Read Skill Builder 75, Developing a Wage Structure, on pp. 229 & 230 of Human Resource Management Applications.

Recreate Exhibit 4.6 in an Excel spreadsheet, and complete the instructions.

Create the plot using SmartArt add-on in a Word document. Review Figure 11.2 and Table 11.6 on p. 508 of Human Resource Management for an example.

Include a brief explanation of the following: If these positions were organized by a union, what effect would you expect on the wage structure?

SKILL BUILDER Developing a Wage Structure 1. OBjectives A. To familiarize you with how data obtained when using the point system approach to job evaluation can be used to develop a wage structure. B. To give you practice in developing a wage structure. II. Time required to complete: 1 hour or less III. Instructions Examine the pay data below. Exhibit 4.6 shows a partially completed pay structure for control operator positions. Your first task is to complete the chart for pay grades 2, 3, and 4. Construct pay steps for each of the remaining pay grades based on the following guidelines for "time in service" in each pay grade. Pay Step Data Entry wage: 65.5 percent of top for each pay grade Step 1: After 1 year within the pay grade 70 percent of top Step 2: After 3 years within the pay grade 75 percent of top Step 3: After 5 years within the pay grade 82 percent of top Step 4: After 8 years within the pay grade 90 percent of top Top of grade: After 10 years within the pay grade In addition, listed below are the names of employees in each pay grade and their current salaries. Your second task is to plot each one on Exhibit 4.6 and to determine which of the current salaries fall outside the appropriate pay grade. Control Operatar L: Charles Hamilton-6 years" services-paid $30,218 Mary Richardson-10 years' service-paid $32,250 Contral Operator III: Jerry Smith-2 years' service-paid $29,250 Theresa Jones-5 years' service-paid $31,600 Cortrol Operatar III: Alicia Wadsworth-5 years" service-paid $38,950 Connie Johnston -7 years' service-paid $40,380 Velda Prescott-1 years' service - paid $33,250 229 Control 0perator IV: Gloria Lopez-3 years" service-paid $40,350 Rosemary Jensen -5 years' service-paid $44,120 SKILL BUILDER Developing a Wage Structure 1. OBjectives A. To familiarize you with how data obtained when using the point system approach to job evaluation can be used to develop a wage structure. B. To give you practice in developing a wage structure. II. Time required to complete: 1 hour or less III. Instructions Examine the pay data below. Exhibit 4.6 shows a partially completed pay structure for control operator positions. Your first task is to complete the chart for pay grades 2, 3, and 4. Construct pay steps for each of the remaining pay grades based on the following guidelines for "time in service" in each pay grade. Pay Step Data Entry wage: 65.5 percent of top for each pay grade Step 1: After 1 year within the pay grade 70 percent of top Step 2: After 3 years within the pay grade 75 percent of top Step 3: After 5 years within the pay grade 82 percent of top Step 4: After 8 years within the pay grade 90 percent of top Top of grade: After 10 years within the pay grade In addition, listed below are the names of employees in each pay grade and their current salaries. Your second task is to plot each one on Exhibit 4.6 and to determine which of the current salaries fall outside the appropriate pay grade. Control Operatar L: Charles Hamilton-6 years" services-paid $30,218 Mary Richardson-10 years' service-paid $32,250 Contral Operator III: Jerry Smith-2 years' service-paid $29,250 Theresa Jones-5 years' service-paid $31,600 Cortrol Operatar III: Alicia Wadsworth-5 years" service-paid $38,950 Connie Johnston -7 years' service-paid $40,380 Velda Prescott-1 years' service - paid $33,250 229 Control 0perator IV: Gloria Lopez-3 years" service-paid $40,350 Rosemary Jensen -5 years' service-paid $44,120