Professional Product Advisory Report: Dow Chemical Total Rewards Offering in Turkey

Abstract

This report examines Dow Chemical’s Total Rewards offering adequacy for Turkish employees, encompassing its internal processes and capabilities, as well as external factors which encompasses PESL analysis and 6 Dimensions of National Culture for Turkey. This study aims to deliver a report with recommendations, based on internal and external analysis in Turkey. The recommendations are intended for the compensation and benefits offered in Turkey – However, it is hoped that the outcome of this study can be applied to Dow Chemical’s Total Rewards offering in other countries as well. The highlighted chapter of this report are: Internal Analysis, External Analysis, Discussion & Conclusion, and Recommendation. The internal analysis revealed that Dow Chemical has vast internal resources and capabilities to execute a competitive Total Rewards in the market. In result, it enables the company to take appropriate measures and implemented the necessary actions to react to the escalating demands set forward by the labor union and government regulation. However, it is found that the Total Rewards formulation procedure is time-consuming, which impacts the agility and responsiveness of the company towards changes in the external environment. In respect of external analysis, the PESL analysis revealed that Turkey at present has complicated circumstances for any business operation. The existence of and political instability and the never-ending economic crisis in Turkey have made employees to take action (i.e., strike) for a salary increase. The 6 Dimesions of National Culture for Turkey - revealed that most Turkish people possess a collectivist mindset and a preference for stability and certainty in their lives, which makes the likelihood of a movement from the employee become higher. Based on the results and analysis, it is recommended that the organisation maintain attentiveness in monitoring external factors, including but not limited to the inflation rate, economic stability, government regulations regarding minimum wage, and union demands. To streamline the procedure and processes, it is highly suggested to apply a decision-making threshold to empower the lower management level making decision and approval. The decision-making threshold will be beneficial for Dow Chemical in managing the situation in Turkey and other countries with similar issue. However, as the decision-making power is delegated to the middle and low management level, the risk of decision-making misconduct may occur, which requires a management control namely action accountability.