Henderson Printing Case Study
Henderson Printing is a small-to medium sized firm that manufactures account books, ledgers, and various types of record books that are used in business (Long, 2010, p. 512). This company’s compensation system will be analyzed based on the five contextual variables as discussed in the textbook. The environment in which Henderson Printing operates can be classified as stable, as well as simple. This can be justified, as the company produces stable annual sales, thus it can be concluded that product lifestyles are not short, and product and service demand is constant (Long, 2010, p. 40). Additionally, the product/service provided is fairly simple, and the technology is not complex (Long, 2010, p. 512). The…show more content… Consequently, the compensation strategy also reflects this, as there is no real structure within the company.
This company is currently facing financial issues predominantly due to the fact that there is no real structure in the company for anything. For example, the CEO makes all decisions himself, though decisions are based on his current temperament at the time (Long, 2010, p. 512). When an employee wishes for a wage increase he does more often then not grant it, however rather than conducting an employee evaluation his decision is based on his mood, and/or how wells he knows the employee and their family circumstances (Long, 2010, p. 512) As a result, this has lead to pay inequity as all employees receive a different wage regardless of whether or not they perform the same job, have different credentials, and/or experience; furthermore this company is highly lacking distributive justice. Additionally, it also appears that there are no clearly defined roles within the company. For example, the firm has few supervisors, and because their roles are not clearly spelled out they often end up contradicting each other (Long, 2010, p. 512). Similarly, there is no system for scheduling production; thus these factors add to the company’s financial crisis, because there are no efficient processes in