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MacDonald’s compensation scheme

MacDonald’s Company employs the lowest cost strategy in their operations. This means that they employ the principle of providing standard products with the same quality as them but at lower costs than the competitors (Thomas, 2007). This also means that the company aim is to outdo their competitors and given their wide capital base and their many stores, approximately in 120 countries worldwide, it makes the competitor firms to have a hard time keeping up as well as putting off small startups in the same industry (Horovitz & Alcindor, 2015). The lowest cost strategy however means that the employees who work in these companies that they will be paid according to their productivity. For example in MacDonalds, the employees are paid some basic salary and on top they reward them according to their performance. It means that if an employee has better results, the greater the reward. However, my recommendation would be that since the company is well known for their quality products and for low prices as well as receiving high revenue figures annually, they need to pay their employees better than what they do now.

HCL technology

This company is known to use the differentiated compensation strategies in order to reward their employees according to their efforts in the work place. For instance, on top of their basic salaries, their employees who perform best and they meet the set targets receive up to a hundred percent bonus while those that do not meet the targets receive claw back incentives which is basically an appreciation for continuous improvement year in year out (Hood, Hardy & Lewis, 2008, P. 462). This system of compensation is best for motivating the employees to work much harder and be productive by tackling daily problems and having continuous performance improvement for they know their efforts will be recognized effectively (Oliphant, 2013, P. 45). If the employees are not able to align to the company’s philosophy and set targets, they are allowed to leave ensuring that the company to grow to where they need to be.


Bruce Horovitz and Yamiche Alcindor (2015). Advertising & Society Review 91. : 1-33

J. Hood, B. Hardy, and H. Lewis. (2008) HCL Workers’ Compensation and Employee Protection

Laws. St. Paul, MN, Thomson/West. P. 45

Oliphant, Keith (2013). Employers’ Liability and Workers’ Compensation. Walter de Gruyter.

p. 462.

Thomas , John F. (2007). «Big Macs, Fries, and Real Estate». Financial Executive (4): 20–6.