Question

(1) Wht factors should Perkins and Balkin consider when setting the wage for the purchasing agent position? What resources are available for hem to consult when establishing this wage?

(2) Suggest advantages and disadvantages of a pay-for-performance policy for Performance Sports.

(3) Suggest a new payment plan for the customer service representatives.

Answer 1

What factors should Perkins and Balkin consider when setting the wage for the purchasing agent position? What resources are available for them to consult when establishing this wage?

Perkins and Balkin should consider the “Point System” to estimate the quantitative of the basic duties that define the value of the job.  The talents, discipline, experience, responsibilities are the primary compensable factors used to rank a position as more or less important than another. “Point Manual” a handbook that includes a classification and job specifications factor against degrees. “Wage Survey,” salary should be based in part on how much money employee needs for day to day living. Using these two tools, Perkins and Balkin can arrive at a conclusion on how much the purchasing agent is looking to get paid. In the few years I have been working in the HR world I have noticed, the main factors an organization is almost obligated to consider while setting a salary for positions are average pay in the market, cost of living, duties, average pay for experience desired. If managers consult the handbooks available online and internal database in the company, Federal laws and statutes, such as minimum wage law, or only ask HR Department, they will get an answer in situations like this one.

2. Suggest advantages and disadvantages of a pay-for-performance policy for Perfor- mance Sports.

? The advantages of a pay for performance policy is typically that productivity is increased while overall employee compensation costs are decreased because it doesn’t pay poor performers well. The disadvantages are measuring employee performance isn’t always easy. There will always occur some discrepancies in the performance level measured by the employer and actual performance level obtained by the employee which leads to dissatisfaction and decrease in motivation of the employee.

3) Suggest a new payment plan for the customer service representatives.

A new payment plan for customer service representatives may be giving them the options to choose the pay for performance. Also, Perkins can also reward her customer service representatives with bonuses, commissions, giving the employees half a day off with pay every week depending on how much business the company is doing to keep the customer representatives happy.