CHAPTER 11 SUPPLEMENTAL CASE SOLUTIONS:
SUPPLEMENTAL CASES
Compensation Changes at JC Penney – This case identifies how performance
management systems might be redesigned. (For the case, go to
1. How do the JC Penney changes reflect a total rewards approach?
JC Penney’s changes reflect a total reward approach because it focuses on linking
continuing career growth.
2. Discuss why JC Penney’s shift to a more performance-oriented compensation
system had to be linked to market pricing.
JC Penney’s shift to a more performance-oriented compensation system had to be linked
to market pricing because it is facing a dramatically changing retail environment from
Scientific Turmoil – This case discusses the concerns associated with having a formal
base pay system, and communication issues that occur. (For the case, go to
Questions
1. What role does equity play in this case?
2. Should companies demand that individuals not reveal their salaries? Why or why not?
3. Comment on the salary system and weaknesses you see in it.
4. As the director, how would you handle Fred?
Comments
Several topics discussed in the chapter are present in this case. One is the impact of pay
openness. Because of the lack of pay secrecy, Fred knew that he was receiving less pay
than Bob.
