Saudi Electronic University Compensation System Case Study

Description

Case Application 11: TEAM FUN!

Its day four of the Canadian retreat. Tonys newest topic is rewards and pay plans. He starts: Edna showed me the salary figures and records for everyone. I cant find any pattern or rationale for how people are paid around here. I think we should work this out. Kenny sends everyone but Tony and Norton out to find more firewood and looks at Tony. No one but the four of us know how everyone is paid around here. What were you trying to do? Start a fight? Norton adds, We do fine with the system we have. Why did you think we needed to talk about compensation this week? Tony asks tersely, Would you describe that system for me? Kenny starts, I like a guy, want him to work for us. So, I offer him whatever I made when I was his age. Or what Norton made at his age; especially if its a technical job, like machine design. Tony groans and holds his head. Norton adds, For the pros, though, we talk to them. Find out what pros are getting at other stores to demonstrate and sell the products. We pay that golf guy $10,000 each time he shows up and swings his club around the GREEN. Tony groans and holds his stomach. Kenny counters, Well, the pros are special cases, right? Tony collapses into a chair. Norton asks, Tony, you took over setting starting salaries when you got here. What have you been doing? Tony says, in a small voice, Just offering what you offered the last guy in the same job. I couldnt figure out any other pattern. Thats why I put compensation on the agenda for this week. Kenny and Norton groan. They all look up as the door opens and Eric comes in with a load of firewood.

Questions :

Please review the TEAM FUN! case material at the end of prior chapters before answering these questions.

1. Make lists of TEAM FUN! rewards: extrinsic versus intrinsic; financial versus nonfinancial; performance-based versus membership-based.

2. Evaluate the appropriateness of these rewards for maintaining employee commitment at TEAM FUN! Does the TEAM FUN! compensation system meet the general goals of a compensation system?

3. Make three suggestions to improve the TEAM FUN! compensation system.

4. Identify three features of the compensation system that are excellent for this organization. Would they be suitable for most organizations? What types?

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