Joan is the director of scientific computing at a large utility company. The people she supervises are all college graduated with backgrounds in science, engineering, or math. These people do systems work and computer programming that is more problem-oriented than other programmers in the company and the people in Joan’s department are quite close knit
Joan hired Fred into the group from the Engineering Department. Fred, who had worked for the company for seven years, learned the programming easily and was doing quite well. One year later Bob was hired into the group by Joan. Bob and Fred both assimilated into the group quickly.
About a month later, Joan’s problems began. Information was quite freely shared by members of the group, especially job-related information such as salary. When Fred learned that Bob was making more money than he was, he was quite upset. Bob was doing the same kind of work with less experience at his new job. He also had had less total working time with the computer only four years.
When Fred voiced his concern to his boss, he was told that the company had specific guidelines for raises and wide salary ranges for each job level. Bob was just on the high sides of his old job’s salary range and received a hefty raise when he was promoted to this new job. Fred was not pleased with the setup because he had received a raise just before Bob came and knew that it would be a year before he would get another one. In Fred’s mind, he was now qualified, more experienced, had better knowledge of the company, and if nothing else, more seniority than Bob. Fred’s attitude and discontent was apparent in his work, and although Joan could not really prove it, Fred caused serious delays in projects. Also, new errors seemed to be cropping up in the computer programs that came out of Joan’s section.
1. What role does equity play in this case?
2. Should companies demand that individuals not reveal their salaries?
Why or why not?
3. Comment on the salary system and weakness you see in it.
4. As the director, how would you handle Fred?
Case: Cash is Good, Card is Bad
Arlow’s is a small retail store located in a major midwestern city. Because of its reputation, Arlow’s has been able to attract highly competent professional sales help. All sales clerks are salaried, non-exempt employees who are well paid, but who do not receive commissions.
Recently sales have flattened out because of slower economic conditions. Thinking that maybe an extra incentive will help Arlow’s through the economic dip, the store manager decided to institute a 2% commission on cash sales only. Because of the 4% service charge made by credit charge card plans on all charge sales, Arlow’s manager felt that this incentive plan would appeal to the sales clerks and be advantageous to the firm.
The manager was right—to right in fact. Some of the sales clerks have become so enthusiastic about getting their 2% that they are being very pushy and insulting to customers who refuse to pay cash and try to use a bank charge card. Consequently, the manager has received several complaints in the last few days from irate customers who loudly promise to “never shop here again.”
1. Evaluate the use of this type of incentive and why the manager is experiencing problems with it.
2. If any incentive system is to be used, what type of system would you recommend? Why?
The incentive scheme described in the case has resulted in problems. By placing emphasis on how the sale is paid for, instead of on the sale itself, the manager has generated counter-productive results. The incentive is not directly tied to the results that the manager wants—increased sales. Also, clerks in department stocking lower cost items are at an obvious advantage because customers are more likely to pay cash. A clerk who sells luggage is at a disadvantage when compared to a clerk selling lingerie.
The manager needs to drastically rethink this incentive plan. One possibility is to reduce the commission to 1 ½%, but also have it apply to all sales. Or, the manager might want to go to some type of group incentive system that would be based on departmental sales increase or profitability figures.
Write an essay discussing the following statement:
"Health-care costs are out of control in the United States, and increasing conflicts between employers and employees are likely as employers try to reduce their health benefits costs."
Use APA format and 2 references.
Individual Project 3
Employees' compensation is typically the biggest cost any company has. As living expenses increase and employees earn performance related pay raises, employees' compensation must also increase. How does one go about controlling employees' compensation costs, and why is that important?
Please write a 500-750 word essay listing your academic references (with in text citations) in APA style in Word document.
Read Chapters 12, 13 & 14 (attached)
Please write a reflective summary of the chapters you have read this week in your own words emphasizing your own impressions on what is important and what you found the most interesting. You can also support your views and expand on what you have read with outside references if you wish.
Please note that these reflections should not merely repeat what you have read in the chapters but should demonstrate your critical thinking about the material.
|Due By (Pacific Time)||02/19/2014 03:00 pm|
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