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Sled Dog Software
What policy regarding external competitiveness would you advise? List the options and the pros and cons of each policy option. Offer the rationale for your recommendation.
Labor Market Factors
Pros – Minor Haggling
Cons – Employers seek to maximize profit, there is no advantage for the employer to pay above or below the market rate. Product Market Factors
Pros – With product demand and the degree of competition as major factors with cost they should be able to keep the pay level the same because they are able to adjust cost in other areas first Cons – How well the product is demanded and how much completion there is in the market Organization Factors
Pros – Industry depends on the pay level and pay strategy exist. So its gives people options. Cons – Industries that are less technology intensive pay less, larger organizations pay more than smaller organizations
The policy regarding external competitiveness we would advise is Product market factors. We choose this because it is a very competitive market and a lot of it is based on market prices.
What forms of pay and in what percentages would you recommend? Again, offer your rationales.
For pay we agree that market match is the closest to what type of pay we would want to implement. We agree with this because we want the base pay to a big percentage of their pay but still include a fair amount of benefits with other options and bonuses available.
Consider the theories and research presented in this chapter. Which ones did you use to support your recommendation?
We believe Signaling is the best theory to match the Sled Dog Software business. Signaling refers to giving bonuses, more pay, or other forms of compensation to influence the behaviors of your staff. We believe this is the best theory because it is one of the most realistic ways to influence workers in a positive way when they are first starting out.
List three pieces of additional information you would like to have to refine your recommendation. Explain how this information would help you.
The three pieces of additional information that I would like to have are; what are other marketing managers getting payed in the area, the total pay mix breakdown vs. competitors, and the total compensation. These would help me determine the marketing managers pay by helping our company stay competitive with competitors for the same position.
Finally, would you physically locate all the actual software development in Laramie? What, if any, other options would you consider?
We would locate most of the software development in Laramine. The one thing we would want to do is make sure that we were also in other areas in case we are installing in an area and need software development around there. Another factor is to make sure that we are reaching out to all of our customers and not just one area because we will be in many other areas as well.