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 organization’s mission statement, the company’s goal is to provide top-quality
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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 :
• 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 descriptionsfor 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.
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 familiesfor 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 company’s 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 rangesincluding minimum and maximum for each of the pay grades based on pay grades created in item E above.
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III. Pay Mix: 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 company’s 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.
A. Create a pay mix for each job family, illustrated in a pie chart. Provide rationale for each pay mix connecting your decision to the company’s 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.
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