BUS225_Module_Two_Assignment JML

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School

Southern New Hampshire University *

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225

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Business

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Jan 9, 2024

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docx

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Uploaded by lobe241

1 Module Two Assignment Jennifer Lobe Southern New Hampshire University BUS 225: Critical Business Skills for Success Keisha Johnson September 10, 2023

2 Module Two Assignment Interpretation The quantitative data within this scenario consists of the manager's comments which are not 100% added to the spreadsheet only a few were noted. The qualitative data includes salary, overtime, bonus, date of hire, and employee performance rating. Information that I can gather using this data is the total number of payroll dollars broken down by salaries, overtime, and bonuses. The performance ratings by department and the difference between salaries between management and employees. All of this data can be gained by pulling the data into a pivot table I use several different pivot tables only because I like to pull them into individual charts so that it is more of a visual representation of the data for presentation purposes or publication. Based on the data you can see that there were only a few departments that required overtime. The information technology division had the highest percentage of overtime at 52.7% of those departments that recorded overtime. The next was manufacturing and sales recorded over time each of these departments' overtime put together equals the other portion which is still less than the information technologies division based on the overtime recorded the company should be looking at the correlation between IT, sales, and manufacturing as it is probably a process issue that is creating the overtime for these employees a review of the internal technologies for these systems and possibly a new training session for employees to properly use the machines so that they do not require as much IT assistance if used properly. The other portion of the story is that the management salaries and the employee salaries for a company of 77 are vastly different. Even though the management does not take bonuses and everyone else in the company receives a $2,000 bonus based on the data the management difference in salary is on average for the 4 management employees is $275,147.75 and the average salary for the employees based on the 73 employees is $53,610.96 that is a difference of 413.23%. If the employees were unionized this could create an issue as it seems that the management team is giving themselves the bulk of the profits while the employees who are working hard on the products are getting less than what their positions should be earning. The questions that emerge from the data are around the difference in positions and salaries. What are the requirements for management does each department have a manager or are there only 4 managers for 73 employees across the company? Do the employees know that their salaries are less than what the management makes? The longevity of the employees shows that they enjoy the work environment as they have been with the company since 1987.

3 What can the company do to create a more equal opportunity for bonus funds for the employees? Analysis The data that was interpreted helps me to understand how the company issues its financial resources in a less-than-equal way. The employees only make an average of $53,610.96 annually while the managers of the company make 4.7 times that annually even though they do not take bonuses and have no overtime How can this company use their financial resources to improve the annual bonuses for the employees or create a more equal salary comparison on average a supervisor should only make 5% more than the employee and the management group is earning 413% the average salary of the employees. If this was to come up in a lawsuit or if the employees were unionized then negotiations would become difficult as the company would need to justify the salaries between each of the employees and the huge gap between them and the management. Some of the information needed to determine how to reduce Human Resources expenses would be. How much time does each work on payroll, labor relations, benefits, etc.? There are so many different things that Human Resources does and to understand how to reduce Human Resources expenses they need to itemize the duties, inventory, software requirements, and hours spent on each assigned topic. A primary source could come from direct one-on-one conversations with the managers and supervisors but then expand out to the front-line staff by department and then gather a couple of focus groups of some employees for each department and use lean methodology to map the processes and procedures to help understand where the company can do better. Conclusion The strategy for reducing overall payroll by 10 percent would be to based on the data reduce the manager's salaries They have the highest number of payroll dollars and can afford to have the salaries reduced to benefit the company. The other option is to remove the bonuses for the employees but in doing so the management needs to discuss how to offset this by lessening their salaries to boost the employee salaries so that they are less reliant on the bonus money and can see it in their paychecks vs. once a year. If the management wanted to cut 10 percent then they need to look at the pay differences and cut from those that make the most and that would be the 4 managers all making over 200,000 dollars a year. If the managers were to cut the cost in the employee's salaries then it would seem as if their positions don't matter or they don't matter and then the retention rate the company has would be broken as many people may leave if their salaries are cut when management makes way more than the rest of the employees.

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