Bunn Case Study

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1. Pay structure policy in BUNNI The Standard Policy of payment required in BUNNI: The standard policy of BUNNI for payments has been followed by the NUMMI’s standard policy of payments. The Lawler, Mohrman and Ledford (1995) surveyed Fortune 1000 companies in 1987, 1990, and 1993. Osterman (1994) surveyed a national sample of manufacturing and non-manufacturing establishments in 1992.MacDuffie and Phil (forthcoming) have developed an extensive data set on auto assembly plants in 1989 and 1993. They found automobile companies set their payments policy on four criterion and BUNNI is also following these factors to set their fair policy in payments are: A) The knowledge of employment and taxation laws: customs, cost of living index, environment, employment practices of various countries. B) The knowledge of labor markets and industry norms regarding benefits and compensations. C) The knowledge of foreign exchange rate fluctuations and monitoring rate of inflation or cost of living Index in different countries. D) The knowledge and clear conception about the vision and mission of the company, its corporate philosophy regarding managing human resources, its corporate strategy of growth or stability and strategy of its business units regarding cost, leadership, differentiation and innovation. These standards are…show more content…
Two types of general increases are frequently given within BUNNI. The most common is the cost of living increase. Indeed to say that time erodes an employee’s buying power because of inflation. A measure of this erosion is provided by the law unit and legal aspect in BUNNI. If inflation outpaces pay increases, the employee’s buying power is reduced. For this reason, BUNNI included an inflation percentage in pay increases. This cost of living increase is usually given to all BUNNI whose payments are impacted by the
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