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Chapter 6: Formulating the Reward and Compensation System
CHAPTER 6
Formulating the Reward and Compensation Strategy
ESSENTIAL OUTCOMES
LEARNING OUTCOMES
Explain the compensation strategy formulation process and describe each step.
Discuss the special issues involved in compensating contingent workers, executives, and
international employees.
KEY CONCEPTS
Key concepts covered in this chapter begin with the four main constraints that establish
boundaries for the compensation system being designed – (1) legislated, (2) labour market, (3)
product/service market, and (4) financial. The four key understandings that form the foundation
for formulating compensation strategy are then covered—(1) understanding your organization
and its context, (2) understanding your work force, (3) understanding your compensation
options, and (4) understanding your compensation constraints. However, the bulk of the chapter
is devoted to the compensation strategy formulation process—(1) defining the required
behaviour, (2) defining the role of compensation, (3) determining the compensation mix, (4)
determining the compensation level, and (5) evaluating the proposed strategy. The chapter
concludes with describing various compensation strategies for special employee groups (e.g.,
contingent workers, executives) and some of the decisions and challenges associated with them.
STUDENT MOTIVATION
The ability to formulate compensation strategy—in the light of other strategic concerns—
will serve students very well as they seek to advance their careers within organizations
and as they achieve higher and higher levels of managerial responsibility.
The compensation strategy formulation process is the culmination of everything that has
gone before in the previous five chapters. The value of the preceding material is greatly
diminished if students have not learned how to pull it all together to formulate a
successful compensation strategy.
BARRIERS TO LEARNING
Because this chapter relies so heavily on the preceding chapters, if students haven’t
mastered the preceding chapters sufficiently, it will be difficult or impossible for them to
be able to learn and effectively use the compensation strategy formulation process.
It will not be possible for students to fully understand and master the compensation
strategy formulation process without extensive practice in application.
There is a large amount of complicated material in this chapter, and students may get
discouraged and fail to give the chapter the attention it requires. They may skim over the
Canada Chemicals Corporation case, because of its apparent complexity. It is hard work
to understand and apply this material, and the instructor will need to use virtually all of
the suggested engagement strategies to overcome this.
ENGAGEMENT STRATEGIES
Note that effective strategy formulation depends on four understandings (your organizational
context, your workforce, your compensation options, and your compensation constraints) and
remind students that the first three are covered in Chapters 2 through 5. Emphasize the
importance of grasping this earlier material for successful formulation of compensation strategy.
Use the opening vignette to introduce the idea of how an effective compensation strategy has
developed a strong culture at WestJet and how employees participate in some of those
compensation decisions. The fourth (compensation constraints) will be covered here.
Note that compensation constraints fall into four broad categories: legislated constraints,
financial constraints, labour market constraints, and product/service market constraints. To kick
off discussion on legislated constraints, ask students to offer their opinion to “Is this Legal?”
(Compensation Today 6.1). Then ask who they side with in teller Dara Fresco’s long-running
dispute with the Canadian Imperial Bank of Commerce (Compensation Today 6.2) over whether
the bank owes her (and her colleagues) more than $600 million in unpaid overtime. This is not a
clear-cut case—the case has been before the courts since 2007—with no resolution in sight, and
it illustrates that there can be a great deal of ambiguity even under legislated constraints. Ask
students whether they have ever been in a situation where they felt compelled to perform unpaid
overtime.
Using the Internet 1 could be applied here to encourage more student involvement. This project
is best assigned to small groups or pairs of students, and may need to be treated as a graded
assignment in order to encourage them to tackle it.
Briefly touch on the other constraints, and then move on to the strategy formulation process.
Lead off by asking whether the compensation strategy used by WestJet (in the opening vignette)
could be used elsewhere, and why it works at WestJet. What are the key elements of strategy
formulation that can be distilled from the vignette?
Present a slide with the five steps in the compensation strategy formulation process (Figure 6.1)
and describe each step. Use Compensation Notebook 6.1 to help explain how task behaviour
relates to compensation strategy. (Of course, don’t ignore the other two desired behaviours.) The
role of compensation is best discussed by using Tables 6.1 and 6.2 as templates for the
discussion, leading to the compensation mix. As for compensation level, help students
understand the concept of utility analysis by walking the class through the example on pp. 198-
200.
