Case Studies

1) A&B FOODS:
The main fault of the failure of the compensation plan was that there was no equality among employees which created a jealousy plot and leads to the failure. Then the focus of the plan was on individuals rather than on making a company compensation policy as a whole. There was inconsistency in conveying about their compensation strategy and practice of it. They had adopted a secretive dogma. As Dheeraj and Chandar were A&B foods worthy employees so according to Michaels et al. (2001), todays era called as war of talent the use of compensation for the retention of high-performers has become quite vivid. Some organizations are willing to pay whatever it takes to prevent losing their high performers. According to our thinking the problem of this organization was not having a proper compensation planning so our solution to the problem is following: An ideal compensation system should be made that will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed. The system should be simple and flexible so that every employee would be able to compute his own compensation receivable. It will raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide satisfaction to the workers.

It should be easy to implement, should not result in exploitation of workers.

Case Studies

2) SALARIES INEQUITIES AT ACME MANUFACTURING:

Answer 1: According to us we would choose option 2. The company is violating the equal pay act there is sex discrimination made by giving less salary to the female employees. Hence, Mr. Black should gradually increase the salary of the female supervisors as this will solve his issue of the female employees reporting to the EEOC for sex discrimination. Secondly, it would not upset the male employees for giving much importance to females in the company. Such a decision will not hamper the growth and working of the company.

Answer 2: The company has got into this situation due to the following probable reasons: The major reason is not following the equal pay act. Hence discrimination made between male and female employees for the same work. Payment of salary was not made in accordance to their competencies. The skill of personnel was not given importance in the company. Enforcement of the laws is complaint driven and most of the information needed to prove a complaint is held by employers, these laws lack the ability to completely rid discriminatory pay practices.

Answer 3. Mr. Black should pursue the suggestion to gradually hike the salary of female employees as it will mainly decelerate the action of female employees to file a suit against the company for sex discrimination and violating the equal pay act, emphasize value and personal service rather than discrimination, lessen the female labor turnover, and lastly, it will Steer employees to the work to the maximum capability and increase the profits of the company.