Case - Money Doesn't Buy Happiness. Well, on Second Thought . . .
Read Case in Managing Human Resources. After reading the case, please complete the following items:
A. Write a summary of the case,
B. Answer the critical thinking questions, and Critical Thinking Questions-
1. What do you think is the role of money as a determinant of a person's satisfaction at work and with life in general? Should organizations worry about this issue? Explain.
2. As discussed in this chapter, firms vary widely on the extent to which they emphasize money as an incentive. Do you think an emphasis on financial incentives is good or bad? Explain.
3. For the past 90 years or so, job evaluation as a compensation tool has been designed to assess the value of each job rather than to evaluate the person doing the job, prompting a relatively flat pay schedule for all incumbents in a particular position. Some HR experts believe that the emerging trend is for pay inequality to become "normal." Employers are using variable pay to lavish financial resources on their most prized employees, creating a kind of corporate star system. "How do you communicate to a workforce that isn't created equally? How do you treat a workforce in which everyone has a different deal?" asks Jay Schuster of Los Angeles-based compensation consultants Schuster-Zingheim & Associates, Inc. If you were asked these questions, how would you answer them? Given the issues just discussed in this case, what effect do you think this trend toward greater pay inequality will have on employees' satisfaction with their pay, their job, and life in general? Explain.
C. Elaborate on two key learnings from the case related to trends in employee benefits, legal implications, and cost-containment strategies. Be sure to clearly state the two key learnings and defend them in well-organized, scholarly responses.
A key learning is defined as significant knowledge gained from reading the case. You may choose to explain your key learnings by offering a real-world application, personal insight, your thoughts and opinions about what was stated, how it is handled at your company, etc.