Wages and Benefits Memo Assignment

MEMORANDUM

Date: July 15, 2015

To: Georgette Henderson, Henderson Printing

From: Megan Rodgers

Re: Henderson Printing’s Compensation System

Executive Summary

The purpose of this memo is to advise Georgette Henderson of her current compensation system and provide recommendations to the problems that exist within the system at Henderson Printing. The recommendations being suggested are changes to the compensation components base pay, performance pay and indirect pay; complete a job analysis to determine job descriptions and create specialized departments within the company.

Current Compensation System

Henderson Printing’s current compensation “system” is in need of some major changes. These changes will address the current problems as well as improve the company’s performance. The current compensation system has no real structure to it. Your employees overall compensation is comprised of their base pay, which is determined strictly by George and has no apparent structure that is being followed. Performance pay consists only of raises and bonuses when George sees fit, and indirect pay, even the basic requirements required by law seem to be non-existent.

George implies that he is trying to create a work environment that may fall under a Human Relations managerial strategy, which assumes that most employees inherently dislike work but can be induced to work in order to satisfy social needs. I am making this assumption because he has made it clear that he wants to be a benevolent employer and wants to show consideration for his employees. However, a classical managerial strategy is a better fit for this company, and is primarily being used currently. This strategy focuses on production, profit and company success however that does not mean that employees need to be treated poorly. My recommendation for the company is that it keeps a classical managerial strategy in mind.

Current Problems

The main problems that your...