OL 325 Milestone One Guidelines and Rubric

Overview: The importance of compensation varies depending on the viewpoint, as stated by Barry Gerhart and Jerry Newman in Compensation. Society views compensation as a measure of justice; managers may view compensation as a major expense or a motivator; employees view compensation as an entitlement or as an incentive. Regardless of the viewpoint, fairness and equity are essential. Compensation must also be up-to-date, competitive in the market, and easy to understand.

Aligned pay structures support the way the work gets done, fit the organization’s business strategy, and are fair to employees. Organizations typically task an inhouse human resource (HR) professional or hire an HR consultant to create and maintain the company’s pay structure.

Prompt: In Milestone One, you will address the internal consistency component of a pay structure using the specially designed case scenario. Read the Final Project Case Study (linked to in your course) for detailed information on the requirements for this project.

Specifically, you must address the critical elements listed below. Internal Consistency:

A. Create complete job descriptions for the benefits manager and production worker position using O*NET . Note: There may be several versions of these positions on O*NET. You should create personalized job descriptions that are tailored to the company.

B. Calculate the job evaluation points for the administrative assistant, operations analyst, production worker, and benefits manager jobs. Provide a rationale for assigning specific weights and degrees to the various jobs. Use the job descriptions you created in section one, as well as the job descriptions in Appendix A of the final project case study, as a reference. Note: The weights, broken down by the compensable factors, must total 100%.

C. Create job families for all the roles at the Rockville location. The families may be illustrated in a table or bullet format. List positions within each family based on the difficulty level. Provide a rationale for why jobs were assigned to the various families.

Rubric

Guidelines for Submission: Your final project will be a Word document, approximately 5–9 pages in length (plus a cover page and references) and must be written in APA format. Your Word document may include Word tables, Word lists, Excel screenshots, and rationale in written paragraphs. Use double spacing, 12point Times New Roman font, and one-inch margins.

Critical Elements	Proficient (100%)	Needs Improvement (70%)	Not Evident (0%)	Value
Internal Consistency: Job Descriptions	Provides complete job descriptions tailored to the company	Provides job descriptions that are incomplete or are not tailored to the company	Does not provide job descriptions required	25

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Critical Elements	Proficient (100%)	Needs Improvement (70%)	Not Evident (0%)	Value
Internal Consistency: Job Evaluation	Provides complete job evaluations for all identified job descriptions and explains rationale for assigning specific weights and degrees to the jobs	Provides incomplete job evaluations for all or some of the identified job descriptions or does not explain rationale for assigning specific weights and degrees to the jobs	Does not provide complete job evaluations for identified job descriptions and does not provide rationale for specific weights and degrees to jobs	35
Internal Consistency: Job Families	Provides logical job families for all job roles and explains rationale for why jobs were assigned to the job families	Provides illogical job families for some of the job roles or does not explain rationale for why jobs were assigned to the job families	Does not provide job families and does not provide rationale	20
Articulation of Response	Submission has no major errors related to grammar, spelling, syntax, organization, or citations	Submission has major errors related to grammar, spelling, syntax, organization, or citations that negatively impact readability and articulation of main ideas	Submission has critical errors related to grammar, spelling, syntax, organization, or citations that prevent understanding of ideas	20
			Total	100%

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OL 325 Final Project Guidelines and Rubric

Overview

The importance of compensation varies depending on the viewpoint, as described by Barry Gerhart and Jerry Newman in Compensation. Society views compensation as a measure of justice; managers may view compensation as a major expense or a motivator; employees view compensation as an entitlement or as an incentive. Regardless of the viewpoint, fairness and equity are essential. Compensation must also be up-to-date, competitive in the market, and easy to understand.

Aligned pay structures support the way the work gets done, fit the organization’s business strategy, and are fair to employees. Organizations typically task an inhouse human resource (HR) professional or hire an HR consultant to create and maintain the company’s pay structure. In this final project, you will design a pay structure using the specially designed final project case scenario.

