case study 10-1

Task 6

Task 6: Compensation and Benefits

Kurstie Janinda

Stratford University

BUS210

1. In your view, is comparable worth a legitimate strategy for determining job compensation?

In my opinion it is not a legitimate strategy because it is a method used by far too few companies at this point. Wages should be set by market conditions, such as what competitors are paying for similar jobs, and availability of workforce. On this specific case we have to understand the differences between private company and a public facility. They are legal and monetary elements involved in such decisions since both companies are not the same. They might look similar because they are both hospitals but there are underlying differences when it comes to pay and benefits. To my understanding, in a private hospital tech positions start at the same pay rate whether you are a man or a woman. However, job evaluations can increase your pay (Ivancevich & Konopaske, 2013). Maybe the workers at this hospital do not understand the basics for comparable worth or equal pay which does not really address the fact that you could be more skilled than another worker.

2. As the director of Twin Oaks’ HR department, what recommendations would you make to James Bledsoe?

If I were the director of Twin Oak’s HR department I would recommend implementing immediately 6 percent across-the-board, which would keep employees from defecting to Lexington Memorial Hospital, reduce the attractiveness of unionization, and be less costly than implementing a comparable worth system or finding replacement employees. However, I would also recommend a quiet review of the pay scales in order to determine if there is a pay inequity between men and women holding the same or similar jobs. If there is, it should be corrected quickly in order to shield the company from potential discrimination lawsuits.

3. From an HRM perspective, what are the challenges of implementing comparable worth?

From an HRM perspective, this would be a huge, costly, and time-consuming process. First, every job would have to be identified, evaluated, and documented. Then, representatives from each functional area would have to determine the weights for all factors related to the job, such as knowledge, experience, accountability, and judgement. Next, a comparison of all the jobs and the weights would have to be reviewed by management to determine if the system was fair and acceptable (Ivancevich & Konopaske, 2013). Before implementation, the system would have to be explained to employees. Lastly, follow-ups would likely have to be held with employees who received a cut in pay rather than an increase. Pay cuts might also lead to employee loss and or claims of discrimination.

In the health system, where professions are very specific and technical this is not a very good approach. Most health care professions have salaries already set despite the gender thy end up hiring and everybody is to be treated equal. What makes you different at your job is what set of skill you can add up so you can perform better and at a higher level (Ivancevich & Konopaske, 2013).

References

Ivancevich, J. M., & Konopaske, R. (2013). Human resource management. New York: McGraw-Hill.

2