NEW PAY PLAN
1. Is the company at the point where it should be setting up a formal salary structure based on a complete job evaluation? Why?
Yes, by setting up a formal salary structure is being fair to the employees because the salary being paid based on the job task rather than pay the salary based on gender. When the salary structure being fair, it leads satisfaction among the employees and as a result the turnover will be at low rate. Besides, the company also can control their financial operation by doing budget allocation planning for their business operation. Moreover, the formal salary structure will make the employees clear on the amount pay for his or her job position. Thus, it can make easier to the related manager to do a process of salary payment.
2. Is Jack Carter’s policy of paying 10% more than the prevailing rates a sound one, and how could that be determined?
First of all, First of all, according to this case, carter does not make any formal surveys, it is a correct action for Carter. Carter should pay more attention to the requirements of employees for building a formal pay policy. Secondly, Carter Company should pay different salaries for different job department rather than gender. Thirdly, it can determine a job’s relative worth by job evaluation. However, Jake has no enough evidence for building a pay policy. In our opinion, Carter may choose a job evaluation commitment to ensure right pay policies.
As far as we concerned, Jake Carter’s policy of paying 10% more than the prevailing rates is sensible. There are five steps for making a rational pay plan. Primarily, employer conducts informal salary survey and formal survey. Then employers use salary survey to know what others are paying. Secondly, Carter chooses job evaluation methods to determine the worth of one job. Thirdly, the company pays the similar salary for similar jobs. Fourthly, Carter can use a wage curve to help assign pay rates to each job. Then it is easy to price jobs with a wage
Yes, by setting up a formal salary structure is being fair to the employees because the salary being paid based on the job task rather than pay the salary based on gender. When the salary structure being fair, it leads satisfaction among the employees and as a result the turnover will be at low rate. Besides, the company also can control their financial operation by doing budget allocation planning for their business operation. Moreover, the formal salary structure will make the employees clear on the amount pay for his or her job position. Thus, it can make easier to the related manager to do a process of salary payment.
2. Is Jack Carter’s policy of paying 10% more than the prevailing rates a sound one, and how could that be determined?
First of all, First of all, according to this case, carter does not make any formal surveys, it is a correct action for Carter. Carter should pay more attention to the requirements of employees for building a formal pay policy. Secondly, Carter Company should pay different salaries for different job department rather than gender. Thirdly, it can determine a job’s relative worth by job evaluation. However, Jake has no enough evidence for building a pay policy. In our opinion, Carter may choose a job evaluation commitment to ensure right pay policies.
As far as we concerned, Jake Carter’s policy of paying 10% more than the prevailing rates is sensible. There are five steps for making a rational pay plan. Primarily, employer conducts informal salary survey and formal survey. Then employers use salary survey to know what others are paying. Secondly, Carter chooses job evaluation methods to determine the worth of one job. Thirdly, the company pays the similar salary for similar jobs. Fourthly, Carter can use a wage curve to help assign pay rates to each job. Then it is easy to price jobs with a wage