The project is divided into two milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Three and Five. The final product will be submitted in Module Seven. The final project includes a new section on pay mix which also needs to be completed prior to submission.

In this assignment, you will demonstrate your mastery of the following course outcomes:

· Students will gain an understanding of the evolution and administration of compensation and benefit programs for organizations.

· Students will explore wage theory, principles and practices, unemployment security, worker income security, group insurance, disability insurance, and pension plans and how these compensation and benefit items are balanced to provide incentive and recruitment of a high-performance workforce.

· The connection between the organization’s mission, objectives, policies, and the implementation and revision of their respective compensation and benefit systems will be analyzed to gain a deeper understanding of the importance of such systems to the organization’s overall human resource management.

· At the conclusion of this course, students will be able to demonstrate the acquisition and application of theories and concepts that support the enhancement and proficiency in seven primary competencies: strategic approach, research, teamwork, communication, analytical skills, problem solving, and legal and ethical practices.

Prompt

You are the Human Resource Director for a premier supplier of rubber floor mats and matting that is expanding its production operations to Rockville,

MD. The organization is headquartered in San Antonio, TX. Based on the organization’s mission statement, the company’s goal is to provide top-quality products with customer service that well exceeds expectations and with a strong commitment to continuous improvement. The following personnel are required to start the Rockville operation (the numbers in parentheses indicate the number of positions):

· Director of regional operations · Assistant to the director of operations · Operations analyst (2) · HR director (this is you) · HR administrative assistant · Benefits manager

· Lead production worker (3) · Production worker (10) · Production manager · HR generalist · Front desk receptionist

In your final project you will be designing a pay structure based on the final project case study you have been reviewing throughout the course and utilizing with your milestone activities.

Specifically, you must address the critical elements listed below. I. Internal Consistency:

A. Create complete job descriptions for the benefits manager and production worker position using O*NET (see Module Three Reading and Resources area). Note: There may be several versions of these positions on O*NET. You should create personalized job descriptions that are tailored to the company.

B. Calculate the job evaluation points for the administrative assistant, operations analyst, production worker, and benefits manager jobs. Provide a rationale for assigning specific weights and degrees to the various jobs. Use the job descriptions you created in section one, as well as the job descriptions in Appendix A of the final project case study, as a reference.

C. Create job families for all the roles at the Rockville location. The families may be illustrated in a table or bullet format. List positions within each family based on the difficulty level. Provide a rationale for why jobs were assigned to the various families.

II. External Competitiveness:

A. Calculate the weighted means of base pay for each of the benchmark jobs (administrative assistant, operations analyst, production worker, and benefits manager) from the six companies listed in Appendix B of the final project case study.

B. Calculate the predicted base pay for each of the following benchmark jobs: administrative assistant, operations analyst, production worker, and benefits manager.

C. Create a market pay line using the following benchmark jobs: administrative assistant, operations analyst, production worker, and benefits manager.

Clearly label your job evaluation points and salaries.

D. Calculate the adjusted pay rates for each benchmark job based on your company’s decision to lead in base pay by 3%.

E. Create pay grades by combining benchmark jobs that are substantially comparable for pay purposes. Clearly label your pay grades and explain why you combined any benchmark jobs to form a grade.

F. Create pay ranges including minimum and maximum for each of the pay grades based on pay grades created in item E above.

III. Pay Mix: (Note: This is a new section that was not completed in the milestone projects. This must be completed prior to Final Project submission.) Your 1-2 Assignment: New Compensation System will provide some insight into elements of a pay mix and how those components complement the compensation package.

A pay mix is a company’s relative distribution of compensation components such as base pay, merit, incentives, benefits, etc., as described by Barry Gerhart and Jerry Newman in Compensation. Different job grades may have different pay mixes. For example, executives often have a higher percentage of long-term incentives. Pay mixes are often illustrated in a pie chart.

