Assignment 4: Pay Structure Design (60 points)

Due: by 11:59 pm, Sunday, July 3rd, 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 jobbased 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, youll 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 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, youll need to use the job evaluation results from Assignment 2: Job Evaluation. Based on the job evaluation points that you have decided on 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, Ill 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 instructors 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 for 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) Assignment 4 Overall Instruction 2 Step 7 (Step D in the video). Construct your organizations pay line considering your external 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 organizations pay line. You do not need to visually draw the line. Justify your decision in constructing your organizations pay line. (10 points) Step 8 (Step E in the video). Based on your organizations pay line, calculate the standard pay amounts for the four jobs (dont 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. Julias job is the Manager in Financial Accounting. Julias yearly salary amount is X. Sams job is the Manager in Corporate Social Responsibility Accounting. Sams yearly salary amount is Y (X < Y). Julia has filed a discrimination lawsuit against your organization. Julia claims that she is paid less than Sam, although she does better work than Sam. Julia claims that this is evidence of gender discrimination within the organization. Based on your organizations pay structure (based on the pay structure that you have created through Steps 6 to 9), do you agree or disagree with Julias claim? Why or why not? You also can neither agree nor disagree with Julias claim and say that a further investigation is needed. But, in this case, youll have to clearly explain why, based on the pay structure that you have created (and NOT based on your thoughts or what was discussed in the video in Module 7), a further investigation is needed. (5 bonus points) Important Notes 1. In writing your answers, NEVER copy-and-paste any part of the textbook or any other sources. Write the answers in your own words. If more than seven consecutive words are identical to a writing from another source (including the textbook, your past works, and any other sources), it will be considered plagiarism, and you will receive a failing grade F in this course. You will also be referred to Students Affairs. 2. See Appendix 2 for the grading rubric.