Company’s compensation system

You have recently been hired as the HR manager of a small furniture manufacturing company that has 63 employees. These employees include everyone from line workers to upper management. You are the first HR person the company has had. One of your first assignments was to evaluate the fairness of the company’s current compensation system.

undefinedBased on your evaluation, you have discovered a number of inconsistencies:


  • Some line workers earn more than managers.
  • Some managers earn twice as much as other managers even though the work is similar.
  • Some line workers are making significantly more money than others even though they are performing the same work.

undefinedWhat recommendations would you make to improve the consistency of the company’s compensation system?


  • Be sure to provide the rationale for your recommendations.

Requirements: two to three paragraphs

Answer preview

The authors observe that innovation is key to realizing better outcomes for society by creating alternative means of resolving specific challenges (Jensen & Clausen, 2017). However, organizational capacities and capabilities are essential in ensuring that these entities can fulfill their objectives and satisfy the demographic they serve and as such, exploiting technological attributes ensures that the educational organization in question can perform its mandate. In effect, organizational operations become more efficient and become more reliable in the provision of services. Even more critically, it allows them to standardize their processes and procedures to meet the thresholds needed to satisfy their customers and compete with other players in the market. Exploiting such capacities is key to improving the organizations’ chances of sustenance because they can provide the specific benefits that their target markets crave.

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