FACTS: The Chairman of the Board of Directors of Jonadel Corporation has proposed that all managerial positions be included in the corporate job evaluation program. The idea came from several friends in other companies of the Chamber of Commerce and Industries where he is a member of the Board of Directors. The inclusion of managerial positions in other company’s job evaluation programs has been found successful and helpful. There are differences in the pay systems based on the job evaluation in these companies where the chairman is and has the greatest shares of stocks. In one of the special meetings of the Board of Directors, he proposed the idea to the Chief Operating Officer. The Chief Operating Officer said that the programs be held in abeyance until he had consulted his line and operating managers who will be affected by the changes due to the job evaluation system that will be implemented. In the meeting called by the Chief Operating Officer, most of the managers opposed the idea. They argued that their positions cannot be rated with other positions due to the complexity of their responsibilities. They pointed out further to the CEO that no job evaluators can possibly know the extent of their jobs and compare the same with subordinate positions. The objections of the managers were that the qualities for such positions were varied and salaries were differently structured based on experience and length of service in the company. The CEO, while being neutral, feared that if the job evaluation would include the positions of his line and operating managers, he would be losing his best people in the organization. He also thought that developing new managers takes time and those operations might suffer due to changes in the organizational system. The Human Resource Manager in his talk with the Chairman of the Board was in favor of the idea. He discussed the same with his staff and supported the idea of including the managerial positions. The CEO called the President to prepare a memorandum for the Human Resource Department to study the program and implement the Job Evaluation Program for managerial positions. The program should give details of the advantages of the program and the process of what is to be done and how it should be done. Question: 1. What is the underlying problem on the case? 2. What are 3 possible courses of action in addressing the problem? 3. What are the advantages and disadvantages of the courses of action?
FACTS:
The Chairman of the Board of Directors of Jonadel Corporation has proposed that all managerial positions be included in the corporate job evaluation program. The idea came from several friends in other companies of the Chamber of Commerce and Industries where he is a member of the Board of Directors. The inclusion of managerial positions in other company’s job evaluation programs has been found successful and helpful. There are differences in the pay systems based on the job evaluation in these companies where the chairman is and has the greatest shares of stocks.
In one of the special meetings of the Board of Directors, he proposed the idea to the Chief Operating Officer. The Chief Operating Officer said that the programs be held in abeyance until he had consulted his line and operating managers who will be affected by the changes due to the job evaluation system that will be implemented.
In the meeting called by the Chief Operating Officer, most of the managers opposed the idea. They argued that their positions cannot be rated with other positions due to the complexity of their responsibilities. They pointed out further to the CEO that no job evaluators can possibly know the extent of their jobs and compare the same with subordinate positions. The objections of the managers were that the qualities for such positions were varied and salaries were differently structured based on experience and length of service in the company.
The CEO, while being neutral, feared that if the job evaluation would include the positions of his line and operating managers, he would be losing his best people in the organization. He also thought that developing new managers takes time and those operations might suffer due to changes in the organizational system.
The Human Resource Manager in his talk with the Chairman of the Board was in favor of the idea. He discussed the same with his staff and supported the idea of including the managerial positions.
The CEO called the President to prepare a memorandum for the Human Resource Department to study the program and implement the Job Evaluation Program for managerial positions. The program should give details of the advantages of the program and the process of what is to be done and how it should be done.
Question:
1. What is the underlying problem on the case?
2. What are 3 possible courses of action in addressing the problem?
3. What are the advantages and disadvantages of the courses of action?
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