HR - the Salary System and Weaknesses Case# 1 1. Comment on the salary system and weaknesses you see in it. The large utility company performed knowledge-based work and employed highly skilled personnel. These personnel had to be hence kept motivated and highly paid in order to sustain their performance and commitment. The salary system, although competitive compared to the market, was not aligned to internal standards. The salary system allowed hiring external employees at payscales higher than their previous pay, but this did not compare with existing employees performing similar work.
Moreover, they did not employ a benchmarking practice which would ensure to bring all employees performing similar standards of work are paid on the same scales. Moreover, their promotion system focused on skill and expertise rather than experience, which could be a demotivating factor. 2. As the director, how would you handle Fred? As the director, I would talk to Fred on a one-to-one basis. Besides explaining the specific guidelines for raises, I would also assure him of better pay hike depending upon his performance. I would also explain to Fred that his as well as other employees’ future in the organization would solely depend upon their performance, and not on their salary.
I would appreciate Fred for his contribution and motivate him to continue to deliver high performance, which would automatically take him to higher bracket salary in next appraisal. Case # 3 1. What actions, if any should Jack Otto take? To identify Bob Hill’s concern, Jack Otto should spend more time with him. Speaking to Bob face-to-face may no surface the underlying issue; hence it should be taken up on a personal basis.
Jack should also observe Bob’s close aides and try to acquire information from them about Bob’s concerns and behavior. Secondly, Jack should also reflect upon his own behavior with Bob to identify any issues that could have resulted in identity crisis or ignored Bob’s efforts. 2. Identify some ways that the company and Jack have contributed to the existing problem with Bob. Bob has been a competent and productive worker and has been loyally working with SFM for more than ten years.
His commitment towards work and good relationship with other workers has earned him much popularity and respect from the other employees. This also means he has been very helpful to this colleagues and a great team member. However, his efforts have been unnoticed and unrecognized by the leadership and management. He was probably not appreciated by his supervisory or was not recognized for his contribution. The organization probably does not have any reward practices to identify and recognize the efforts of such employees.
These issues may have contributed to Bob’s low morale and disappointment. Case # 5. 1. How does the case illustrate the lack of HR planning? In the case of the Automobile Service Center in Boomtown, HR planning was almost absent. There was no planning and research related to competitive employee salary packages compared to other organizations within the vicinity. Secondly, they did not have any benchmark for salary compared to the work and skills of the personnel. Thirdly, there were probably no reward programmes that could keep the existing staff motivated.
Lastly, salary packages were aligned to corporate goals and did not have an element of other industries in that area, which meant that salaries of employees across different places were almost same; this did not consider the place where the company was situated. Due to these gaps, employees switched over to other jobs in that area for better pay irrespective of their skills and nature of job offered by the new companies. 2. What approaches could be used to recruit mechanics? Recruiting skilled personnel requires specialized recruitment methods.
The best candidates could be shortlisted by inviting many applications. Following this a face-to-face interview with the short-listed candidates should have been conducted by the managers. During this interview, candidates’ desire for choosing the Automobile Service Center should have been assessed. Only those that had specialized skills to perform mechanical work in automobile industry should have been recruited at higher payscales. This could ensure their skills are rightly put into use and are also compensated well. Secondly, effective reward practices could have helped in motivating the employees.
Case # 6 1. Why is having multiple health-care plans important for FedEx in slowing down increases in the cost of benefits? Having multiple health-care plans are important for FedEx in slowing down increases in the cost of benefits because the multiple health-care plans offer user-friendly options like using health-care providers inside or outside of designated network of providers and different levels of coverage that fit their needs and personal budgets. Employing similar plan for all employees could increase average costs for FedEx even if employees do not use the benefits.
Secondly, some employees may not be in need for greater levels of coverage like others; providing different levels with co-payment and deduction from employees’ salaries actually eased cost pressures from FedEx amidst increasing health benefits costs. Moreover, this also improved employees’ commitment and motivation, which would have in some way positively impacted their work. 2. Discuss how the availability of disease management programs, training programs, and a nursing hotline might help with health benefit costs. The occupational health strategies employed by FedEx will help in keeping a check on employees’ health on a regular basis.
Considering that workers at FedEx are susceptible to accidents and other occupational hazards, these programs help employees’ ailments, accidents etc from progressing to more serious consequences. The serious consequences can affect FedEx’s business, eventually. Secondly, by avoiding the serious consequences, FedEx also minimizes usage of employee health benefits thereby avoiding renewal premiums, which again limit health benefit costs.