Phase I Formulating the Compensation StrategyIn Phase I, you need to identify the underlying organizational factors that are causingthe problems at your client firm, provide solutions to those problems, develop aneffective reward and compensation strategy, develop and apply a job evaluation plan,and develop a pay$-$for$-$knowledge plan.To successfully accomplish Phase I, you will need to have read and have usedappropriate concepts from Chapters $1$ to $8.$ When preparing your report, please usethe following five main headings.Phase I Report HeadingsSection A: Identification of Current Organizational Problems. In this section,you need to identify the underlying strategic and structural factors $($including thereward and compensation system$)$ that are causing the problems that your client isexperiencing. Use of key concepts from Chapter $1,$ application of the strategicframework in Chapter $2,$ and application of the behavioural framework in Chapter $3$are all essential in so doing. Your entire project rests on this foundation.Section B: Strategic and Structural Recommendations. Describe the proposedstrategic and structural solutions that flow from your analysis in the previous section.Be specific in explaining what you would do$.$ For example, if you think a differentmanagerial strategy is required, exactly what would you do to implement that? If youthink some jobs need redesign, which jobs should be changed and exactly how shouldthey be changed? You also need to provide a new job description for any redesignedor combined jobs. If you think teams are needed, who would be the team members,and what would be their responsibilities?Section C: Reward and Compensation Strategy. Next, develop your reward andcompensation strategy by following the first four steps in Figure $6\mathrm{.}1($Chapter $6).$ Youneed to define the type of employee behaviours that your client firm needs, define therole that compensation will play in producing those behaviours, determine thecompensation mix, and determine the compensation level.If different behaviours are required from different job families, then you will need torepeat this process for each job family. The outcome of all this should be summarizedfor each job family in a compensation strategy template $($shown below$).$ All jobslisted on the same compensation strategy template will have the same mix ofcompensation elements and the same compensation level relative to the market $($i$.$e$.,$lag the market by a certain percentage, lead the market by a certain percentage, ormatch the market$).$ Note, however, that this does not mean that all jobs on the sametemplate will receive the same dollar amount of pay; it just means they are all subjectto the same compensation strategy. Figure $6\mathrm{.}2($Chapter $6)$ provides an example of afilled$-$in compensation strategy template. You should carefully read the example thatsurrounds Figure $6\mathrm{.}2.$You will need at least two compensation strategy templatesone for those jobs youare putting under a pay$-$for$-$knowledge system $($PKS$)$ and at least one for the jobs youwill be putting under a job evaluation $($JE$)$ system $($you will not be putting any jobsunder market pricing$).$ In fact, it is likely you will need three or four templates foryour JE jobs. Every job listed in the partial listing of job descriptions at the end ofyour client description must appear on a compensation strategy template $($except forany jobs you may eliminate by job redesign$).$ For any new jobs that you create, youmust prepare a job description, and that job must appear on a compensation strategytemplate.In creating job families, the first thing to decide is which jobs will be included underthe pay$-$for$-$knowledge system. $($Material in Chapter $4$ will be useful in making thisdecision.$)$ The remaining jobs will fall under job evaluation, and you need to considerhow many distinct groupings of behaviours $($job families$)$ you should have.$($Incidentally$,$ you do not need to include top managementthe CEO and the twovice presidentsin a job family. Those three jobs will not be included in yourcompensation system.$)$Bear in mind that creating a high number of job families creates a very complexcompensation structure but that too few job families may result in an inappropriatecompensation strategy for some jobs. In this case, fewer than three JE job families islikely too few, while more than five JE job families is probably too many.To successfully complete this section, you will need to use the concepts found inChapters $4,5,$ and $6.$ The quality of this section $($and the mark you receive for it$)$depends on how well you can demonstrate application of these concepts. Incidentally,dont forget to include the behavioural objectives you are setting for thecompensation system $($see Table $6\mathrm{.}2$ in Chapter $6).$Section D: Job Evaluation Plan. In this section, you should describe your jobevaluation plan, which should be constructed using the Point Method $($see Chapter$8).$ You need to describe the compensable factors you have selected, the factordefinitions you have developed, the factor scales you are using, and the factor weightsyou are applying, along with your rationale for all this.As a part of this section, you need to construct a summary rating chart similar to thatshown in Figure $8\mathrm{.}1($Chapter $8)$ and then apply the job evaluation system to each ofthe jobs being evaluated, so that there is a point total for each job. Use a table similarto Table $8\mathrm{.}2($Chapter $8)$ to display the results, in which the scores for each factor areshown for each job and the jobs are ranked from highest points total to lowest.In completing this section, you should cover everything in Chapter $8$ except thesections on Testing for Market Fit, Exploring Solutions to Job EvaluationProblems, and Testing for Total Compensation Costs. $($These issues will becovered in Phase II$.)$ You should also have read Chapter $7$ as background to put thematerial in Chapter $8$ into context.Section E: Pay$-$for$-$Knowledge Plan. The final section should describe your pay$-$for$-$knowledge plan, including the skill blocks you have chosen, in the form of a skillgrid that resembles that in Table $4\mathrm{.}1($Chapter $4).$ You need to deal with all of theIssues in Developing a Skill$-$Based Pay System $($as described in Chapter $4)$ exceptdeciding whom to include in the PKS $($you explained that in Section C$)$ and pricingthe skill blocks, which you will do in Phase II$.$Format and Organization of ReportThe best format for the submission of your report is a three$-$ring binder, with tabsindicating each of the five main sections in Phase I. Additional headings should beused within each of the main sections. Dont use appendices; include all relevantmaterial for each section within that section. Include a detailed table of contents,which you will update as Phases II and III are added to the report. Reports must betyped, double$-$spaced, with a $12-$point font and $2\mathrm{.}5$ centimetre $($one$-$inch$)$ margins.Grading CriteriaIn addition to the quality of work, application of concepts, and insights shown inSections A to E of your report, other grading criteria include the organization of thereport, the clarity of expression, the format, and the integration$/$coherence of thereport. Make sure that each section is consistent with and follows from previoussections and that excess repetition is avoided. Five percent of grade is reserved for