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Management
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Show me the money
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Show Me the Money - Compensation at CEL Analyze the three options that Arvidson is considering. What are the pros and cons of each option? Which option would recommend Arvidson offer to Grubb and explain the rationale behind your recommendation.
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Show Me the Money
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Show Me the Money
As the President of Cisca Engineering Ltd, Jeff Arvidson wants to lure Grubb to accept the offer, he has three options. The first option includes offering Grubb the job at a lower salary than the one that Grubb was ready to take (Risavy et al., 2019). One advantage of this approach is that it will help maintain the current payment system where the employees do not have problem with the amount they have been receiving. Maintaining their current payment will avoid complaints that would arise within the organization. Furthermore, this approach will help prevent the company from incurring extra costs that can reduce the profits and threaten the organization since it may struggle to maintain them.
Even though this move will benefit the company, it has some disadvantages. For example, since Grubb had highlighted the minimum amount he was willing to accept, offering a lower salary than the one he had suggested increased his chances of turning the offer down. The company can also incur extra costs and time interviewing other job applicants, which may take a long before securing one. Moreover, failure to secure Grubb can cause the company to risk losing him to competitors willing to pay him the salary he is ready to receive. The competitors will, therefore, have a competiti...
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