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In: Operations Management

Comment on the salary system and weakness you see in it: present some compensation issues. If...

Comment on the salary system and weakness you see in it: present some compensation issues. If you were the director, how would you handle Fred?

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A weakness of the current salary system is time, performance and qualifications. I believe that performance should be taken into consideration. If someone has less experience but it performing better, I do believe they should receive more pay. Longevity in the company should be honored as well. If someone has been working in the company for years, then they should have the potential to more forward and make more, if their skills are advancing as well. If someone has higher qualifications such as education, experience, or certifications, that should also be evaluated. Also looking at the time of the evaluation, is it fair to only evaluate at a certain time of year? If evaluations are in December but someone is hired in January, is that fair? I believe that a new hire should start with a reasonable pay and earn their raise rather than start off higher than everyone else.

If I was the director, I would handle Fred by having a one-on-one conference with him discussing his future. I would listen to his concerns and assess how he feels because his emotions are important part of his wellbeing. Although he may not have the desired salary for the present, He still has to time to make the necessary changes to get what he wants for the future. In no time he will be evaluated for next year and it is possible to achieve the salary that he is desiring, but he must not compare himself to others. I will also tell him that I see issues with the current policy and we will make adjustments for the future.


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