HRM 4009 - COMPENSATION
Week 2 Exercise: Applying Contextual and Structural Variables to an
Organization You Choose
Assignment Objective:
Take an organization that you know well (such as a current or former employer), and analyze
both structural and contextual variables in order to determine their current managerial
strategy, as well as the managerial strategy they should be using. Examples of potential
organizations include: Starbucks, Tim Horton’s, Wal Mart, etc.
Instructions:
Referencing Compensation Notebook 2.1, and using the template below, analyze the structural
variables to determine what the managerial strategy currently IS. Identify the managerial
strategy for each variable (with rationale), as well as overall.
Then, referencing Compensation Notebook 2.2, and using the template below, analyze the
contextual variables to determine what the managerial strategy SHOULD BE. Again, identify the
managerial strategy for each variable (with rationale), then identify overall, what the strategy
SHOULD BE.
Answer the following questions:
• Do the managerial strategies match? If not, why not?
• Do you agree with what the template indicates as the best managerial strategy?
• Would you consider this firm to be an effective organization?
• Does the organization’s reward system match its managerial strategy?
Example: Koch Foods
Structural Variable
Job Design
Managerial Strategy
Classical
Rationale
Jobs are narrowly defined; there is no
collaboration required of the workers – each is
responsible for their own task; tasks are
repetitive and do not require thinking
Contextual Variable
Environment
Managerial Strategy
Classical
Rationale
Environment is stable – demand is relatively
stable, customer needs are consistent, no new
competition. It is also simple – the firm
operates in one product domain (chicken).
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Company: _Canna Cabana
Submitted by: Lam Duong (101431044) , Svetlana Li (101473966), Huihui Zhang (101492151)
Structural Variable
Job Design
Managerial Strategy
Classical
Coordination and
Departmentation
Human relations
Control
Classical
Communication
Classical
Decision Making and Classical
Leadership
Reward Systems
Classical
Overall:
Classical
Contextual Variable
Environment
Managerial Strategy
High-involvement
Business Strategy
Classical
Rationale
Head office from Calgary, AB design the jobs
with the focus on customers satisfaction and
maintain products flow regulations. Clear and
straight forward with the job definitions as
well as the duties required.
Practices that aligns with the provincial laws
and straightforward communication channels
(i.e emails and written instructions) to ensure
effective productivity.
All employees reportedly subordinate to the
store management level, ensuring safety and
legal practice to AGCO regulations
Communications is done via email which store
management level have access to and being
verbally delivered to store level employees on
a daily basis
All marketing, store layout is decided by
marketing teams from head office which
instructions will be delivered via emails or
meetings.
Not highly motivative compensation system
provided that any customers sign up for the
“membership program” that rewarded the
employees a fixed amount of monetary values
Company is authoritative that focus on
aggressive motivation and strict control
resulted in structural variables categorized in
classical strategy
Rationale
Since legalization of cannabis, a lot of new
competitors on a either corporate / private
scale
Head office would forecast and decide the
strategy in the long run
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Technology
Classical
Size
Classical
Workforce
Classical
Overall:
Classical
Head office would mimic and adapt other’s
competitors either internal or external from
the industry to keep up maximum productivity
New stores are open widely over every
province of Canada following the Walmart
business model for Cannabis
Most of the workforce at entry level are doing
basic retail work. However, there is a licence
required for this line of work.
The company has a stable growth within the
cannabis industry. The defender business
strategy that dominated a narrow product
(mainly cannabis products)
Do the managerial strategies match? If not, why not?
No. Because of the lack in human element involved much for the business and tends to treat
Do you agree with what the template indicates as the best managerial strategy?
YES
Would you consider this firm to be an effective organization?
No it would not. There is more room for improvement.
Does the organization’s reward system match its managerial strategy?
Yes it does. The organization goals to keep the rewards margin low to have their profit
strives.
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