BUSINESS 4603 COMPENSATION AND BENEFITS
WEEK 11 ASSIGNMENT #11
SPRING 2022
DUE: FRIDAY, MARCH 25, 2022, AT 11:00 P.M. CDT (Columbia campus time)
REMINDER: UPDATE #2 COMPANY RESEARCH DUE THURSDAY, MARCH 24, 2022, AT 11:00 P.M. CDT
CHAPTER 8. BUILDING PAY STRUCTURES WHICH RECOGNIZE EMPLOYEE CONTRIBUTIONS
In this chapter the focus will be on building pay structures which recognize the differences in employees’ knowledge, skills, credentials, and job performance and assigning pay rates to jobs of unequal worth.
1. List the five steps compensation professionals use in developing pay structures.
2. For each step, list the major factors (terms) used in the step. For example: Step 1. Deciding on the Number of Pay Grades: exempt non-exempt; job family; geography. Explain why each is important.
3. Give your understanding of Table 8-1 The Impact of Alternative Range Spreads on Pay Range Minimum and Maximum Values, with Midpoint of $25,000.
4. What is a compa-ratio? How does it relate to a company’s competitive edge?
5. Explain green-circle and red-circle pay rates.
6. List the five kinds of sales incentive plans. Explain the relationship of the choice of plan to the company’s competitive strategy.
7. Explain the concept of certification and recertification. Describe SHRM’s certification process and categories.
8. What is a two-tier pay structure? Ford Motor Company used such a system. When and why did they adopt it? In 2016 Ford ended using the system, research the reason they abandoned the system. List two pros and two cons of a two-tier system.
