Make a recommendation to John regarding Suzie's idea, giving a rationale that must include finance and human resource management concepts. 7:06LABOR ECONOMICS CASE.docThe CaseSuzie was frustrated by John's (her boss') compensationpolicy for the leasing staff at a large apartment complex shemanaged. She though they were paid too little and felt thatfairness dictated that they should receive significant raises,despite historical raises significantly higher than theaverage inflation rate (5% to 15% per year versus 2.5%inflation). Her rationale was that she wanted to keep good,honest people and that the company and apartment complexmakes a bunch of money year in and year out. Periodicmarket surveys demonstrated that the total compensationpackage at Suzie's property was in the top half of allproperties surveyed. The following table shows the generalcomparison.COMPONENTMARKETSUZIE'S PROPERTY$18 to $28.50 depending uponexperience and tenureUp to 10% of gross pay basedupon property, team, andindividual performance.Base Pay$18 to $25.50Merit pay5% to 20% (of base pay)commissions for new leasesand renewals individually|responsible forApartment Discounts 10% to 50% of base wage if 25% to 35% of base wage iflive on propertylive on propertyBenefitsCompany pays 0% to 50%health and retirement benefits a smaller contribution to|(less prevalent)Company pays 50% of health,dental, and no match forretirement.John's rationale was the property was a great place to work,with a family atmosphere. In addition, the propertylocation and maintenance levels sell themselves. It's aneasy sell. John's tendency has been to hire quality peoplewith little industry specific experience and typically nomore than a high school education. Thus, as an entry levelopportunity, the job provides a base compensation packageof 37,000. People, women mostly, tend to take this positionand stay for quite a while. Within two to three years, withjob specific training, they tend to improve their earnings tojust over $44,000 annually. Then their pay tends to leveloff, growing only slightly faster than the cost of living.While John's policies have not created turnover, Suzieremains frustrated. She recently restructured the office,reducing staffing by .5 FTE. She wants to spread thesavings to the remaining 2 full-time employees. She wantsto train them in non-leasing related functions (likebookkeeping) and pay them up to $8,000 more each peryear as a result of their expanded duties.( PreviousNext >4000DashboardCalendarTo DoNotificationsInbox

In an organization, manpower and money are the two dominant factors that define the success and…

Answered: Make a recommendation to John regarding…

Make a recommendation to John regarding Suzie's idea, giving a rationale that must include finance and human resource management concepts.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Q.ZYX is a larger manufacturing firm that is well known as a ‘Good employer’. Over the past few years, ZYX has experienced difficult times with reducing sales and mounting losses. In desperation, it employed management consultants to analyze its situation. The consultants have concluded that the downturn in sales is permanent and that ZYX needs to reduce its workforce by 40% over the next year to survive. Reluctantly, ZYX’s board of directorshas accepted these findings, including the need to reduce the number of staff. The directors have also agreed to act as honestly and as fairly as possible, but realize that any change they propose will be unpopular and may meet with resistance. a) Discuss what initiatives ZYX can take to achieve the job reduction needed given thecompany’s reputation for being a good employer (your answer should includereferences to appropriate support for any individuals affected). b) Discuss the potential strategies available to overcome resistance to change,and…
Extortion is: Select one: of O a. All the answers are correct O b. the use of power in return for a benefit tion Oc. the use of intimidation in return for a private gain O d. the conscious abuse of resources for private interest s page cmid%3D97849&page%3D17# 5 ppt slid...ppt chapter 4 Corp G....pptx 15 11
At a recent board meeting of Co., a non-executive director suggested that the company’s remuneration committee should consider scrapping the company’s share option scheme, since the executives could be rewarded by the scheme even when they do not perform well. A second non-executive director had a view that, even when the executives act in ways which decrease the agency problem, they might not be rewarded by the share option scheme if the stock markets were in decline. REQUIRED: Explain the nature of the agency problem and discuss the use of share option schemes and performance-related pay as methods of reducing the agency problem in a stock-market listed company.
HOME WORK CHAPTER 11- Total Rewards & Compensation 5. What are the necessary criteria for giving exempt status to an employee?
Explain the term Allowances?
Smith Co. is a firm specializing in financial advice for retired individuals. After some analysis, youhave determined that an earnings multiplier of 7 is appropriate for this type of business. Smith’smost recent earnings totaled $250,000, and earnings per share was $4.50. What is the value of thefirm based on the earnings multiplier?
D iscuss the implications of offering non-monetary fringe benefits,
c. If the "Raise the Wage Act" becomes law, by what percent will the minimum wage increase between 2019 and 2024? percent
Explain in brief the TWO (2) similarities and the differences of salary and insurance from the perspective of compensation. Plz do fast asap
FACTS: The ABC Corporation has been engaged in the manufacture of electronic components for automobiles for the last five years. The company employees 350 employees and about 30 supervisors and managers. The increase in technology requires that employees be sent to cope with the increasing demand for updated new products consistent with the demand of local and foreign customers. The HR Manager suggested that three of the managers and eight supervisors be sent to the mother company in Japan for updates in technology on car electronics. The Vice President for Finance and the Operation Manager opposed the recommendation on the basis of cost-cutting and lack of personnel to handle the operations while they were asway for two months. They suggested that technicians from the mother company be invited instead to handle the training in the Philippines. The cost of training by the mother company would double the cost of training as they are paid higher allowances and salaries that will be…
Facts: The ABC Corporation has been engaged in the manufacture of electronic components for automobiles for the last five years. The company employees 350 employees and about 30 supervisors and managers. The increase in technology requires that employees be sent to cope with the increasing demand for updated new products consistent with the demand of local and foreign customers. The HR Manager suggested that three of the managers and eight supervisors be sent to the mother company in Japan for updates in technology on car electronics. The Vice President for Finance and the Operation Manager opposed the recommendation on the basis of cost-cutting and lack of personnel to handle the operations while they were asway for two months. They suggested that technicians from the mother company be invited instead to handle the training in the Philippines. The cost of training by the mother company would double the cost of training as they are paid higher allowances and salaries that will be…
After Spending several weeks on the job, Haleema was surprised to discover that her Uncle had not formally evaluated any employee's performance for all the years that he had owned the business. Waqar position was that he had "a hundred higher-priority things to attend to," such as boosting sales and lowering costs, and, in any case, many employees didn't stick around long enough to be appraisable anyway. Furthermore, contended Waqar, manual workers such as those doing the pressing and the cleaning did periodically get positive feedback in terms of praise from Waqar for a job well done, or criticism, also from Waqar, if things did not look right during one of his swings through the stores. Similarly, Waqar was never shy about telling his managers about store problems so that they too, got some feedback on where they stood. This informal feedback notwithstanding, Haleema believes that a more formal appraisal approach is required. She believes that there are criteria such as quality,…