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Compensation Of Special Groups and Unions

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1. What is the single most important concept about this topic?
2. What would you recommend for your organization to adopt?
3. What are you willing to apply to this topic?
4. What difference will it make to your organization if you or your management would adopt and apply that concept?

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1-What is the single most important concept about this topic?

The single most important concept about this topic is that special groups and unions desire a way that is reasonable and not discriminatory to their current positions. This is because everyone desires to be treated equally regardless of what job one holds within a company. A business that chooses to behave with bias is one where issues do arise, which can cause more harm than good. Consequently, law suits can arise that could eventually put the firm out of business. Hence, there is every reason to have this handled properly rather than the opposite because it could cost everyone everything they have worked for in a short or long ...

Solution Summary

This solution discusses compensation of special groups and unions.

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Temporary Workers Friction Case Study

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Special groups are portrayed here as sharing two common characteristics: They all have jobs with high potential for conflict, and resolution of this conflict is central to the goals of the organization. Probably because of these characteristics, special groups receive compensation treatment that differs from the approach for other employees. Unfortunately, most of this compensation differentiation is prescriptive in nature (i.e., all we have is opinion to guide us, not hard data), and little is known about the specific roles assumed by special groups and the functions compensation should assume in motivating appropriate performance. Future practice and research should focus on answering these questions.


1. It's getting harder to find good people willing to serve on a corporate board of directors. Why do you think this is true?

2. What makes professional/scientist jobs different, such that they qualify for special group status in many companies? Why is the compensation of knowledge workers so frequently linked to the amount of time these workers have been out of school?

3. The differential between the salary of top executives and the lowest paid workers in the same country is quite small in Japan, at least in comparison to the U.S. The same is true in unions (president of union versus union workers). Explain why the differential might be small in Japan and in U.S. unions but much larger in private U.S. corporations.

4. Romance Novels, Inc, located in Cheektowaga, NY, has gradually increased the number of contingent workers (full-time, temporary) from 10 percent of the workforce to about 28 percent today. Why might they do this? Also, what equity problems can arise from hiring contingent workers, especially when they work alongside regular employees?

5. Why is it easier to explain a $2 million payout to Tiger Woods for working 4 days to win a Masters Championship than it is to explain why William Clay Ford made $30 million as CEO of Ford Motor Company?

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