Hrmt 326 Henderson Printing Essays

1521 Words Oct 18th, 2015 7 Pages
Henderson Printing Case Study

Henderson Printing is a small-to medium sized firm that manufactures account books, ledgers, and various types of record books that are used in business (Long, 2010, p. 512). This company’s compensation system will be analyzed based on the five contextual variables as discussed in the textbook. The environment in which Henderson Printing operates can be classified as stable, as well as simple. This can be justified, as the company produces stable annual sales, thus it can be concluded that product lifestyles are not short, and product and service demand is constant (Long, 2010, p. 40). Additionally, the product/service provided is fairly simple, and the technology is not complex (Long, 2010, p. 512). The
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The compensation strategy should fit with the organization’s strategy and structure, comply with the law, be within the financial means of the organization, and be seen as equitable (Long, 2010, p.10); however because there is no formal structure that fits with the organization’s strategy at this point in time the compensation system can be described as ineffective at its best.

The workforce is moderately skilled, operating in a good economic environment, and is classified as a small to- medium sized as it only employees 80 people (Long, 2010, p.512). Therefore, I propose that Henderson Printing operate under a high involvement strategy. Thus, the compensation structure being proposed will reflect this type of managerial strategy. This company is a perfect candidate for a Pay for Knowledge System, as employees will become more knowledgeable, thus can make more effective decisions. This transition will have the ability to improve production processes, and consequently reduce production costs (Long, 2010, p. 132). Furthermore, there will little need for management, which again will also cut costs, and prevent the confusion and inefficiencies that stem from undefined responsibilities (Long, 2010, p.132). It is evident that the CEO values the different roles in the organization equally, as production and sales roles are of equal importance

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