Human resource management exercise.

Exercise: Developing a wage structure (Flat Tire Rent-a-Car) You are the new bead of human resources for Flat Tire Rent-a-Car. You want to ensure that your staff are paid appropriately. As such, you want to inspect the wage structure of the positions you are supervising and identify any problems (c.g., overpayment, underpayment). Wage structures are made up of pay grades and, within them, step ranges (see Fig. 1). In this organization, one's pay grade is determined by their job title, and one's step range -within the grade- is determined by their duration of employment with the organization. The tables contained in this exercise provide several forms of pay data - a pay grade table indicating job evaluation points and top of grade pay for each of four positions (Table 1), pay steps and promotion eligibility criteria (Table 2), and a table of current employees, their job * titles, tenure in weeks, and current pay (Table 3). Figure 2 shows a chart of the pay grades and pay step ranges. As an example, as shown in Figure 2, Brown is a maintenance staff member and, thus, belongs in Pay Grade 1 (which has a maximum pay rate of $50,000 ). However, Brown has over 250 completed weeks of service with the organization and, thus, Brown should be located within Step Range 4 of Pay Grade 1. Thus, according Table 2, Brown should be paid between $42,500 (which is 85% of $50,000 ) and $50,000 (which is 100% of $50,000 ). As shown in Figure 2 (and Table 3), Brown's current pay is $49,000. Thus, Brown is paid appropriately. Tasks - Complete the chart shown in Figure 2 (i.e,, draw the limits for Pay Grade 4 [limits for all other pay grades are already provided]). - Insert each employec's name into the chart, noting which are overpaid, underpaid, and appropriately paid - or if any are green-circled or red-circled. - Answer the 10 multiple-choice questions. Figare 1. Graphic depiction of step ranges within pay grades. Table 1, Pay Grade Dala Tahle 9 Dav Sten 13ata Tahle 3. Current Eimbloyce Data Note. "Step range (should be)" refers to the step range one has eamed based on tenure. "Step range (based on pay)" refers to the step range an employee is actually occupying besed on their current pay. Figure 2. Salary step manges by pay grade Questions. For each employee, assign a letter (a, b, c, d, or e) indicating whether the employee is... a. Paid appropriately b. Paid within grade, but overpaid c. Paid within grade, but underpaid d. Red-circled e. Green-circled 1. Reid 2. Webster 3. Carter 4. Sherman 5. Barrett 6. Snyder 7. Gomez 8. Bennett 9. Stanley 10. Wade Scoring. Your score on this exercise is the number of correct responses (out of 10 ) multiplied by 10