Posted: April 28th, 2015

Case Study in Compensation (HR)

Compensation Case Study:

Each write-up must discuss what considered to be the core problem we are dealing with in the case. In addition, the write-up must include recommendations for how to proceed at the end of the case. All of the cases will come with questions or points to consider; you may use these questions to guide your write-up – but do not simply answer the questions. The write-up should be a succinct summary of the problem with your recommendations on how to proceed

The pre-class thought questions that are listed below are not meant to be exhaustive – they are simply designed to give you some ideas about what I think are important aspects of the case. The questions are not a representation of all the issues in the case and should not limit your thoughts or our discussion in class.

Case:1Human Resources at the AES Corporation

1) As an investor, are there aspects of AES that you wouldn’t like? 2) Why can’t other companies do what AES has done? 3) Are there aspects of AES human resource practices that need substantial revising? If so, how would these changes likely affect the culture? 4) How do we know if the employees at AES are doing a good job?

Case:2Hitting the Wall: Nike and International Labor Practices

1. Does Jeff Ballinger have a convincing argument about Nike? Does Nike have a convincing response? 2. How well has Nike handled the publicity surrounding its labor practices? Could or should the company have done anything differently? 3. What is a “fair wage” in Vietnam? How should Nike think about it?

Case:3Sales Force Training at Arrow Electronics (A)

1. What do we know about Arrow Electronics and the electronics industry? What are the strategic issues to be addressed here? 2. How would you assess the level of internal equity and external competitiveness of Arrow’s current compensation plan. 3. What would you do if you were in Kaufman’s position?

Case:4Performance Pay at Safelite Auto Glass (A)

1. Why was the productivity of the Safelite installers so low? 2. Does the proposed PPP plan address the problems described in question 1? Does it introduce new problems? Explain. 3. What are the pros and cons of switching from wage-rates to piece-rate pay? Are Safeliteinstallers good candidates for piece-rate pay? Why or why not? 4. Should there be a guaranteed wage? If so, how should it be set? 5. What are the likely consequences of a switch from wage to piece rates for:  Turnover  Recruitment  Productivity  Product Quality