Henderson Printing Case Study

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1) Explain your assessment of the compensation system in place at Henderson printing? Henderson printing has no formal system of compensation i.e. no formal system for pay and any form of formal employees benefits. Each staff has a different pay rate, he has never gotten around to give any formal raise. Any employer that want an increase would approach George in person. Payment decision and bonuses are made depending on the mood of George. Thus we can say that Henderson printing system was a classical managerial structure power and decision making is been centralized in the hand of the owner. It practiced a very rigid system of compensation which lack innovation, poor organization structure and does not follow the laws stated in the “standard…show more content…
There was no standard organizational structure, rather all major functions were performed by one person. George Henderson's focus was more on production and customers satisfaction. 2) Do you think it meets the criteria for an effective compensation system as set out in compensation notebook 1.1 goals of the reward and compensation system (found in the text book page 12). We think that the criteria for the effective compensation system do not meet the goals of reward and compensation system in Henderson Printing because Long (2013, p.11) describes that the reward is one that adds value in organization, considering all the costs which is not seen in Henderson Printing. Long (2013, p.11) describes eight criteria's of goals of reward and compensation system, but in Henderson Printing, none of the criteria was met. The reason for same are described later. Long (2013) says the first criteria in goal of reward and compensation system is "Promote achievement of organizational goals" (p.12). In which describes how organization is helped by reward system to achieve its goal. But in Henderson Printing , the compensation system was unbalanced i.e. no structure of compensation system in an organization. The second criteria is "Fit with and…show more content…
But in Henderson printing, there is no compensation system and the owner of the company takes all decision based on its mood and his attachment to the employee. The third criteria is "attract and retain qualified individuals" (Long, 2013, p.12). It specifies that the individual's attribute to perform the required task must be in the company. In Henderson Printing, the employee or workers were working in the company and they were happy with the company, but they were not possessing the attributes to perform their work task and most of the production, customer satisfaction and marketing was handled by owner itself. The fourth criteria is "promote desired employee behavior" (Long, 2013, p.12). It specifies that the task of employee should be defined and structured which shows the behaviour of the employee. In Henderson Printing, the task of the employee were not defined or structure; many times the employee performing the duty have no prior knowledge related to his/her work and an employee facing any major problem in his/her

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