Case Study Salary Inequities at Acme Manufacturing

When it comes to developing strategic pay plans it is important to have a good understanding of some basic factors to determine pay rates. Employee compensation is â€Å"all forms of pay going to employees and arising from their employment† (Dessler, 2013, p. 352). According to Dessler (2013), it consists of both â€Å"direct financial payments and indirect financial payments.† As we explore the case study of Acme Manufacturing, we will see the salary inequities and the struggles that the newly appointed president, Joe Black, has to go through to fix those issues. In an article titled â€Å"Fair Pay or Power Play?† Shin (2013) reported that â€Å"pay inequity provides strong motivation for CEOs to restore equity.† For this case, I will identify some issues†¦show more content†¦The issues faced by Acme are issues that are seen across the spectrum of businesses, companies, and organizations, and in most cases go unnoticed and never get resolved. John Black, current president for Acme took the first step in resolving the existing issues by hiring a compensation consultant to assist him with the resolution process. Together, Black and the consultant decided that all â€Å"25 salaried jobs at Acme be placed in the same job evaluation cluster; that a modified ranking method of job evaluation should be used; and that the jobs descriptions recently completed by the HR director were current and usable in the study† (Dessler, 2013). With these steps already in place, I would recommend that Acme use performance appraisal and incentive pay to maintain individual equity, and use communications, grievance mechanisms, and employees’ participation to help ensure that employees view the pay process as procedurally fair. The need for my recommendation is highly necessary as we saw that employees were left to brainstorm the reasons behind pay gaps between male and female supervisors, and had a definitive answer as to such pay gap. Another tentative solution to be implemented within Acme would be establishing a pay policy. According to Dessler (2013), once a compensation strategy is created, it will manifestShow MoreRelatedSalary Inequities at Acme Manufacturing873 Words   |  4 PagesSalary inequities at Acme Manufacturing   Joe Black was trying to figure out what to do about a problem salary situation he had in his plant. Black recently took over as president of Acme Manufacturing. The founder and former president, Bill George, had been president for 35 years. The company was family owned and located in a small eastern Arkansas town. It had approximately 250 employees and was the largest employer in the community. Black was the member of the family that owned Acme, but heRead MoreThe Salary Inequities For The Female Employees Essay1783 Words   |  8 Pagesmany cases it is thought that the main reason is because women are less likely to negotiate their salary. Even if this is the case, companies need to be aware of their employee’s salaries to stay within their legal obligation. This is what Joe Black, the president of Acme Manufacturing, has discovered within his organization. Critical Factors The central dilemma for this case with Acme Manufacturing is the salary inequities for the female employees. There are concerns that these inequities wereRead MoreInequities at Acme Manufacturing1420 Words   |  6 Pages Salary Inequities at ACME Manufacturing | Human Resource Management | | The case study of Salary Inequality within the Acme Corporation is all too common in our workforce. The issue is of a â€Å"Pay Gap† exists in economiesRead MoreHrm Case Study12223 Words   |  49 PagesCase Study-1 Jack Nelson’s Problem Chapter-1 Introduction to Human Resource Management Page: 1 * The case is all about the necessity amp; functions of HR unit in a local bank. In this bank Jack Nelson is a member of board of director and Ruth Jonson is an excellent employee. As Mr. Nelson was very much curious about how Jonson operate her machine, she briefly gave an idea about it. Speaking with the in-charged supervisor of a branch of this bank Nelson found that something was wrong inside