Remind students of the original eight goals for the effectiveness of a compensation system noted
in Compensation Notebook 1.1. From there, emphasize the three basic screens through which all
successful compensation strategies must pass, and then mention the other important criteria. As a
final issue, touch on the question of who should develop the compensation strategy, noting that
this will differ according to managerial strategy.
Students will not be able to understand the compensation strategy formulation process without
attempting to apply it. The best way of doing this is with Strategic Compensation in Canada
Simulation: Workbook that is available for use to accompany the text. However, if you have
opted not to use the simulation work, use end-of-chapter Exercise 1 to provide students with a
key application opportunity. This could be assigned in advance as a major (perhaps the major)
graded term assignment, and then taken up in class after submission, or it could be conducted in
pairs giving students another “voice” to discuss ideas and pros and cons of their proposed
strategy. It is very important to provide ample feedback to students and to review problem areas.
Once you are satisfied that students understand and are able to apply the compensation strategy
formulation process, you can discuss compensation strategy for three special employee groups—
contingent workers, executives, and expatriate/foreign employees.
Students may be able to identify with the first group, and opening with a question about the
fairness of treating contingent workers differently from regular employees should generate some
good debate. From their experience, are contingent workers different in their motivation and
productivity from regular workers? What about loyalty? Do contingent workers feel that they are
being exploited, or is this a fair situation, one that meets the needs of some employees who don’t
want a full-time permanent position? Answers will likely vary depending on the nature of the
contingent employment (note that there are many different types of contingent employment
relationships) and the motives for students in taking these jobs. The text takes the line that if
contingent employees are being asked to perform the same behaviours as regular employees,
then they should be paid on the same basis as regular employees.
Executive pay has become the subject of major controversy in recent years, not just in terms of
the (very high) amounts, but also in terms of how executive pay systems may actually encourage
and reward poor executive decision making and even executive malfeasance. Compensation
Today 6.4 (“The 47-Million-Dollar Man”) can be used as one particularly egregious example of
an executive getting richer while making everyone else poorer. Problematic executive pay is not
just a problem for the corporations involved, but actually affects everyone, including the students
in this class!
A good way to start this section is with a slide of Table 6.3, Compensation of Canada’s 10
Highest-Paid Executives. Students are invariably shocked by the amounts involved, but you must
emphasize that the problems with executive pay go way beyond the amounts being paid. The
enormous amounts simply provide a greater incentive for executives to game the system to
maximize their own pay. Finish this section with the “Decision Issues for CEO Pay.”
End-of-chapter Exercise 2 will help students grapple with the issues of setting executive pay, but
students will need to be familiar with the Canada Chemicals Corporation case before proceeding.
It would be ideal if students have already been assigned end-of-chapter Exercise 1, but an
alternative is to review the case in class. This preparation could take a whole class period to do
thoroughly.
Finally, note that as globalization progresses, issues of pay for expatriate and foreign employees
will become more and more relevant for companies. Spell out the dilemmas of pay for these
employees. Ask students how they would expect to be treated if sent to a foreign country.
The end-of-chapter Exercise 3 could be used to extract more learning value from the Canada
Chemicals case (but only if end-of-chapter Exercise 1 has already been done) by tying this case
more closely to the strategic framework for compensation. This exercise allows students to
consider what changes to the organization, besides those to the compensation system, would be
required to make the new compensation strategy succeed. It also illustrates what kinds of
structural and other changes are needed to implement a high-involvement strategy. Clearly, the
Alternatively, or in addition to the end-of-chapter Exercises, Case Questions 1 (“The Fit Stop”)
and/or 2 (“Multi-Products Corporation”) could also be used to reinforce understanding and the
ability to apply the compensation strategy formulation process. These would best be used as
graded hand-in assignments, to focus student attention, to be subsequently discussed in class.
ASSESSMENT TOOLS
To assess student learning against the chapter learning outcomes, before the end of the lecture,
students may be asked to write short answers to questions such as the following:
What was the most important thing you learned during this class?
What important unanswered questions do you have?
Students can compare their questions and answers with a classmate or you can invite
questions/responses from the large group.
REFLECTIONS ON TEACHING
The key to providing the best possible learning experience for students is continually assessing
the extent to which students are mastering the course material, and reflecting on ways to promote
the learning experience. This can be aided by instructors asking themselves the following
questions after each chapter:
ADDITIONAL RESOURCES
Chapter Summary
Building on the previous five chapters, Chapter 6 tackles the problem of how to design the
compensation strategy that will best fit a given firm. It starts by identifying four key
understandings that form the foundation for formulating compensation strategy—(1)
understanding your organization and its context, (2) understanding your work force, (3)
understanding your compensation options, and (4) understanding your compensation constraints.