A. Create a pay mix for each job family, illustrated in a pie chart. Provide rationale for each pay mix connecting your decision to the company’s strategic goals. In addition, provide at least three examples of employee benefits you recommend the company propose in their total compensation package. Below is an example of pay mix pie chart. Note: Numbers used are not from the data in this case study.

Milestones

Milestone One: Internal Consistency

In Module Three, you will submit the internal consistency section of the final project that includes job descriptions, job evaluations, and job families. This milestone will be graded with the Milestone One Rubric.

Milestone Two: External Competitiveness

In Module Five you will submit external competitiveness section of the final project that includes weighted means, predicted base pay, market pay line, adjusted pay rates, pay grades, and pay ranges. This milestone will be graded with the Milestone Two Rubric.

Final Submission: Designed Pay Structure

In Module Seven, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course. Note: The final project includes a new section on pay mix which also needs to be completed prior to submission. Refer to the III. Pay Mix section in the project prompt above, as well as your work on the 1-2 Assignment: New Compensation System. This submission will be graded with the Final Project Rubric.

Final Project Rubric

Guidelines for Submission: Your final project will be in a Word document, approximately 13–18 pages in length (plus a cover page and references) and must be written in APA format. Your Word document may include Word tables, Word lists, Excel screenshots, and rationale in written paragraphs. Use double spacing, 12point Times New Roman font, and one-inch margins.

Critical Elements	Exemplary	Proficient	Needs Improvement	Not Evident	Value
Internal Consistency: Job Descriptions	Meets “Proficient” criteria including exceptional job analysis for creating job descriptions (100%)	Provides complete job descriptions tailored to the company (85%)	Provides job descriptions that are incomplete or not tailored to the company (55%)	Does not provide job descriptions required (0%)	11
Internal Consistency: Job Evaluation	Meets “Proficient” criteria and rationale is exceptionally clear and easy to follow (100%)	Provides complete job evaluations for all identified job descriptions and explains rationale for assigning specific weights and degrees to the jobs (85%)	Provides incomplete job evaluations for all or some of the identified job descriptions or does not explain rationale for assigning specific weights and degrees to the jobs (55%)	Does not provide complete job evaluations for identified job descriptions and does not provide rationale for specific weights and degrees to jobs (0%)	13

