henderson printing

Henderson printing


            The flourishing operation of any firm is dependent to a great degree, upon the efficiency in which managers carry out their tasks in today’s setting. A cutthroat base pay curriculum simply compensates employees for carrying out their fundamental activities and tasks. Augmented competition for competent employees, competition for subsidize raising dollar and changes in duty laws have enforced organizations to scrutinize new methods of attracting and retaining a senior quality of manager and motivating key in office managers. (Chingos, 2002, p. 89)

1.    What kind of management strategy and human behavior do you want to see

            Henderson Printing should incorporate a management strategy where all departments have different roles to perform rather than leaving the entire task on George, the owner. There should be strategy formulation, implementation and evaluation. (Chingos, 2002, p. 98)

            It being a small sized manufacturer of account books, ledgers and various types of record books that are used in business, it should employ an accounting and marketing specialists who will look into how the firm’s products are formulated and examine some of the cheaper ways of producing the product. This should then be followed with evaluation of their products and services by test marketing. In doing so, they will be creating a competitive advantage and thereby meeting their customers needs. (Red River College, 2004, p. 201)

2.    What should your compensation objectives be? Why?

            Compensation objective should be based on the employer’s aptitude to pay. Moreover, the key factors encompass the corporation productivity, the significance of that labour to the process of the firm and the amount of labour costs that are comparative to the total costs. (Harvard Business School, p. 115)

            Henderson printing compensation objective should be based on the organizational context. For the firm to expand an optimal compensation objective, the body developing it ought to be accountable for the other strategic decisions in the association, and in a number of organizations, it essentially refers to the chief executive officer. However since George Henderson doesn’t have expert knowledge in accounting, therefore, the human resource and compensation specialist comes in and brings this knowledge to the process. (Red River College, 2004, p. 200)

            Compensation objective should also be based on the unionization of the firm. Therefore, Henderson printing should emphasize on introduction of a union so that the compensation objectives are acceptable to the union members. (Red River College, 2004, p. 200)

            Henderson printing compensation objectives should also be based on the worker participation in the blueprint of the specific component. This will enable the workers, for instance to be involved in developing and administering member of staff benefits or even scheming and managing a profit allocation plan that is frequently done through combined member of staff organization committees. It should be noted that the more member of staff participation in the expansion process, the more probable the plan will attend to significant member of staff needs, and the more probable it will be seen as evenhanded. (Red River College, 2004, p. 201)

3.    What kind of base pay should be in place in the organization? How will you determine what the base pay should be?

            The kind of base pay that should be in place in the organization should not be too closely to present or short term performance as in the case of Henderson printing. This is because there are all kinds of behavior and maneuvers to make short run performance look high-quality and in the long run wreck the firm. This can best be illustrated in the case study where George’s formal system of payment is based on the spot of the moment. Everyone gets something but the quantity vary significantly in the sense that he associates a face with the name and tends to give superior bonuses and vice versa thereby leading to different pay rate for every employee. In the end, we see that George encounters a deficiency of payroll when his bookkeeper informs him that there weren’t sufficient funds in the bank account to meet the payroll of his entire workforce. (Red River College, 2004, p. 215)

            The kind of base pay that should be in Henderson printing should be based on additional benefit and inducement structure. This will facilitate long term incentives that usually augment the portion of CEO’s reimbursement. (Red River College, 2004, p. 220)

Determination of base pay

            This should be based on the preliminary arrangements within the appropriate assortment of the compensation plan. In most situations, the first base salary presented would not be less than the smallest amount or better than the utmost dollar quantity within the earnings assortment assigned to the position categorization. (Harvard Business School, p. 120)

            Henderson printing should incorporate an appointing authority that will be accountable of the offerings that individuals will be anticipated to make toward the objectives of the firm. The individual’s edifying backdrop and related work practice in association to the proficiencies and requirements of the position will determine the predictable payment in determining the preliminary base salary within the assigned earnings assortment of the position categorization. (Basic Books, 2006, p. 100)

            Moreover, Henderson printing should determine its base pay based on the labour superfluous, corporation productivity and the significance of the labour to the operation of the association, and the fraction of labour costs comparative to the entirety costs incurred. (Harvard Business School, p. 115)

4.    Do you think there should be any incentives? If so, what kind? If not

Why not?

