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business
compensation
Questions and Answers of
Compensation
More recently, Fiat Chrysler CEO Sergio Marchionne referred to the two-tier wage structure as “impossible” and described it as “almost offensive.” He also offered more detail on his preferred
What would your pay strategy design cost and how would it be funded? What impact would the required level of funding have on colleges and universities? How would athletes outside of sports such as
One concern expressed by Mr. Dyke is that the English national team may be suffering because fewer English players can develop in the English Premier League. Jürgen Klinsmann, coach of the U.S.
A few years ago, Sullivan & Cromwell announced that year-end bonuses would be cut in half, with a maximum of $17,500 for early-career associates and $32,500 for eighth-year associates. In the
Do players from England play in elite leagues outside of England? Does that affect your evaluation of the proposal? If so, how?
Consider the proposal by Mr. Dyke to limit the number of foreign players in theEnglish Premier League.Take the perspective of owners, players, and fans/consumers.Whowould benefit and who would lose
Has the globalization of the English Premier League been a good thing? Who is better off as a result? Who is worse off? Think carefully about owners, fans/consumers, and players. Are there others who
Rank the factors in the global guide according to your belief in their importance for understanding and managing compensation. How does your ranking differ from those of your peers? From those of
What pay level (e.g., 50th or other) would you recommend be used for the Whole Foods Jobs? Would you use the same pay level for all jobs? Explain.
Given the facts from the case, what can you glean from news reports about McDonald’s, what do you think is going on? Specifically, how do corporate strategy and wage/benefit decisions either
Google is famous for paying wages significantly above the market and also providing employee benefits that one might call lavish. Currently the European Union is suing Google for its monopolistic
You are the teacher in a class where team projects account for 25 percent of course grades. Each student is assigned to a team and that team is responsible for all team assignments. Students comes to
What are the limitations of the Occupational Employment Statistics data?
How strongly do relative job evaluation points and relative survey pay correspond? For example, what is the ratio of job evaluation points you assigned to Job B (Cashier) and Job F (Team Member,
What factors shape an organization’s external competitiveness?
Eric Dempsey Associates (EDA) is a relatively small Public Relations/Advertising firm in Western New York. They recently shifted their strategic plan to focus almost exclusively on clients who
What would you deduce these two airlines believe about the importance of base wages relative to variable pay (profit sharing)?
The likely behavioral impact of profit sharing in this case, assuming the payout is based on overall net revenue of the organization. Some impacts might be positive or negative. What is your
How important is seniority in each of these situations? Should the importance be more or less? Why?
Do you have any predictions about attraction and retention for each company?
Do these airlines pay for skill acquisition? What data do you have to support your position? Should skill acquisition be rewarded?
Does the external environment influence any of your answers?
What problems do you see in the performance appraisal system and accompanying merit pay system? Did any of these problems contribute to the people problems John had with his two employees in the
What might John have done differently in the early communications process to improve later performance review sessions?
Should Billy Ray have quit? Why? Should John have accepted his return? What other action might Billy Ray have taken that could have been hurtful to the company?
Was Elizabeth treated fairly? Should initiative be a performance dimension? What other action might she take? Could she make a case that she was discriminated against? What defense, if any, might the
How does the management of the pay system affect pay objectives?
If NCAA athletes are paid as employees, either because of legal action or colleges/universities deciding on their own to change the system, how should the pay strategy be designed to “work” and
Should NCAA athletes get paid as employees?
If you are majoring in computer science, you may find that some surveys include data on software developers, but not software engineers (and vice versa). How similar are these jobs and can you use
Will Google’s pay strategy work “forever”? Consider the evolution of Microsoft’s pay strategy as its growth slackened. Should Google prepare for a similar future? If so, when and what sort of
What is Google’s pay level? How do you define and measure its pay level? How well is it captured by salary alone?
How do you think the UAW and the workers it represents will react to Mr. Marchionne’s plan? Consider the global competitive market forces we have identified and consider also the degree to which
Will the two-tier wage structure go away in the near future? Summarize the pressures to eliminate it as well as the pressures to keep it. Be sure to consider labor costs and productivity of workers
What are some of the relational returns of the job?
What process would you go through to understand and minimize the differences?
Distinguish between task data and behavioral data.
How similar/different are the two descriptions? You and your teammate started with exactly the same information. What might explain any differences?
In chapter 1, we talked about incentive and sorting effects of pay strategies. Describe the incentive and sorting effects at Merrill Lynch and how changes to the compensation strategy might affect
Should Bank of America change its compensation strategy to include more subjective assessments of performance and a greater emphasis on cross-selling? What effect might this have on its success in
What is the likely result of bidding wars of this type for top brokers? Will most firms benefit? Who will be the winners and losers? What about the brokers?
Explain why there is such a strong relationship between pay and performance for brokers. Why isn’t this true of many other jobs?
Is Best Buy focusing too much or too little on cost reduction? Explain.