Jones Ironworks, Inc.

According to our point of view, this decision will harm to the lowest paid workers and profitable for big businesses. From economic point of view, if there is a cut in employee’s wages then their income will fall and they will spend less, moreover, there is a positive correlation

How this system works is employees are paid a standardized salary which entitles extra benefits and or bonuses on the side. The main focus of benefits is to focus on stability, health, wellness, and lifestyle. These benefits are there to make the employees life’s more comfortable and enjoyable, not necessarily cash incentives. However, there are cash incentives offered as-well. Incentives are the drivers of employee performance, as short term incentives are cash bonus based on performance, or rather long term incentives being stocks in the company you work for. How we will implement this is through transferring your average paycheck to a salary. Meaning a 40-hour work week at 11.40 is $456 a week before deductions. The math equates to a base salary of 21,888. From there employees will be able to receive benefits or incentives based upon work efficiency. We will have assigned goals to achieve by set deadlines to determine employee efficiency. All employees in this system are inclined to do more work at a more efficient rate since they are now being rewarded further than their salary or prior their hourly wage. This business function being salary based with incentives and bonuses will take a greater toll on management. Management will be deemed in charge of bonuses and benefits. It will be their responsibility to determine whether said employee deserves certain benefits or certain incentives based on their work efficiency. As management takes on a heavier role in the company it is better for the greater good and is a sacrifice they will have to be willing to

3. Escalator clause: 7.5 points or 2.5. The escalator clause increases the wages that the employees receive given the increased cost of living. Although this issue can get material over time, at the moment inflation generally rages at about 2%, considering an extreme case of 5-7%, this is still not as material as the other issues at hand. However employees should not rely on the company to have their wages adjusted to inflation, usually this is a government regulated initiative. In this case it would be acceptable to only factor in 30% of the CPI. LAstly we would be still ok if we were to maintain the current structure however defer the CPI adjustment until the new plant is operating at full capacity. This is an incentive system for the workers as well as if implemented it would drive revenues given that overall efficiency would be improved.

Early behavioral theory also describes a hierarchy of needs of workers to entice motivation. There are five levels: physiological, security, social, esteem, self-actualization. It states that if a lower need (physiological needs) such as food, water, shelter is not met, the worker will not be focused on a higher need such as sociability (the social needs). The worker will be motivated to increase his wage so to buy more food. Galt’s current piece-rate does not allow for a socializing environment. If his workers want to socialize and cannot, then their motivational drive will not be focused on a self-actualization need but on a social need. Changing the system to flat rate will allow for social needs of workers to be met. Once social needs are met, early behavioral theory states esteem needs and self-actualization needs will follow.

Increasing the wage for all employees will cost a lot of money for employers. Business will be faced with two decisions, either “raise their prices”, or “simply cut employees or reduce benefits” (Williams). If they choose to raise up prices, then there will be no benefit for the increase of wage. Employees will get an increase in wage, but so is prices of almost everything. And if businesses choose to cut employees and benefits, then the number of unemployment could possibly arise, and the benefits such as paid vacations and PTO, can be easily get demolished.

President Barack Obama has recently proposed an increase in the minimum wage rate to $10.10. With the increase of minimum wage there are both potential benefits and costs. One of these costs is the risk of employers being forced to lay off workers due to their fixed budgets. In the short run the price of labor is a fixed cost, and when this fixed cost increases dramatically it has a major impact on the controlled budgets of employers. The increase in the cost of labor is also paired with an increased cost in higher taxes for business

T. Eaton Co. Limited, or more commonly known as Eaton’s, was founded in Toronto in 1869, by Timothy Eaton . It was one of the most successful department store retailers in Canada during the late 1800s to mid 1900s. Timothy Eaton’s success can be attributed to his strategy of appealing to the upper working class with disposable income and lower middle class as this reached a larger consumer base. Moreover, his introduction of the mail-order catalogue, his determination and detailed attention to the company’s accounting and finances, the increased urbanization and living standards, along with many more factors, led to Eaton’s success. Despite Eaton’s downfall in the 1970s, and finally bankruptcy in 1999 , it is undeniable that Eaton made some innovative changes to the retail landscape that differentiated itself, and are still present to this day. Firstly, all goods were sold at fixed cash prices, such that there would be no bartering, or price negotiations; so goods could not be purchased on credit. The introduction of the money-back guarantee was effective in gaining the loyalty of its customers: “Goods Satisfactory or Money Refunded” .

Hence, person focused pay systems typically have higher average hourly wages than traditional pay systems. Since skill-based pay systems give everyone the opportunity to learn multiple skills, a large investment is made in training and, of course, training is costly in terms of paying trainers and losing production time. Furthermore, the more serious problem is that when individuals are constantly learning new jobs, production losses and problems result because inexperienced people are performing the work. Because employees are always trying to leam new skills under this kind of pay system,

At 1981, The George A. Hormel Meatpacking Company cut wages from $10.69 to $8.25 to claim the need to remain competitive. Companies threat workers that they either close one plant and then open it at lower wage places or exit the business directly. Local unions like P-9 firstly request that all the workers should stick to $10.69 an hour in ten or fifteen years that we could call its target point. The company didn’t agree, they asserted new member workers the company recruited would be paid two dollars less for the same work, which is different from the P-9 decision. Union P-9 refuses any concessions in the negotiation process at first, which proves it is an over-aspiring negotiator. It reveals its reservation point that keeping the $10.69 at least three years too early because it has absolute confidence to win the negotiation. But actually P-9 Local wrongly assesses the counterparties interests and BANTA and lead to final negotiation failure unavoidably.

I agree that that would not be beneficial to the employees' or restaurant's best interest. However, like I said before, I do believe that the wages should be raised to meet somewhere in the middle. Letter two explains why it wouldn't be good to raise the wages by three times, but I don't see why the restaurant cant meet somewhere in the middle. For example they could raise menu prices a little bit, not a drastic amount, and maybe shorten shifts a little bit, raising overall wages by atleast a little

I'm sure that this brief paper persuaded some people as it clearly lays out the facts. I believe the debate on this topic must continue to ensure we meet an resolution, hopefully the desired

This haevily disguised case is set in the “nature “woodstoves business in 1986. It is not based on The Vermont Castings Company. The issue is product line strategy based on product line profitability.

Q1. Based on the 2004 statement of profit and loss data, do you agree with Water’s decision to keep product 103?

Destin Brass Products is a manufacturing company specialized in brass products started in Destin, Florida, 1984, running by Roland Guidry (president), Peggy Alford (controller), John Scott, (manufacturing manager) and Steve Abbott (sales and marketing manager). There are three major product lines: valves (24% of company revenue), pumps (55% of revenue) and flow controllers (21 of revenue). Recently, due to its competitors keeping reducing product price, Destin found it become difficult to match such low price with a profitability decline under the current cost system. A meeting was held among senior management aiming to find out some new strategies to keep Destin’s competitive position.

Gainesboro Corporation was founded in 1923 by two mechanical engineers, James Gaines and David Scarboro. It was the industry leader in press and mould manufacturing. Its revenues declined from $911 million in 1998 to $757 million in 2004. To combat the decline in revenues and weakening profit margin it followed a two prong approach. First it devoted a greater share of its research and development budget to CAD/CAM to establish its industry leadership. Second the company underwent two major restructuring. The company had set the objective of achieving 15% CAGR growth.