Group 4 cel case analysis

Group 4 cel case analysis

• 1.
  1. Amit PrakashSingh (CGT21002) 2. Dipanjan Sengupta (CGT21005) 3. Indranil Ghosh (CGT21006) 4. Mohd Zinhar Uddin (CGT21010) 5. Bhargav Sri Dhavala (CGT21027)
• 2.
  PROBLEM STATEMENT 1. Hiringof Grubb- Pipe stress analyst 2. Salary demanded- $90,000-$110,000 3. Present average basic pay- $85,000 4. Alternatives: • Offer lower salary and get turned down • Upset other employees over pay • Revamping of pay structure
• 3.
  • CEL cankeep the internal alignment and pay structure as it is. • Develop a culture that emphasizes on competencies • Human capital based organizational competencies are difficult to replicate • Other employees perceive it as fair • Enhanced trust Pros • CEL might lose the best candidate for pipe stress analyst Cons Alternative 1 : Offer Grubb the job at a lower salary and take the risk of being turned down
• 4.
  4 Alternative 2 :Give Grubb the salary he wanted and risk upsetting his other employees if they found out .  Integrate the internal & external alignments of the company w.r.t the existing market wage standards & perceived value of workers  CEL can expect good quality & effective contributions from Grubb  Evident inequality in the compensation structure  Demotivation of existing employees  Poor productivity , counter- productive behaviours , less engagement  Job turnovers – in terms of cost & skills Pros Cons
• 5.
  • Perceived Equality • Simplyincreasing every other employee’s pay without it being attributed to an increased benefit to the company would fail to maintain fairness Alternative 3 Cons Completely revamp his compensation system and increase salary levels for all Pros • Motivated employees
• 6.
  6 New Pay Structure Formulation • Payfor Performance based system result in differentials • For laterals – clearly articulate the base pay differentials based on skills, experience ,responsibility & industry pay scale • Growth opportunities – more promotion layers • These actions will not only make Grubb’s salary look fair & justified but will also motivate existing employees • Training & Development initiatives • Attract potential talent RECOMMENDATION Communication & Feedback Make changes & Implement Periodic Evaluation Best Bargain: Base pay @ 90000 , Incentives linked to PFP system & Ample Growth Opportunities
• 7.
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