1. http://www.swatch.com

The Swatch Group has grown to become one the most successful wristwatch manufacturer of our time. Currently it is the largest watch company in the world. This organization’s response to its industry competitors was the Swatch watch, which is a slim plastic watch with 51 components that combined a top quality product with an affordable price. This innovative product first became available to consumers in 1983. Now the products have become so popular that a club was formed by the organization for its consumers. Swatch proudly claims that without the expertise and bright mind power of its employees, it would never have become so successful in the industry. Swatch has realized revenues of over $3 billion and controls about 25% of market share.

As you peruse this Website, gather information to compile a short report that responds to the following questions. How do the market pressures influence this organization’s decisions pertaining to employee compensation? Identify the components that comprise this company’s labor costs? Which is the most costly? Why? Develop a hypothetical sample pay grade structure for the Swatch Corporation. What types of conflicts may arise within this organization in relation to market pay surveys and job evaluations? What impact does the U.S. government’s regulation have on this company’s compensation management?

2. http://www.washingtonpost.com/wp-srv/business/articles/totalcompchart.html

Explore the above chart at Washington Post Website of highest paid executives in Washington area. The highest paid executive tops a compensation package of over $57 million in 2003. Visit the company sites of the top two paid executives. Are the compensation justified in your opinion? Explain. How do they compare at the national and international level? Prepare a two-page report for class discussion.