Critical Elements	Exemplary	Proficient	Needs Improvement	Not Evident	Value
Internal Consistency: Job Families	Meets “Proficient” criteria and rationale is exceptionally clear and easy to follow (100%)	Provides logical job families for all job roles and explains rationale for why jobs were assigned to the job families (85%)	Provides illogical job families for some of the job roles or does not explain rationale for why jobs were assigned to the job families (55%)	Does not provide job families and does not provide rationale (0%)	7
External Competitiveness: Weighted Means		Provides correct weighted means for each benchmark job identified (100%)	Provides incorrect weighted means for some of the benchmark jobs or provides weighted means for all benchmark jobs with consistent computational errors (55%)	Does not provide weighted means for benchmark jobs (0%)	7
External Competitiveness: Predicted Base Pay		Provides correct predicted base pay for each benchmark job identified (100%)	Provides incorrect predicted base pay for some of the benchmark jobs or provides predicted base pay for all benchmark jobs with consistent computational errors (55%)	Does not provide predicted base pay for benchmark jobs (0%)	15
External Competitiveness: Market Pay Line		Provides correct market pay line for each benchmark job identified with clear labeling of job evaluation points and salaries (100%)	Provides incorrect market pay line for some of the benchmark jobs or provides market line but does not clearly label job evaluation points and salaries (55%)	Does not provide market pay line for benchmark jobs and does not clearly label job evaluation points and salaries (0%)	11
External Competitiveness: Adjusted Pay Rates		Provides correct adjusted pay rates for each benchmark job identified (100%)	Provides incorrect adjusted pay rates for some of the benchmark jobs or provides weighted means for all benchmark jobs with consistent computational errors (55%)	Does not provide adjusted pay rates for benchmark jobs (0%)	7
External Competitiveness: Pay Grades	Meets “Proficient” criteria and rationale is exceptionally clear and easy to follow (100%)	Provides correct pay grades for combined benchmark jobs, labels pay grades incorrectly, and explains why combined benchmark jobs form a grade (85%)	Provides incorrect pay grades for combined benchmark jobs or labels pay grades incorrectly, or does not explain why combined benchmark jobs form a grade (55%)	Does not provide pay grades for combined benchmark jobs, does not label pay grades correctly, and does not explain why combine benchmark jobs form a grade (0%)	7
Critical Elements	Exemplary	Proficient	Needs Improvement	Not Evident	Value
External Competitiveness: Pay Ranges	Meets “Proficient” criteria and rationale is exceptionally clear and easy to follow (100%)	Provides correct pay ranges for each pay grade and provides rationale for pay ranges (85%)	Provides incorrect pay ranges for some pay grades or does not include rationale (55%)	Does not provide pay ranges for pay grades and does not provide rationale (0%)	7
Pay Mix	Meets “Proficient” criteria and supports rationale with outside resources (100%)	Provides logical pay mix for each pay grade illustrated in a pie chart and provides rationale for pay mix (85%)	Provides logical pay mix for some pay grades or pay grades are not in a pie chart or does not include rationale (55%)	Does not provide pay mix for pay grades in a pie chart and does not provide rationale (0%)	7
Articulation of Response	Submission is free of errors related to grammar, spelling, syntax, organization, citations, and is presented in a professional and easy to read format (100%)	Submission has no major errors related to grammar, spelling, syntax, organization, or citations (85%)	Submission has major errors related to grammar, spelling, syntax, organization, or citations that negatively impact readability and articulation of main ideas (55%)	Submission has critical errors related to grammar, spelling, syntax, organization, or citations that prevent understanding of ideas (0%)	8
				Total	100%

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OL 325 Final Project Case Study:

Designing a Pay Structure

Table of Contents OL 325 Final Project Case Study: Designing a Pay Structure 3 Internal Consistency 4 Job Descriptions 4 Job Evaluation 4 Job Families 5 External Competitiveness 6 Weighted Means 6 Predicted Market Pay Rate 7 Market Pay Line 8 Adjusted Pay Rates 9 Pay Grades 10 Pay Ranges 10 References 11 Appendix A—Job Descriptions for Benchmark Jobs 12 Front Desk Receptionist 12 Administrative Assistant 13 Operations Analyst 14 Appendix B—Results from Salary Survey 15 Front Desk Receptionist 15 Administrative Assistant 16 Operations Analyst 17 Production Worker 18 Benefits Manager 19

OL 325 Final Project Case Study: Designing a Pay Structure

The importance of compensation varies depending on the viewpoint (Gerhart & Newman, 2020). Society views compensation as a measure of justice; managers may view compensation as a major expense or a motivator; employees view compensation as an entitlement or as an incentive. Regardless of the viewpoint, fairness and equity are essential. Compensation must also be up-to-date, competitive in the market, and easy to understand.

Aligned pay structures support the way the work gets done, fit the organization’s business strategy, and are fair to employees. Organizations typically task an in-house human resource (HR) professional or hire an HR consultant to create and maintain the company’s pay structure. In this final project, you will design a pay structure using this specially designed final project case scenario.

You are the human resource director for a premier supplier of rubber floor mats and matting that is expanding its production operations to Rockville, MD. The organization is headquartered in San Antonio, TX. Based on the organization’s mission statement, the company’s goal is to provide top-quality products with customer service that well exceeds expectations and with a strong commitment to continuous improvement. The following personnel are required to start the Rockville operation (the numbers in parentheses indicate the number of positions):

· Director of regional operations

· Assistant to the director of operations

· Operations analyst (2)

· HR director (this is you)

· HR administrative assistant

· Benefits manager

· Lead production worker (3)

· Production worker (10)

· Production manager

· HR generalist

· Front desk receptionist

Internal Consistency

Review this section for support with Milestone One. Also, refer to Appendix A for the section on job descriptions.

