fastcat phase 1 solution

8/10/2019 FAstcat Phase 1 Solution

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COMPENSATING EMPLOYEES


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SEMESTER RECAP

Context SHRM

Legal environment International

Procuring Planning Recruiting Selection

Utilizing & Maximizing Training Appraisal


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Compensation Defined

The package of quantifiable rewards anemployee receives for his/her labors.

Three components: Base compensation Pay incentives Indirect compensation


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TODAYS TOPIC

Compensation


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EQUITY THEORY

People compare theiroutcome/input ratio to

that of others Conclusions

Ratios are equal(equity exists)

Ratios are unequal(inequity exists)


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RESPONSES TO EQUITY/INEQUITY

Equity: Maintenance


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RESPONSES TO EQUITY/INEQUITY

Equity: Maintenance Inequity:

Change Inputs Change Outcomes Quit


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Traditional Approach toCompensation

Objective of traditional approaches tocompensation is to achieve both internal &

external equity Internal equity is accomplished through jobevaluation Systematic process of assessing the value of each job

in relation to other jobs in the organization Results in a hierarchy of jobs ranked in order of theirrelative worth

External equity through market analysis


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The Traditional Approach to Compensation

Job Analysis

Job DocumentationPrepare to

Job Rating Survey

Conduct

Create Job SurveyWorth Hierarchy

AnalyzeMarket Data

ReconcileInternal and External

Considerations

Develop PayStructure


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Three Job Rating M ethods

Method Procedure Advantages DisadvantagesRanking (paired comparison) Rank-order whole Simplest method; -Subjective

jobs for worth or inexpensive, easily -not very reliable

compare pairs of understandable. - doesnt measure jobs. differences between jobs.


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Method Procedure Advantages DisadvantagesRanking (paired comparison) Rank-order whole Simplest method; Only general rating of

jobs for worth or inexpensive, easily - not very reliablecompare pairs of understandable. doesnt measure

jobs. differences between jobs.

Classification Compare job de- Simple, easy to Ambiguous, overlappingscriptions to grade use for large num- grade descriptionsdescriptions. ber of jobs; one

rating scale.


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Grade Description Pay

5 Cook existing menu items following recipeSupervise kitchen helpPrepare payrollEnsure quality of food and adherence to standards

$14.00-$19.00

3 Greet customers and organize tablesTake orders from customersBring food to tablesAssist with food preparation

Help with delivery

$10.00-$12.00

1 Use dishwashing equipmentUse chemicals to clean premisesUse vacuum cleaner, mop, waxer

Clean and set up tablesPerform routine kitchen chores

$8.25-$9.00

Job Classification for Restaurant


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Grade Jobs # Positions

5 Assistant ManagerLead CookOffice Manager

221

3 ServerHostessCashier

4544

1 Kitchen HelperDishwasherJanitorBusser

Security Guard

2326

2

Job Classification for Restaurant


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Method Procedure Advantages DisadvantagesRanking (paired comparison) Rank-order whole Simplest method; Only general rating of

jobs for worth of inexpensive, easily - not very reliablecompare pairs of understandable. doesnt measure


Classification Compare job de- Simple, easy to Ambiguous, overlappingscriptions to grade use for large num- grade descriptionsdescriptions. ber of jobs; one

rating scale.


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Three Job Rating M ethodsMethod Procedure Advantages DisadvantagesRanking (paired comparison) Rank-order whole Simplest method; Only general rating of

jobs for worth of inexpensive, easily - not very reliablecompare pairs of understandable. doesnt measure


Classification Compare job de- Simple, easy to Ambiguous, overlapping

scriptions to grade use for large num- grade descriptionsdescriptions. ber of jobs; one

rating scale.

Point factor Reduce general More specific and Time-consuming process factors to sub- larger number of more difficult to under-

factors: give each factors; off-the- stand; greater opportun-factor weights and shelf plans available ity to disagree.

points; use points more preciseto determine measurements.grades.


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Point Factor Method

1 Identify specific characteristics (factors)of jobs that will be measured


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M ajor F actors of the H ay Plan

Know-How Problem Solving AccountabilitySum total of every kind Original, self -starting thinking Answerability for action

kind of skill, however required by the job for analyzing, and for the consequen-acquired, required for evaluating, creating, reasoning. ces of the action; theacceptable job perfor- Problem solving has two sub- measured effect of themance. Know-how has factors: the job. Accountabilitythree subfactors: has three subfactors:

(1) Practical procedures, (1) The thinking environment (1) Freedom to actspecialized techni- in which problems are (personal control).ques. solved.

(2) Ability to integrate (2) The thinking challenge of (2) The impact of theand harmonize the the problem. job on end results

diversified functions (direct, indirect).of management.

(3) Interpersonal skills. (3) Magnitude - generaldollar size of areasmost affected by job.


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Point Factor Method

1 Identify specific characteristics (factors)of jobs that will be measured

2 Weigh the factors3 Score each job on each factor using factor

scales and degree statements

Statement of the degree to which the factor is present in the jobScoring system


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Degree Statements for the F actorPhysical Requirements

Factor: Physical Requirements This factor appraises the physical effort required by a job, including its intensity and

degree of continuity. Analysis of this factor may be incorrect unless a sufficiently

broad view of the work is considered.

Degree1. Light work involving a minimum of physical effort.

Requires only intermittent sitting, standing, and walking.2. Repetitive work of a mechanical nature. Small amount of lifting and

carrying. Occasional difficult working positions. Almost continuous sittingor considerable moving around.

3. Continuous standing or walking, or difficult working positions. Workingwith average weight or heavy materials and supplies. Fast manipulative skillin almost continuous use of machine or office equipment on paced work.

Th T di i lA h C i


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Job Analysis


Job Rating Survey

Conduct


AnalyzeMarket Data


Considerations


Th T di i lA h C i


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Job Analysis


Job Rating Survey

Conduct


AnalyzeMarket Data


Considerations



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Market Pricing

Identify benchmark positions What type?

Select information sources Public Consulting firm Self-administered survey

Choose comparators What are your options? How do you choose?

Th T diti lA ht C ti


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Job Analysis


Job Rating Survey

Conduct


AnalyzeMarket Data


Considerations



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Develop Pay Structure

Pay level relative to market Performance vs. membership?

Single rate Time progression Time progression and merit Productivity Salary Range

Job vs. Individual Pay Mix

Fixed vs. variable


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Emerging Approaches toCompensation

Broadbanding replaces traditional narrow salary ranges to fewer wider bands +consistent w/flatter organizations, empowerment, teamwork -cost control is difficult most appropriate for higher level positions

Team based pay

Advantages? Disadvantages?

Skill-based pay


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Skill-based Pay

Advantages? motivation, flexibility, reduced absenteeism and

turnover costs (can cover), flatter Disadvantages?

Labor costs; Rusty skills, loss of labor specialization

When? Expertise and innovation are sources of CA Technology changes frequently Upward mobility is limited Developmental opportunities are present

fastcat phase 1 solution

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