Reference no: EM132872642
Fresh Munchables is a mid-sized but steadily growing food-processing company founded in 1967. Since its inception, the company has been committed to providing only premium quality health foods. The company is headquartered in Wichita, Kansas, and it is one of the area's largest producers of soups and simple meals. In the past 20 years, the company has also begun processing healthy snacks and beverages. Fresh Munchables has traditionally sold its products through large grocery stores, but it is now venturing into online and restaurant businesses, which is all very new territory for management.
The company is split up into three overarching strategic business units-soups and meals, drinks, and snacks. Additionally, the company is divided into several business units at the operational level, consisting of a mix of business operations, manufacturing (production), research and development, finance, and so on. As the company continues to grow, the executive team and other leaders are constantly looking for ways to improve processes.
Because Fresh Munchables has grown from a very small company into a well-established organization, management has decided to broaden the company's strategic HR functions. The human resources team is currently working to improve recruiting and hiring processes, succession planning, and most importantly, compensation and rewards.
For many years, the company has delegated compensation decisions to managers with little to no training on the subject. This has left the company in a disorganized, confused state when it comes to paying and rewarding employees. These problems have compounded as Fresh Munchables has recently opened up new manufacturing locations with new managers and many new employees.
The chief human resources officer has organized a team of compensation specialists of which you are a part to spearhead total compensation-related problems and help the company to reach its current and future goals. You and your team can achieve this by revising the current total compensation system to reflect the company's current business strategies and goals as well as attract and retain top talent.
After carefully considering different approaches for internal alignment at Fresh Munchables, the compensation team has officially decided to use a point factor approach. After choosing compensable factors, developing factor measures, and determining factor weights, you are now ready to pilot test the job evaluation system. This is an important step in which the compensation team can make sure that all parts of the system come together effectively. Another concern the team wants to address during this step is evaluating employee satisfaction with the new system. Fresh Munchables has not used a system like this before, and some employees have raised questions and concerns about it.
Because Fresh Munchables has grown so much since its inception, the CEO wants to revisit the company's methods for establishing internal reward alignment. The executive team has advised the HR department to use a job classification approach. However, you disagree.
What information could you use to show the executive team one primary disadvantage of using a job classification approach?
-It is impossible to determine all the tasks done in each position, so classification is also impossible.
-It is difficult to hire qualified employees because the recruitment and selection process becomes more generalized.
-It is difficult to create distinctions between jobs as the number and types of jobs in an organization grows.
-It is impossible to assign value to each job without first analyzing how other companies have valued similar jobs.