Assignment - 10 Carter cleaning company new pay plan PDF

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According to Question – 1: -Is the company at the point where it should be setting up a formal salarystructure based on a complete job evaluation? Why?Yes, by setting up a formal salary structure is being fair to the employees because the salarybeing paid based on the job task rather than pay the sa...

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Assignm ent - 10

According to Question – 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.

According to Question – 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 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 job’s relative worth by job evaluation. However, jack has no commitment to ensure right pay policies. As far we concerned, jack carter’s policy of paying 10% more than prevailing rates is sensible. There are five steps for making rational pay plan. 1] Primarily, employer conducts informal salary survey and formal survey. Then employers use salary survey to know what others are paying. 2] Carter choose job evaluation methods to determine worth of one job. 3] The company pays the similar salary for similar jobs. 4] Carter can use a wage curve to help assign pay rates to each job. Then it is easy to price jobs with a wage curve. 5] We know carter does not develop pay ranges. Therefore, it is important for developing pay ranges to motivate high performance employees. At the same time carter needs to correct out – of line rates. In this case we disagree that men and women have different salary, it is unfair. Thus, carter must ensure that men and women are paid comparably for essentially the same work. Jack carter’s policy of paying 10% more than the prevailing rates a sound one because he believes that within the higher payment he

could reduce the turnover among the employee and also at the same time can fostering the employee loyalty to the organization.

According to Question – 3: Similarly, is carter’s male – female differential wise? If not, why not? My opinion, the answer is no, carter’s shop does not have male – female differential wise. And they are also equal to their employees, and at the same time carter cleaning company also does not use a good compensable factors to their employees, it will cause some bad effects to their employees and surrounding community. According to the equal pay act of 1963, it requires that men and women who do the same job in the same organization should receive the same pay. The term “same pay” refer to no difference is acceptable. In addition the law, also defines that one consider as doing the same level of job if they are equal in terms of skills, effort, responsibility and working condition. However the equal pay act 1963 includes four exceptions that allow employers to pay another gender more than another. Some of those exceptions are like paying extra to employees that working the night shift. Back to this case study, there is no such exceptions includes in the reason provided by the jack as to justify why he decided to pay 20% more than woman to men workers. The reason provided by him is they are stronger and can work hard for longer hours and also they all have family to support. This justification is the one that can’t be acceptable at all if refer to the law and it also show discrimination towards the female worker. This is because, according to equal pay act 1963, rather than the four exceptions as mention above, female and male workers should receive the same amount of payment if they hold the same job that are substantially equal. In addition this unwise decision of jack carter’s policy will result in many negative effects such as increase in turnover among female worker, job dissatisfaction. Besides, there will be also more arguments in order to get an equal pay rate and lastly it will lead to an unproductively result to the organization.

According to Question – 4: Specifically, what would you suggest Jennifer do now with respect to her company’s pay plan? For the development of the company, there are several suggestions from us to Jennifer to do now with respect to her company’s pay plan. More details about the suggestion will be discussed in the following paragraph. 1st in the question 1 we had mentioned this point, setting up a formal salary structure. Based on this point, for the employees they will feel more fair and unambiguous about how much they get and it also makes the managing easier and more clearly for manager. There are strict certain structure to avoid the unfair things happens.

2nd , make a necessary formal survey in order to determine the amount that company should pay at what type of job responsibilities in order to avoid the mistake such as imbalance of salary payment. No matter what careful we are, we also would make some errors, so rechecking the results is very necessary and important. In the case, the company conducts informal surveys among friends and cleaners trade associate. By doing this, it would reduce the cost and it is good for getting vast and direct information. But the independent information source could give great risk to the company In the future. Therefore a formal survey to the employees is more effective rather than informal survey in order to get feedbacks from employees regarding the pay system. 3rd, about the policy of paying 10% more than the prevailing rates, as a company profit is the 1st thing. Although this policy can foster employee loyalty but to the long term the employees will accustom this situation and cannot motivate them to do better. Changing the policy like rewarding the outstanding employees with this policy not all, this not only can reduce the cost but also can motivate employees to get the higher prevailing rates. 4th. Abolish the policy of paying men about 20% more than women for the same job. Although her father explained that men are stronger and can work harder for long hours and besides they all have families to support, this policy considered bias to the men employees and of course it can cause dissatisfaction to the women employees and they will feel unfairly. In pay system it is better to have an official approved procedure on determining the right employees who qualified to be rewarded on bonus or salary increment and it should be based on the employees work performance. Don’t do like that regarding somebody who work hard and better is effective method.

Job Factors Job Complexity (maximum points – 600) Effort (maximum points – 300) Working condition (maximum points – 100)

1st degree points 120 Employee- 1

2nd degree points 240 Employee -3

3rd degree 4th degree points points 360 480 Employee – 2 Employee - 5

5th degree points 600 Employee - 4

60 Employee – 3

120 Employee -2

180 Employee - 1

240 Employee - 4

300 Employee - 5

20 Employee - 5

40 Employee - 1

60 80 Employee – 3 Employee – 2

100 Employee - 4

This is how Jennifer carter implement the pay plan for her company.

Thank You....