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Issues relating to:

Pay Model
Totality of Decisions
Internal Alignment
Job analysis
Job Based Structures

Pay Model Issue:


THE INCENTIVE PLAN
The question of whether to pay Manuels Enterprises employees an hourly
wage or an incentive of some kind has always intrigued Lalaine Romasanta.
Her basic policy has been to pay employees on hourly wage, except that her
managers do receive an end-of-year bonus depending, as Lalaine puts it on
whether their stores do well or not that year To add, Lalaine can see several
potential problems with the companys policies regarding benefits and
services.
She also wonders what type of benefits and services should be offered and
whether such a benefit would be in the best interest of the company in terms
of a more loyal and productive workforce, reduce employee turnover and
perhaps pay lower wages.

Relations to pay model:


Wage - a fixed regular payment, typically paid on a daily or weekly basis, made by an
employer to an employee, especially to a manual or unskilled worker.
Incentive - a thing that motivates or encourages one to do something.
Policy - a course or principle of action adopted or proposed by a government, party,
business, or individual.
Employees - a person employed for wages or salary, especially at nonexecutive level.
Managers - a person responsible for controlling or administering all or part of a
company or similar organization.
Benefits - a payment or gift made by an employer, the state, or an insurance company.
Services - the action of helping or doing work for someone.
Company - a commercial business.
Workforce - the people engaged in or available for work, either in a country or area or
in a particular company or industry.
Turnover - the rate at which employees leave a workforce and are replaced.

Totality of Decisions Issue:


THE EMPLOYEES PREGNANCY
Mrs. Dang Dumael is the supervisor in a department of a small
manufacturing company of precision tools. Four operators who are mostly
men, except Ching who is five months pregnant, competently operate the
machinery at the production department. She had been there when Mrs.
Dumael was hired and has maintained an excellent work record.
The job requires very little physical exertion and most of the time employees
simply have to push buttons. Occasionally, however, it is necessary to lift
boxes associated with the work. Chings fellow workers had been doing this
for her during most of her pregnancy, but one day all were extremely busy
and no one had time to help her.
Thus, a bottleneck was created. Mrs. Dumael reprimanded Ching for not
keeping the work flowing steadily.
The next day Ching walked into Mrs. Dumaels office and told her that she
had read that lifting heavy objects might cause her miscarriage. She
requested that she assign other workers to do all of the lifting for her. She
also wanted other workers to refrain from smoking for fear it might harm her
baby. Mrs. Dumael was caught off-guard by her request and did not know
how to respond. She knew the company had no policy which she could
follow. Perhaps, she should be sent home on an unpaid leave of absence, or
maybe, she could transfer her to a different job where lifting was not
required, but this would mean a reduction in Chings pay by P34-P35 per
hour. All of these thoughts raced through her head hoping a solution would
magically appear. After a few more moments of silence, Mrs. Dumael looked
at Ching and said I had better check with my boss on this one.

Relations to Totality of Decisions:


Department - a division of a large organization such as a government, university, business,
or shop, dealing with a specific subject, commodity, or area of activity.

Manufacturing - make (something) on a large scale using machinery.

Production - the action of making or manufacturing from components or raw materials, or the
process of being so manufactured.

Job - a task or piece of work, especially one that is paid.


Work - activity involving mental or physical effort done in order to achieve a purpose or result.
Bottleneck - a point of congestion or blockage, in particular.
Pay - give (someone) money that is due for work done, goods received, or a debt incurred.
Leave of Absesnce - time when one has permission to be absent from work or from duty in
the armed forces.

Reduction - the action or fact of making a specified thing smaller or less in amount, degree,
or size.

Transfer - change to another place, route, or means of transportation during a journey.

Internal Alignment Issue:


PROBLEMS IN INETRNAL ALIGNMENT
In recent years, the necessity for organizations to control labor costs, while
at the same time increasing productivity and enhancing quality and
customer service, has never been more urgent. Although many companies
have become acutely aware of this problem, few companies have yet to fully
address this issue. The present competitive environment requires new
strategies toward employee compensation, new management and employee
practices, and new methods of educating employees to the shifting
competitive environment that has brought about the necessity for these
changes.
Changing compensation systems is a difficult task for any organization.
Employee and management perceptions of organizational compensation
systems are typically well-formed. Concerns and skepticism over how they
will be affected by any new system are natural. It is difficult for organizations
to achieve compensation driven changes in behavior if their compensation
plans have not been adequately communicated, employee understanding
and trust established, and new expectations firmly seated and accepted. It

goes without saying that communications, training, and execution are


critical.

