Strategic Compensation Henderson Printing
Strategic Compensation
Henderson Printing
June 12 2012
Case Study
Henderson Printing
As a component of the structural variables in the organization of Henderson Printing the reward system is archaic and ineffective at best, it is therefore important to understand the contextual variables affecting Henderson that will determine the most appropriate managerial strategy for this organization. Of the five contextual variables, Environment is the most critical. Henderson Printing is operating in an environment that is stable, their technology is not changing rapidly, they do not have an unpredictable regulatory environment, the life cycles of their products are long term, and demand for the their products is not volatile. Henderson operates a defender corporate strategy as they are the manufacturers of high quality business products catering to a relatively narrow client segment where they excel in both product quality and price, although recently high production costs and prices have become an issue. Although there is currently no system for scheduling production runs at Henderson, the firm operates between a routine technology and a unit/small batch technology. Routine where there are moderately few exceptions to the standard work processes for the majority of their customer orders and unit / small batch technology when they are producing small runs of customized products that need considerable additional time. Henderson Printings organization size is classified as small to medium which would in the future make it a prime candidate to implement a High Involvement Strategy. The work force at Henderson Printing is primarily moderately skilled and from a region of good economic circumstances.
Currently there is great disarray amongst all forms of compensation from base pay to indirect pay and performance pay, all facets of compensation appear to be spur of the moment or reactionary rather than strategically formulated.
Henderson Printing
June 12 2012
Case Study
Henderson Printing
As a component of the structural variables in the organization of Henderson Printing the reward system is archaic and ineffective at best, it is therefore important to understand the contextual variables affecting Henderson that will determine the most appropriate managerial strategy for this organization. Of the five contextual variables, Environment is the most critical. Henderson Printing is operating in an environment that is stable, their technology is not changing rapidly, they do not have an unpredictable regulatory environment, the life cycles of their products are long term, and demand for the their products is not volatile. Henderson operates a defender corporate strategy as they are the manufacturers of high quality business products catering to a relatively narrow client segment where they excel in both product quality and price, although recently high production costs and prices have become an issue. Although there is currently no system for scheduling production runs at Henderson, the firm operates between a routine technology and a unit/small batch technology. Routine where there are moderately few exceptions to the standard work processes for the majority of their customer orders and unit / small batch technology when they are producing small runs of customized products that need considerable additional time. Henderson Printings organization size is classified as small to medium which would in the future make it a prime candidate to implement a High Involvement Strategy. The work force at Henderson Printing is primarily moderately skilled and from a region of good economic circumstances.
Currently there is great disarray amongst all forms of compensation from base pay to indirect pay and performance pay, all facets of compensation appear to be spur of the moment or reactionary rather than strategically formulated.