Question: Columbus Custom Carpentry Case Overview PDF

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Columbus Custom Carpentry Case Overview This case is presented as close as possible to the way you may encounter it in working life. Your role is that of a newly hired HR manager. You will learn about the company by reading the employee handbook, talking with various employees and reviewing the huma...

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Columbus custom carpentry: a compensation case study Tonya Murphy UMUC

1. In your opinion, what is causing the turnover at Columbus Custom Carpentry? 10 points. In my opinion, there are several reasons why Columbus Custom Carpentry have not been able to retain resourceful and skillful talent. These reasons include but are not limited to: numerous departments are understaffed, lack of proper training across the organization, lack of efficiency, overworked employees, lack of comradery organization-wide, and unfair pay. I chose these reasons based on the feedback that was given by various employees during the interview proceedings. According to Reyes (2010), the congestion in the warehouse area forces team members from other areas to pick-up the slack. In turn, this bottlenecking affects the productivity and efficiency of other departments. Because employees are not properly utilizing their learned skillset, this too hinders efficiency. In addition to inadequate staffing, departments are often challenged with limited resources as raw materials frequently run out. The tension and frustrations of the organization is not only felt amongst the staff, management and supervisors are also feeling the pressures of the consistent turnover. Supervisors are finger-pointing at managers and managers attribute the turnover to the difference in pay amongst the other departments. In lieu of the wage difference, employees often seek to transfer to departments with higher pay. All of these internal threats interfere with production and support my opinion of the organization’s turnover. 2. Are the assembly technicians overpaid? Explain. 10 points. The salary range of assembly technicians at Columbus Custom ranges from $29,000 to $39,000. The Assembly department is a division of the manufacturing group. According to Columbus Custom Carpentry employee handbook, the manufacturing group is the nucleus of the business. This group of skilled employees is tasked with the responsibility of creating the residential

products. Once a product has been assembled, it forwards the products to the crafting department. The assembly department utilizes the jig system to assist with their job. Managers described how jigs save time, eliminate damaged products, and eliminate waste. However, this study does not inform the number of hours it takes to the assembly team to create one product; nor does the study discuss the quota/ number of products the technicians are producing daily. Based on this information alone I do not believe I can analyze if the pay of the assembly technicians is justified.

3. Are the craters underpaid? If so, why? Will they still be underpaid if the custom hand-work portion of their job is eliminated by the jig system? Explain. 15 points. The salary range of a Crater is $21,000 to $32,000. Currently, within the warehouse, they are not utilizing the jig system as other departments which forces them to do a lot of their job manually. Within the warehouse department, the jigs are hoped to save time and reduce damaged product. Although this study does not inform the amount of time it takes to package one product, one may be able to conclude that custom hand-work takes longer than the use of customized machinery. This study also does not discuss the quota/ number of products the craters are producing. However, all employee are entitled to fair compensation i.e. salary, overtime pay, and bonuses even if the job is not identical (“Equal pay/ compensation discrimination, n.d). Federal law dictates a jobs content not its title is what determines if a job is substantially equal (“Equal pay/ compensation discrimination, n.d). With that being said, taking into consideration the pay of the assembly technicians and the skillset it takes to become a crafter, I would conclude this team is

underpaid and I do not believe the use of the jigs should have a negative effect on the pay scale of that department. I would encourage management to review the compensation policy, complete a job analysis, and review current job descriptions to ensure all employees are being paid fairly. 4. Given the case and market information, is the CFO position best aligned with that of an accounting manager, director, or a CFO? Explain. 10 points Given the market information and the case study, I do believe the CFO position in its current state is best aligned with a CFO. The CFO’s job is to analyze the scope of the organization’s financials and use that information to develop financial strategies to ensure the company is able to achieve set goals. During the sit down with Mike (CFO), he shared his thoughts on what it would take to ensure future performance is successful i.e. labor efficiencies and what will take for the organization to strategically improve the profitability of sales. A job that would be more aligned with an accounting manager or director would be a Controller as this position is responsible for accounting and record keeping. 5. Are there differences in pay that appear to be based on sex/race/ethnicity rather than performance or length of service? How so or why not? 15 points Yes, there are differences in pay that is based on the bias of discriminatory factors such as sex/race/ethnicity. According to the HRIS, there seems to be an overwhelming number of female employees employed in administrative roles. Whereas there are not as many male employees employed in administrative roles. Yet, those males that are in admin roles, are being paid at a higher rate despite LOS.

6. Given your answers to the previous questions, exactly how would you rectify the key issues within Columbus Custom Carpentry? What resources/references support your plan of action? 40 points. As stated previously, the HRIS indicates that there is a difference in pay that is based on the bias of discriminatory factors such as sex/race/ethnicity. With that being said, I would complete a job analysis to assess training, compensation, and performance appraisal. I would also examine potential recruiting barriers in order to incorporate a more diverse pool of candidates. As a result of the analysis, I would attempt to educate management on the cause and effects discriminatory bias can have to the organizations as well as the morale of current and new employees. The strategy would be to educate them rather than to attack current policies. By educating upper management on laws such as Title VII, state and federal anti-discrimination laws, and the Equal Pay Act, I would also be addressing criteria such as skills (training), responsibility (accountability), and effort (mental and physical exertion) that it takes to fulfill a position as each of these criteria must be taken in to account when determining compensation.

References Equal Pay/Compensation Discrimination. (n.d.). Retrieved April 14, 2018, from https://www.eeoc.gov/laws/types/equalcompensation.cfm Reys, D. (2010). Columbus custom carpentry: a compensation case study. Retrieved April 14, 2018, from https://www.shrm.org/academicinitiatives/universities/teachingresources/Documents/Rey s_Columbus%20Custom%20Carpentry_IM_Corrected.pdf...