Carter Cleaning
Company
S66043 NUR SABRINA BINTI ABD RASHID
S66743 ZUAIN ANISA BINTI MUHAMMAD
S66267 NUR BATRISYIA FARHANNA BINTI SHAHRON
S67062 NUR FARISHA NATASYA BINTI MOHD ZAMRI
S65597 SITI AISHAH BINTI MOHMED FUAZAN
Case study
The New Pay Plan
Carter Cleaning Centers does not have a formal wage structure nor
does it have rate ranges or use compensable factors. Wage rates are
based mostly on those prevaling in the surrounding community and
are tempered with an attempt on the part of Jack Carter to maintain
some semblance of equity between what workers with different
responsibilities in the stores are paid
Carter does not make any formal surveys when determining what
his company should pay. He peruses the want ads almost every day
and conducts informal surveys among his friends in the local chapter
of the laundry and cleaners trade association. While Jack has taken a
'seat-of-the-pants” approach to paying employees, his salary schedule
has been guided by several basic pay policies
Case study
Although many of his colleagues adhere to a policy of paying
minimum rates, Jack has always followed a policy of paying his
employees about 10% above what he feels are the prevailing rates, a
policy that he believes reduces turn over while fostering employee
loyalty. Of somewhat more concern to Jennifer is her father's
informal policy of paying men about 20% more than Women for the
same job , Her father’s explanation is,” they’re stronger and can
work harder for longer hours, and besides they all have familes to
support
questions
01 Is the company at the point where it should be setting up a formal
salary structure based on a complete job evaluation? Why?
Yes, by setting up a formal salary structure is being fair to the employees
because the salary being paid based on the job task.
When the salary structure being fair, it leads satisfaction among the
employees and as a result the turnover will be at low rate.
There are several steps to designing a pay structure: job analysis; job
evaluation; pay survey analysis; pay policy development; and pay structure
formation.
The formal salary structure will make the employees clear on the amount
pay for his or her job position. Thus, it can make easier to the related
manager to do a process of salary payment.
questions
02 Is jack carter's policy of paying 10% more than the prevailing rates a
sound one, and how could that be determined?
according to this case, carter does not make any formal surveys, it is a correct action for
carter.
1. Carter should pay more attention to the requirements of employees for building a
formal pay policy.
2. Secondly, Carter Company should pay different salaries for different job department
rather than gender.
3. it can determine job's relative worth by job evaluation.
However, jack has no commitment to ensure right pay policies.
As far we concerned, jack carter's policy of paying 10% more than
prevailing rates is sensible.
There are five steps for making rational pay plan.
Employer conducts informal salary survey and formal survey. Then employers use salary survey to know
what others are paying.
Carter choose job evaluation methods to determine worth of one job.
The company pays the similar salary for similar jobs.
Carter can use a wage curve to help assign pay rates to each job. Then it is easy to price jobs with a wage
curve.
We know carter does not develop pay ranges. it is important for developing pay ranges to motivate high
performance employees.
At the same time carter needs to correct out - of line rates.
In this case we disagree that men and women have different salary
carter must ensure that men and women are paid comparably for essentially the same work
Jack carter's policy of paying 10% more than the prevailing rates a sound one because he believes that
within the higher payment he could reduce the turnover among the employee and also at the same time
can fostering the employee loyalty to the organization.
related case in Malaysia!
https://www.nst.com.my/news/nation/
2023/07/925979/many-smes-already-paying-
more-minimun-wage-retain-staff
questions
03 Similarly, is carter's male - female differential wise? If not, why
not?
no, carter's shop does not have male - female differential wise.
the equal pay act of 1963 requires that men and women who do the
same job in the same organization should receive the same pay.
"same pay" refer to no difference is acceptable
the law defines that one consider as doing the same level of job if they
are equal in terms of skills, effort, responsibility and working condition.
However the equal pay act 1963 includes four exceptions that allow
employers to pay another gender more than another.
Back to this case study, jack justify why he decided to pay 20% more than woman to men
workers with the reason they are stronger and can work hard also have family to support
Its show discrimination towards the female worker.
according to equal pay act 1963, female and male workers should receive the same
amount of payment if they hold the same job that are substantially equal.
negatives effect
increase in turnover (female worker)
low quality productivity
more arguements ( can lead to an unproductively result)
Specifically, what would you suggest Jennifer do now with
04
respect to her company's pay plan?
In the question 1, we had mention this point, setting up a
formal salary structure.
-They will feel more fair and unambiguous about how much they
can get and it also makes the managing easier and more clearly
for managers. There are strict certain structure to avoid the
unfair things happen.
Make a necessary formal survey in order to determine the
amount that company should pay at what type a job
responsibilities in order to avoid the mistake such as
imbalance of salary payment.
About the policy of paying 10% more than the prevailing rates, as a
company profit is the first thing
-This policy can foster employee loyalty but to the long-term, the
employees will accustom this situation and cannot motivates them to do
better.
Abolish the policy of paying men about 20% more
than women for the same job.
related case in Malaysia
https://www.bharian.com.my/wanita/lain-
lain/2023/01/1047020/gaji-wanita-lebih-rendah-daripada-
pekerja-lelaki
questions
Specifically, How exactly could Carter use free online sources
05
like O*NET to help create the necessary salary structure?
The strategy of charging 10 per cent higher than the standard prices by Jack
Carter is theoretically a reasonable judgment. However, Jack just performs a
consumer study focused on an advertising that was needed for support. To
render his judgment easier, it will be beneficial for the Carter Group to analyze
each work assessment and assess the worth of the position, perform a
structured and informal employee pay study, evaluate the internal and
external compensation scales, and then create a more realistic plan and
reward its workers.
Whether there is a disparity in compensation for males and females is not smart. This
is in contravention to the 1963 Equal Pay Act. There is still old thought of people
being forced to work faster and more hours is unfair against woman workers. In fact,
organizational equities as well as procedural equities for their workers are totally
disregarded. This will induce greater attrition and discontent among all workers, with
the female employees taking more than possibly litigious intervention. The
compensation system for Jack's workers may be perceived by the courts as gross
negligence.
Conclusion
We totally disagree with Carter Cleaning Centres
company policy paying men about 20% more
than Women for the same job.
Employed women and men are about equally
likely to say they feel a great deal of pressure to
support their family financially and to be
successful in their jobs and careers
1.Choices among pay for performance, flat rate pay and profit sharing
are examples of _______ policy decisions.
A. Internal alignment
B. Efficiency
C. Employee contributions
D. Management
2.Payment received by the employee because success in achieving the
organization target is called __________.
answer choices
A. salary
B. wages
C. incentive
D.benefits
