Part $2$: Formulate the Reward and Compensation Strategy $-10\%$

Associated Project Objectives:

Identify the compensation strategy $($ies$)$ that best fit the firm.

RESOURCES

Part $2$ of the group project is based on Compensation Roadmap Step $2$ and is covered over text chapters $4,5$ and $6.$ You need to read chapters $4$ and $5$ first and then chapter $6$ to be able to address the Part $2$ report requirements.

Download Compensation Strategy Template $[$Word$,16$ KB$).$

ORGANIZATION $(3$ marks$)$

Include a Cover page indicating the Part number and Part name.

Include Table of Contents and page numbering.

Include all group member names.

Include headings within each part to organize concepts and recommendations $($see suggestions below$).$

Keep your report clear and concise. It is not about the quantity you write, it is about the quality of your content.

Use Arial font type, double space and use size $12$ font.

Report length$*5$ to $7$ pages approximate $($excluding cover page, Table of Contents and appendices$).$

Include compensation strategy templates in an appendix.

Address the following information in your Part $2$ Report:

Define the required behaviour your client needs from its employees and the role compensation will play in getting that behaviour $(9$ marks$)($Note: this is a key first step in formulating the compensation strategy$).$

Your discussion should include specific reference to:

Key employee behaviours $($i$.$e$.,$ task, membership, citizenship$)$

Explain what the role of compensation will be at Kapote $($i$.$e$.,$ list$/$identify the key points$)$ in producing these behaviours identified.

TIP: For this section I recommended you reference the $$Role of Compensation and Intrinsic$/$Extrinsic Rewards in Producing Behaviour for Different Organizations$($Table $6\mathrm{.}1).$ If using this table, set it up as shown in the textbook and put it in the appendix of your report $($this will help keep your work organized$).$ Remember to explain your rationale in the body of your report.

Determine the Compensation Mix $(9$ marks$)$

What role will be played by base pay, performance pay and indirect pay?

How will each component be structured? $($i$.$e$.,$ what will be the foundation for base pay? $-$ which do you recommend job evaluation, market pricing, or pay for knowledge$)$

What will performance pay be linked to$?$ Group, organizational or individual performance?

Define Compensation Levels $(15$ marks: includes compensation strategy templates for $6$ marks$)$

Identify the percentage of base pay, performance pay and indirect pay for each of the existing positions at Kapote: Owner$/$General Manager, Office Manager, Administrative Assistant, Bookkeeper, Craftsperson, Head Artisans and Sewing Machine Operators.

Support your recommendations $($example: if you are recommending $60\%$ base pay, $15\%$ performance pay and $25\%$ indirect pay... be specific as what will the performance pay be tied to$...10\%$ gain sharing and $5\%$ goal sharing$).$ You will need to explain the $$why$.$