Kellog Industries Is a Manufacturing Company That Makes Various Industrial

question 33

Essay

Kellog Industries is a manufacturing company that makes various industrial components out of aluminum. Kellog is located in a large city in the northeastern United States. Various labor disputes have occurred in the city some with acrimonious public debate concerning the honesty of management. During one of Kellog's routine employee meetings Colin Ross a production worker brought up the issue of the cost of a worker as reported in the company's annual report.
The cost was given as $32000 per year. Colin points out that the average wage rate of $12 per hour is at most around $25000 in gross wages. He asks whether the company is adding in overtime because if so the figures are misleading because the employees are not allowed to work overtime.
Required:
Prepare a note explaining to Mr. Ross how Kellog might calculate a cost per employee that is greater than gross wages. Explain in general terms only. Do not use any calculations.

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Definitions:

Evidence-Based Foundations

The basis of knowledge, practices, or policies that are grounded in empirical research and data analysis.

Organizational Climate

The collective perceptions and attitudes of employees about their work environment, which can influence motivation, job satisfaction, and performance.

Financial Capital

Resources in the form of money or other assets owned by a person or organization that are available for investment or spending.

Transformational Leadership

A leadership style that seeks to inspire and motivate employees to innovate and create change that will help grow and shape the future success of the company.