merit pay program
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What benefits and costs could a business expect from changing the merit pay program?
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- What if we have a very ambitious employee-- one who does not presently possess the skills needed-- can we raise this person up to become the best person for the job?Do employees have a voice when benefit packages are being redesigned or newly introduced?Which reward/pay systems are more acceptable to employees: stock, bonuses, or salaries? Why do you think that?
- What skills would someone need to do well at your job?How will a new company like Kibbles and Bits promote an ethical business culture, and what types of ethically based reward and evaluation systems are you planning?Do you believe that the compensation changes at Best Buy are a major reason for its current difficulties? Explain.
- Do you think executive compensation in its various parts (i.e., salary, stock options, severance packages) funded at the current level is unethical? If so, how would you revise the compensation so that it was just? On what basis would you change it? Does the government have a role to play? If so, in what manner? Is the Sarbanes-Oxley Act too strict, not strict enough, or just right? Explain.Assume that you are a high level manager for a shoe manufacturer. You know that your firm could increase its profit margin by producing shoes in Indonesia, where you could hire women for $40 a month to assemble them. You also know, however, that a competing shoe manufacturer recently was accused by human rights advocates of engaging in exploitative labor practices because the manufacturer shipped shoes made by Indonesian women working for similarly low wages. You personally do not believe that paying $40 a month to Indonesian women is unethical, because you know that in that impoverished country, $40 a month is a better than average wage rate. Assuming that the decision is yours to make, should you have the shoes manufactured in Indonesia and make higher profits for your company? Or should you avoid the risk of negative publicity and the consequences of that publicity for the firm’s reputation and subsequent profits? Are there other alternatives?How do cost leadership organizations retain profitability?
- Identify some of the megatrends which you regard as the most likely to influence your own professional career. How can you develop yourself to cope with that?How would you suggest that people who work for you take on certain traits? How important are these traits for the business?How do you explain the fact that in the business world basically good people sometimes act immorally?