Managerial accounting questions - Merck
Not what you're looking for?
Merck & Co., Inc. (A)
1. What are the major problems with Merck's performance appraisal and salary administration program?
2. How are the levels of salaries determines at Merck? What's a campa-ratio?
3. Is pay for performance exists under the current system?
4. Would an employee with superior performance year after year keep receiving higher and higher pay increase?
5. What changes would you recommend?
Merck & Co., Inc. (B)
1. What are the key features of Merck's revised plan?
2. What problems under the old system are solved or mitigated by the new system?
3. What new problems arise under the new program?
4. When might relative performance systems be preferred?
Purchase this Solution
Solution Summary
The solution looks at managerial accounting questions. The problems that arise under a new program is discussed.
Solution Preview
(1) The major problems were:
- rewards for excellent performance were not adequate;
- "homogenization" of performance ratings;
- salary of outstanding performers was only marginally higher than of those with average performance;
(2) The levels of salaries are determined by Hay points (determined by Hay factors - know how, problems solving, accountability) and merit. Then Hay points are converted into the Control point and actual salary ranges between 80% and 125% of the control point.
Compa-ratio is the actual salary as a percentage of the control point.
(3) Pay for performance exists in the form of the pay increase based on performance ratings. ...
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)