This paper provides an analysis of a case study centering on a compensation issue at small business. Seven years ago Harvey Finley founded his company on a shoestring budget and with just one employee (Cathy Brannan) serving a multi-function role of receptionist-secretary-general assistant. The key issues in this case center on Ms. Brannen's compensation level and her value to Mr. Finley and the company they both built. Related important issues center on equitable treatment of employees, comparable worth, and the comptroller's fiduciary duties to the company. Identifies the key issues, discusses and evaluates four alternative solutions, and presents recommendations with an action plan.
Analysis
Ms. Brannen was a twenty-seven-year-old divorcee with one little child. Her restart displayed that she had graduated from a two-year agency management program at a state university. She had worked for only two employers following graduation, one for five years and the most latest for two years. Since coming back to her hometown of Troupville two months before, following her end wedding ceremony, she had not been adept to find apt employment
From the instant she sat down for, the interview, Harvey and Ms. Brannen appeared to be on precisely the identical wavelength. She was very articulate, conspicuously rather brilliant, and, most significant, very passionate about aiding with the start-up of the new venture. She appeared to be precisely the sort of individual Harvey had envisioned when he first started to believe gravely about taking the large-scale plunge. He opposed the lure to offer her the job on the location, but completed the hour-long interview by telling her that he would ascertain her quotations and communicate her afresh very soon.
Cathy Brannen was conspicuously very passionate about the job as delineated in the meeting. She inquired all of the right inquiries, answered rapidly and articulately to every query impersonated to her, and appeared prepared to accept the place even before the offer was extended. 'When Harvey eventually got round to citing the wages, there was a minor change in Cathy's keen expression. She stiffened. Since Harvey recognized that wages might be a difficulty, he determined to offer Cathy an inducement of kinds in supplement to the $14,000 annual salary. He notified her that he recognized his wages offer was smaller than the allowance she had acquired on her last job. And, he notified her, he appreciated that a decisive handicap of employed for a new firm was the entire nonattendance of economic security. Although he was exceedingly reluctant to assurance a bigger wages because of his own doubt considering the future, he suggested her a sales override in the allowance of two per hundred of sales. He clarified that she would mostly work out the achievement or malfunction of the firm. She required to comprise the firm in the finest likely kind to promise customers who phoned and to those who strolled in the front door. For this cause, the sales override appeared to be an befitting supplement to ...