Henderson Printing is a small-to medium sized firm that manufactures account books, ledgers, and various types of record books that are used in business (Long, 2010, p. 512). This company’s compensation system will be analyzed based on the five contextual variables as discussed in the textbook. The environment in which Henderson Printing operates can be classified as stable, as well as simple. This can be justified, as the company produces stable annual sales, thus it can be concluded that product lifestyles are not short, and product and service demand is constant (Long, 2010, p. 40). Additionally, the product/service provided is fairly simple, and the technology is not complex (Long, 2010, p. 512). The corporate strategy this company operates under can be classified as defender. This is evident as the company focuses on a fairly narrow product and service segment, and excels in it as they aim to produce only high quality products (Long, 2010, p. 41). At times this firm operates under an intensive technology, as the owner allows individuals to customize their products to best suit their needs. Hence, customized orders deviate from the standard operating process, and as a result require more time and money (Long, 2010, p. 43). However, it also appears that under Woodward’s Typology of Technology this firm practices unit/small batch technology, as the company produces extremely high quality unique products, even though it is mentioned that there is no standard production process in place (p. Long, 2010, 512). At this time, George makes all of the company decisions himself, and prides himself in being a compassionate employer (Long, 2010, p. 512). There is no formal structure that pay decisions and the compensation strategy are based on. Rather, it appears the CEO’s focus is on creating high quality products, while attempting to be a
