Cake Consulting

Topics: Sales, Motivation, Customer service Pages: 57 (13842 words) Published: February 28, 2013
C.A.K.E. Consulting
Caring, Acting, Knowing, Experiencing

Total Compensation 3255 (S50)

Phase I
Raman & Harveen

Ferhana Chaudhary
Rachit Jain
Daniel Lal
Raman Sidhu
Henry Wang

C.A.K.E. Consulting is a consulting firm that specializes in compensation and rewards system management. Our current client, Duplox Copiers Canada Limited, is experiencing serious performance problems including: * High employee turnover

* Decreased employee morale
* Increase in customer dissatisfaction and complaints
* A constant decrease in revenues and profits
After thorough analysis of Duplox’s organizational structure, policies, current managerial and compensation strategy, we were able to expose the root of the above mentioned issues, which is Duplox’s current compensation strategy. Duplox’s current compensation strategy has developed conflicting goals for the sales and technical support services departments. These conflicting goals are creating rivalry among the employees, and the compensation system is perceived inequitable. The current managerial strategy used is the classical managerial strategy “that assumes most employees inherently dislike work but can be induced to work in order to satisfy their economic needs” (Long, 2010, 29). This has caused employees to believe that they are not valued and can be easily replaced at the management’s discretion. Communication (both vertically and horizontally) is not sufficient enough to provide employees with correct and timely information they require to efficiently serve the customer’s needs. We recommend that Duplox adopts the human relations managerial strategy that will involve employees in the decision making process to an extent, and satisfy their social needs. We have redesigned some jobs by combining a few positions, and eliminating a few other ones. A new compensation strategy will be in place, and compensation levels will be decided by performing job evaluations by the point method or the pay for knowledge plan. Once all of the above mentioned changes are in place, Duplox will experience, highly motivated and loyal employees who will perceive the organizational policies as equitable, and an increase in revenues and profits.

Table of Contents
Section A: Identification of Current Organizational Problems.5
Issues and Problems5
Compensation Notebook 1.17
Current Managerial Strategy:9
Structural Variables: (Long, 31)10
Causes of Reward Dissatisfaction:12
Violation of Psychological Contract14
Perceived Inequity15
Relative Deprivation15
Lack of Organizational Justice16
Section B: Strategic and Structural Recommendations16
Job Description19
Compensation Officer19
Branch Inventory Clerk20
Field Service manager21
Technical Service Specialist I22
Technical Service Specialist II24
Technical Service Specialist III25
Section C: Reward and Compensation Strategy27
Defining the Required Behaviour27
Compensation Notebook 6.1 (Long 209)28
Define the Role of Compensation30
Role of Compensation for Executives31
Role of Compensation for Management31
Role of Compensation for Technical31
Role of Compensation for Clerical32
Role of Compensation for Sales32
Determine the Compensation Mix32
Compensation Mix for Technical33
Compensation Mix for Executives33
Compensation Mix for Management33
Compensation Mix for Clerical33
Compensation Mix for Sales33
Determine the Compensation Level34
Section D: Job Evaluation Plan40
Job Evaluation Factors and Degrees41
Factor 1: Level of Education41
Factor 2: Experience42
Factor 3: Supervision Type43
Factor 4: Customer Communication43
Factor 5: Accountability44
Factor 6: Health & Safety45
Factor 7: Mental Stress46
Factor 8: Physical Demands46
Factor 9: Physical Environment/Surroundings47
Section E: Pay-for-Knowledge Plan73
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