Custom «Rockmont Precision Tooling» Essay Paper Sample

Jack was recently employed at Rockmont Precision Tooling, where his hard work and good performance earned him salary increment and promotion. Jack has six employees under his supervision. After undertaking performance appraisal on his employees, he presented the recommendations to his boss, Chester. Chester informed Jack that he was going to revise his merit-based recommendations for awarding merit pay, with extraneous factors. Below is a discussion of the problem, which arose after Chester informed Jack about his intentions to revise his merit pay recommendations. The paper also discusses a possible solution to the problem.

Management

Problem Statement

Jack, an employee at Rockmont Precision Tooling, opposes his boss’s idea of using extraneous factors such as age, family size, and number of years to retirement when awarding merit pay to six employees whom Jack supervises.

Rationale

After undertaking an employees’ appraisal for the six employees supervised by him, Jack presented his merit pay recommendations to his boss Mr. Chester. Mr. Chester informed Jack that he was going to make some changes in those recommendations such that other factors for example age, family size, and number of years to retirement, would be considered when awarding merit pay. Jack opposed the idea because he believed that an employee should receive salary increases based only on productivity and contribution to the organization over the past years, and not on the aforementioned extraneous factors. On the other hand, Mr. Chester felt that these factors were important considerations in awarding pay increases.

Solution

In my opinion, this problem can be resolved by having Rockmont Precision Tooling set up a salary review committee. Since Jack has already expressed his concerns to the HR manager and the HR manager seems to understand Jack’s argument, Jack should request him to recommend formation of a salary review committee. This committee should be comprised of HR personnel and all personnel with supervision authority to more than one employee. The committee should discuss about the factors, which should be considered when awarding pay increments to employees. Factors identified by the committee should be job-related, and should not be discriminatory. This means that the committee should consider all the labor rules and regulations, which are related to employees’ compensation. After identifying the factors to be considered when awarding pay increment, the committee should develop a standard scale or range, to be used when evaluating employees’ performance for awarding pay merit. In addition, the committee should decide the range of salary increase that an employee can be awarded at a particular time. For instance, if the standard measures of performance range from 1 to 5 (best, better, good, average, and poor, for 1, 2, 3, 4, and 5 respectively), then increments should be based on this range whereby those whose performance has a range of 1 should receive higher increment than that received by those whose performance has a range of 4.