Please download the following documents containing the two case studies and the Phase 1 requirements. You need to write a report, for the case study and in that report you need to accomplish the requirements mentioned in the Phase 1 document.

Phase I Formulating the Compensation Strategy

Your client firm has some underlying organizational issues that are causing problems. You need to identify these problems, analyze why they are occurring, and make structural recommendations that will address them. Note that your recommendations must be focused on the compensation framework and must include (among the rest of your recommendations) a pay for knowledge (PKS) plan for one group of employees, and the application of a job evaluation plan for the rest. Note that the requirement for a PKS plan is independent of your decision about the appropriate managerial strategy for your client!¹ (Links to an external site.)

To be confident at resolving these issues you need to have read and understood the principles outlined in Chapter 1 through to 8. When writing your report please use the following Section headings:

Section 3 Reward and Compensation Strategy

Your next task is to develop your compensation strategy templates.

The first step is to determine how many discrete groups or families there are in your organization. The number of groups is dependent on the implementation of the PKS plan and the differences in required behaviours from employees covered by the job evaluation plan.

In creating the job families, your first decision is to identify which jobs will be included under the pay for knowledge system. (Check out Chapter 4 for information to help you.) The remaining jobs will fall under the job evaluation system and you will need to determine how many distinct groupings of behaviours (job families) that you require to implement your recommendations. When you are identifying your job families dont forget about any new and/or revised jobs you may have created.

For each job family you must identify the required behaviours from jobs in that family and determine the role compensation will play in producing those behaviours, Table 6.1 Role of Compensation & Table 6.2 Sample Behaviour Objectives will help. You should also identify the compensation mix and determine the compensation level for your client, Figure 6.2 will support these.

Provide a summary for each job family in a compensation strategy template. All the jobs listed on the same compensation strategy template will have the same mix of compensation elements and the same compensation level relative to the market. Remember though that this does not mean that all jobs on the same template receive the same dollar amount of pay, it simply means that they are all subject to the same compensation strategy.

Consider how many job families you are creating--the more you create then the more complex your system. This may lead to an administration and management nightmare! However, too few may lead to an inappropriate strategy.

Section 3 products will include:

• An analysis of the required task, membership, and citizenship behaviours for the jobs in each job family, and
• A strategic compensation template for each job family incorporating the required compensation changes to encourage the required behaviours.
• Job family indicator added where indicated in the Employee Salary Data sheet of your template.
• Total Compensation calculated for each job family found in Required for Section 3 on the salary budget tab