It notes that the strategic framework presented in Chapter 2 provides the basis for the first
understanding, the behavioural framework in Chapter 3 provides the basis for the second
understanding, and Chapters 4 and 5 provide the basis for the third understanding.
The chapter concludes with a comprehensive example of compensation strategy formulation. The
example is complex, mirroring the actual complexity of compensation strategy formulation, and
it takes considerable effort for students to work their way through it. As discussed under
“Engagement Strategies,” you may wish to use the end of chapter exercises to help students learn
from this example. Otherwise, it is easy for them to give up on it!
1. Managers must (1) have an understanding of the organization and its context. This is what
the organization does (i.e., what it produces, makes, services, etc.) and who and how it
supports those who use what they make or serve. This can help understand the larger context
in terms of who else provides similar goods and services and the need for what it does and
the types of employees needed. Managers must (2) understand their workforce. What are the
knowledge, skills & abilities and attitudes & behaviours (KSAs) required for the workforce?
What education and additional skills are needed in order for employees to performance to
required standards? Managers need to (3) understand the compensation options available.
What does the organization have in place that can be used to compensate employees? Finally,
managers (4) must understand compensation constraints. This can come in the way of
legislative constraints, employment standard legislation, human rights legislation, trade union
legislation, labour market constraints and financial constraints of the organization.
2. Legislative constraints come in the way of employment standards set out by every province
in Canada. It sets minimum wage, hours of work, termination benefits, statutory holidays,
etc. Second are human rights acts which prohibit employment discrimination. Third,
legislation is related to unions and collective bargaining. This affects compensation in
unionized organizations by requiring all compensation arrangements are made by the union.
Finally, all organization must adhere to federal and provincial income and corporate task
laws which significantly influence the type of compensation offered.
3. Ensure that students see these steps as “independent” but “interdependent” steps. The first
step is to “define the required behaviour” related to a combination of membership,
membership, task and citizenship behaviours. An organization may want an equal
combination of all three, more of one to another. Second is “define the role of compensation”
which requires the decision of what intrinsic versus extrinsic rewards can be used to motivate
behaviour. Is the organization looking for specific knowledge and skills when hiring or is the
organization willing to develop and train for these skills and behaviours? The third step,
“determine the compensation mix” asks the questions related to what role will be played by
base pay, performance pay and indirect pay and how will they be structured? Will the
foundation of base pay be job evaluation, market pricing or pay for knowledge? These
answers will depend on the required organizational behaviours desired, the strategy,
employee needs and organizational constraints. The fourth step, “determine the compensation
level” is deciding on the total amount of compensation employees will receive? A close
examination of external labour market is required here. Finally, “Evaluate the Proposed
Strategy” is challenging because there is projections and estimations involved. Three criteria
of (1) affordability, (2) legality and (3) employee attraction are screens to ensure the
compensation strategy is of value. What makes this step challenging is the leadership need to
project the cost of the compensation system and compare to what the organization can afford.
This is usually not a clear-cut process as these are often difficult to predict in advance. The
success of the compensation strategy plays a major role in determining if the funds are
available to meet payroll.
4. An organization can use a utility analysis to determine whether a lead, lag or match
compensation-level strategy is most efficient for its needs. A lag compensation-level strategy
is based on paying below the average compensation level in a given labour market. In some
instances, the organization may have a cash flow and there is no choice. Organizations may
try and find noncash rewards to make up for the lag. A lead compensation-strategy is based
on paying above the average compensation level in a given market. This is used when an
organization values employee stability or there are high demand positions or positions with
highly-sought after skills where they believe it is necessary to keep these positions. This
could come in base pay or even use a pay-for-knowledge system that consistently pays above
market value. Finally, a match compensation-level strategy is based on paying at average
compensation levels in a given labour market. Organizations will do this to remain
competitive with the market and be in a position to attract the necessary talent needed. This
strategy requires consistent monitoring of the current market.
