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Fresh Munchables is a mid-sized but steadily growing...

Fresh Munchables is a mid-sized but steadily growing food-processing company founded in 1967. Since its inception, the company has been committed to providing only premium quality health foods. The company is headquartered in Wichita, Kansas, and it is one of the area's largest producers of soups and simple meals. In the past 20 years, the company has also begun processing healthy snacks and beverages. Fresh Munchables has traditionally sold its products through large grocery stores, but it is now venturing into online and restaurant businesses, which is all very new territory for management.

The company is split up into three overarching strategic business units—soups and meals, drinks, and snacks. Additionally, the company is divided into several business units at the operational level, consisting of a mix of business operations, manufacturing (production), research and development, finance, and so on. As the company continues to grow, the executive team and other leaders are constantly looking for ways to improve processes.

Because Fresh Munchables has grown from a very small company into a well-established organization, management has decided to broaden the company's strategic HR functions. The human resources team is currently working to improve recruiting and hiring processes, succession planning, and most importantly, compensation and rewards.

For many years, the company has delegated compensation decisions to managers with little to no training on the subject. This has left the company in a disorganized, confused state when it comes to paying and rewarding employees. These problems have compounded as Fresh Munchables has recently opened up new manufacturing locations with new managers and many new employees.

The chief human resources officer has organized a team of compensation specialists of which you are a part to spearhead total compensation-related problems and help the company to reach its current and future goals. You and your team can achieve this by revising the current total compensation system to reflect the company's current business strategies and goals as well as attract and retain top talent.

Fresh Munchables has traditionally paid minimum wage for low-level positions. However, the company is having difficulty attracting employees to work in its food processing facilities. Some of these jobs require night and weekend hours.

Which of the following types of compensation would be most helpful for the company to offer to potential employees in the Fresh Munchables food processing plant, and why?

·      Overtime pay, because it provides an incentive for employees to work additional hours

·      Paid vacation time, because it shows employees that the company is generous with its benefits

·      Shift pay, because it provides additional compensation for hours worked at undesirable times

·      Reporting time, because it gives employees more control over the hours they work


Amanda, Fresh Munchables' new compensation manager, is evaluating the company's current compensation system and is thinking about making large, but valuable, changes. Amanda knows she also needs to consider the effects of the changes on the people at the company.

Which of the following people will be most affected by changes in the rewards system used at Fresh Munchables?

·      All individuals who work for the company at any level

·      Maria, a manager who earns a fixed salary and a performance bonus

·      Tasha, the CEO who has worked for Fresh Munchables for 15 years

·      John, a newly hired warehouse employee who has not yet been paid


Because Fresh Munchables has grown so much since its inception, the CEO wants to revisit the company's methods for establishing internal reward alignment. The executive team has advised the HR department to use a job classification approach. However, you disagree.

What information could you use to show the executive team one primary disadvantage of using a job classification approach?

·      It is impossible to determine all the tasks done in each position, so classification is also impossible.

·      It is difficult to create distinctions between jobs as the number and types of jobs in an organization grows.

·      It is difficult to hire qualified employees because the recruitment and selection process becomes more generalized.

·      It is impossible to assign value to each job without first analyzing how other companies have valued similar jobs.




As the compensation team at Fresh Munchables develops a new compensation strategy, they begin to consider the impact it will have on company culture. The current culture values high-quality products and high performance from employees but doesn't necessarily emphasize teamwork or openness.

When it comes to organizational culture fit, which of the following would be the best practice at Fresh Munchables?

·      Introduce new cultural norms of teamwork and openness, because this will improve how well a compensation system that includes team-based pay will be received.

·      Build a compensation system that deviates from the emphasis on product quality, because it will help the company reach new strategic goals of decreasing costs and increasing productivity.

·      Consider the cultural elements of quality and employee performance within the total rewards design, because a dramatic paradigm shift will increase the chance of rejection by employees.

·      Integrate norms from companies like Google and SASS, because they apply to most organizations across the board and have proven successful in increasing employee satisfaction.


In the preliminary stages of developing the compensation system, the compensation team at Fresh Munchables assigns a member of the team to perform a SWOT analysis to better understand the organization's environment and how that may influence the compensation system.

Which of the following outcomes may be discovered in the SWOT analysis for Fresh Munchables?

·      Vital success components—such as a strength in marketing and a weakness in employee retention and satisfaction—that will allow for a competitive advantage

·      

·      Critical success factors—such as customer perceptions of the company as the leading healthy packaged foods brand—that will foster competitive advantage

·      Strategic performance factors—such as metrics for productivity in the snacks division and detailed plans for improvement in the soup division—that will provide a competitive advantage

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