Some of the current employees from Headquarters have decided to transfer to the new location.  Because this is in a different geographic area with a higher cost of living, the HR Manager wanted to review salaries to check for “alignment”.  compa-ratios would need to be considered. : calculate the compa-ratio for each of the cu

Management, Loose-Leaf Version
13th Edition
ISBN:9781305969308
Author:Richard L. Daft
Publisher:Richard L. Daft
Chapter10: Designing Organization Structure
Section: Chapter Questions
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Some of the current employees from Headquarters have decided to transfer to the new location.  Because this is in a different geographic area with a higher cost of living, the HR Manager wanted to review salaries to check for “alignment”.  compa-ratios would need to be considered. :
calculate the compa-ratio for each of the current positions using the data provided in the below charts. 
Salary Ranges
Title Minimum Mid Point Maximum
CSR
$25k
$30K
$35k
CSR Lead
$35k
$40K
$45k
Manager
$45k
$57.5K
$70k
Director
$70k
$95k
$120k
 
Employees – New Location
Title  Current Salary Tenure  
Time since last promotion
CSR #1
$28,000
New Hire
n/a
CSR #2
$29,500
2 Years
1 Year
CSR Lead
$31,000
4 Years
2 Years
Manager
$60,000
New Hire
n/a (hired in at position)
Director
$75,000
7 Years
6 months
 
  • What conclusions could you draw regarding potential issues at this facility? 
  • What actions would you recommend to address the issues?
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