Question: The Carter Cleaning Centers does not have a have a formal wage structure nor does it have rate ranges or use compensable factors. Wage rates
The Carter Cleaning Centers does not have a have a formal wage structure nor does it have rate ranges or use compensable factors. Wage rates are based mostly on those prevailing in the surrounding community and are tempered with an attempt on the part of Jack Carter to maintain some semblance of equity between what workers with different responsibilities in the stores are paid. Carter does not make any formal surveys when determining what his company should pay. He peruses the want ads almost every day and conducts informal surveys among his friends in the local chapter of the laundry and cleaners trade association. While Jack has taken a "seat-of-the-pants" approach to paying employees, his salary schedule has been guided by several basic pay policies. Although many of his colleagues adhere to a policy of paying minimum rates, Jack has always followed a policy of paying his employees about 10% above what he feels are the prevailing rates, a policy that he believes reduces fumover while fostering employee loyalty. Of somewhat more concem to Jennifer is her father's informal policy of paying men about 20% more than women for the same job. Her father's explanation is, "They"re stronger and can work harder for longer hours, and besides they all have families to support." Analyse the case and answer the following questions. Questions 1. Is the company at the point where it should be setting up a formal salary structure based on a complete job evaluation? Give reasons. (3 marks) 2. (a) Explain FOUR benefits of a fair compensation system. (8 marks) (b) Using the appropriate law assess the policy of paying men 20% more than woman. (5 marks) 3. (a) Discuss any FOUR factors that influence compensation and benefits. (8marks) (b) Distinguish among THREE types of payment plans that can be used by Carter Cleaning Services. (6marks) 4. With the support of any theory studied, explain to Carter bow compensation can be used as a tool to motivate
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
