Assignment 4 Managing Compensation - LopezB

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American Military University *

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BUSN235

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Management

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Apr 3, 2024

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Answer Sheet Format for Assignment #4 (Pay Structure Design) – MGMT 4303 1. Your name Your answer: Benjamin G. Lopez 2. Do you confirm that your writing in this submission is original and has not violated any policies under section ‘4. Instructor Policies’ (i.e., plagiarism, teamwork/cheating, “just” paraphrasing, and the use of AI-generated content) in our syllabus? (Your submission will not be graded if you do not answer “yes” to this question.) Your answer: Yes 3. Step 6: What is the market pay line? Your answer should be a single equation in the format of Pay = a*JE Points + b with a and b being actual numbers. (20 points) Your answer: Pay = 178.82*JE points – 21902 4. Step 7: What is your organization’s pay line? Again, your answer should be a single equation in the format of Pay = a*JE Points + b with a and b being actual numbers. Also, justify your decision. (10 points) Your answer: I decide to pay 10% above the market pay level, therefore the new equation is: Pay = 196.70*JE points – 24,092.2 I made this decision because I want to keep the employees to avoid turnover and be more competitive in the market 5. Step 8: What is the standard pay amount for each job? Fill in the below table. (20 points) Job Standard Pay Amount How the amount was calculated Accounting Clerk 58,521.8 196.70*(420) – 24,092.2 Manager in Financial Accounting 100,811.3 196.70*(635) – 24,092.2 Manager in Corporate Social Responsibility Accounting 113,597.8 196.70*(700) – 24,092.2 Department Head in Financial Accounting 152,937.8 196.70*(900) – 24,092.2
Answer Sheet Format for Assignment #4 (Pay Structure Design) – MGMT 4303 6. Step 9: What is the pay range for each job? Fill in the below table and justify your choice. (10 points) Job Pay Range How the range was calculated Accounting Clerk 52,669.62 to 64,373 196.70*(420) – 24,092.2 times 1.10 And 196.70*(420) – 24,092.2 times 0.90 Manager in Financial Accounting 90,669.62 to 110,892.43 196.70*(635) – 24,092.2 times 1.10 And 196.70*(635) – 24,092.2 times 0.90 Manager in Corporate Social Responsibility Accounting 102,238.02 to 124,957.58 196.70*(700) – 24,092.2 times 1.10 And 196.70*(700) – 24,092.2 times 0.90 Department Head in Financial Accounting 137,644.02 to 168,231.58 196.70*(900) – 24,092.2 times 1.10 And 196.70*(900) – 24,092.2 times 0.90 Justification of the ranges that you have chosen: I have chosen a 10% pay range (10% more and less from the organizational pay line). The reason I chose this range is because I feel that it is a sufficient range for everyone to be able to perform better and have the opportunity to be payed more. Employees will get discouraged and unmotivative if the pay is just the organizational pay line. I think 10% less and more from the organizational pay will allow more factors to be considered when deciding the pay amount for each employee. 7. Bonus Step: Do you agree or disagree with Julia’s claim? Why or why not? Your answer must be based on the pay structure that you have created in this assignment. (5 points) Your answer: I would mostly disagree with Julia’s claim because the pay range for Manager in Financial Accounting is lower than Manager in CSR Accounting. The pay range for Julie is 90,669.62 to 110,892.43 and Sam’s pay range is 102,238.02 to 124,957.58. The only case where Julie MIGHT be payed more than Sam is if Julie should be receiving the absolute max pay within her job pay range (110,892.43) and Sam gets payed the the absolute minimum within his job pay range (102,238.02 ), than the investigation will be further looked into. Based on the information given, we can’t assume how well Sam performs in his job to address this investigation. There is a very high chance that Julie’s claim will not be supported due to the significant difference of pay in their jobs in this pay structure.
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