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. HR Decision Analysis Exercise: The Case of Gravity Payments The...
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HR Decision Analysis Exercise: The Case of Gravity Payments
The CEO of Gravity Payments, Dan Price, made national headlines in 2015 when he announced that he
would be increasing all employees' annual pay to $70,000 over the course of several years. Price had read
a study that showed that emotional well-being improved as income increased, up until about $75,000 a
year, and he was inspired to raise his employees' pay with the hope that it would lift their emotional well-
being. Reportedly, he moved very quickly when making this major decision. In the months that followed his
compensation announcement, Price was both cheered and jeered. His supporters touted his inspirational
message, while his critics argued that it was all a publicity stunt and questioned his motives. In addition,
not everyone within the company was happy with this decision. Within 3 months, two of his most-valued
employees had quit, citing the fact that newer and less experienced employees would make the same
amount of money. Some of his company's clients commended him, while other clients said he made their
job harder because they feared they would have to justify the costs of services that might come with the
pay increases.34 Now, answer the following questions regarding what you think about Price's HRM
decision making in terms of the five characteristics of effective HRM decisions depicted below.
Foster healthy
employee-
employer
Evidence
relationships
based/
Time and
cost
evidence
informed
effective
Characteristics
Legal, ethical,
Systematic
of Effective
and fair
stakeholder
HRM
perspective
Decisions
Be sure to include specific examples from the case or your own research to support your answers.
Was Dan Price's HRM decision legal, ethical, and fair?
Was it evidence based/evidence informed?
Did it foster healthy employee-employer relationships?
Was it time and cost effective?
Did it take a systematic stakeholder perspective?
Considering your analysis above, overall, do you think this was an effective decision? Why or why not?
What, if anything, do you think should be done differently or considered to help make this decision more
effective?
Answer & Explanation
Solved by verified expertAnswered by javinezdanica54 on coursehero.com
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