Carter cleaning company-the new pay plan

Assignment Help Operation Management

Reference no: EM13902746

CARTER CLEANING COMPANY - The New Pay Plan

Carter Cleaning Centers does not have a formal wage structure nor does it have rate ranges or use compensable factors. Wage rates are based mostly on those prevailing in the surrounding community and are tempered with an attempt on the part of jack Carter to maintain some semblance of equity between what workers with different responsibilities in the stores are paid. Carter does not make any formal surveys when determining what his company should pay. He peruses the want ads almost every day and conducts informal surveys among his friends in the local chapter of the laundry and cleaners trade association. While Jack has taken a "seat of the pants" approach to paying employees, his salary schedule has been guided by several basic pay policies' Although many of his colleagues adhere to a policy of paying minimum rates, Iack has always followed a policy of paying his employees about 10% above what he feels are the prevailing rates, a policy that he believes reduces turnover while fostering employee loyalty. Of somewhat more concern to Jennifer is her father's informal policy of paying men about 20% more than women for the same job. Her father's explanation is "'they're stronger and can work harder for longer hours, and besides they all have families to support."

Questions

l. Is the company at the point where it should be setting up a formal salary structure based on a complete job evaluation? Why?

2. Is Jack Carter's policy of paying l0% more than the prevailing rates a sound one, and how could that be determined?

3. Similarly, is Carter's male-female differential wise? If not, why not?

4. Specifically, what would you suggest Jennifer do now with respect to her company's pay plan?

Reference no: EM13902746

Questions Cloud

Determine the optimal number of bolts for the plants : Stainless steel bolts are consumed in a factory at a fairly constant rate of 60 units per week. The bolts cost the factory 2 cents each. It costs the factory $12 dollars to initiate an order. Holding costs are based on an annual interest rate of 25 p..

What three from the list above represent your weakest areas : How do answer this question for entry level job? What three from the list above represent your weakest areas? List and explain.

How often should the hotel use pickup-and-delivery service : A hotel uses an external laundry service to provide clean towels. The hotel generates 600 dirty towels a day. The laundry service picks up the dirty towels and replaces them with clean ones at regular intervals. How often should the hotel use the pic..

Hovak company has credit sales : Hovak Company has credit sales of $ 4.5 million for year 2013. At December 31, 2013, the company's Allowance for Doubtful Accounts has an unadjusted debit balance of $ 3,400.

Carter cleaning company-the new pay plan : Carter Cleaning Centers does not have a formal wage structure nor does it have rate ranges or use compensable factors. Is the company at the point where it should be setting up a formal salary structure based on a complete job evaluation? Why? Is Jac..

Explain logistic tasks involved in one supply service chain : Explain logistic tasks involved in one supply service chain, say involving a hospital or restaurant. How different are these tasks versus those involved in a manufacturing supply chain?

Determine dollar amount of loss covered by insurance policy : Amber has a Homeowners 3 policy. If possible, determine the dollar amount of the loss that will be covered by Amber's insurance policy. Amber is on vacation, and a thief breaks into her hotel and steals a suitcase containing jewelry appraised at $1,2..

Prepare journal entries to record these transactions : The following selected transactions are from Springer Company.

User Account

All Pages