James is the newest manager to join Short Smith Manufacturing, a new and growing company that is 12 years old. The company started with three employees and now has 81. There are 10
different, hourly job titles, two salaried sales positions and four salaried managers. The current managers are Scott, Tom and Ursel. Ursel will be retiring soon and James is in training to take his
place. Then there will be three managers once again.
James tells Scott: Maria, the secretary at the front desk, showed me the salary figures and records for everyone. I can’t find a rationale for how people are paid at Short Smith.
Scott: No one but Maria and the three long-term managers know the pay of our employees. You have kept the information confidential, haven’t you?
James: Of course. I am merely trying to learn my job. Would you describe that system for me?
Scott: I like a guy, want him to work for us, so I offer him whatever I made when I was his age. Or what Tom made, or if it is a technical job—what Ursel made at his age. James groans and holds
Tom adds: For a sales job though, we talk to them. We find out what top sales people are getting from other employers. We pay Stan-the-Money-Man $15,000 each time he brings in a new
customer. He’s doing well on his job—hence his moniker, Tom grins. James groans and holds his stomach.
Scott counters: Well, the sales people are special cases, right? James groans and sits down.
Maria walks into the office area. Tom asks her—Maria, you took over setting starting salaries when you got here three years ago. What have you been paying new hires?
Maria: I offer what you offered the last guy in the same job. I couldn’t figure out any other pattern. That’s why I discussed the issue with James, hoping that he would take over issuing salaries.
James goes home that night and heads straight for the ‘fridge for a cool one. He pops the tab on his Pepsi and discusses the issue with his wife, who is earning her master’s in HRM.
His wife has been reading about broadbanding and other pay structures and wonders if broadbanding would be the answer to the current dilemma that Short Smith is currently facing.
She knows YOU are currently studying compensation issues, too, and knows you absorb concepts easily, so she asks you.
What is broadbanding? What are its benefits and drawbacks to an organization the size of Short Smith?
Provide a private-sector (business) example: an organization with a broadbanding pay system and whether or not it works for them.
Do you recommend that Short Smith develop a broadbanding system? Why or why not? If not, what type of system do you recommend?
Provide some concluding statements on managing a change to a new pay system at Short Smith.
As you formulate your response you might need to make reasonable assumptions for information not clarified in the assignment. If so, please state your assumptions in the beginning of your
Bring in at least 2 library sources to help strengthen and support your discussion.
Submit your paper (addressing the questions above) by the Module due date. Paper length: 2-3 pages, not counting the cover and reference pages.
Your paper should demonstrate critical thinking and analysis of the relevant issues and HRM actions, drawing upon all of the required background readings and relevant sources from your
prior courses and your own Use website information sparingly (reputable websites only).
Prepare a paper that is professionally presented (including a “List of References,” and a strong introduction and conclusion).
Proofread your paper carefully for grammar, spelling and word-usage errors.
Address all aspects of the assignment as stated.
Provide private-sector employer examples of HRM programs, systems, processes and/or procedures as you address the above assignment requirments. Provide names of the employers. Use
different employer examples in your case paper than those used in your SLP paper.
Limit your web search and focus instead on your library search. Bring in information from the background readings as well to help add depth and validity to your discussion.
Give authors credit for their work. Cite sources of borrowed information in the body of your paper as footnotes, numbered end notes or APA style of referencing.