Instructions and References Materials:
The importance of compensation varies depending on the viewpoint, as described by Barry Gerhart and Jerry Newman in Compensation. Society views compensation as a measure of justice; managers may view compensation as a major expense or a motivator; employees view compensation as an entitlement or as an incentive. Regardless of the viewpoint, fairness and equity are essential. Compensation must also be up-to-date, competitive in the market, and easy to understand. Aligned pay structures support the way the work gets done, fit the organizations business strategy, and are fair to employees. Organizations typically task an in-house human resource (HR) professional or hire an HR consultant to create and maintain the companys pay structure.
In this final project, you will design a pay structure using the specially designed final project case scenario. The project is divided into milestones.
The final project includes a new section on pay mix which also needs to be completed prior to submission. In this assignment, you will demonstrate your mastery of the following course outcomes:
Students will gain an understanding of the evolution and administration of compensation and benefit programs for organizations.
Students will explore wage theory, principles and practices, unemployment security, worker income security, group insurance, disability insurance, and pension plans and how these compensation and benefit items are balanced to provide incentive and recruitment of a high-performance workforce.
The connection between the organizations mission, objectives, policies, and the implementation and revision of their respective compensation and benefit systems will be analyzed to gain a deeper understanding of the importance of such systems to the organizations overall human resource management.
At the conclusion of this course, students will be able to demonstrate the acquisition and application of theories and concepts that support the enhancement and proficiency in seven primary competencies: strategic approach, research, teamwork, communication, analytical skills, problem solving, and legal and ethical practices. Prompt You are the Human Resource Director for a premier supplier of rubber floor mats and matting that is expanding its production operations to Rockville, MD. The organization is headquartered in San Antonio, TX. Based on the organizations mission statement, the companys goal is to provide top-quality products with customer service that well exceeds expectations and with a strong commitment to continuous improvement. The following personnel are required to start the Rockville operation (the numbers in parentheses indicate the number of positions): Director of regional operations Assistant to the director of operations Operations analyst (2) HR director (this is you) HR administrative assistant Benefits manager Lead production worker (3) Production worker (10) Production manager HR generalist Front desk receptionist
In your final project you will be designing a pay structure based on the final project case study you have been reviewing throughout the course and utilizing with your milestone activities. Specifically, you must address the critical elements listed below.
I. Internal Consistency: A. Create complete job descriptions for the benefits manager and production worker position using O*NET (see Module Three Reading and Resources area). Note: There may be several versions of these positions on O*NET. You should create personalized job descriptions that are tailored to the company. https://www.onetonline.org/
B. Calculate the job evaluation points for the administrative assistant, operations analyst, production worker, and benefits manager jobs. Provide a rationale for assigning specific weights and degrees to the various jobs. Use the job descriptions you created in section one, as well as the job descriptions in Appendix A of the final project case study, as a reference.
C. Create job families for all the roles at the Rockville location. The families may be illustrated in a table or bullet format. List positions within each family based on the difficulty level. Provide a rationale for why jobs were assigned to the various families.
II. External Competitiveness:
A. Calculate the weighted means of base pay for each of the benchmark jobs (administrative assistant, operations analyst, production worker, and benefits manager) from the six companies listed in Appendix B of the final project case study.
B. Calculate the predicted base pay for each of the following benchmark jobs: administrative assistant, operations analyst, production worker, and benefits manager.
C. Create a market pay line using the following benchmark jobs: administrative assistant, operations analyst, production worker, and benefits manager. Clearly label your job evaluation points and salaries.
D. Calculate the adjusted pay ratesfor each benchmark job based on your companys decision to lead in base pay by 3%.
E. Create pay grades by combining benchmark jobs that are substantially comparable for pay purposes. Clearly label your pay grades and explain why you combined any benchmark jobs to form a grade.
F. Create pay ranges including minimum and maximum for each of the pay grades based on pay grades created in item E above.
II. Pay Mix: (Note: This is a new section that was not completed in the milestone projects. This must be completed prior to Final Project submission.) Your 1-2 Assignment: New Compensation System will provide some insight into elements of a pay mix and how those components complement the compensation package.
A pay mix is a companys relative distribution of compensation components such as base pay, merit, incentives, benefits, etc., as described by Barry Gerhart and Jerry Newman in Compensation. Different job grades may have different pay mixes. For example, executives often have a higher percentage of long-term incentives. Pay mixes are often illustrated in a pie chart.
Create a pay mix for each job family, illustrated in a pie chart. Provide rationale for each pay mix connecting your decision to the companys strategic goals. In addition, provide at least three examples of employee benefits you recommend the company propose in their total compensation package. Below is an example of pay mix pie chart. Note: Numbers used are not from the data in this case study.
Resources:
Textbook: Strategic Compensation: A Human Resource Management Approach, Chapters 3, 4, and 5 Martocchio, J. L. (2019). Strategic compensation: A human resource management approach (10th ed.). Upper Saddle River, NJ: Prentice Hall.
Website: https://www.hr-guide.com/
This guide provides access to many HR resources.
Website: Society for Industrial and Organizational Psychology (SIOP) https://www.siop.org/
This professional association is dedicated to advancing the field of I/O psychology.
Website: U.S. Department of Labor
This website gives you access to many current topics and agencies that may be useful in the HR field. https://www.dol.gov/
Website: O*NET: Occupational Information Network
In this resource you will find many detailed job descriptions supporting public and private sectors. You will also have access to the rapidly changing job requirements. https://www.onetonline.org/
Website: WorldatWork
This professional organization gives you practical resources for salary data, tools, templates, and surveys as well as education and training. https://www.worldatwork.org/
Website: Economic Research Institute
This website features resources on compensation data, compensation management, cost of labor, survey management, and salary survey data. https://www.erieri.com/dlc/hr-resources
Website: Bureau of Labor Statistics
This website provides information on many subjects used by HR professionals. https://www.bls.gov/
Website: Occupational Outlook Handbook
In this handbook, you will find data on occupation groups. https://www.bls.gov/ooh/
https://support.microsoft.com/en-us/office/add-a-pie-chart-1a5f08ae-ba40-46f2-9ed0-ff84873b7863#__toc348714905
https://www.worldatwork.org/444
Guidelines for Submission: Your final project will be in a Word document, approximately 1315 pages in length (plus a cover page and references) and must be written in APA format. Your Word document may include Word tables, Word lists, Excel screenshots, and rationale in written paragraphs. Use double spacing, 12- point Times New Roman font, and one-inch margins.5hthttps