Hrm Case 3

998 WordsMar 30, 20134 Pages
HRM Incident 3: The Controversial Job David Rhine, compensation manager for Farrington Lingerie Company, was generally relaxed and good-natured. Although he was a no-nonsense, competent executive, David was one of the most popular managers in the company. This Friday morning, however, David was not his usual self. As chairperson of the company’s job evaluation committee, he had called a late morning meeting at which several jobs were to be considered for reevaluation. The jobs had already been rated and assigned to pay grade 3. But the office manager, Ben Butler, was upset that one was not rated higher. To press the issue, Ben had taken his case to two executives who were also members of the job evaluation committee. The two executives…show more content…
The jobs people have are major determinants of the amount of financial compensation they will receive, and organizations pay for the value attached to certain duties, responsibilities, and other job-related factors, such as working conditions. The relative worth of jobs is usually determined through a combination of job analysis, job descriptions, and job evaluation. The employee evaluation measures the employees overall performance of their tasks as it relates to the overall success of the company. David was asked to evaluate the job for compensation purposes, which involves the job function, not the person who is performing the job. I do feel that David was justified in insisting that the job, not the person be evaluated. 2. Do you believe that there is a maximum rate of pay for every job in an organization, regardless of how well the job is being performed? Justify your position. Employers use pay scales to calculate salaries. The rate range for a job grade consists of a minimum, midpoint, and maximum rate of pay unrelatedly to how well a job is performed. Many employers use a system job evaluation tool to rank jobs based on skill, education, experience, and duties to assess the job description. There should be a maximum rate of pay, which should be based on the individual’s job performance. The starting rate and maximum rates should be the same for all employees in the same position but, their individual rates may be different depending on their
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