Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

Early in December, Roger Tomlin was called in for his annual salary review. Roger was a staff engineer for Zee Engineering Company, which he had been with for just over 10 years. In the past, Roger had usually received what he considered to be a fair pay raise. During this salary review his manager, Ben Jackson, informed Roger that he was recommending a 10 percent raise. Ben went on to extol the fine job Roger had done in the past year and to explain that Roger should be especially proud of the above-average pay raise he would be getting. Upon reflection, Roger was rather proud; in 10 years, he had been promoted twice and his annual salary had gone from $ 42,000 to $ 86,000. Things were moving along just fine for Roger until he discovered a few weeks later that Zee had hired a new engineer right out of college at a starting salary of $ 59,000. It really upset Roger to think that a new, unproven engineer would be starting at a salary that high. Roger’s first move was to talk to several of his colleagues. Most were aware of the situation and didn’t like it either. Lucy Johnson, who had been an engineer with Zee for over 12 years, asked Roger if he realized he was probably making less money, in actual dollars, than when he started at Zee. This really floored Roger. Roger realized inflation had eaten into everyone’s paycheck, but he had never even considered the possibility that he had not kept up with inflation. That evening, on the way home from work, Roger stopped by the local library and looked up the consumer price index (CPI) for the past 10 years. According to Roger’s figures, if his pay had kept up exactly with inflation, he would be making $ 85,000. After a very restless night, the first thing Roger did upon arriving at work the next day was go straight to human resource manager Joe Dixon’s office. After presenting his case about the new employee and about how inflation had eroded his pay, Roger sat back and waited for Joe’s reply. Joe started out by explaining that he understood just how Roger felt. At the same time, however, Roger had to consider the situation from the company’s standpoint. The current supply and demand situation dictated that Zee had to pay $ 59,000 to get new engineers who were any good at all. Roger explained he could understand that, but he couldn’t understand why the company couldn’t pay him and other senior engineers more money. Joe again sympathized with Roger, but then went on to explain that it was a supply and demand situation. The fact was that senior engineers just didn’t demand that much more pay than engineers just starting!

Question

1. Do you think Roger is being fairly paid?

2. If you were Joe, how would you have responded to Roger?

3. Do you think a wage survey might help in this situation?

4. Should Joe establish pay grades for engineers?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92556461

Have any Question?


Related Questions in Operation Management

Ryan kuhl deci 1997 conducted the first study of intrinsic

Ryan, Kuhl, Deci (1997) conducted the first study of intrinsic motivation that considered child’s play as an independent variable. The researchers discovered that intrinsic motivation is readily evident in a child’s play ...

Information security activities often create tension

Information security activities often create tension between the desire of users to engage in a particular activity and the need to secure the information assets of an organization. If business stakeholders and the broad ...

You are given a train engine and three boxcars which are

You are given a train engine and three boxcars, which are all at the Chicago train station. There are two boxcars in Milwaukee. There is a train track connecting Minneapolis to Milwaukee, and one connecting Milwaukee to ...

Suppose that you are the managing director of mlk auto

Suppose that you are the managing director of MLK Auto Company, which is considering expanding its business to China. You wish to produce your auto parts within Chinese borders so that you can lower your labor costs and ...

Now the overseer is to be above reproach faithful to his

Now the overseer is to be above reproach, faithful to his wife, temperate, self-controlled, respectable, hospitable, able to teach, not given to drunkenness, not violent but gentle, not quarrelsome, not a lover of money. ...

Promptin the plan-do-check- act management cycle management

Prompt In the Plan-Do-Check- Act management cycle management plans (sets objectives, develops processes and allocates resource) that the company will execute (Do). Progress in meeting set objectives is monitored and feed ...

The points of view presented to you in ldquoslaves in

The points of view presented to you in “Slaves in Tulsa” illustrate some issues related to global stratification. Some common points of view that people have about this type of issue are: Some people believe that people ...

Three salesmen worked for sentient jet a small luxury

Three salesmen worked for Sentient Jet, a small luxury airline charter service. They signed a non-compete agreement, promising to not go to work for a competing employer within a year after working for Sentient and also ...

Individual incentives are one 1 way to reward employees for

Individual incentives are one (1) way to reward employees for their performance. If your current position offers incentives, explain what type of incentives you can receive and how it helps performance. If your current p ...

Why is it important to prepare a financial budget explain

Why is it important to prepare a financial budget? Explain what is meant by the term "time value of money". For example, why might it be better to receive $8 today, over receiving a promise of $9 seven years from now? Ho ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As