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Fresh Munchables is a mid-sized but steadily growing food-processing company founded in 1967. Since its inception, the company has been committed to providing only premium quality health foods. The company is headquartered in Wichita, Kansas, and it is one of the areas largest producers of soups and simple meals. In the past 20 years, the company has also begun processing healthy snacks and beverages. Fresh Munchables has traditionally sold its products through large grocery stores, but it is now venturing into online and restaurant businesses, which is all very new territory for management.

The company is split up into three overarching strategic business unitssoups and meals, drinks, and snacks. Additionally, the company is divided into several business units at the operational level, consisting of a mix of business operations, manufacturing (production), research and development, finance, and so on. As the company continues to grow, the executive team and other leaders are constantly looking for ways to improve processes.

Because Fresh Munchables has grown from a very small company into a well-established organization, management has decided to broaden the companys strategic HR functions. The human resources team is currently working to improve recruiting and hiring processes, succession planning, and most importantly, compensation and rewards.

For many years, the company has delegated compensation decisions to managers with little to no training on the subject. This has left the company in a disorganized, confused state when it comes to paying and rewarding employees. These problems have compounded as Fresh Munchables has recently opened up new manufacturing locations with new managers and many new employees.

The chief human resources officer has organized a team of compensation specialists of which you are a part to spearhead total compensation-related problems and help the company to reach its current and future goals. You and your team can achieve this by revising the current total compensation system to reflect the companys current business strategies and goals as well as attract and retain top talent.

1. Jos, a compensation specialist at Fresh Munchables, just created a new pay-for-performance bonus initiative in the business operations unit. If the business operations unit hits the desired performance metric, employees in this unit will receive an annual bonus in relation to their pay grade.

   Which is the most effective way to track whether this incentive plan is producing the desired outcome?

   • Monitor the performance metric detailed in the plan by collecting and tracking data.
   • Monitor all performance metrics in the company by collecting and tracking data.
   • Require units to fill out surveys to determine if they are meeting their unit goals.
   • Require employees to fill out surveys to determine if they are meeting their personal goals.
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   The CEO of Fresh Munchables has asked you to review the companys health care plan, specifically its premium-sharing policies. In the past, the company paid a huge portion of its employees medical insurance while employees paid very little. Now that the company has grown and many more employees have been hired, this model is becoming unsustainable. The company has also conducted an internal review and found that many employees may be overutilizing their benefits.

   How can Fresh Munchables still offer quality health insurance to their employees while also encouraging employees to not overuse their benefits?

   • Offer insurance to fewer employees in order to encourage competition for rewards.
   • Increase the deductible employees pay for each service in order to maintain the same level of coverage at a lower employer cost.
   • Discontinue dental and vision insurance because they are less desirable for many employees.
   • Decrease the number of benefits because neither the company nor the employees can afford them.
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   During an economic downturn, Fresh Munchables has reached the difficult decision to begin cutting salaries as a way to offset lost revenue. As the HR Manager, you are responsible for proposing and implementing a compensation plan for employees at various locations and levels during this time. This has the potential to be a complex ethical dilemma that requires many different considerations.

   To make the best ethical choice, what must you do as a manager?

   • List the rights of all parties involved and make sure that the decision respects those rights.
   • Take first consideration for those who might be marginalized, including those in an underrepresented ethnic, race, gender, or age demographic.
   • Make a decision based on what is best for the organization rather than the individuals in the organization.
   • Consult with a third-party organization or legal representative immediately.