Case Application (New Pay Plan) Alizay Waheed Kayani 24347

Assignment 2(Classwork activity)
Name: Alizay Waheed Kayani 20181-24347

Course: HRM 301 M-7005
Case Application: 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, Jack 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.
Discussion Questions
1. 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 10% 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?
Solution
Answer 1:
The company is at the point where it should set up a formal salary structure based on a complete job
evaluation because this way all the employees will be treated fairly and no gender discrimination will
occur if salaries are given according to the work/ task done by each employee. Providing a fair salary
structure will satisfy employees and motivate them to work. This will help in retaining the employees
because turnover will reduce. Also the employees will have clarity regarding their salary based on the job
position each has. It would be better for Carter to pay salaries according to task/ job done and for this the
pay can be determined by evaluation of the job.
Answer 2:
In this case study, Jake Carter’s policy of paying 10% more than the prevailing rates is practical. They
can conduct surveys to gather information regarding what other firms are paying for similar type of jobs.
They can also do job evaluation. They can give similar salaries to similar type of job/ task. It can develop
salary span/ range for motivation keeping in notice that both male and female employees are paid
according to the worth of their job not gender. In this case study 10 % more means employees will stay
and turnover will be reduced as employees will be satisfied and stay loyal for the firm.
Answer 3:
Carter’s male female differential is not wise because according to law all employees should be treated
fairly irrespective of their gender. There are few exceptions for senior employees or those who do
overtime. In this case study the reason for giving 20% more to men is not justifiable on logical grounds
as both men and women doing a similar job are carrying out equal duty, responsibility as well as efforts.
The reason that men are strong and work more is not practical here. Under law gender discrimination is
not permitted both male and female workers should get similar salary for the same job position. The
policy for pay in this case study will create chaos and problems amongst members leading to high
turnovers and also low quality productivity.
Answer 4:
In my opinion these suggestions can be favorable:
1. Formal pay/ salary structure. This will make employees feel satisfied as they will be treated
equally.
2. Formal surveys. This will enable company to know what other firms are paying for the various
types of job in the market.
3. Pay equal to both female and male employees and stop the current policy.
4. Reward employees who perform outstandingly regardless of gender.
5. Salary increments to be given on job performance.

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Assignment 2(Classwork activity)

Name: Alizay Waheed Kayani 20181-24347

Case Application: The New Pay Plan

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

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