5. The issue with executive pay has been its continued escalation as compared to the stagnating
everyday individual contributor employees. As the text states, a CEO’s salary can be 500
times that of an average worker. This issue is what is the message to employees? Are you
really working for the “organization” or helping to fill the pockets of CEO’s? This is not to
say that executives do not have significant responsibility, but after stock options became
more common and favourable as a result of favourable taxes issues in 2000, executives had
lucrative compensation packages far beyond their publically-known base pay salaries. Table
6.3 provides the evidence. International employees compensation issues will differ depending
on the specific category one fall into. Foreign employees and expatriates are given a variety
of option depending on the organizations policy. Expatriates are often given three
compensation options: (1) balance sheet approach—allowing them to maintain a standard of
living comparable with what they would have in their home country; (2) Negotiation
approach—where a mutually agreed upon package is determined between employee and
employer; and (3) Localization approach—which is the practice of paying the same
compensation as local nationals in equivalent positions. Finally, contingent workers can be
hired to handle highly skilled work for which skills do not exist or in which the work they do
is not needed for an ongoing basis. They are also hired as part-time workers or to help other
employees during busy periods. Organizations are moving more toward contingent workers
because it frees them from many legal constraints, often exempt from severance pay
provisions, employee benefits, employment standards provisions and mandatory benefits.
6. Stock options were once seen as a costless way of compensating executives, but in rising
stock market times, executives can reap significant gains that are unrelated to personal
performance. The big issue with these options is hidden incentives for mismanagement.
Historically, companies have “altered” the reported financial results to greatly inflate
bonuses. The ability to hide or alter financial records to inflate these options without any
relationship to executive performance has led to the backlash against executive stock options.
In terms of the substance, the groups should all make sure that their compensation
systems are in line with high-involvement management, in the same way that the sales
engineer template (Figure 6.2, Compensation Strategy Template) is in line with high
involvement. For the production workers, pay-for-knowledge seems a logical choice,
along with goal sharing for meeting production targets, as well as profit-sharing and
employee stock plans. In fact, all three employee groups should have profit-sharing and
employee stock plans, and these plans could be fairly consistent for all employee groups.
Technical staff may also be suited to a separate pay-for-knowledge plan, along with goal
sharing, and the profit-sharing and stock plans.
2. This exercise provides the opportunity to reinforce concepts surrounding executive pay. Top
executive compensation should be in keeping with a high-involvement organization. This
means that there must not be huge discrepancies between pay between executives and the rest
of the employees. A very strong focus on profit sharing would be appropriate, as well as some
company stock. Some long-term incentives may also be useful to avoid short-term thinking.
Indirect pay should not be radically different from that of other employees.
3. This exercise provides an opportunity for students to more fully understand what high
involvement looks like in practice. There need to be lot of changes to various aspects of
organizational structure. For example, job design should be broader and incorporate more of
the core dimensions for motivating work discussed on pages 79–80 of Chapter 3. More use
should be made of teams, especially for the development of new products. There need to be
teams that include the sales engineer, chemists, and production staff for developing proposals
to customers and developing products that both meet customer needs and can be produced at a
profit. Customer representatives (including chemists from the customer) could even be
encouraged to be involved in some aspects of this. Teams in the production area could also be
introduced.
There needs to be more training and education of employees, not only technical training, but
also training about management issues and group/team dynamics. There needs to be much
more communication and information flow through the organization. With all these things in
place, including the reward changes discussed earlier, the stage is set for more horizontal
coordination and more decision making by multifunctional teams and production teams.
1. The Fit Stop. This case question provides an opportunity to reinforce use of the five-step
strategy formulation process, within the context of a high-involvement firm. (Note: This is a
recurring case. The notes for Case Question 2 in Chapter 2, Case Question 1 in Chapter 4,
and Case Question 3 in Chapter 5 may provide useful background here. Students can also do
further work with this case later in the book. See Chapter 11, Case Question 2; Chapter 12,
Case Question 1; and Chapter 13, Case Question).
Using the five-step model for formulating compensation strategy summarized in Figure 6.1,
the following factors could be considered:
Compensation mix: The mix will include base, performance, and indirect pay, as
discussed in previous case notes.
o Base pay will be based on pay for knowledge; performance pay will be split
between group and organization pay; and indirect pay will focus on things of most
value to the firm.
o The firm will need to keep costs under control in the first few years, so the indirect
pay plan cannot be too lavish. However, in the retail sector, indirect pay is
generally quite low anyway, so it will not be too difficult to meet industry
standards in this area. Given that most employees will be quite young and fit, there
is probably no need for extensive pension and medical plans at this point anyway.
