Assignment 4 - Overall Instruction 1 Assignment 4: Pay Structure Design (60 points) Due: by 11:59 pm, Sunday, March 13th, 2022 * No assignments will be accepted late without written documentation of an unavoidable or unforeseeable event. Why this assignment? This assignment is intended to achieve the goal of our Module 7 learning objective, "Construct a job- based pay structure using the point system." This assignment supports Course Objectives 1 and 2. Instruction In this assignment, you will be designing a job-based pay structure using the point system. To do this, you'll first need to watch the video Designing a pay structure in Module 7. This video will be the only example given out for this assignment. All the information you need to do this assignment is in this video. And all the information that you need to plot the data and to conduct a simple linear regression analysis is in the video Simple linear regression refresher in Module 6. You have also done Assignment 3: Simple Linear Regression Refresher for this. To do this assignment, you'll need to use the job evaluation results from Assignment 2: Job Evaluation. Based on the job evaluation points that you have decided for the four jobs (Accounting Clerk, Manager in Financial Accounting, Manager in Corporate Social Responsibility Accounting, and Department Head in Financial Accounting), complete the following five steps. Do NOT change the job evaluation points. Use ONLY the job evaluation points that you have come up with in Assignment #2. If you change the job evaluation points on your own, the assignment will be sent back for a re-do with the job evaluation points you originally came up with. Since this process is being continued based on the results in Assignment 2, I'll denote the first step here as Step 6. The last step in Assignment 2 was Step 5. If you did not have the job evaluation points decided in Assignment 2, please check the instructor's comment for your Assignment 2. There, the instructor has assigned the job evaluation points that you should be using for this assignment. Again, do NOT change the job evaluation points. If you are using job evaluation points that are different from what the instructor has assigned, the assignment will be sent back for a re-do with the job evaluation points that the instructor has originally assigned. If you do not see the job evaluation points in the comment for Assignment 2, contact the instructor. Step 6 (Steps A, B, and C in the video). Construct a market pay line. Three jobs, Accounting Clerk, Manager in Financial Accounting, and Department Head in Financial Accounting are benchmark jobs. Pay survey data of these three jobs is shown in Appendix 1. Use the Excel software to compute the simple linear regression equation. If you have forgotten how to do this, re-visit the video Simple linear regression refresher in Module 6 or Assignment 3 (Simple linear regression refresher). Please see the attached Excel file for how the data should be arranged to run the simple linear regression equation. For this question, all you need to do is to compute the simple linear regression equation for the market pay line. You do not need to visually draw the line. (20 points) Step 7 (Step D in the video). Construct your organization's pay line considering your external

Assignment 4 - Overall Instruction 2 competitiveness. (For example, you can decide to pay 10% above the market pay level and construct your pay line accordingly.) Again, all you need to do is to compute (or calculate) the simple linear regression equation for your organization's pay line. You do not need to visually draw the line. Justify your decision in constructing your organization's pay line. (10 points) Step 8 (Step E in the video). Based on your organization's pay line, calculate the standard pay amounts for the four jobs (don't forget the Manager in Corporate Social Responsibility Accounting job) in this finance job family. Show the calculation process. (20 points) Step 9 (Step F in the video). Construct a pay range for each of these jobs. Justify your decision. (10 points) Bonus Step. Julia's job is the Manager in Financial Accounting. Julia's yearly salary amount is X. Sam's job is the Manager in Corporate Social Responsibility Accounting. Sam's yearly salary amount is Y (X

Appendix 1. Pay Survey Data
Organization	Average Yearly Salary Amount (in USD)
		Accounting Clerk	Manager in Financial Accounting	Department Head in Financial Accounting
A		53,200	89,000	128,360
B		59,240	89,230	135,000
C		N/A	79,270	153,200
D		62,000	92,300	162,000
E		43,000	73,500	99,000
F		48,700	82,000	119,000
G		52,800	90,000	143,000
H		51,100	N/A	130,800
I		60,100	100,200	183,000
J		42,300	87,200	157,800
K		N/A	78,900	137,200
L		47,200	83,300	134,200
M		61,800	93,000	125,200
N		43,500	68,900	94,300
O		65,400	95,800	N/A
P		64,200	93,200	169,000
Q		57,600	87,300	144,300
R		N/A	88,600	138,000
S		48,800	79,600	110,000
T		67,000	110,200	178,000
U		52,400	98,000	156,000

Also needed information for assignment are the job evaluation points that you assigned in Assignment #2

1. Accounting Clerk: 360 points 2. Manager in Financial Accounting: 555 points 3. Manager in Corporate Social Responsibility Accounting: 580 points 4. Department Head in Financial Accounting: 715 points