Compensation Plan Project

HRM3110 Compensating Human Resources
Compensation Plan Project Instructions Part II
Purpose:
 
Through the completion of the three-part Compensation Plan Project, students willcreate a compensation plan for a position in a hypothetical organization. To be effective, they will evaluate the strategic implications various compensation philosophies have on an organization. They will also analyze the various forms of employee benefits and the key components of constructing a benefits compensation plan. In addition, students will evaluate the impact the Fair Labor Standards Act (FSLA) and other laws have on the compensation practices of an organization.
 
Part II: Pay Structure and Pay Level
 
Continuing with the same position discussed in Part I of this project, determine the pay structure best-suited for this position in the hypothetical organization.
(300-400 words) Using the job-based structure, construct a job evaluation process:
Establish the purpose of using a job evaluation process for that position.
Discuss the advantages and disadvantages of the three methods of job evaluation: ranking, classification, and point.
Assuming you will use a job-based structure, select a method of job evaluation that is best suited for the position in question and outline the steps you need to execute it successfully.
Describe who you would involve in the process and be sure to include why and to what extent.
(300-400 words) Using the person-based structure, examine the skill-based and competency approaches:
Establish the purpose of using a person-based evaluation for that position.
Discuss the advantages and disadvantages of skill-based versus competency approaches.
Assuming you will use a person-based structure, select a method of evaluation (either skill-based or competency) that is best suited for the position in question and outline the steps you need to execute it successfully.
(100-150 words) Based on the work just completed on job-based and person-based structures, determine which pay structure is best for the position in question and substantiate your reason for that selection.
Next, determine the pay level best-suited for this position in the hypothetical organization.
(300-400 words) Discuss the factors important for external competitiveness for this position. Remain specific to your position and company and include in your discussion such topics as:
Labor market, labor demand, labor supply, and ability to pay.
Organization factors
Relevant markets
Competitive pay policies such as lead, match, lag, hybrid, employer of choice
(300-400 words) Determine externally competitive pay levels and structures. Again, remain specific to your selection position and company. Include how you will utilize the following:
Defining the purpose of the survey
Selecting relevant market competitors
Designing the survey
Things to consider when interpreting the survey results
How you will determine the pay-policy line
Advantages and disadvantages of grades, ranges, and broadbanding
(100-150 words) Based on the work just completed on pay levels and structures, describe how you will reconcile any difference between the internal and external standards in order to move forward with a recommendation for the position in question.
 
 
Format:
 
Each section of the Compensation Plan Project should be prepared in APA format including a title page, section headers, in-text citations, and a reference page. A minimum of three professional and reputable sources are required for this section of the project.
 
Part II of this project will be 3-4 pages of body (1400-1900 words) plus title page and reference page.