Flexible benefits would work well, with employees choosing items of value to
themselves. The firm should offer some benefits that are of direct value to the firm,
such as memberships in fitness or sports clubs, and subsidization of educational
courses in areas related to the business. A reasonable mix at this time might be 70
percent base pay, 18 percent performance pay, and 12 percent indirect pay.
Compensation level: The firm will be offering many intrinsic rewards as well as some
extrinsic rewards, such as full-time work, salary, and a reasonable benefits package, and
employees will likely be attracted by the pay-for-knowledge system and the potential to
eventually reap big returns through stock appreciation. Given all this, the firm should be
able to attract and retain good employees by offering a base wage comparable to no more
than the market average, with the performance pay bringing the package over the market.
This would probably amount to a lead of about 10 to 15 percent, but only if the
performance outcomes are achieved. Over time, as the pay-for-knowledge plan kicks in,
this will bring employee compensation to considerably over the market averages.
Evaluating the strategy. Key indicators for evaluating the strategy will include the ability
to hire the persons who are desired (indicated by proportion of employment offers that
are accepted), the turnover levels of employees, employee satisfaction levels as measured
by employee surveys, and customer satisfaction levels.
Using the five-step model for strategy formulation summarized in Figure 6.1, the
following factors could be considered (assuming use of a classical strategy):
o Compensation mix: A blend of base and indirect pay is called for in this
workplace. Base pay will be predicated on market pricing, and indirect pay will
be set at industry levels. This might work out to about 83 percent base pay and 17
percent indirect pay, which is the norm for companies in the Canadian
manufacturing sector.
Using the five-step model for strategy formulation summarized in Figure 6.1, the
following factors could be considered (assuming use of a human relations strategy):
o Compensation mix: A blend of base and indirect pay is called for in this
workplace. Base pay will be predicated on job evaluation, and indirect pay will be
set at above industry levels. This might work out to about 78 percent base pay and
22 percent indirect pay, above the norm for companies in the Canadian
manufacturing sector.
The following websites can be used as a source of materials for lecture enrichment:
To check on current minimum wage rates in your jurisdiction and other employment
standards and labour legislation, go to the Government of Canada website,
http://srv116.services.gc.ca/dimt-wid/sm-mw/rpt1.aspx.
For a definition of the distinction between an employee and an independent contractor, go
to the Canada Revenue Agency website, Employee or Self-Employed? http://www.cra-
arc.gc.ca/E/pub/tg/rc4110/rc4110-16e.pdf
For information on the Canadian Human Rights Act, administered by the Canadian
Human Rights Commission, go to http://www.chrc-ccdp.gc.ca/eng
For detail on legislation related to collective bargaining, go to the ESDC website, Labour
Laws, https://www.canada.ca/en/employment-social-development/programs/laws-
regulations/labour.html
“Sir,
“I have been honoured with your letter of the 7th, and beg you to
accept my sincere thanks, for the favor conferred on me, in the
Glasses—which are very fine; but more particularly, for the flattering
expressions which accompanied the present.
“Go. Washington.
It was at the close of this year, that the college of William and
Mary, in Virginia, complimented Mr. Rittenhouse with an honorary
degree of Master of Arts, by an unanimous vote of the rectors and
faculty of that institution. His diploma, which is a special one, and
wherein he is styled the Chief of Philosophers,[216] has a place in the
Appendix.
The college of William and Mary was founded in the joint reign of
the king and queen of those names, who endowed it with twenty
thousand acres of land, besides a small duty on certain exported
tobaccoes, granted by stat. 25 Ch. II: in addition to which, the
assembly of Virginia also gave to it, by temporary laws, a duty on
liquors imported, and on skins and furs exported. And from these
resources, its funds amounted, on a medium, to more than 3,000l.
Virginia currency, (or $10,000,) per annum. The Hon. Robert Boyle,
[217]
of England, had also made a liberal donation to this college, for
the purpose of instituting a professorship, called the Brafferton, (the
name of the English estate, purchased with the money granted by
him to the college,) for the purpose of compensating missionaries, to
instruct the Indian natives and to convert them to Christianity. After
the revolution, the constitution of the college of William and Mary
underwent a considerable change: three of the six original
professorships, that is to say, two of Divinity, and one of the Greek
and Latin languages, were abolished; and three others, namely, one
for Law and Police—one for Anatomy and Medicine—and a third for
Modern Languages, were substituted in their stead; the Brafferton, it
is presumed, has been diverted into other channels, if not wholly
neglected.
