You are facing 10 different issues raised by circumstances and various members of your organization that each concern these pay structures. Please specifically discuss how you would successfully address each of these 10 different issues.

6. You are the human resource manager of a small hotel. You have two chefs that you employee. Your organization is too small to have formal pay structures. The first chef has three years of experience, has taken advanced culinary training and has the job title chef. The second chef has eight years of experience, has not taken advanced culinary training and has the job title of head cook.

Both chefs perform the exact same tasks: managing other kitchen workers, preparing meals, and basic clean up. The chefs work the same amount of time each week. Their performance is roughly equivalent.

Would you pay these employees similar wages, or would you pay one of the chefs more (if so which employee would you pay more). Provide a justification for your answer.

7. You are the new compensation manager for a firm that uses several very reliable external market sources to help benchmark your positions and then set your pay structures for your respective job families based on this market data.

You have just received the following e-mail from a line manager delivering the following message My people have been way underpaid for years, and now that you are here, you need to correct it so they dont walk, and also because they deserve it! The market compensation data we use is inaccurate. I know what you have to pay in this market and its way more than your market data says. This particular job has a micro-pay-market all its own that isnt captured in the more broadly assessed job titles that are surveyed in market data surveys.

What steps would you take to address this issue that has been presented to you?

8. You have just conducted a formal job evaluation for a senior customer service representative position and the job evaluation reveals that the position is currently overclassified (paid more than the job warrents). Based on this job evaluation your organization is recommending immediately lowering the salary range for this position. This action would leave one of your customer service representative employees current pay, which is $53,000, well above the new salary range maximum for this position, which is now set at $47,700. What compensation actions will you take with respect to this employee and what will their salary be at the end of your action?

9. A presumption of market pricing is that if you have employees occupying jobs in a pay grade who perform their tasks within the normal range of competency that you would expect to find elsewhere in the market you would expect to pay as many people less than the midpoint as are paid more than the salary midpoint. What factors do you think lead approximately half the employees in a pay grade to be above the range midpoint and the other half of the employees to be below the range midpoint?