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In: Operations Management

Question 2 You are the new compensation and benefits manager for a mid sized organization. You...

Question 2 You are the new compensation and benefits manager for a mid sized organization. You study the system and find inequity in the pay packet amongst employees with similar skills sets. Discuss the theoretical frame work that you would apply to ensure fairness.  - (5 Marks ) subject Organizational Behaviour

Solutions

Expert Solution

To overcome the problem unfairness in compensation and benefits to employees, the solution is to allot employees into specific departments as per their skills. For example, everyone handling technical or software related work must be alloted into one department, employees handling finance must be alloted in another department. Similiarly, employees handling sales or marketing must be alloted in respective departments.The base salary must be hourly or salary based and everyone in each department must be equally paid. Employees with more experience can be paid more but employees with similiar experience and skillset should be equally paid. All employees with similiar skill set must be given equal year-end bonuses, informal bonuses or goal based bonuses. All the employees must get health insaurance, housing, cell phones, travel allowence, paid vacations or similiar benefits depending on the department they work in. Every employee in their respective department must be given equal growth and skill advancement opportunity. This will help in ensuring equality and fairness at work.


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