Situation

1. Read about the businesses problems.

For several years, Ben & Jerry’s Homemade has had a compressed salary ratio: The highest paid employee earns no more than five times what the lowest paid employee earns. Now this policy has become a problem.

• How can the company recruit new managers when the salaries are relatively low?

• Should Ben & Jerry’s Homemade change the compensation policy? If so, in what way?

Before participating in the meeting, think about all of the forms of compensation that a company like Ben & Jerry’s could offer its employees, as well as what benefits employees should have. All of these can be adjusted to deal with the current problem.

2. Notice the format of the meeting.

Introduction

• Ben Cohen, a founder of the company, opens the meeting by welcom­ing and introducing everyone.

• Ben states the purpose of the meeting: to discuss whether to maintain or change the current five-to-one compensation policy.

Agenda

• Each group meets to discuss the problem from its point of view. Ben moves around the room and listens in on the groups.

• Ben invites all participants to state their views on the five-to-one compensation policy and to offer alternatives. When appropriate, par­ticipants concede points before they disagree.

Closing

• Ben summarizes the main points made during the meeting.

• He closes the meeting by thanking everyone. He asks the board of directors to meet separately to vote on whether to maintain or revise the compensation policy. He invites participants to respond to their decision by writing him an interoffice letter.

3. Review your notes on Ben & Jerry’s Projects, the vocabulary, the infor­mation on business culture, and the negotiating strategy. Prepare to use this information in the meeting.

CONDUCTING A MEETING

Role play the staff meeting.

• Select one person to run the meeting as Ben, chairman of the board of directors and chief executive officer (CEO). Ben will begin the meeting and follow the format described above.

• Form three groups: the board of directors, the management group, and the nonmanagerial staff. Read the role summaries. Follow the meeting format described.

THE ROLES

Board of Directors You created the five-to-one compensation policy and defend it for many reasons. The salary ratio links the success of people at the top with the success of people at the bottom of the company. It is socially responsible. Keeping salaries reasonable allows the company to spend 7.5 percent of pretax profits on such socially responsible efforts as the farm, rain forest, and peace projects. The compressed ratio helps attract people who share the values of the company. The ratio helps recognize the importance of the work­ers who actually make the product. (Add your own.)

Management Croup You are divided in your opinion. You all deeply respect the board of directors, and some of you agree with them. Others, however, believe the policy should be changed. The company has trouble hiring and retaining good executives because the salaries are low. If you help the company earn more, you should get more for yourself. Ben & Jerry’s executives should be able to earn bonuses or stock options, or participate in profit-sharing to in­crease their salaries. The needs of the company are changing, so the policy must change. (Add your own.)

Human Resources Executives You make and package the ice cream, work in the of­fices, and keep them clean. You believe the five-to-one compensation ratio should not be changed. The compressed salary ratio helps provide decent salaries and benefits for community people. The company’s compensation policy helps people feel proud of their work and of themselves. Equitable salaries unify all employees in the enterprise. The policy is more suitable and effective than a union organization. (Add your own.)

LANGUAGE STUDY