COMPENSATION MANAGEMENT

CASE STUDY SOLUTIONS

Glamorous Internships? Or House Elves?

Q1. What do employers receive from summer interns? What returns (if any) do students get
from the opportunities?
Answer:
The summer interns are usually given an overall brief idea about all the activities performed by
different departments of the organisation. Employers receive any new skill possessed by the intern
but only up to the time of internship period time. Sometimes if the intern’s work is highly
appreciated then the intern may be hired full time as well. In many organisations, interns are made
to take the work load of a full-time employee but are paid very little or not at all. So in that

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perspective employers save money which the company may have paid its’ permanent employee.

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Interns receive returns in different forms from the opportunity. They get the chance to relate their

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academic knowledge with practical business world. They learn about the sector/field/industry, new

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skills, corporate behaviour. They get experience, gain valuable networking contacts, reference for
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future job opportunities, meet peers with similar interest and lastly many organisations pay stipends
or salary (may it be of small magnitude or large) and other benefits like TA/DA etc.
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Q2. Should summer interns be paid? If yes, how much? How would you recommend that an
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employer decide the answers to both these questions?

Answer:
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Yes, I think summer interns should be paid. The amount to be paid will vary from organisation type
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to work load and many other factors.

An employer should consider the following things before deciding answer to both the questions i.e.
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whether to pay the intern or not, or how much to pay:

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1. Type of work load the intern is to go through

2. The industry the company is in
3. Working hours
4. Expectations of intern

ANGITA
20182MBA0015
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 COMPENSATION MANAGEMENT
CASE STUDY SOLUTIONS

Q3. What added information would you like to have before you make recommendations? How
would you use this information?
Answer:
Ans/- Added information such as current market pay for such internship programs, living standards
in the city, supply of candidates in the market. Also I would need to know what type of business the
organisation is doing before making any recommendations. Using all this information and the one’s
mentioned in previous answer, a compensation package will be developed that is in line with
business policies and competitive, so that both employers’ and intern’s interest are justified.

Q4. What are the ethical issues surrounding the use of interns? Where do you come out on
these issues?

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Answer:

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Some ethical issues surrounding the use of interns are that – many companies do not pay their

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interns. This is not perceived to be fair by many although reputation and future job prospects are

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good in such companies once internship is done. Some other issues are many organisations give
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huge work load to interns compared to the amount of experience they have. On the other hand,
many organisations do not give any work at all thinking interns might screw up – so there happens
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to be inefficient use of labour.

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I personally think that, unpaid internship is not fair. Interns should be paid at least paid something
so that their basic mobility costs and lunch costs are recovered. On the other hand interns should
neither be left to sit idle nor should have huge work load. They should be assigned with tasks that
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will help them gain practical knowledge and develop themselves. Interns can then by doing their
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jobs well gain network contacts and future job opportunities.

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ANGITA
20182MBA0015
This study source was downloaded by 100000822728578 from CourseHero.com on 04-08-2021 11:28:00 GMT -05:00

https://www.coursehero.com/file/60119215/Glamorous-Internshipsdocx/
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