Reference no: EM133025887

Carter Cleaning Center does not have a formal wage structure nor it have rate range or use compensable factors. Wage rate are based mostly on those prevailing in the surrounding community and are tempered with an attempt on the part pf Jack Carter to maintain some semblance of equity between what workers with different responsibilities in the stories are paid. Carter does not make any formal survey when determining what his company should pay. He peruses the want ads almost every day and conduct 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 man of his colleagues adhere to policy of paying his employees about 10% above what he feels are 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

i. Outline any FIVE relevant challenges facing Carter Cleaning Company's wage structure.

ii. Identify and explain any FIVE implications of the company's wage policy on future of the company.

iii. Why is it that the company at the point should be setting up a formal salary structure based on a job evaluation? Give FIVE reasons.

iv. Suggest and explain any FIVE ways that Carter Cleaning Company can do in order to get a market-competitive pay plan with respect to the company's pay issues?