Rockmont Precision Tooling has proven to be very successful in the last few years due to its high productive capacity. Despite the fact they are a relatively small southern manufacturer of farm machinery, with 1,600 employees, they have been competing well in its domestic as well as the international markets. Jack Early was recently hired to be one of the higher-level managers. Jack had completed his M. B. A at one of the more well-known universities, and applied his knowledge and training, that he gained in school, to his work at Rockmont.
He made such a good impression in a relatively short period of time, that he received many commendations and an early salary adjustment. Jack had been asked to assess the performance of all of his first-level managers and supervisors for performance-related pay purposes. The use of performance-related pay was strongly preferred by Jack because it would rewards those who made a greater contribution to the organization than their colleagues. After assessing six employees and providing them with regular feedback concerning their performance, he came up with recommendations to show his boss, Chester Carson.
Chester Carson joined the company immediately after it was founded, and had experience in working in different capacities. He wanted to change the merit pay/performance-related pay for every employee that Jack had assessed. Jack strongly disagreed with this decision and asked the HR Manager, Bud Daily, for advice. Problem Statement The root of the problem lies in the type of organization. Rockmont Precision Tooling is a conservative, “old-school” organization – as it is referred to in the case. Changes are hardly made, and if things change, they do so slowly.
Having such an inflexible organization can result in inefficiency and eventually, a decrease in competitiveness. Since there isn’t much room for development and innovation, Rockmont might eventually not be able to compete sufficiently with its competitors. Rationale Most of Rockmont’s employees have been working for the company for many years, and are therefore used to the Rockmont ‘way of thinking’. Hiring someone with a “new,” different perspective, can be a great asset to the company, but it can also cause conflicts, as in this case.
Because Chester Carson had been working for Rockmont since it was founded, he most likely changed Jack’s recommendations because this was how they have always run the company and wouldn’t let a new employee change that. Also because he had been working at Rockmont longer than Jack had and he therefore, claimed to know how well the employees had performed their jobs, how much they liked their work, and whether they had a good attitude toward their job and the company.
I believe that Chester was somehow afraid that Jack would take over his place, since he received several commendations and designed procedural alterations that updated and modernized many of the firm’s processes. The criteria used to evaluate employee performance, was the main issue of the disagreement between the two men. Jack strongly believed that employees should receive merit increases based on productivity and contribution to the organization, and that extraneous factors such as the number of children employees have, age, and the number of years to retirement should not be considered.
Chester, on the contrary, believed that the merit increase should be also based on the extraneous factors. According to Jack, the criteria used by Chester were not rewarding productivity and quality of work and therefore, was not job related. Jack’s recommendations might have required too much change, and since the organization is not used to drastic changes, Chester disapproved them. Solution When meeting with Chester, Jack should ask Bud Daily as a neutral person, to sit in on the meeting. Having a neutral person present who is aware of the situation is essential when having an important meeting.
Jack should also ask Bud to take notes of the meeting. Jack Early was in a difficult situation; although he might have thought that he was right, pressing Chester too hard would have damaged their relatively new business relationship. He should also keep in mind that he is still new in the organization, and that Chester wants to make the decisions regarding merit for at least this year. However, he should convince Chester that he has a better view on the performance of the six employees, since some of them have shown that they have improved their performance and progress.
Therefore, Jack should have a great part in the merit pay decisions. He should take the extraneous factors into consideration, though, since it affects performance and quality of work of the employees. The six employees that were assessed by Jack Early, all have different levels of productivity, quality of work, and as a result, different salaries. Delores Downs Delores has improved her performance significantly, especially over the past six months, and she has proven to be a dedicated, hard-working employee. Since she is working on her M. B.
A degree, despite the fact that she is unmarried and lacks social skills, she should at least have a higher salary than Chester suggested for her. The difference between her current salary being $27,500, and Chester’s suggested salary being $29,375, is too small to motivate her on working harder. Jack’s recommended salary of $33,125 may not be approved by Chester, so he needs to take it down to approximately $30,000. Hank Sterns Obviously, Hank’s performance has not been improved despite Jack’s effort to encourage him to improve his performance.
Chester recommended increasing Hank’s salary to $47,500, which is in my opinion, not justified, looking at his performance. Due to the fact that he has three children in college, Jack should adjust his recommended salary of $40,000 to around $42,000. Simon Schmidt Despite the fact that Simon is going through a very difficult period, he should have separated his private life from his work and shouldn’t have let his personal issues affect the quality of his work. Clearly, the last-mentioned occurred, and created significant delays in production and related problems.
Jack should talk to Simon first, and then offer him a couple of days off or find counseling for him to set things straight, if Simon’s performance hasn’t improved after a certain period of time. Chester’s proposal of $58,125 is too high; Jack’s recommendation of $51,250 would be reasonable. Harriet Herman Harriet has gained a lot of experience throughout the years she has been working for Rockmont, and has proven to be a loyal and true team player. Although she has always been a steady performer, she needs to be rewarded well for her hard work and dedication.
Chester’s offer to raise her salary from $24,000 to $26,000 is relatively too inadequate compared to her hard work. Jack wants to increase her salary to $33,125, which is a raise of nearly 40 percent. Since Jack has to look at her performance, which has not been outstanding, a raise of 40 percent is too much. Jack should, instead recommend a salary around $30,000. Sam Droogen Sam is clearly a likable man with great social skills; however, when evaluating his performance, he seemed to be the poorest performer of the organization.
Additionally, he didn’t try to improve his performance or learning quickly enough. Since there are no significant extraneous factors related to his situation, Jack has to base his salary on his performance and quality of work. Jack’s proposal increase of $27,875 is reasonable, and should therefore convince Chester not to raise his salary to $31,875. Alena Maria Dominguez Alena is a young, multicultural woman that has an important job due to the several federal contracts of the company.
Since she has shown to be a valuable employee and has performed outstanding, she indeed deserves a large pay raise as Jack recommended. Jack needs to convince Chester that Alena is very hard to replace and that she has been the only employee, out of the six, to be having an outstanding performance. Also, since she has helped increase the number of individuals from minorities in the company. As a result, she contributed to the affirmative action within the organization.
The recommended salary of $28,500 from Jack, compared to the offer from Chester of $21,750 is truthfully justified. Chester’s offer of $21,750 will definitely not motivate Alena to work harder and to reward her for her outstanding performance. It might be difficult for Jack to convince Chester to implement all of his recommendations. It depends on how well he can convince Chester to accept them. Chester might adjust all of Jack’s recommendations, or confirm that patience is indeed the key for Jack at this point.