Total Compensation HRM 305
MIDTERM – CASE OVERVIEW Due in class, Thursday, November 3rd
You are hired as the HR director for the fictitious Motors and More, Inc. Motors and More, a businessto-business sales company, manufactures small motors and accessories for industrial and home
products. The industry is highly competitive, and the company follows a prospector strategy. A
prospector strategy takes advantage of new markets and products (Gomez-Mejia, Galkin, and Cardy,
2001). Organizational emphasis is on growth, innovation, and new product development. A prospector
wants to be first to market. To respond to competitive and rapidly changing markets, prospectors have
flexible, flat, and more decentralized organizational structures.
Motors and More is headquartered in the small city of Enid, Oklahoma. (see the link below for
information on Enid, OK). There is a technical school and a community college within 50 miles of
Motors and More. Motors and More’s president is a former military and is highly patriotic. He is
committed to staying in the community. Recently, several other local companies have experienced
labor-organizing activities. Motors and More employ 116 people. Until you were hired, there was no
HR department. Lately, the organization’s employee turnover rate has been higher than usual. The
marketing and sales department continues to sell products to an expanding market. Because of this
increased product demand, the output must be increased by 96 percent. Traditionally Motors and More
have provided employees with minimum legal pay wages.
Eighty-eight percent of Motors and More employees are Caucasian. Except for one female supervisor
in the customer service department, the president and all other managers are Caucasian men.
Management promotions have been based on seniority. A growing Hispanic and Kurdish population
has not been accepted into the community. All the employees in manufacturing (including quality
control), customer service, and operations (responsible for shipping and receiving; distribution of raw
materials, components parts, and finished goods inventory; and maintenance and cleaning) have at
least a high school degree or GED. The organization provides some skills training courses. Please refer
to the organizational chart in Figure 1 for more details.
Total Compensation HRM 305
As the new HR Director, you have been asked to provide a presentation to the president describing
compensation challenges and your strategy to drive positive changes for the next 12 months. The
president is particularly interested in hearing your thoughts and rationale within these areas:
1. What roles and possible structures do you see existing within the HR department? Provide a
brief description (1-2 sentences) for each position. (You are not required to, but you may
provide a possible organizational chart.)
2. How does Motors and More’s employee compensation compare to other organizations in the
area? Will the organization meet, lead or lag the local market? Explain your rationale and share
any outside data that you may have. (i.e. bls.gov, onet.org, etc.)
3. What aspects of a progressive yet competitive compensation plan should Motors and More
explore that will support recruiting and retention efforts and lower employee turnover?
4. Briefly describe your thoughts on communicating a new compensation plan to the employee
population, considering the various audiences that must be informed.
• You will share this presentation in class on Thursday, November 3rd. You will have a
maximum of 10 minutes to present.
• The presentation should be delivered from your perspective as the Director of HR to the
• Each presentation should be no more than 6 slides (not including the title and reference page).
• You must cite a minimum of three different sources used to respond to this midterm in addition
to the textbook.
Due Thursday, November 3rd