Wage and Salary
Assignment 6 – Overall Instruction
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Assignment 6: Pay Structure Design (60 points)
Due: by 11:59 pm, Sunday, June 30th, 2019
* No assignments will be accepted late without written documentation of an unavoidable or unforeseeable event. Why this assignment?
This assignment is intended to achieve the goal of our Module 7 learning objective, “Construct a job- based pay structure using the point system.” This assignment supports Course Objectives 1 and 2. Instruction
In this assignment, you will be designing a job-based pay structure using the point system. To do this, you’ll first need to watch the video Designing a pay structure in Module 7. This video will be the only example given out for this assignment. All the information you need to do this assignment is in this video. And all the information that you need to plot the data and to conduct a simple linear regression analysis is in the video Simple linear regression refresher in Module 6. You have also done Assignment 5: Simple Linear Regression Refresher for this.
To do this assignment, you’ll need to use the job evaluation results from Assignment 3: Job Evaluation. Based on the job evaluation points that you have decided for the four jobs (Accounting Clerk, Manager in Financial Accounting, Manager in Corporate Social Responsibility Accounting, and Department Head in Financial Accounting), complete the following five steps. Since this process is being continued based on the results in Assignment 3, I’ll denote the first step here as Step 6. The last step in Assignment 3 was Step 5. If you did not have the job evaluation points decided in Assignment 3, just decide on points for each job that you think is appropriate (higher points for jobs that you think are more important and lower points for jobs that you think are less important). But in this case, you need to clearly indicate the job evaluation points for the four jobs at the beginning of your assignment.
Step 6. Construct a market pay line. Three jobs, Accounting Clerk, Manager in Financial Accounting, and Department Head in Financial Accounting are benchmark jobs. Pay survey data of these three jobs is shown in Appendix 1. Use the Excel software to compute the simple linear regression equation. If you have forgotten how to do this, re-visit the video Simple linear regression refresher in Module 6 or Assignment 5 (Simple linear regression refresher). Please see the attached Excel file for how the data should be arranged to run the simple linear regression equation. (20 points) Step 7. Construct your organization’s pay line considering your external competitiveness. (For example, you can decide to pay 10% above the market pay level and construct your pay line accordingly.) Justify your decision in constructing your organization’s pay line. (10 points) Step 8. Based on your organization’s pay line, calculate the standard pay amounts for the four jobs (don’t forget the Manager in Corporate Social Responsibility Accounting job) in this finance job family. Justify your decision. (20 points) Step 9. Construct a pay range for each of these jobs. Justify your decision. (10 points)
Assignment 6 – Overall Instruction
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Bonus Step. Julia’s job is the Manager in Financial Accounting. Julia’s yearly salary amount is X. Sam’s job is the Manager in Corporate Social Responsibility Accounting. Sam’s yearly salary amount is Y (X < Y). Julia has filed a discrimination lawsuit against your organization. Julia claims that she is paid less than Sam although she does better work than Sam. Julia claims that this is evidence of gender discrimination within the organization. Based on your organization’s pay structure (based on the pay structure that you have created through Steps 6 to 9), do you agree or disagree with Julia’s claim? Why or why not? You also can neither agree nor disagree with Julia’s claim and say that a further investigation is needed. But, in this case, you’ll have to clearly explain why, based on the pay structure that you have created (and NOT based on your thoughts or what was discussed in the video in Module 7), a further investigation is needed. (5 bonus points)
Important Notes
1. In writing your answers, NEVER copy-and-paste any part of the textbook or any other sources. Write the answers in your own words. If more than seven consecutive words are identical to a writing from another source (including the textbook, your past works, and any other sources), it will be considered as plagiarism, and you will receive a failing grade “F” in this course. You will also be referred to Students Affairs.
2. See Appendix 2 for the grading rubric.
Assignment 6 – Appendix 1
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Appendix 1. Pay Survey Data
Organization
Average Yearly Salary Amount (in USD)
Accounting Clerk Manager in
Financial Accounting Department Head in Financial Accounting
A 53,200 89,000 128,360
B 59,240 89,230 135,000
C N/A 79,270 153,200
D 62,000 92,300 162,000
E 43,000 73,500 99,000
F 48,700 82,000 119,000
G 52,800 90,000 143,000
H 51,100 N/A 130,800
I 60,100 100,200 183,000
J 42,300 87,200 157,800
K N/A 78,900 137,200
L 47,200 83,300 134,200
M 61,800 93,000 125,200
N 43,500 68,900 94,300
O 65,400 95,800 N/A
P 64,200 93,200 169,000
Q 57,600 87,300 144,300
R N/A 88,600 138,000
S 48,800 79,600 110,000
T 67,000 110,200 178,000
U 52,400 98,000 156,000
* N/A: Data not available.
Assignment 6 – Appendix 2
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Appendix 2. Grading Rubric
Question Grading Standard Point(s)
Step 6 (20 points)
Market pay line is constructed with no errors. 20
Market pay line is constructed, BUT some errors can be found
in the process. 10
Market pay line is NOT constructed. 0
Step 7 (10 points)
The organization’s pay line is constructed without errors, AND
the decision is well justified. 10
EITHER the organization’s pay line is constructed with some
errors, OR the decision is not well justified. 5
The organization’s pay line is NOT constructed. 0
Step 8 (20 points)
The standard pay amounts for the four jobs are calculated
without errors, AND the decision is well justified. 20
EITHER the standard pay amounts for the four jobs are
calculated with some errors, OR the decision is not well
justified.
10
The standard pay amounts for the four jobs are NOT
calculated. 0
Step 9 (10 points)
Pay ranges are constructed without errors, AND the decisions
are well justified. 10
EITHER pay ranges are constructed with some errors, OR the
decisions are not well justified. 5
Pay ranges are NOT constructed. 0
Bonus Step* (5 bonus points)
An argument is made, AND it is well justified based on the
pay structure that has been created. 5
An argument is made, BUT it is not well justified based on the
pay structure that has been created. Or no argument has
been made.
0
* For the bonus step, no partial points will be given if the argument is not well justified based on the pay structure that has been created.