Wilson & Associates is a medium-size marketing organization specializing in professional promotion and publicity services.The firm's top management believes that it provides quality service as evidenced by the high level of customer satisfaction.The organization consists of three departments: print media,audio media,and visual media,each of which has a senior director in charge.The company employs 80 clerical staff who are paid on an hourly basis and 30 professional staff who are salaried.A large majority of the employees have an excellent rating in their job skills,and all employees demonstrate above average performance in their job responsibilities.The employees take pride in their achievements,and morale is very good.Salary ranges are established for different job classifications within the clerical staff Review Wilson and Associates' wage and compensation plan.a.Identify and discuss the general strength of the wage and compensation plan.b.Identify and explain the shortcomings in the administration of the merit pay increases that are to become effective in 2010,and discuss what effect these shortcomings could have on the group of

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 Feedback: 1.a.The Wilson & Associates' wage and compensation program appears to have been effective overall because employee morale is good and a majority of the employees have excellent skill ratings and above average performance ratings.The strengths of the program include the following: 
Regular employee evaluation aids employees in improving their performance and setting goals.
Pay raises are based upon merit so good performance is rewarded.
The existence of salary ranges preserves equity among employees in the same classification.
Promotions from within the company are based upon merit and thereby reward good performance.
b.The shortcomings of the Wilson & Associates' program appear to be more in the operation rather than the concept.The shortcomings include the following: 
The same system is used for both clerical and professional employees.A different reward system may be in order because their needs may be different.
The Print Media Department management appears to be rewarding seniority as much as merit.This reduces the credibility of the program and weakens it as a motivator.
Monetary reward is the primary feature of the program.Employees have other needs that can
be fulfilled on the job e.g.opportunities for advancement,recognition,etc.These other needs
should be included in the system.2.The compensation program appears to be generally effective and most of its features should be retained.Some improvements should be considered,however.First,Wilson and Associates should consider developing separate compensation plans for clerical and professional employees to recognize the differences in job expectations.Second,the firm needs to address the apparent issues (at least in the print media department)that senior employees are favored.Why is there more discontent among the more recently hired? Does the plan not include the advancement opportunities that the younger workers are looking for? Moreover,why is the senior staff reluctant to accept additional responsibility? Does the plan adequately address the risk these employees feel regarding the changing environment of the business,the advancement of younger staff,etc.?

Wilson & Associates Is a Medium-Size Marketing Organization Specializing in Professional