Reference no: EM132733698

Fresh Munchables is a mid-sized but steadily growing food-processing company founded in 1967. Since its inception, the company has been committed to providing only premium quality health foods. The company is headquartered in Wichita, Kansas, and it is one of the area's largest producers of soups and simple meals. In the past 20 years, the company has also begun processing healthy snacks and beverages. Fresh Munchables has traditionally sold its products through large grocery stores, but it is now venturing into online and restaurant businesses, which is all very new territory for management.

• The company is split up into three overarching strategic business units-soups and meals, drinks, and snacks. Additionally, the company is divided into several business units at the operational level, consisting of a mix of business operations, manufacturing (production), research and development, finance, and so on. As the company continues to grow, the executive team and other leaders are constantly looking for ways to improve processes.

• Because Fresh Munchables has grown from a very small company into a well-established organization, management has decided to broaden the company's strategic HR functions. The human resources team is currently working to improve recruiting and hiring processes, succession planning, and most importantly, compensation and rewards.

• For many years, the company has delegated compensation decisions to managers with little to no training on the subject. This has left the company in a disorganized, confused state when it comes to paying and rewarding employees. These problems have compounded as Fresh Munchables has recently opened up new manufacturing locations with new managers and many new employees.

• The chief human resources officer has organized a team of compensation specialists of which you are a part to spearhead total compensation-related problems and help the company to reach its current and future goals. You and your team can achieve this by revising the current total compensation system to reflect the company's current business strategies and goals as well as attract and retain top talent.

Problem 1. Unlike other healthy food producers in the local market that sell low-quality and cheap products, Fresh Munchables wants to provide premium food products at a high cost. In fact, Fresh Munchables has become known in its community for placing a high priority on always providing great food and superior customer service.

In order to continue to facilitate Fresh Munchables' goals and reputation, what competitive strategy should HR implement?

a. A differentiation strategy, because this approach justifies spending more money to stand out from competitors
b. A value proposition strategy, because this approach focuses on the value that the company's products adds to its customer base
c. A cost leadership strategy, because the company desires to lead the market in providing the best products at a high cost
d. A niche-focused strategy, because the company is targeting a small group of people in a segmented market

Problem 2. Several new positions have recently been created to streamline the delivery of ingredients from Fresh Munchables' factories to its restaurants. The CEO of Fresh Munchables wants the HR department to figure out how much each position should be paid based on the company's internal rewards alignment.

What question should not be considered in order to make these new positions fit within the company's pay structure?

a. How well does each position's rewards align with those received by others in the company?
b. How should two employees with similar duties but different titles be paid?
c. How can the company maintain good morale, collaboration, and information sharing among employees?
d. How well does each position's rewards align with those received by others in similar positions in competing companies?

Problem 3. In the preliminary stages of developing the compensation system, the compensation team at Fresh Munchables assigns a member of the team to perform a SWOT analysis to better understand the organization's environment and how that may influence the compensation system.

Which of the following outcomes may be discovered in the SWOT analysis for Fresh Munchables?

a. Strategic performance factors-such as metrics for productivity in the snacks division and detailed plans for improvement in the soup division-that will provide a competitive advantage
b. Critical success factors-such as customer perceptions of the company as the leading healthy packaged foods brand-that will foster competitive advantage
c. Strategic compensation factors-such as overarching company goals to outperform competitors in the food and beverage industry-that will allow for a competitive advantage
d. Vital success components-such as a strength in marketing and a weakness in employee retention and satisfaction-that will allow for a competitive advantage

Problem 4. In the preliminary stages of developing the compensation system, the compensation team at Fresh Munchables assigns a member of the team to perform a SWOT analysis to better understand the organization's environment and how that may influence the compensation system.

Which of the following outcomes may be discovered in the SWOT analysis for Fresh Munchables?

a. Strategic performance factors-such as metrics for productivity in the snacks division and detailed plans for improvement in the soup division-that will provide a competitive advantage
b. Critical success factors-such as customer perceptions of the company as the leading healthy packaged foods brand-that will foster competitive advantage
c. Strategic compensation factors-such as overarching company goals to outperform competitors in the food and beverage industry-that will allow for a competitive advantage
d. Vital success components-such as a strength in marketing and a weakness in employee retention and satisfaction-that will allow for a competitive advantage