B09 Mining support service activities C. Manufacturing C10 Manufacture of food products C11 Manufacture of beverages C12 Manufacture of tobacco products C13 Manufacture of textiles C14 Manufacture of wearing apparel C15 Manufacture of leather and related products C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials C17 Manufacture of paper and paper products C18 Printing and reproduction of recorded media C19 Manufacture of coke and refined petroleum products C20 Manufacture of chemicals and chemical products C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations C22 Manufacture of rubber and plastic products C23 Manufacture of other non-metallic mineral products C24 Manufacture of basic metals C25 Manufacture of fabricated metal products, except machinery and equipment C26 Manufacture of computer, electronic and optical products C27 Manufacture of electrical equipment C28 Manufacture of machinery and equipment n.e.c. C29 Manufacture of motor vehicles, trailers and semi-trailers C30 Manufacture of other transport equipment C31 Manufacture of furniture C32 Other manufacturing C33 Repair and installation of machinery and equipment D. Electricity, Gas, Steam and Air Conditioning Supply D35 Electricity, gas, steam and air conditioning supply E. Water Supply; Sewerage, Waste Management and Remediation Activities E36 Water collection, treatment and supply E37 Sewerage E38 Waste collection, treatment and disposal activities; materials recovery E39 Remediation activities and other waste management services F. Construction F41 Construction of buildings F42 Civil engineering F43 Specialised construction activities G. Wholesale and Retail Trade; Repair Of Motor Vehicles and Motorcycles G45 Wholesale and retail trade and repair of motor vehicles and motorcycles G46 Wholesale trade, except of motor vehicles and motorcycles G47 Retail trade, except of motor vehicles and motorcycles H. Transportation and Storage H49 Land transport and transport via pipelines H50 Water transport H51 Air transport H52 Warehousing and support activities for transportation H53 Postal and courier activities I. Accommodation and Food Service Activities I55 Accommodation I56 Food and beverage service activities Instructions - Page 5 J. Information and Communication J58 Publishing activities J59 Motion picture, video and television programme production, sound recording and music publishing activities J60 Programming and broadcasting activities J61 Telecommunications J62 Computer programming, consultancy and related activities J63 Information service activities K. Financial and Insurance Activities K64 Financial service activities, except insurance and pension funding K65 Insurance, reinsurance and pension funding, except compulsory social security K66 Activities auxiliary to financial services and insurance activities L. Real Estate Activities L68 Real estate activities M. Professional, Scientific and Technical Activities M69 Legal and accounting activities M70 Activities of head offices; management consultancy activities M71 Architectural and engineering activities; technical testing and analysis M72 Scientific research and development M73 Advertising and market research M74 Other professional, scientific and technical activities M75 Veterinary activities N. Administrative and Support Service Activities N77 Rental and leasing activities N78 Employment activities N79 Travel agency, tour operator and other reservation service and related activities N80 Security and investigation activities N81 Services to buildings and landscape activities N82 Office administrative, office support and other business support activities O. Public Administration and Defence; Compulsory Social Security O84 Public administration and defence; compulsory social security P. Education P85 Education Q. Human Health and Social Work Activities Q86 Human health activities Q87 Residential care activities Q88 Social work activities without accommodation R. Arts, Entertainment and Recreation R90 Creative, arts and entertainment activities R91 Libraries, archives, museums and other cultural activities R92 Gambling and betting activities R93 Sports activities and amusement and recreation activities S. Other Service Activities S94 Activities of membership organisations S95 Repair of computers and personal and household goods S96 Other personal service activities T. Activities Of Households As Employers; Undifferentiated Goods- and Services-Producing Activities Of Households For Own Use T97 Activities of households as employers of domestic personnel T98 Undifferentiated goods- and services-producing activities of private households for own use U. Activities Of Extraterritorial Organisations and Bodies U99 Activities of extraterritorial organisations and bodies Survey - Variable Worker Compensation - Instructions Instructions - Page 1 The following remarks are meant to facilitate an understanding of the survey and to ensure an equal answering of the questions in this survey. I recommend to print out the first 3 pages of the instructions (this worksheet, not the industry classification) and to use them as a reference while answering the survey question-by-question. Besides the following remarks, a number of remarks and comments on various questions have been attached as 'Comments' to the cells where the questions are raised. These comments can be recognized by the red mark in the upper right-hand corner of the cell. I.1) General remarks and definitions: Definitions: Workers: Blue-collar workers no white-collar employees and preferably not including supervisors. Wage system: All workers within one wage system have the same criteria, base and calculation formula to calculate their wages. They have the same relationship of fixed pay to variable pay. A wage system includes fixed + variable pay components. There can be many different wage systems within one company. Examples of differences between wage systems: a) Some groups are paid based on the total team output while other in other groups everyone is paid based on his/her individual output. b) If a task allows a lot of individual influence, the variable pay may make up most of the person's total pay while in another workgroup where the process is controlled mainly by machines, the variable portion may be very small. c) Even groups are e.g. based on individual output may have differences if their tasks are different, e.g. a long-lasting grinding process may bring a different pay/piece as a quick spot welding. Variable compensation: All compensation components which are not a fixed part of the monthly or annual wage. Variable compensation (for this research) consists of performance-based and other variable compensation components. Performance-based Variable compensation components that are based on the compensation: performance of workers. 