Thread 1 The case in review is that of Denton Fabricators. I will be reviewing the salaries of four positions within the accounting department. These positions include; accountant, senior accounting clerk, bookkeeper, and bookkeeper assistant. I will begin by noting that “the goal of Denton Fabricators Corporate Compensation is to motivate personnel to support the achievement of company business goals” (Clardy, A.B., 1996). They also note that in order to reach their goals they plan to compensate employees that perform at specific levels competitively. This is in accordance to current market level. The case notes that “there have been no changes to Denton’s salary levels for over 3 years” (Clardy, A.B., 1996). This has resulted in employees resigning for their positions and seeking employment elsewhere. “Managing pay systems is one of the most controversial and hotly debated areas of human resource management” (Coz, A., 2003).  Upon reviewing the staffing and compensation chart I notice that their accountant positions seem to be on par for the market average. This is most likely due to the fact that both of their accountants are new within the last year and a half. I do not see that any changes need to be made in this area. Now as I move into the accounting clerk position, I notice that one employee in particular is being paid below the market average for that position. We see the same issue in the bookkeeper position. They are paying a bookkeeper with double the years of experience a mere ten cents an hour more. The lower two paid employees in this department are making around sixty cents less an hour than the market average. The bookkeeper assistants all seem to be close in line with the market average but one is falling short by a small margin.  The solution to this problem is quite simple. Denton Fabricators needs to conduct pay benchmarking. “Pay benchmarking is the practice of establishing standards of evaluation or comparison by collecting data on the pay provided for similar work and then using these standards to adjust pay levels or benefits” (Magnan, M., Martin, D., 2018). This would ensure their employees were compensated fairly against other employees within their field and within their market. This would cause their longevity rates to increase and their turnover rates to decrease. To ensure they can pay these wages and maintain a profitable company they need to analyze their budgets along with profits and losses. The bible say’s “whoever sows injustice will reap calamity, and the rod of his fury will fail” (Proverbs 22:8). This is seen to be true among the employees that are unhappy and have chosen to seek work within other organizations. The bible also says, “People should benefit from their work” (1 Timothy 5:17-18). If Denton Fabricators wishes to maintain their goals regarding compensation and quality of employee, these changes will need to take place sooner rather than later. Pay scales should be reviewed annually along ...

1. Thread 1
The case in review is that of Denton Fabricators. I will be
reviewing the salaries of four positions within the accounting
department. These positions include; accountant, senior
accounting clerk, bookkeeper, and bookkeeper assistant. I will
begin by noting that “the goal of Denton Fabricators Corporate
Compensation is to motivate personnel to support the
achievement of company business goals” (Clardy, A.B., 1996).
They also note that in order to reach their goals they plan to
compensate employees that perform at specific levels
competitively. This is in accordance to current market level.
The case notes that “there have been no changes to Denton’s
salary levels for over 3 years” (Clardy, A.B., 1996). This has
resulted in employees resigning for their positions and seeking
employment elsewhere. “Managing pay systems is one of the
most controversial and hotly debated areas of human resource
management” (Coz, A., 2003).
Upon reviewing the staffing and compensation chart I notice
that their accountant positions seem to be on par for the market
average. This is most likely due to the fact that both of their
accountants are new within the last year and a half. I do not see
that any changes need to be made in this area. Now as I move
into the accounting clerk position, I notice that one employee in
particular is being paid below the market average for that
position. We see the same issue in the bookkeeper position.
They are paying a bookkeeper with double the years of
experience a mere ten cents an hour more. The lower two paid
employees in this department are making around sixty cents less
an hour than the market average. The bookkeeper assistants all
seem to be close in line with the market average but one is
falling short by a small margin.

2. The solution to this problem is quite simple. Denton Fabricators
needs to conduct pay benchmarking. “Pay benchmarking is the
practice of establishing standards of evaluation or comparison
by collecting data on the pay provided for similar work and then
using these standards to adjust pay levels or benefits” (Magnan,
M., Martin, D., 2018). This would ensure their employees were
compensated fairly against other employees within their field
and within their market. This would cause their longevity rates
to increase and their turnover rates to decrease. To ensure they
can pay these wages and maintain a profitable company they
need to analyze their budgets along with profits and losses. The
bible say’s “whoever sows injustice will reap calamity, and the
rod of his fury will fail” (Proverbs 22:8). This is seen to be true
among the employees that are unhappy and have chosen to seek
work within other organizations. The bible also says, “People
should benefit from their work” (1 Timothy 5:17-18). If Denton
Fabricators wishes to maintain their goals regarding
compensation and quality of employee, these changes will need
to take place sooner rather than later. Pay scales should be
reviewed annually along with company budget to ensure
employee satisfaction and fair wages.
Clardy, A. B. (1996, eBook Published 25 February 2014).
Managing human resources
. New
York: Psychology Press.
Coz, A. (2003). The importance of employee participation in
determining pay systems effectiveness. Retrieved from
https://onlinelibrary-wiley-
com.ezproxy.liberty.edu/doi/abs/10.1111/1468-2370.00047
Magnan, M., Martin, D. (2018). Executive compensation and
employee remuneration; the flexible principals of justice in pay.
Retrieved from

