Question
Denton Fabricators is a subsidiary plant owned by National Products, Inc. As is the case at all National Products subsidiaries, Denton Fabricatorsis allowedtooperateasan independent profit
Denton Fabricators is a subsidiary plant owned by National Products, Inc. As is the case at all National Products subsidiaries, Denton Fabricatorsis allowedtooperateasan independent profit center.This means, among other things, that Denton Fabricators sets its own pay policies and programs. Denton employs about 350 employees, mostly in the fabrication and production units. To support the business,thereisanaccountingdepartmentstaffof13includingthe department manager, three unit managers, and nine nonexempt employees. There are four non-management jobs in the department:accountants(twopositions),senior accounting clerks(twopositions),bookkeepers(threepositions),andbookkeeperassistants(two positions). The two employees in the accountant positions were recruited out of college, andthe remaining employeesin the unit typically started asbookkeeper assistants,then worked upto bookkeepersand eventuallyto thesenior accounting clerk job.DentonFabricatorshasbeenunderthesamebudgetaryconstraintsastheother subsidiaries in National Products. As a result, there have been no changes to Denton's salary levelsfor over 3years.Over the past 2 years,Denton has experienced increased levels of turnover throughout the company, includingin accounting.
You have been given the assignment of reviewing the salary levels for the four positions in the accounting area.You are to make recommendations for any changestoDenton's salary program for these four positions and/or any individuals in those positions. Estimate the effects these changeswould haveon employees. To that end, you have been provided the following information:
1.Make a staffing and compensation chart which includes recent data from a salary survey of your labor market.
2.The corporate compensation philosophy.
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