Title: human resource management

Mini Case 1 How GCC Software co. Pays Developers When Ahmed Jamil and Mohammed Rawahi founded GCC Software co., their vision about HR strategy was to hire the best, make them comfortable, pay them well, and then get out of the way so they could create great products. Early on, Jamil and Rawahi set out to develop a pay structure that would be consistent with the companys mission. They decided that the system should be so objective that there would be no questioning or judgment calls about which employee earns how much. And the results would be so objective and fair that there would be no incentive to be secretive about what any employee earns. Jamil created a job structure that is straightforward: every employee is assigned to a level between 8 (summer interns) and 16 (chief executive officer). Assignment to a level is not a judgment call but is based on a formula incorporating the employees experience, skills, and scope of responsibility. Experience is measured as the number of years of fulltime experience in the field of the employees job at GCC Software co, counting only years after the employee finished school. At any given level, every employee earns the same salary. Skills are defined with descriptive statements along a continuum. For example, at the lowest level is a programmer learning the basic principles of software engineering who needs close supervision. At the other extreme would be someone who makes a unique contributiona programmer who has consistently had major success during participation in all aspects of small and large projects. Scope of responsibility ranges from primarily supporting another employee to running multiple projects. Based on this job structure, Jamil created a chart that is used for assigning each employee to a level. Jamil also created a chart that indicates the base salary for each level, based on market salaries. Each employee earns the amount specified by the chart. Every year, the companys managers review each employees work to see if the employee should be assigned to a new level. Every employee who is reassigned then earns the amount associated with the new level. Employees also earn a bonus based on the companys profits for the year. GCC Software cos system has been challenged by the stiff competition for programmer talent. If the company paid extra to lure in new employees at a higher rate, the existing employees would demand a raise or see their treatment as unfair. Rather than expect employees to accept the salary inversion of newer employees earning more than their more-experienced colleagues, GCC Software co. has responded to talent crunches by raising the salaries of all employees at a given level to make them as high as the going market rate for that level. Jamil believes that this solution is expensive but essential for maintaining equity and keeping talent. Questions 1. How well does GCC Software co.s pay structure meet (a) the legal requirement of equal pay for equal work (b) the conditions of product markets; and (c) the conditions of labor markets? 2. GCC Software co. set out to create a pay structure that is objective. Based on the information given, (a) how objective would you say GCC Software cos system is? (b|) What other qualities besides objectivity do you think GCC Software cos employees might care about?