Business

Pay Grades

Management of Human Resources MGT-331-DL03

Jason Howard

2/9/14

Professor Lastra

Intro

This has to do with a pay grade dispute at a company called Farrington Lingerie Company. The dispute is between David Rhine the compensation manager and chairperson of the job evaluation committee that and other members of the job evaluation committee, as well as the opinions of other employees. The dispute has to do with salary limits placed on certain positions.

Current Situation

The situation is that David Rhimes rated certain job categories based upon job function a certain pay level. Bill Nelson the operations manager as well as Betty Anderson the marketing manager disagree with the cap on pay due to the fact that there is a long term receptionist named Marianne Farrington who has been employed 11 years with the company and is a top performer. Many of the employees including the two managers say she goes above and beyond the call of duty each day. They do not agree on the level of pay for a receptionist position due to personal feelings involved.

Answering the Questions

I believe that David was right to a certain extent in this situation. The fact of the matter is based upon an actual job description and how critical a job is to the mission is how pay should be based. There has to be caps on pay because pay is budget yearly. However I believe people should receive time in service raises as well as the opportunity for advancement or cross training should a capable candidate present themselves. The job is a set position with set duties and pay scale. A person chooses whether to advance or not. If she is comfortable in her position she knows what the pay is and is happy.

I believe there should be a maximum pay for administrative personnel. I also believe mission critical jobs such as sales and purchasing for instance should be performance based. This is because in sales you are increasing a company’s bottom line. In purchasing you are saving a...