Dominique Has Just Been Hired as the HR Manager for a Small

question 53

Essay

Dominique has just been hired as the HR manager for a small but growing manufacturing company.Up until now,pay rates have been determined at the time of hire and are loosely based on "market" pay rates.Dominique has already noticed that some employees don't think the rates of pay are fair.How should Dominique go about establishing pay rates that are both externally and internally equitable? In your answer,indicate the issues that may arise if this is not done.

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Definitions:

Direct Materials

Raw materials that are directly incorporated into a finished product and can be easily traced to it.

Direct Labor

The labor costs of employees who are directly involved in the production of goods or services.

Manufacturing Overhead

Indirect production expenses including costs for factory equipment depreciation, quality control, and facility rent that are not directly linked to individual products.

Cost of Goods Manufactured

The total cost incurred to produce goods that are completed within a specific accounting period.