Formulating the Compensation Strategy
Phase I – Formulating the Compensation Strategy (60 MARKS)
In Phase I, you need to identify the underlying organizational factors that are causing the problems at your client firm, provide solutions to those problems, develop an effective reward and compensation strategy, develop and apply a job evaluation plan, and develop a pay-for-knowledge plan. Submissions must be DOUBLE-SPACED WITH A 12 POINT FONT, ENSURE YOUR NAME IS ON YOUR SUBMISSION.
Phase I Section Headings
Section A: Identification of Current Organizational Problems (~ 1-2 pgs) – 5 MARKS
- Identify the underlying strategic, contextual and structural factors/variables (including the reward and compensation system) that are causing the problems that your client is experiencing.
Section B: Strategic and Structural Recommendations (~ 1-2 pgs) – 10 MARKS
- Describe the proposed strategic and structural solutions that flow from your analysis in the previous section. Be specific in explaining what you would do.
Section C: Reward and Compensation Strategy (5 pgs (1/job family)) – 20 MARKS
- Identify 5 job families (DO NOT include the CEO and 2 Vice Presidents). Create one page/job family. On each page:
- Center the title of the job family at the top of the page
- Paragraph 1 – Describe the required behaviour/s for this job family
- Paragraph 2 – Describe the role of compensation in creating this behaviour
- Paragraph 3 –List the three components of compensation and determine the % of each component for this job family.
- Paragraph 4 – Identify the compensation level for this job family and describe why you have chosen this level.
- Repeat this process for each of the 5 job families (you should have 5 pages)
NOTE: One of these job families must have a compensation strategy based on a pay-for-knowledge system. It would be wise to determine which jobs will be paid based on a pay-for-knowledge system before you determine the other 4 job families.
Section D: Job Evaluation Plan – The Point Method (~ 5 pgs (1 table /page + summary) – 20 marks
- Create 4 Compensable Factor tablesPick at least one compensable factor from the categories of Skill, Effort, Responsibility and Working Conditions.
- Describe each factor
- Scale each factor to 5 degrees (describe each degree)
- Weight each degree
- Create a Summary Ratings Chart that lists 20 jobs(denoted in red font in the Partial Listing of Hippocrates Job Descriptions)and the points for each compensable factor for each job. Create a hierarchy of jobs; the job at the top of the table has the most points, the job at the bottom of the table has the lowest points.
Section E: Pay-for-Knowledge Plan (~ 1pg) – 5 MARKS
- Create a Pay-for-Knowledge skill gridfor the job family you identified in Section C that is using a pay-for-knowledge- system
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