In Compensation and Benefits - Case Study Example

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The situation at Acme is ghastly, and an ostensible fact is that it has to be deciphered immediately for the interests of the employees as well as those of the company. If I were in Black’s position, I would gradually increase the remunerations of the female supervisors over a…
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Case Study in Compensation and Benefits
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CASE STUDY IN COMPENSATION AND BENEFITS [Insert al Affiliation What would you do if you were Black? The situation at Acme is ghastly, and an ostensible fact is that it has to be deciphered immediately for the interests of the employees as well as those of the company. If I were in Black’s position, I would gradually increase the remunerations of the female supervisors over a sizably long duration as raising it suddenly will upset the male supervisors whose salaries shall be constant during the duration. What’s more, to avoid any perceived discrimination or biasness during the process of progressively increasing the salaries, I would also consider conferencing the HR director and the 3 female supervisors as well as a strong senior from the male counterpart. While my primary role will be to inform them about the salary alignment process, their views and propositions will be taken into consideration to bring sex equality, rationalization of salaries and bolster the team spirit that is necessary for Acme’s triumph.
2. How do you think the company got into a situation like this in the first place?
In the first place, the company got into this ghastly situation due to erroneous preconceived notions, underestimation of the female workers and a startling ignorance in job appraisal. As the president, George significantly contributed to Acme’s present problem firstly by believing that women had working husbands hence did not require huge salaries, and also be awarding pay increment based on his association with an employee evident through the personal bargains common during his regime. The HR director too held the preconceived notion that the female employees should be paid less since they supervise less skilled and proficient employees as compared to their male counterparts. The local culture exceedingly swayed the compensation process. Whether the spouse is salaried or not is not part of the professional compensation plan, but in Acme, the management allowed such a preconceived notion to drive the company into problems.
Moreover, considering the sheer fact that the company was formed 35 years ago when underestimation of women was the norm, and Acme was small, it is likely that only men were employed. When it eventually started hiring women, they had meager professional experience, and as the equal pay rights were implemented, George overlooked the idea of increasing women’s salaries while he increased men’s salaries.
Acme’s current problem is also attributable to its defective job evaluation process. Job evaluation allows the organization to determine the worth of a job basing decisions of skills, competency and experience. The process was ineffectual and failed to pinpoint weaknesses in the company’s remuneration structure.
3. Why would you suggest Black pursue the alternative you suggested?
Ethical practices, and fairness, are fundamental to a business’ success in the contemporary fairly just society. The compensation consultant team has already identified the problem in the company and failing to do nothing may only serve in the short term, but in the long run, the employees might get to know of this and sue the company. Also, increasing the female employees’ salary immediately will inform them that they were being discriminated and might end up suing the company. Increasing their salaries progressively and discussing with them about the issue is the best and least expensive option. It is unlikely to draw negative responses from the male employees, make women feel that the company cares about them. Consequently, the team spirit will blossom increasing employees’ productivity and the Acme’s reputation. Read More
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