3. https://search-proquest-
com.ezproxy.liberty.edu/docview/2002115933?pq-
origsite=summon
Thread 2
Denton Fabricators has not made any changes to its salary
structure levels in over 3 years (Clardy, A. p. 83, 1996). The
company has experienced high turnover the last 2 years;
therefore, I will make some recommendations with hopes to
help the company reduce its turnover. Denton Fabricators has a
clear and concise compensation policy in place that all
employees are aware of. I agree with the current salary chart’s
range levels and I believe that jobs should be linked to a
specific base rate of pay. “A fundamental premise of discussion
of pay structure is that pay rates are linked to jobs” (Gerhart, B.
& Rynes, S. L., 2003). The jobs should initially be worth a
certain amount, but then the range comes into play because
people have different levels of experience. This is how
employees may start at a higher range due to years of
experience.
After reviewing Denton’s policy and staffing and compensation
chart, my first recommendation would be to eliminate a
bookkeeper position. Based on the compensation policy under
“Role of Performance-Based Pay,” the policy states,
“Employees will be regularly assessed by their supervisors, and
those who are not meeting minimal acceptable standards will be
terminated” (Clardy, A. p. 83, 1996). According to the staffing
and compensation chart, Terry Johnson has the highest
seniority, makes the highest salary in the position and holds the
lowest performance rating score. Before I initially decide to

4. terminate this employee regarding performance, I would want to
review previous performance appraisals or reviews. There
should be something in writing showing that the employee was
given goals and chances to improve performance. According to
SHRM it is important to focus on goals during a review. They
follow the SMART method: S – Specific, clear and
understandable, M – Measurable, verifiable and results-
oriented, A – Attainable, yet sufficiently challenging, R –
Relevant to the mission of the department or organization, and
T- Time-bound with a schedule and specific milestones (SHRM,
2019). I would want to be sure that the employee knows that
there have been performance issues. In the policy under
“Desired Market Position,” it is understood that Denton’s pay
rates will be competitive. “Competitive” is understood to mean
that the employee’s fixed, base salary will approach but never
exceed the market average for compensation in comparable
jobs” (Clardy, A. p. 83, 1996). It does state that strong
performers are eligible fore bonus compensations. So, with that
being said, Terry Johnson is a low performer and makes the
most in that position. This clearly does not make sense and
needs to be reviewed.
My second recommendation would be to determine whether or
not the company needs two Sr. Accounting Clerks and two
Bookkeeper Assistants. Depending on the level of work there is.
My personal experience with a company operating 115 retail
stores and employing over 450 employees, there was an
accounting department of 6 with a CFO. That is a total of 7 in
the accounting department. This department seems to be
overstaffed. My suggestions would be to reduce the Assistant
Bookkeeper to just one position and eliminate the one with less
seniority. I would then reduce a Sr. Accounting Clerk position
and again would eliminate the one with less seniority. I would
reduce the four positions from 9 down to a total of 6.
For actual salary level changes and changes to the department, I

5. would increase the Sr. Accounting Clerk, Gene Williams to a
higher salary range due to his years of experience and
additional work he may take on with reduced staff. His salary
would change from $9.72/hr to 10.50/hr. I would also increase
Bookkeeper Assistant, Kerry Powers for similar reasons. Years
of experience and additional workload. Her salary would change
from $6.80/hr to $7.50/hr.
Working with employees and dealing with performance reviews,
I often am burdened with what I can and what I can not give an
employee for pay. I always want to pay them more especially
those who are great all around. They have a good personality,
trustworthy, reliable, works well with others (team player), and
does their job well. I think of the verse in Philippians 2:3, “Do
nothing from selfishness or empty conceit, but with humility of
mind regard one another as more important than yourselves”
(biblegateway.com). I hope that I can always remember this
when dealing with employees regardless of my position.
References
Biblegateway.com. Philippians 2:3 Retrieved from:
https://www.biblegateway.com/quicksearch/?quicksearch=care+
for+others&qs_version=NASB
Clardy, A. (1996).
Managing human resources
. New York: Psychology Press.
SHRM. (2019).
Managing Employee Performance.
Retrieved:
https://www.shrm.org/resourcesandtools/tools-and-
samples/toolkits/pages/managingemployeeperformance.aspx

6. Gerhart, B. & Rynes, S. L. (2003). Pay structure: relative pay
within organizations. In
Foundations for Organizational Science:
Compensation: Theory, evidence, and strategic implications
(pp. 81-114). Thousand Oaks, CA: SAGE Publications, Inc.
doi: 10.4135/9781452229256.n4