            Yes, there should be incentives since they are an influential motivational instrument for attracting and retaining pinnacle talent, escalating output, and eventually achieving the firm’s goals. (Basic Books, 2006, p. 107)

            Incentive plan places the focal point on key outcome and outputs which bind into the organization’s management policy and what it is trying to achieve as an organization. Monetary incentives that are awarded in addition to base salary offer a documented, accepted, and effectual method of motivating the output of employees in key administration positions. (Harvard Business School, 205, p. 124)

            Inducement award recompense plan ought to be cautiously premeditated and administered. Above all, it must be conventional to the policies, moral principles and culture of the firm. Therefore, George Henderson should carefully incorporate incentive award compensation plan in order to motivate his employees to rethink about the idea of unionization within the organization since they seem to be so reluctant concerning this issue. In doing so, the company will definitely increase its productivity and thereby achieve its corporate goal. (Basic Books, 2006, p. 122)

            A management inducement award plan is based on the principle that higher level of employees have a chief impact on firm’s performance, and that it is in the preeminent wellbeing of the firm to inspire higher level employees to surpass recognized goals and objectives. In our case study, George Henderson should incorporate this management incentive award agenda to the supervisors in production department who had not yet been given a definite role to play within the organization. This will thereby improve decision making responsibilities and relations that will facilitate the members to openly and considerably contribute towards the accomplishment of chief firm-wide objectives. (Basic Books, 2006, p. 115)

            However, it should be noted that, in order to be effectual, an inducement plan should not just center on the firm performance, but also center on individual performance. Therefore individual objectives within the firm require to be defined for every one position as well. (Harvard Business School, 205, p. 131)

5.    What kind of benefit packages are you

a)    Obligated to provide?

            Henderson printing is obligated to provide four main benefit packages. These include; the balance sheet, localization, lump sum and negotiation. Balance sheet is an approach to designing emigrant recompense that attempts to offer an average of living similar with the home country. Negotiation on the other hand is a process in which the employer and employee discuss a jointly acknowledged package. (Red River College, 2004, p. 216)

            Localization involves paying emigrant workers similar recompense as local nationals in correspondent positions. It’s applicable in long term objectives with corporations that have widespread operations and well developed reimbursement systems. Last but not least, lump sum approach is where an assortment of allowance amount are remunerated straightforwardly in home country dollars to the member of staff who may then make a decision to live in an inferior standard of accommodation than the standard and then pocket the residue of that allowance. (Harvard Business School, 205, p. 139)

b)   Would you like to provide? Why?

Yes, I would like to provide balance sheet benefit package. (Red River College, 2004, p. 210)

Balance sheet approach

            This system creates a reimbursement system that enables the personnel to uphold a standard of living that is similar with what they would take pleasure in their home country, in spite of the host state they are sent to. In this system, personnel operating expense are broken down into; income duty, accommodation, goods and services and a “reserve” or “optional” components. These costs are premeditated and then changed to Canadian dollars and the “reserve” quantity is added. It then follows that this total quantity is the base pay for the employee. In some cases an extra amount may be added to base pay as “adversity allowance” to recompense the personnel who have physical condition or other family problems. (Red River College, 2004, p. 210)

            This kind of base pay should be incorporated in Henderson printing in order to avoid bankruptcy of the firm. In the case study, we see George trying to be a kind employer in spite of the fact that he feels the firm cannot afford any formal worker benefits. We see that he frequently keeps sick personnel on payroll for a substantial time and this is particularly if he knows the employee has a family to support. Therefore, with this benefit package, it will ease George Henderson from these responsibilities since hardship allowances will be catered for. (Red River College, 2004, p. 211)

6.    What percentage of your compensation dollar is spent on direct pay incentive/benefits? Justify your answer.

            The percentage varies with the occupation. For instance, if the lowly paying employer pays his accountants a mean total reimbursement of $30,000, and the uppermost paying employer pays his accountants a mean total reimbursement of $45,000, then the dispersal in accountant’s reimbursement athwart firms is 50 percent. It should be noted that this is inclusive of the direct pay incentive. (Red River College, 2004, p. 205)


            Incentive programs will carry on growing in the firm sector since they are an effectual management instrument. It should therefore be taken into consideration that if they are not well premeditated; an inducement plan can consequence in either extreme imbursement to executives or performance goals that are unachievable. However, the reimbursement and rewards to both the managerial and the firm make these efforts valuable and attractive to the firm. Henderson printing should therefore implement a strategy where these incentive programs will be put into place in order to create a competitive edge in the market. This strategy should be based on; strategy implementation, strategy formulation and evaluation.


Basic Books. (2006). Business: The Ultimate Resource. New York: Basic Books

            Publishers. ISBN: 0465008305.

Chingos, T.P. (2002). Paying for Performance: A Guide to compensation Management. University of Western Ontario: John Wiley and Sons        Publishers. ISBN: 0471273740.

Harvard Business School. (2005). Harvard Business Essentials Create and        Implement the Best Strategy for your Business. New York: Harvard            Business Press. ISBN: 1591396328.

Red River College. (2004). Introduction to Compensation: A curriculum for          Distance Students at Red River College. Western Ontario: Red River      Publishers.

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