Case Questions: You are a group of Human Resource professionals hired by Susan Superfit, the founder of the Fit Shop Limited, to provide expert advice from a compensation management perspective regarding the following three questions:
1) She believes, as does your group, that the Fit Shop would be well suited to an organizational performance pay plan. Select the specific organization pay plan that you believe would work best; describe in detail its design and how you would deal with any design issues.
2) She also believes that a performance appraisal system linked to merit pay would be a good fit for the Fit Shop. She is familiar with this approach from previous experience but is asking your team to provide your views on the key critical components and related considerations of a performance appraisal system linked to merit pay to guide its implementation at the Fit Shop.
3) Last, but not least, Susan has become aware that several unions are actively organizing employees of other retail organizations in markets the Fit Shop will be targeting. She would prefer to remain union free. She is asking for 2 additional recommendations - and supporting logic - from a compensation and rewards perspective from your group to help achieve this outcome.
Tip: Do some research on key compensation issues unions seek to address when they organize new bargaining units in Canada.