Saanvi Naidoo's career objective while attending Gauteng University was to obtain a degree in small business...
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Saanvi Naidoo's career objective while attending Gauteng University was to obtain a degree in small business management and to start her own business after graduation. Her ultimate desire was to combine her love of sports and a strong interest in marketing to start a mail-order golf equipment business aimed specifically at beginning golfers. After extensive development of a strategic business plan and a loan in the amount of R950,000 from the bank, Victory Golfing was begun. Based on a marketing plan that stressed fast delivery, error-free customer service, and large discount pricing, Victory Golfing grew rapidly. At present the company employs 16 people: eight customer service representatives earning between R12,000 and R10,000 per month; four shipping and receiving associates paid between R8,000 and R9,000 per month; two clerical employees each earning R7,000 per month; an assistant manager earning R20,000 per month; and a general manager with a salary of R30,000 per month. Both the manager and assistant manager are former customer service representatives. Saanvi intends to create a new managerial position, purchasing agent, to handle the complex duties of purchasing golf equipment from the company's numerous equipment manufacturers. Also, the mail-order catalogue will be expanded to handle a complete line of tennis equipment. Since the position of purchasing agent is new, Saanvi is not sure how much to pay this person. She wants to employ an individual with around five years of experience in sports equipment purchasing. While attending an equipment manufacturers' convention in Sandton, Saanvi learns that a competitor, Northern Sports, pays its customer service representatives through a performance-based pay system. Intrigued by this compensation philosophy, Saanvi asks her assistant manager, Sipho Mthembu, to research the pros and cons of this payment strategy. This request has become a priority because only last week two customer service representatives expressed dissatisfaction with their monthly salary. Both complained that they felt underpaid relative to the large amount of sales revenue each generates for the company every month. (Adapted from: Snell, S., Morris, S. and Bohland, G.W. (2016) Managing Human Resources. Seventeenth Edition. Boston: Cengage Learning.) Now that you have read the case study, answer the following questions. Question 1 [15 Marks] Discuss Victory Golfing's approach to compensation in terms of external equity, internal equity, individual equity and procedural equity. Question 2 [15 Marks] Discuss how Victory Golfing's existing compensation system should guide decisions regarding the determination of the salary for the purchasing agent position. Saanvi Naidoo's career objective while attending Gauteng University was to obtain a degree in small business management and to start her own business after graduation. Her ultimate desire was to combine her love of sports and a strong interest in marketing to start a mail-order golf equipment business aimed specifically at beginning golfers. After extensive development of a strategic business plan and a loan in the amount of R950,000 from the bank, Victory Golfing was begun. Based on a marketing plan that stressed fast delivery, error-free customer service, and large discount pricing, Victory Golfing grew rapidly. At present the company employs 16 people: eight customer service representatives earning between R12,000 and R10,000 per month; four shipping and receiving associates paid between R8,000 and R9,000 per month; two clerical employees each earning R7,000 per month; an assistant manager earning R20,000 per month; and a general manager with a salary of R30,000 per month. Both the manager and assistant manager are former customer service representatives. Saanvi intends to create a new managerial position, purchasing agent, to handle the complex duties of purchasing golf equipment from the company's numerous equipment manufacturers. Also, the mail-order catalogue will be expanded to handle a complete line of tennis equipment. Since the position of purchasing agent is new, Saanvi is not sure how much to pay this person. She wants to employ an individual with around five years of experience in sports equipment purchasing. While attending an equipment manufacturers' convention in Sandton, Saanvi learns that a competitor, Northern Sports, pays its customer service representatives through a performance-based pay system. Intrigued by this compensation philosophy, Saanvi asks her assistant manager, Sipho Mthembu, to research the pros and cons of this payment strategy. This request has become a priority because only last week two customer service representatives expressed dissatisfaction with their monthly salary. Both complained that they felt underpaid relative to the large amount of sales revenue each generates for the company every month. (Adapted from: Snell, S., Morris, S. and Bohland, G.W. (2016) Managing Human Resources. Seventeenth Edition. Boston: Cengage Learning.) Now that you have read the case study, answer the following questions. Question 1 [15 Marks] Discuss Victory Golfing's approach to compensation in terms of external equity, internal equity, individual equity and procedural equity. Question 2 [15 Marks] Discuss how Victory Golfing's existing compensation system should guide decisions regarding the determination of the salary for the purchasing agent position.
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Question 1 Victory Golfings Approach to Compensation Victory Golfings approach to compensation can be analyzed in terms of external equity internal equity individual equity and procedural equity Exter... View the full answer
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