Carter Cleaning Company

The New Pay Plan Carter

Cleaning Centers does not have a formal wage structure nor does it have rate ranges or use compensable factors. Wage rates are based mostly on those prevailing in the surrounding community and are tempered with an attempt on the part of Jack Carter to maintain some semblance of equity between what workers with different responsibilities in the stores are paid.

Carter does not make any formal surveys ………. continue reading this case study on page 379 of your textbook.

Your submission:

A word document containing your responses to the four (4) questions occurring at the end of the case study.

  1. Is the company at the point where it should be setting up a formal salary structure based on a complete job evaluation? Why?
  2. Is Jack Carter’s policy of paying 10% more than the prevailing rates a sound one, and how could that be determined? Similarly, is Carter’s male–female differential wise? If not, why not?
  3. Specifically, what would you suggest Jennifer do now with respect to her company’s pay plan?