Compensation manager and the plant manager
Case Study
You are the supervisor for the shipping department of Smith Manufacturing. You have received a memo from the firm’s compensation manager that the salary survey of the local labor market for positions under your supervision has been tabulated and there is concern that wages paid within your department are 25 percent above the market. Below is the printout provided with the memo:
Smith’s Wage
Market Wage
Material mover
$8.50
$7.00
Picker
7.56
6.25
Labeler
6.94
5.75
Packing
7.25
6.00
Helper
6.63
5.50
The average age of your workforce is 43 years; 80 percent have been with the company for more than 10 years. The productivity of your workforce in your eyes is outstanding, which was verified by a study that shows that your crew produces at 105 percent of standard. What would you do to prepare for the meeting you are to have in two weeks with the compensation manager and the plant manager to discuss this situation?