'Performance' may be defined differently by each company, e.g. different combinations of output and/or quality related criteria. Total Cash Compensation Wage/salary + all cash allowances + cash bonuses + over- Costs (TCCC) = time pay + performance pay and any other cash pay Other remarks: Main data entry fields These data entry fields are marked in orange color. Please provide these data as complete as possible. Optional data entry fields These data entry fields are marked in light yellow color. I appreciate if these fields can be entered as well to provide even more data. Your comments Please add as many comments as you like. The more the better! Don't feel limited by the indicated spaces; use whatever space you need. Survey - Variable Worker Compensation - Instructions Instructions - Page 2 I.2) Remarks concerning specific questions: Question: Remark: 3.3.1 - 3.3.5) The purpose of the questions in this section is to establish the importance of workers' wages in relation to other cost categories of the company. For questions 3.3.1 - 3.3.5, please put your cursor on the red corner (= comment) of cells B60 - B64. A comment will appear that explains the intention of the question and how to calculate the data to be entered. If the calculation of exact data is not available or if you do not want to provide it, please give an estimated or approximated data (e.g. rounded to an end figure '5' or '0') and add a remark in 3.4) that the data is estimated or approximated. 4.2) The question aims to determine the percentage change (increase) of workers' and employees' average monthly cash compensation costs (TCCC) for various years. The purpose is to whether workers' wages are likely to gain in importance relative to other costs. This question asks for the per person wage increase, not for a wage increase due to employing more workers. 5.1) Please do not overlook question 5.1) at the top of the table (line 10) 5.2) Besides the following comments, a number of comments are also included to the cells in the data entry sheets. Please look for the red corner mark (= comment) and put the cursor on it. Question 5.2.1- ... aim to gain detailled information on a company's current wage schemes. Please refer to the definition of "wage system" (above, page 1) and to the examples given how wage systems can differ from each other. In one company, there can be different wage systems for different workgroups, e.g. welders' wage may be calculated different from someone's wage at an assembly line or from someone who is exposed to a lot of heat (e.g. vulcanization) or who has to perform very heavy labor work. In order to analyze the success and failure factors of wage systems, it is therefore best to look at these wage systems individually. Therefore, please try to provide data on the wage systems of your main workgroups, including the workgroups with the highest and the lowest variable wage portions in order to show the range of variable pay used. If you have only data for all workers' of the plant, please provide these data and please try to estimate (some of) the data or at least the overall fixed and variable percentages and the performance criteria. In case the data for any percentages are not available/known, please enter -> n.a. into the respective cell 5.2.1) Shows the overall data for your entire plant if you cannot or do not want to provide a breakdown into various wage systems. 5.2.2-4) If possible, show the wage systems for logistics, quality (assurance) and maintenance workers separately from production workers. 5.2.5-7) 3 lines for production wage systems: for the workgroups with the highest and the lowest variable wage portion and one line for your largest, most representative workgroup workgroup wage system. Survey - Variable Worker Compensation - Instructions Instructions - Page 3 Question: Remark: 5.2.9-15) These lines a hidden. If you can enter data for additional wage systems, please click on the '+' on the left, in the menu line, and additional lines will show up. 5.2.16) Finally, since supervisors may have a different pay structure than their workers, it would be great if you could enter the data for your (production) supervisors here. Again, if not all data are available, maybe you can estimate the key data. Section D.) Total Cash Cost Compensation (TCCC), lines 48 - 71. For the definition of TCCC, please look above on Instructions - Page 1 for the components. Total wages are separated in total fixed (line 49) and total variable (line 60) wages. Fixed and variable wages are then further broken down into individual components. Variable wages are broken down into performance-based (line 61) and other variable components (lines 69 - 71). Performance-based wages (line 61) are further separated by criteria (lines 62 - 64) and by the base (lines 65 - 68). All components add up to the total (see next paragraph). All wage components in this section are expressed in % of the total TCCC. That means if one adds up all the fixed components (lines 50 - 59) one gets the same percentage as shown in line 49 for total fixed / TCCC; the same applies for other break-downs. Section E.) Since there are numberous possibilities how to measure workers' performance. I did only provide some pre-set examples in the table on the right of the entry sheet. This table leaves space so that you can enter the criteria you use in your own company. Please enter then the respective code (given in blue) to the wage systems where you apply this criteria. Section F.) This question identifies which objectives the company's management wants to achieve with its compensation scheme. It refers to the total compensation scheme, not just the variable portion. While Section F.) shows the intention what to achieve, Sections D.+E.) show how the company tries to get its workers to do what is necessary to achieve these objectives. Section G.) This question asks for management's evaluation to which degree you think that your various wage systems (as detailled in Section D.+E.) actually achieve the intended objectives (as detailed in Section F.) It is quite possible that you may be satisfied with the outcome of some of the wage systems while other workgroups do not perform as you would expect based on their wage system. 7.) The question aims to identify the influence of various factors on the effectiveness of a performance-based pay system. While there are certainly many differences between the companies of the participants, the intention is to see whether there are some main factors which all/most of you think are important for the effectiveness of an incentive system. 8) Question 8 asks for your opinion on a number of questions. The purpose is to see whether and how assumptions and beliefs influence and shape compensation systems in practice.
Pages to are hidden for
"GM - AHK China"Please download to view full document