Relations to Internal Alignment:


Labor Costs - The sum of all wages paid to employees, as well as the cost of
employee benefits and payroll taxes paid by an employer.
Productivity - the effectiveness of productive effort, especially in industry, as
measured in terms of the rate of output per unit of input.
Quality - the standard of something as measured against other things of a similar kind;
the degree of excellence of something.
Customer Service - the assistance and advice provided by a company to
those people who buy or use its products or services.
Compensation - something, typically money, awarded to someone as a recompense
for loss, injury, or suffering.
Practices - the actual application or use of an idea, belief, or method as opposed to
theories about such application or use.
Systems - a set of things working together as parts of a mechanism or an
interconnecting network.
Plans - a detailed proposal for doing or achieving something.
Communications - means of connection between people or places, in particular.
Training - the action of undertaking a course of exercise and diet in preparation for a
sporting even

Job Analysis Issue:


THE STRICT EVALUATOR
Samuel Icasiano is upset about his recent performance review. Samuel has
worked for Reyes Enterprises for 12 years . For For the first nine years,
Samuel's job performance was consistently rated outstanding. However, for
the past three years, Samuel's performance has been rated only a little
above average . According to Samuel, his performance review scores have
been low during the past three years because his supervisor gives
unreasonably low ratings. Marissa Andres was assigned as Samuel's
supervisor three years ago.
Marissa says that she tries to evaluate her subordinates objectively and she
refuses to change Samuel's ratings. Samuel claims that any other supervisor
would have evaluated him at least 10 points higher. He feels very
disappointed about his low evaluation because he knows it will mean a
minimal pay increase and that it will hurt his chances for promotion.
Relation to Job Analysis:
Performance - the act of doing a job, an activity.
Scores - the number of goals or points a person gets
Ratings - measurement of how good, difficult, and efficient something or
someone is.
Evaluation - to judge the value or condition of someone or something.
Supervisor - a person who supervises someone or something.
Pay - to make due return for services rendered.

Promotion - the act of moving someone to a higher or more important


position or rank in an organization.
Review - a report that gives someone's opinion about the quality of a book,
performance, product etc.
Job - the work that a person does regularly in order to earn money.
Increase - to make larger or greater in size, amount or number.

Job Based Structures Issue:


Updating Salary Structure: When, Why and How?
Maintaining a strong salary structure is imperative for any organization. If
the salary structure gets out of sync with the overall labor market, a
company may find itself paying employees too much and needlessly
increasing operating costs, or paying employees too little and having
difficulty attracting and retaining talent. Most companies try to be good
about keeping it up-to-date, but they tend not to do it as quickly as they
should, said Steven Slutsky, a director at PricewaterhouseCoopers Human
Resource Services in Philadelphia.
Here are pointers to keep in mind for maintaining a competitive salary
structure.
Conduct a review on a regular schedule or tied to specific events. As a
general rule, employers should examine the overall salary structure at least
every three to five years. The review should determine whether the
structure is still aligned with the companys needs and the labor market.
Some HR executives favor conducting an analysis every 18 to 24 months.
The rationale is to catch issues before they become large enough to affect
employee engagement and the organizations ability to attract and retain
talent. Moreover, salary-structure issues are less expensive to address early
on. Once things have gotten to the point where the business must make
significant upward adjustments, the cost of doing so can be considerable.
There are other situations, changes and events that also demand a review of
the salary structure, such as the companys undertaking a merger or
acquisition, a significant change in the labor market, and a competitors

opening a new facility or closing one near the companys operations. In the
last example a plant opening could increase competition for talent, while a
plant closing could significantly increase the labor pool and lower the cost of
hiring new people.
Listen to managers up to a point. In some cases front-line managers will
bring salary-structure issues to HRs attention. These managers insight can
be important in determining if salary-structure issues exist. After all, frontline managers are more likely to hear from employees who think they can
earn more elsewherebefore these individuals leave the company. They are
also likely to more readily recognize difficulties in filling positions in their
department. This insight can indicate that specific areas of the salary
structure are out of alignment.
Link the salary structure back to HR strategy and the market. If the salary
structure does get out of alignment, it may not be tied closely enough to the
companys total rewards and HR strategy. When that happens, the
organization loses the strategic connection to how the organization
competes and drives value through its people, said Gary Kushner, SPHR,
CEO of Kushner & Co. in Portage, Mich. To bring the structure back in line
with the companys goals, link the HR strategy to a clear compensation
philosophy that will provide a framework based on competitive positioning in
the market and other factors, including regional economic conditions.
Moreover, a business in a declining industry, like paper manufacturing, faces
different requirements when it comes to maintaining a salary structure than
one in a fast-growth industry, like mobile technology or health care.

Relation to Job Based Structures:


Salary - an amount of money an employee is paid each year.
Market - a meeting together of people for the purpose of trade by private
purchase and sale.
Structure - the way that something is built, arranged, or organized.
Industry - a group of businesses that provide a particular product or service.
Manager's Perspectives - manager's view of things in their true relations or
relative importance.
Framework - a set of ideas or facts that provide support for something.

Alignment - an arrangement of groups or forces in relation to one another.


Positioning - the place where someone or something is in relation to other
people or things.
Goals - something that you are trying to do or achieve
Strategy - a careful plan or method for achieving a particular goal usually
over a long period of time.

References:
Human Resource Management (Revised Edition), Christina Rafol Corpuz, Ph.D.,
Short Cases, pages 147, 196, 197.
www.merriam-webster.com
http://www.shrm.org/hrdisciplines/compensation/articles/pages/updating-salarystructure.aspx#sthash.9hx6N5oN.dpuf

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