Problem
You are the head of Human Resources Management in a manufacturing company. The staff fall into two broad categories. Ninety percent of the factory staff are technicians. The other 10% are non-technical (administrative, clerical, and other support - for example, cleaners). At the head office associated with the factory, 100% of the staff are clerical, administrative, professional, and other support. The overall head count of the company is one thousand employees. Nine hundred work at the factory, and one hundred are at head office. The technicians at the factory are categorized by skill level into four. Highly trained technicians are at level four; the least trained are at level one, with the two intermediate levels (two and three) between. The internal structure of the compensation system is currently job-based. The Board has asked given the nature of the organization whether the company should change to a skill- based structure. They have asked for your advice.
Task 1:
Prepare a paper with your advice to the Board on which structure to adopt. Structure your paper as follows:
• Introduction
• Explain what a job-based structure is.
• Explain what a person-based (skill) structure is.
• Give your recommendations with supporting arguments.
The Board is concerned also about attracting the best talent. They are thinking of a policy of offering higher compensation than their competitors. However, they are unaware of pay levels in the marketplace, and they are not certain whether to adopt a lead pay policy. They have asked your advice.
Task 2:
Pre-pare a preliminary paper for submission to the Board. Structure your paper as follows:
• Introduction
• Explain the advantages and disadvantages of:
o A match pay policy
o A lead pay policy
o A lag pay policy
• Explain in detail the steps you will take to determine the going rates in the marketplace