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VIII. Discussion Questions and Suggested Answers
12.1. Discuss some of the problems that companies are likely to face when both
contingent workers and core employees work in the same location. Does it
matter whether contingent workers and core employees are performing the
same jobs? Explain your answer.
Possible problems that may arise when companies put contingent workers and core
employees in the same location are mentality differences, attitude differences, and work
reliance conflicts. Mentality issues generally emerge when one type of employee may
12.2. Companies generally pay temporary employees lower wages and offer fewer
benefits than they extend to their core counterparts. Nevertheless, what are
some of the possible drawbacks for companies that employ temporary
workers? Do you believe that these drawbacks outweigh the cost savings?
Explain your reasoning.
Answer to this question can be found in the MyLab
12.3. What arguments can be made in favor of using compressed work week
schedules for companies that pursue lowest-cost strategies? What are the
arguments against using compressed work week schedules in such situations?
Compressed work week schedules are profitable for companies that pursue lowest-cost
strategies because it reduces the number of times employees must commute between
12.4. What impact will flexible work schedules have on employees’ commitment to
their employers? On employee productivity? On company effectiveness?
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Some U.S. companies use flexible work schedules to help employees balance the
demands of work and home life. Flextime, compressed work weeks, and telecommuting
should provide single parents or dual-career parents the opportunity to schedule work
12.5. Discuss whether you believe that telecommuting arrangements should apply
to certain job groups rather than all job groups in a company. Provide
rationale.
Answer to this question can be found in the MyLab
IX. End of Chapter Case; Instructor Notes, and Questions and Suggested
Student Responses
Case Name: Telecommuting at MedEx
Instructor Notes:
Telecommuting creates a flexible work arrangement that allows employees to work from
home, for at least part of the standard workweek. This option can be considered a
valuable benefit to employees, particularly if they are challenged with balancing their
work and home life. Telecommuting is most appropriate for positions where employees
work independently and do not need frequent interactions with co-workers. The
Specialists in this case work in positions that are most likely appropriate for
telecommuting as they work independently on their own accounts.
Suggested Student Responses:
12.6. Would offering telecommuting as an option benefit MedEx? How?
Offering the option for telecommuting could help improve employee satisfaction by
giving employees more flexibility. The Specialists could save money on gas and parking
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12.7. Are there any disadvantages or challenges in offering telecommuting?
Establishing a telecommuting option could be complex for MedEx as they determine how
they will ensure that the employees have the equipment and supplies that they need.
12.8. What do you recommend MedEx do? Why?
Students will most likely suggest that MedEx offers the telecommuting option. While it
would take some effort to develop a thorough telecommuting policy, the company will
X. Crunch the Numbers! Questions and Suggested Student Responses
Calculating the Costs of Full-time and Part-time Employment
12.9. Based exclusively on employing full-time workers, (a) How many are needed
to complete the project? (b) What is the estimated total cost of wages and
benefits?
a.
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b.
12.10. Based exclusively on employing part-time workers, (a) How many are needed
to complete the project? (b) What is the estimated total cost of wages and
benefits?
a.
100,000 hours / 5 workweeks = 20,000 hours per workweek
b.
100,000 hours x $3.37 per hour for benefits = $337,000
12.11. Assume that your company has asked you to calculate the cost of staffing the
project with a combination of full- and part-time workers. You’ve already
hired 15 full-time workers. (a) How many part-time workers should you
hire? (b) What is the total cost of wages and benefits based on employing this
mix of full- and part-time workers?
a.
15 full-time workers x 40 hours per week x 5 weeks = 3,000 hours
b.
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Full-time wages and benefits:
Total for full-time and part-time workers: $1,586,290
XI. Assisted-graded Questions
12.12. Explain leased employee arrangements. Discuss employee benefits for leased
workers.
12.13. Provide your reactions to the following statement: Contingent workers
should be compensated on a pay-for-knowledge system.
Answer to this question can be found in the MyLab
12.14. MyManagementLab Only—comprehensive writing assignment for this
chapter
XII. Additional Cases from the MyManagementLab Website; Instructor Notes,
and Questions and Suggested Student Responses
Case Name: A New Leader at Stylings
Instructor Notes:
The CEO is responsible for implementing an organization’s competitive strategies and in
many cases, has the greatest impact on organizational success. As such, an attractive
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Suggested Student Responses:
12.15. What role does the compensation package play in attracting the right talent
for the CEO position?
The CEO holds a significant responsibility in ensuring the success of an organization. A
AACSB: Analytical thinking
12.15. What are some recommendations the consultant may provide to the Board
for the compensation package?
As base pay is typically a smaller part of a CEO’s compensation package, the
recommendations are likely to focus on other aspects of compensation. With the
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