Question

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 area’s 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 units—soups 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 company’s 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 company’s current business strategies and goals as well as attract and retain top talent.

1. Angelina is a self-proclaimed “health nut” and animal activist. She recently was hired at Fresh Munchables, a food and beverage company offering vegan on-the-go snacks, as their marketing manager. Angelina could not be happier about her new position because it aligns with her values.

   What does the HR manager who hired Angelina know about the purpose principle?

   Purposeful employees are typically the hardest-working employees in any industry. Animal activists have a higher moral purpose than those who disregard animal rights. When the employee’s values align with the business’s core purpose, the employee will need fewer rewards. When the employee’s values align with the business’s core purpose, the employee will value their relationship with the business more.

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   After the departure of more than a few employees over the past six months, the management team at Fresh Munchables’ are concerned about their employees’ happiness and job satisfaction. The company has raised wages and found the best possible health care plan; yet, it still struggles to keep long-term employees.

   Which strategy can the management team use to figure out how to retain employees and increase employee satisfaction?

   Reward the managers whose departments have the highest employee retention rates and fire the ones with low employee satisfaction. Offer a better retirement plan for employees in order to incentivize older workers to apply for jobs. Create policies that penalize employees for leaving the company before a specified period of time in order to establish expectations. Conduct a survey asking employees what benefits they want in order to gain useful information about preferred compensation plans.

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   Liping was an employee in the marketing department at Fresh Munchables. As time passed, she became dissatisfied with her own pay after realizing that the sales team made more than she did and that they also received quarterly bonuses based on their sales numbers. Liping felt that her efforts in marketing led to more sales by the sales team and that the division of pay was unfair. Unfortunately, her manager wasn’t able to provide satisfactory answers to her questions about why the two departments were paid differently and Liping soon quit. Fresh Munchables does not want such a situation to occur again. While developing a total rewards system, the compensation team should do their best to build a model that is ________.

   private and inaccessible, because it will prevent the employees at Fresh Munchables from getting upset by pay disparities flexible and adaptable, because it will permit the managers at Fresh Munchables to make appropriate wage-related decisions clear and logical, because it will allow the employer to justify their compensation-related decisions fluid and ever changing, because it will enable Fresh Munchables to change its total compensation system on a monthly basis

4) As an HR professional, you understand that compensation and total rewards is a complicated topic. At Fresh Munchables, there have been many cases over the years in which employees have shared strong feelings and harsh words with HR when they felt that their pay was unfair.

In light of the company’s past dealings with employees concerning compensation, which of the following is important for you to understand as you revise the total compensation system?

Wages and rewards shape how employees both feel and perform. Employees don’t need a transparent compensation system because it could make them feel bad. Employees care deeply about being paid more than their peers. Compensation is too complex to approach straightforwardly and openly.

Answer 1

Fresh Munchables is having a very clumsy and over flooded staff as the business is divided into three overachieving SBU's. The major flaws in the Munchables payroll system are letting the other departments or personnel to know about ones' salary, this situation creates superiority or inferiority complex among the employees working in the Munchables. Without providing satisfactory pay and bonus and even seasonal salary hikes the employees cannot be retained even though the employees have an interest in work the company is involved.  Employees do not need a transparent payroll system. A rule should be passed by the HR department that no one's salary should be disclosed to others if anyone does such an act they will be treated as violating company rules and immediately fired. The HR department should take a proper control over the payroll process and they should also entertain the employees by providing an hour for physical activities etc. fo the refreshment of the employees. The employees should be encouraged to go on a family trip or vacation for which the company pays at least once in an year.