Complete the questions for Applications for Chapter 12 – Making a Job Offer
Chapter 12, Page 637-639, Questions 1-3
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Use a “Question and Answer” format – i.e., type out the question in full and then answer it thoroughly. This will make it very clear as to which question you are answering, rather than one combined or blended essay answer for all questions.
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APPLICATIONS
Making a Job Offer
Clean Car Care (3Cs) is located within a western city of 175,000 people. The com-
pany owns and operates four full-service car washes in the city. The owner of 3Cs,
Arlan Autospritz, has strategically cornered the car wash market, with his only
competition being two coin-operated car washes on the outskirts of the city. The
unemployment rate in the city and surrounding area is 3.8%, and it is expected to
dip even lower.
Arlan has staffed 3Cs by hiring locally and paying wage premiums (above-
market wages) to induce people to accept job offers and to remain with 3Cs. Hiring
occurs at the entry level only, for the job of washer. If they remain with 3Cs, wash-
ers have the opportunity to progress upward through the ranks, going from washerto shift lead person to assistant manager to manager of one of the four car wash
facilities. Until recently, this staffing system worked well for Arlan. He was able
to hire high-quality people, and a combination of continued wage premiums and
promotion opportunities meant he had relatively little turnover (under 30% annu-
ally). Every manager at 3Cs, past or present, had come up through the ranks. This
is now changing with the sustained low unemployment and the new hires, who
just naturally seem more turnover-prone. The internal promotion pipeline is thus
drying up, since few new hires are staying with 3Cs long enough to begin climb-
ing the ladder.
Arlan has a vacancy for the job of manager at the north-side facility. Unfortu-
nately, he does not think any of his assistant managers are qualified for the job, and
he reluctantly concluded that he has to fill the job externally.
A vigorous three-county recruitment campaign netted Arlan a total of five appli-
cants. Initial assessments resulted in four of those being candidates, and two can-
didates became finalists. Jane Roberts is the number-one finalist, and the one to
whom Arlan has decided to extend the offer. Jane is excited about the job and told
Arlan she will accept an offer if the terms are right. Arlan is quite certain Jane will
get a counteroffer from her company. Jane has excellent supervisory experience in
fast-food stores and a light manufacturing plant. She is willing to relocate, a move
of about 45 miles. She will not be able to start for 45 days, due to preparing for
the move and the need to give adequate notice to her present employer. As a single
parent, Jane wants to avoid working weekends. The number-two finalist is Betts
Cook. Though she lacks the supervisory experience that Jane has, Arlan views her
as superior to Jane in customer service skills. Jane told Arlan she needs to know
quickly if she is going to get the offer, since she is in line for a promotion at her
current company and she wants to begin at 3Cs before being offered and accepting
the promotion.
Arlan is mulling over what kind of offer to make to Jane. His three managers
make between $38,000 and $48,000, with annual raises based on a merit review
conducted by Arlan. The managers receive one week of vacation the first year, two
weeks of vacation for the next four years, and three weeks of vacation after that.
They also receive health insurance (with a 20% employee co-pay on the premium).
The managers work five days each week, with work on both Saturday and Sunday
frequently occurring during peak times. Jane currently makes $40,500, receives
health insurance with no employee co-pay, and has one week of vacation (she is
due to receive two weeks shortly, after completing her second year with the com-
pany). She works Monday through Friday, with occasional work on the weekends.
Betts earns $47,500, receives health insurance fully paid by her employer, and has
one week of vacation (she is eligible for two weeks in another year). Occasional
weekend work is acceptable to her.
Arlan is seeking input from you on how to proceed. Specifically, he wants you to:
1. Recommend whether Jane should receive a best-shot, market-matching, or
lowball offer, and why.
2. Recommend other inducements beyond salary, health insurance, vacation,
and schedule that might be addressed in the job offer, and why.
3. Draft a proposed job offer letter to Jane, incorporating your recommenda-
tions from items 1 and 2 above, as well as other desired features that should