General Motors and Wal-Mart face different challenges managing hourly wages. At GM, hourly workers earn $20/hr plus benefits like medical coverage but have little opportunity for promotion. They also fear layoffs as the union influences labor issues. Wal-Mart workers earn $9-11/hr with no medical benefits but have more job security and opportunities for career growth and higher positions over time. Both companies must balance wages and benefits with business factors like costs, union involvement, and employee retention.

1. CASE STUDY ANALYSIS: Working by the Hour at
General Motors and Wal-Mart
Case Questions :
1. Comapare and contrast hourly working conditions at GM and Wal-
Mart.
2. Describe the (apparent) wage structures at GM and Wal-Mart.
3. Summarize the basic issues in wage and salary administration that
managers at GM and Wal-Mart most likely face.
Analysis:
GENERAL MOTORS Wal - Mart
1. $20/hr +&2-2.5
2. Two breaks of 23 min +1/2
lunch(paid)
3. Avg $43/ht-amount paid
4. Annual 60,000 –
100000/year
5. Medical Coverage
6. Promotion to high posts is
not available
7. Fear of labour retrenchment
8. Union has say on labour
issue
9. Continuos work in same
position
1. $9-11/hr
2. 2-15 min break & 1hr for lunch
3. $1560/month and $20000/year and
$1660/month
4. No medical coverage
5. More job security
6. Encouragement for promotion for
higher posts
7. Oppourtunity to work more and
earn more.
8. Union has no influence
9. Most loyal employees
10. Career growth