Job Descriptions

Job analysis is central to many HR functions, especially compensation. It is the systematic process of collecting information for a specific job and provides information needed to define that job (Gerhart & Newman, 2020). A job description is a summary of the most important features of a job. We need to understand what tasks, duties, and responsibilities various jobs entail before we can assign fair and competitive pay rates.

Writing a job description starts with job analysis. At times, it is appropriate to gather information from other job descriptions such as previous company descriptions or O*NET (an online job analysis resource developed by the Department of Labor). A link to O*NET can be found in Module Three’s Reading and Resources area. A company's job description should be personalized, specific to the job, and tailored to the company. Job descriptions vary by organization but often include the job title, a job summary, essential job tasks, job-relevant knowledge, and skills that an incumbent must possess. A well-written, detailed job description provides a foundation to any internally consistent compensation system.

A benchmark job is a job used as a reference point for making pay comparisons. They typically have well-known stable roles with pay rates that are generally acceptable (Gerhart & Newman, 2020). Appendix A contains job descriptions of four benchmark jobs for this case study.

Job Evaluation

A job evaluation is the systematic procedure designed to aid in establishing pay differentials among jobs within an organization (Gerhart & Newman, 2020). The first step is to identify compensable factors.

A compensable factor is a characteristic within the work which the company values (Gerhart & Newman, 2020). It is used for evaluating the relative worth of jobs inside an organization. We also need to assign a relative weight to each compensable factor based on their importance to the organization. Keep in mind that all compensable factors added together must total 100%. An example of a compensable factor might be education. The company might weigh this at 25%.

Each compensable factor will have varying levels of difficulty. This is referred to as degrees.

For example, the degrees for education level might be identified as:

1 = High School/GED

2 = Associate’s

3 = Bachelor’s

4 = Master’s/Graduate

Next, points are calculated by multiplying the degrees by the weights.

Below is an example of how this point structure is applied to the front desk receptionist.

The weight of the skill compensable factor (divided into education level and technical skills) is at 50% since the organization is very knowledge-intensive and depends heavily on its human capital; responsibility (distributed into scope of control and impact of job) is weighted 30% as each job has the potential to affect other jobs; and effort is assigned 20% since problem-solving and task complexity are essential across jobs in the organization.

Using the job description as a reference, the degrees for the front desk receptionist position need to be assigned. Education degree 1 is appropriate for this position since a high school diploma or GED is sufficient; technical skills degree 1 is suitable as this position handles basic telephone and email only; responsibility scope of control degree 1 is also sufficient as this position has little control; impact of job degree 2 is fitting since this position greets every person entering the establishment; etc.

Lastly, multiply the weights by the degree for each compensable fact. Add the total points of each compensable factor to get your total job evaluation points for the front desk receptionist position.

Job Evaluation for Front Desk Receptionist

Compensable Factor	Weight	Degree (1, 2, 3, 4)	Points
Skill (50%)
-Education Level	25%	1	25
-Technical Skills	25%	1	25
Responsibility (30%)
-Scope of Control	10%	1	10
-Impact of Job	20%	2	40
Effort (20%)
-Problem Solving	10%	1	10
-Task Complexity	10%	1	10
	100%		120 points

Table 1

Job Families

A job family is a group of jobs involving work of the same nature but requiring different skill and responsibility levels (Gerhart & Newman, 2020). Grouping similar jobs provides a basis for relevant comparisons. Such groupings lead to reasonable pay differences between positions, logical career pathing, and internally consistent job structures. Organizations may use different evaluation methods, pay strategies, or pay structures for different job families within the same organization.

Below is an example of two job families for a financial company. Note: This examp

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