Cases in Cost Management

Quiz 18 :Levis Personalpair

Question Type
Freddie and his father are genuinely perplexed about this labor productivity problem. Can the company expect a better result if it manages compensation better Or, is low productivity a fact of life for which low pay is the consequence in a business where "committed and motivated" workers are just not necessary Your assignment is to evaluate the various claims and counterclaims and to recommend a course of action. Exhibits 1 and 2 are reference sources on the "philosophy" of work and workers. Comment on the arguments presented by Freddie Jones in support of a $10 piece rate. Free Essay Answer: Answer: Evaluate the arguments given by Freddie Jones in support of a$10 piece rate:
• Freddie's argument stated that the employees did not produce more because there was no motivation in terms of financial incentives being given to them.
• According to him the pay should be based on production to motivate the employees to give more production even in the odd and difficult working conditions.
• The salary paid to the employees is not very low as compared with the minimal skills which they offer.
• The salary being paid is the major factor, if the salary is increased and incentives scheme is introduced, the problem of turnover will be solved. The organization's money and time both are saved which was involved in training the employees.
• The calculations shown by Freddie seem to be reasonable. There is an increase of 13% pay which is considered to be a significant amount when in the duration of 6 months the total labor hours are 253,750. Thus, it can be said that there is an increase in the wages of \$126,875
.

Tags
Freddie and his father are genuinely perplexed about this labor productivity problem. Can the company expect a better result if it manages compensation better Or, is low productivity a fact of life for which low pay is the consequence in a business where "committed and motivated" workers are just not necessary Your assignment is to evaluate the various claims and counterclaims and to recommend a course of action. Exhibits 1 and 2 are reference sources on the "philosophy" of work and workers. Comment on the counter-arguments by Freddie's father in support of the current pay system.
Free
Essay

Evaluation on the counter-argument by Freddie's father in support of the current pay system:
• Freddie's father Mr. Jones calculation seems more reasonable than his son, as there was no increase in pay.
• Mr. Jones in early 1960s has tried a profit sharing plan which was not successful. Thus, Jones considered that decreased turnover and increased productivity are termed as speculation without any evidence. Freddie speculated high turnover and low productivity because of the unskilled labor.
• Mr. Jones did not forget the industry turnover rate was 50% whereas Freddie failed to make a comparison between the industry average being 50% and the high turnover.
• From the balance sheet Mr. Jones perspective is that the organization cannot afford the increase in the pay. Though the demand is in excess yet Mr. Jones is not interested in increasing the capacity of the business due to the declining level of profit.

Tags
Freddie and his father are genuinely perplexed about this labor productivity problem. Can the company expect a better result if it manages compensation better Or, is low productivity a fact of life for which low pay is the consequence in a business where "committed and motivated" workers are just not necessary Your assignment is to evaluate the various claims and counterclaims and to recommend a course of action. Exhibits 1 and 2 are reference sources on the "philosophy" of work and workers. What are your recommendations and why do you make them
Free
Essay