Business Finance Assignment Collections – assignmentcollections.com
Hi, I guess you completed the wrong assignment last week- that was my fault for not verifying. Please read the instructions and answer the following questions. The attachment has the reading, answer ONLY the questions pasted on this page. Instructions: Compose a 2 page paper that addresses the exercise posed in “Still Your Turn – Managing Compensation Costs, Headcount, and Participation/Communication Issue” beginning on page 669 of the Mikovich text. APA formatting standards must be followed. A minimum of 3 scholarly resources from outside of class need to be used. Please don’t plagiarized, also please refer to the below attachments for further assistance. Thanks
1. What is the difference between these two sets of companies? Is it simply that one set of companies care more about its employees than the other set of companies? Or, is it also the case that Southwest, Nucor, and Lincoln Electric have set up their compensation strategies in a way that makes them more able (than Cisco, HP, American, and GM) to cut labor costs when times are tough? (For more background, go to google.com or another search engine and conduct a separate search for each company using its name and the term “layoff.”) What about protecting investment in employees and employee relations?
Here are some links for research:
2. What can an employer do to make labor costs flexible so that profits do not take as much of a beating during difficult economic times and so that fewer employees need to be laid off?
Here you want to think about how much of the pay design is base pay, and how much is variable. Think of other ways labor costs are flexible…
3. If you were in charge of designing a compensation system for a company that is fairly new, but is now reaching a stage and size where it needs a formal compensation system, how would you design the compensation system to have labor cost flexibility? To what degree would you have others at the company participate in the design of the new compensation system? Who would participate? Would you follow a policy of pay openness in communicating your compensation system? Provide a rationale for your decisions.
Keep in mind there are four questions within this one question…
Again, what type of variability in labor costs would you build into the pay structure?
To what degree would you have others at the company participate in the design of the new compensation system? Who would participate?
Here, think about whether the organization has more than one location. Is there a centralized office that will handle the compensation? OR will HR handle the compensation at each of their offices…
Would you follow a policy of pay openness in communicating your compensation system? Provide a rationale for your decisions.
There is no one answer for this question. My general rule of thumb is if there is not a degree of transparency, then the HR system may not have enough structure, and may create feeling of distrust amongst employees. Remember to support your rationale.