Columbus Custom Carpentry - Report Example

Introduction

Columbus Custom Carpentry is a family-owned business founded in 1946. The Company provides and semi-custom interior doors for all residential purposes. It operates in four strategic locations across the country. Also, the companies have employed a total of 135 employees, with average annual revenue of about 15 million dollars. The Company is divided into four departments including Manufacturing, Warehousing, Administration, and Marketing. However, the companies have had various challenges that need a human resource to address them.

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Mission

We will be successful if we meet our customers' needs by providing better products and services than offered by our top-quality competitors. To do this, we must operate more efficiently than our competitors and provide a superior buying experience.

Major Issues

When developing a compensation plane, the management should consider fairness equity to make it a success. The two essential types of equity include internal and external pay equity.

At the Columbus Custom Carpentry, the employees do not understand how their salary is paid. When they compare their pay with co-workers, they are satisfied with the payment. The employees in the production department are well paid than those working at the warehouse. Also, some employees complain that their work is heavy and tiresome as compared to those working in the production department yet they are paid less for the heavy work they do. Therefore, the irrational internal equity has made many employees leave the Company, thus making the employee turnover high.

External pay equity refers to the Company’s comparison of the employees' pay with other organizations' pay. The external equity in Columbus custom carpentry is unpredictable. The employees argue that there is higher pay in an hour per labour than per unit production. It means that they pay more when you work more. On the contrary, there is no clear strategy of how the workers are compensated for the overtime because they don’t have a direct representation of the work done by the employees. From the case study, there is no clear interpretation of the state of external equity, but it is clear does exist.

Employees

Exempt employees are not eligible for overtime pay, while non-exempt employees are eligible for overtime compensation. The eligibility requirements for the categorization depends f hope much the employee earns, how the payment is made, and the kind of work they do in the organization. In the Columbus custom carpentry, the exempt employees are not paid but are given a 24-hour leave as compensation for overtime. The non-exempt employees are paid for their overtime services as son longa they submitted their time cards correctly and on time.

Pay Structure

The pay structure of any organization should be clear and precise. The employees should be in a position to understand how they are paid and what deductions they effected from their pay. When designing a working pay structure, the management must consider the skills that the employees have, the kind of work they are doing, and also their level of expertise. In Columbus Custom carpentry, the pay structure is unclear. The employees do not understand how they are paid. Also, the employees are not paid for the skills they possess, but for the time they work in the Company. According to the manager, the company strategy is replacing the higher paid employees with those who would be paid, thus saving in the salary costs and other expenses. Also, CFO Mike Cooney proposes that the Company spends more when paying for overtime yet, there is no workload, and thus there should be a reduction in overtime pay. Therefore, it shows that the company pay structure is unclear; thus, it ends up spending more on unnecessary payments.

Job Description Development

Any organization should have a precise job analysis and description for easy employee recruitment. A well-described job analysis will help the employees understand what they are supposed to do in the organization, thus allowing them to gain the required skills for the job.

In the case of Columbus Custom carpentry, there is no straightforward job analysis and description. It is a small organization. Therefore it should be easy to define roles across the department and determine the positions for the employees. Also, some jobs within the organization di nit have descriptions. Data gathered in departments is done through observation, thus makes the job judgment null and void based on assumptions.

Also, some jobs have unclear classifications. The employees are assigned any roles across the departments. From the new recruiter, he says that he wishes to shift to the production department not because the pay is high. At the same time, the workload is low also he says that he does not understand why those working in the production are paid more than those at the warehouse while they use jig lifts to make their work easier. Also, the employees have taken on job duties which are not included in the job description.

Conclusion

The Company should develop policies that guide the training of new employees to avoid redundancy. The warehouse department has a more massive turnover in the Company; therefore, the training of the employees is frequent as there are regular hires. Developing training structures will help reduce the repetitive training schedules and also will help reduce turnover rates in the department.

The Company needs to combine manufacturing and warehousing departments to eliminate the separation of employees. The manufacturing department has machines that help make work easier for them. In contrast, the warehousing department depends on human labour; therefore, it is essential to combine the two groups to promote equality in the Company.

The Company should emulate skill-based pay rather than the work is done. Compensating employees will promote employee development. Employee development will help the workers to gain skills that will help them grow their careers.

The supervisors need to take leadership training before obtaining employees. The training will help them gains the leadership skills necessary to supervises their tea. Also, they are required to have an open-door policy whereby every member of their team can get direct communication and guidance with the supervisor. It will therefore promote transparency and trust between the supervisors and the employees.

References

Columbus custom carpentry - A compensation case study. (n.d.). Retrieved from https://www.shrm.org/certification/for-organizations/academic-alignment/faculty-resources/Pages/COLUMBUS-CUSTOM-CARPENTRY---A-COMPENSATION-CASE-STUDY.aspx

Reys, D. (2010). Columbus Custom Carpentry; Employee Handbook. Retrieved from https://www.shrm.org/certification/for-organizations/academic-alignment/faculty-resources/Documents/Reys_Columbus%20Custom%20Carpentry_EH_Corrected.pdf.