“Dear Sir,
“For some months past I had not the least apprehension of being
obliged to visit the Ohio, this spring; but our affairs have taken such
a turn, that at present it is probable I shall meet you, at the time and
place appointed. Capt. Hutchins has been sent for to New York, by
Congress, as the trustees of the university will not consent to Dr.
Ewing’s absence. One or other of us will certainly set off in a few
days, to meet you: our waggons are already gone.
“I ought long since to have informed you, that you were elected a
member of our Philosophical Society—I wish you would favour us
with a communication, on any subject you please. Pray let me hear
from you, before you leave Baltimore. Have you any account from
Virginia? I am, dear sir, yours with respect and sincerity.
“David Rittenhouse.
“My dearest H,
“I have not heard one word from Philadelphia, since I left you.
About a month ago I wrote to you from Union Town, and I promise
myself a letter from you by the first messenger from that place, who
is now daily expected. To-morrow Mr. Armstrong sets off for Hanna’s
Town, where he expects to meet brother Isaac Jacobs, so that I write
in confidence of my letter reaching you.
“Deer are incredibly plenty here—I was the first that caught a
young fawn, and hoped to have sent the beautiful little animal a
present to H****. We kept it about a week, and it became quite tame;
but our cows ran away, and it was starved for want of milk. Col. P.
called it F—— B——, and says H**** shall at least have the skin. We
have all been very healthy; my cough diminishes slowly, my old
complaint is less troublesome, and I have no other.
“I wish to write to B***** and H****; but you will not readily imagine
how little leisure I have: Tired of the exercise of the day, I rejoice at
the approach of night; and, after a cup of tea, generally lie down to
rest as soon as it is dark, unless we have observations to make; and
then we have generally half a mile to walk, through dark woods, from
the place of observation to our encampment: this, however, does not
happen above once in a fortnight.
Until you bring round the happy day, that will restore me again to the
dear woman and children I so much love.
“Give my love to my children, and the few friends that are really
concerned for my welfare. God bless you, and make you at least as
happy as I am; and then, I am sure, you will not complain. Your ever
affectionate
“D. Rittenhouse.
“My dearest H,
“I need not say how much I feel for you, on account of the
disagreeable situation in which you last wrote. The only advice, I
believe, which I thought it necessary to give you, at leaving you, was
to keep up your spirits and endeavour to bear the fatigues of the
office. What will you say, or what will you think, when I tell you, I
believe it scarcely possible for any thing to contribute so much to
reconcile me to your absence, as the aversion I have to the plagues
of that same office.
“You have heard the reports concerning the Indians. We are still
ignorant of the true state of matters; but, from every information we
can get, it seems very improbable that we shall cross the Ohio this
summer: on this side of the river, we do not apprehend the least
danger.
“We have, for three weeks past, had a much greater proportion of
dry weather; and in this country, when it does not rain, the sky is
always fair, of a beautiful blue, and the air serene. There has been
nothing like a storm, nor scarce a puff of wind, since we came here.
Though thunder, lightning, and rain, are so very frequent, they are
never attended with high winds, nor scarcely a perceptible motion of
the air. For a month past, we had a very decent woman to cook for
us, but some little family broils obliged us to pack her home again.
Our boys have, however, learnt from her to bake good bread, and to
cook much better than they did. I mention this, because you will be
pleased with any thing that can contribute to my comfort.
“David Rittenhouse.
“Mrs. Rittenhouse.”
“P. S. Having mentioned the fatigues of the day, I must assure you
that I find my strength fully equal to them: As to walking up the hills, I
never pretend to it, having always a horse to ride—Col. P. is every
thing I could wish; I mean, so far as is necessary to me.”
“Dear Sir,
“The elements of the new Planet have been pretty well determined
by several European astronomers. The following I have extracted
from the Almanack[232] for 1787.
“Dr. Halley’s Table of the equation of ♃’s orbit will do very well for
computing the place of Herschel’s planet, only subtracting 1/16 part of
the equation there found; the greatest equation of this planet being
5° 27′ 16″. So, if from the Log. to any degree of anomaly, in the Table
for Jupiter, we subtract 1/76 part of the excess of that Log. above the
least, and to the remainder add the constant Logarithm .5647750,
we shall have the Log. for ♅ sufficiently accurate. On these
principles, I have computed the Right Ascension of ♅, and find both
agree with my own observation, to a few seconds.
“Sir,
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“David Rittenhouse.
November 9, 1789.
“Sir,