Evaluation Essay Sample on Caterpillar Company

Introduction

The success of Caterpillar Company as the world's most profitable machine producers raises a concern to the economy and, more so, the wage of non-management private-sector workers. The company made a profit of 49 billion to be named the most profitable company. In a big and successful company like the caterpillar, everyone would expect the wages of workers also to be good. Generally, that might not be the case because the US has experienced a low average hourly salary for an extended time in the non-management private sector like Caterpillar Company (Danninger, 2016). The work of the cooperate boards in the company is to determine the wage of workers considering the workforce and other essential factors. By extension, the issue of fees, workforce, profits made by companies adds up to the aspects of the economy of a nation. This paper analyses the American wage over some decades compared to the success in companies' workforce and economy.

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Over the last decades, the average hourly wage in the non-management private sectors has been experiencing slow motion. At times the average salary even decelerates. In 1970 back to the end of the Second World War US economy was making a significant increase in the average wage. However, since 1979, things have changed. The average salary since then has decreased rapidly. Between 1970 to 2014, the hourly average increased slightly by about 5%, but the productivity increased far much by about 75%. The relationship is not proportional; the average wage increased in a slow rate while productivity was shooting very fast. The credentials mean that the dream of workers in the US to have a better salary to realize today's average standard is still far from achieving.

It is always typical for the wages of workers to raise productivity has to go up. But in the US the productivity was rising rapidly while wages almost remained constant. The reason behind this might be the rise of technology, which does more jobs efficiently and accurately, which is now preferred over human beings by private sector companies. The economy also might be another factor determining the average. During that period, the trend of US economy suggested that about 70% of the workforce is paid an estimation of 20%. The economy also contributed to the low average wage in the US.

Recently the average hourly wage ranges between $20.In around 2015 the payment was slightly less, representing a slight increase whereas the productivity recently is almost 80%. Today's workforce is also high. It is shocking to see how workers up to this time where they are working even harder cannot be able to get a better wage. In 2007 to 2012 US experienced a recession period, which resulted in to rise in productivity, and surprisingly the average salary dropped. It is only in few occasions since 1979, where the average wage in the US rose when productivity went up as it should be. However, in those periods, when the average hourly pay rose, it rose by a small margin, and it lasted for a short period before dropping. Between 2000 to 2012, the average wage grew by 0.8% due to 22% productivity growth.2000 TO 2012 is a short period, which indicates inconsistency in the increase in the average salary.

Conclusion

In conclusion, the issue of the average hourly wage in the US since the 1970s is generally poor. The problem poses a question if it is due to Board oversight or board negligence. Conclusively from the evidence of a rising in productivity and workforce, it is because of both.US governments together with cooperate board members has failed to enforce policies which help in implementing reasonable average wage in non-management private sectors.

Reference

Danninger, M. S. (2016). What's Up with US Wage Growth and Job Mobility?. International Monetary Fund.