Archives: Solution Manual

206 EXERCISE 26 USING MATURITY CURVES TO MAKE PAY DECISIONS Exhibit 26-2 PROPOSED SALARLY ADJUSTMENTS WORKSHEET (Completed) EMPLOYEE NAME MOST RECENT PERFORMANCE RATING YEARS SINCE BS DEGREE 2004 SALARY PROPOSED 2005 SALARY 1. Axtell, Josephine 4 10 $66,150 $70,119 2. […]

205 EXERCISE 25 MERIT GUIDE CHART AND PAY-FOR-PERFORMANCE ALLOCATIONS 1. Pay Grade Designation for Software Engineers: Max. $81,120 75th $74,360 50th $67,600 25th $60,840 Min $54,080 MERIT PAY ALLOCATION SPREADSHEET EMPLOYEE NAME Gender Years with ODD Perfor- mance Rating Current […]

204 c 51-75 % 5.0% 3.0% 2.0% 0.0% 0.0% 2.2% a 3rd Quartile $60,800 $62,400 $136,960 $0 $0 $260,160 t 26-50 % 7.0% 5.0% 3.0% 1.0% 0.0% 3.5% i 2nd Quartile $76,160 $123,200 $216,960 $15,040 $0 $431,360 Performance Rating Superior […]

202 EXERCISE 24 SPENDING MATRIX DEVELOPMENT This exercise will help the students to put into practice what they have studied in the text. The software provided should make it almost painless to develop a reasonable matrix based on performance. The […]

200 Just a reminder, the compa-ratio of the pay grade is computed by dividing the sum of the employee pay by (the number of employees times the midpoint value). The compa-ratio for an individual is computed by dividing the individual’s […]

199 12 307,776 Hourly 492 11,750,000 4.2% 12 493,500 12 $117,600 Exempt 198 9,956,000 4.5% 12 EXERCISE 22 DEVELOPING A MERIT INCREASE BUDGET Utilizing the software provided, students should be able to quickly calculate the $1,366,896 change in base payroll […]

196 3. Monitoring of health-care insurance related practices of both employees (patients) and deliverers of health-care services; 2. Recognize and describe different cost containment options available to organizations. care programs. Objectives of these programs include cost containment and universal access […]

193 Corp BUDGET Div PROFITS Div SALES Div BUDGET Dept/ Func OBJS Indiv Corp VP of Info Systems 40 20 20 20 Corp VP of Production 40 20 20 20 Corp VP of Mktg & Sales 30 30 20 10 […]

190 EXERCISE 19 ESTABLISHING A SHORT- AND LONG-TERM COMPENSATION PACKAGE FOR EMPLOYEES OF ODD Due to the fact that senior management is responsible for the long-term planning of the company, these employees should receive compensation packages based on long-term rewards. […]

3. Forecasting personnel costs and making budget recommendations. 5. Providing compensation data through a computer-based information system. 7. Value and use of lag, lead-lag, and lead salary adjustment concepts. The development and administration of the human resources/personnel budget is a […]

185 Bonus as Additional Hourly Earning = $ 216.45 = $1.29 per hour 168 hours Additional Earning if Total Reserve Returned to Employee, Mary Jane’s Reserve Bonus = $65,197 * .00166 = $108.23 Mary Jane’s Potential Total Bonus = $216.45 […]

improve such programs. With income and social security taxes continuing to take a significant portion of the gross amount of earned income, employees recognize the value and importance of having their employer provide benefits they want which, if purchased, would […]

184 From a pay perspective, the operators are currently being paid between $14.47 and $23.16 per hour and a $100 weekly premium of roughly $2.50 per hour, or approximately 15 percent. This is a fairly common premium to pay for […]

4. Special benefits called “perks” that make lifestyles more pleasant and livable. 6. Short- and long-term incentive opportunities available to executives. annual compensation to the $10 million range and above. Some compensation experts and social leaders take a strong view […]

182 2. Relates poorly to work of incumbent (poor job content relationship). 4. Easily understood by ratee. 5. Easy for Human Resources to quantify. 6. Quantitative comparisons can be made across organizational boundaries. 4. Provides poor defense in case of […]

The deferred benefit receiving the best press in the 1980s was the 401(k) in which employees have a chance to reduce their taxable annual income while simultaneously building their retirement portfolio. ESOPs have also continued to be the beneficiary of […]

181 EXERCISE 15 DEVELOPING A SKILL-BASED PAY PLAN FOR A CLERICAL SUPPORT TEAM AT OEM SYSTEMS There is not one best answer to this exercise. The result is based on the student’s ability to group the principal tasks and knowledge […]

3. The different kinds and levels of expectations and preferences of workers. 5. The difficulty in establishing performance standards. 7. The wide variety of performance-based rewards available to organizations. 9. Recognizing dangerous, distressing, and burdensome working conditions through job evaluation […]

180 2. How do the “asking salaries” compare with those of current incumbents? It is important to emphasize that the incumbents are known entities as opposed to the candidates Kathy is interested in hiring. EXERCISE 14 PAY COMPRESSION AT OLYMPIA […]

The variety of motivation theories described in Chapter 13 provides those involved in designing and managing reward programs with the opportunity to recognize and identify those motivational elements that are common to a wide range and number of people. There […]

179 EXERCISE 13 SINGLE VS. MULTIPLE PAY STRUCTURES To complete this assignment, students can use the software provided to quickly calculate the impact that the anticipated structure moves and spending programs will have on the Finance and Information Systems job […]

3. All team members should have a good understanding of what kind of work each other team member performs. 5. Skill-, knowledge-, and competency-based pay plans are receiving significant attention by organizations making use of teams. acquired and not work […]

Pay Structure Design – FES Points and Proposed Midpoints Pay Structure Design Directions: Enter the Proposed Midpoint $ for each Jobcode. Click Print Data to print the data. Click Print Graph to print the chart. Job Code Olympia Benchmark Job […]

174 It also highlights some of the problems inherent in trying to align job evaluation points with actual market pay rates in a market where rates for certain jobs may appear out of line with evaluation points. Note on Age […]

3. Establishing a policy line and determining its usefulness. 5. Using movement within pay grades to recognize seniority and performance. 7. Using different midpoint-to-midpoint differences and pay ranges in an expanding pay structure. Many factors influence the pay setting processes […]

170 11-6 Watson Wyatt Data Services—Report on Supervisory Management Compensation (SM) 11-8 Watson Wyatt Data Services—Report on Middle Management Compensation (MM) 11-10 The Survey Group Exempt/Nonexempt Benchmark Survey Another problem to discuss is the quality of data received. The sources […]

Gathering Pay Survey Data Gathering Pay Survey Data Olympia Community Survey Watson Wyatt Data Surveys The Survey Group Surveys Job Code Olympia Benchmark Job Titles Annual Pay Stat. $ Kind of Pay Stat. Matching Job Title/Survey Annual Pay Stat. $ […]

3. Third-party surveys. In addition to the market rate data, surveys provide range of pay information on other compensation components and compensation policy administration information. The compensation survey is one of the most valuable compensation decision-related tools of management. This […]

166 3. Failure to contact respondents prior to the survey to ask for assistance and not following up after sending out the survey, resulting in significantly reduced changes of respondent involvement. 2. To recognize the various activities a compensation specialist […]

own unique interpretation of critical words and terms used to define compensable factors and their levels/degrees. comparing the evaluation of other jobs in the organization using the same job evaluation process and method. The chapter begins with a brief discussion […]

164 Executive and Managerial $2,000 Mid- and Lower-Level Management 1,500 Non-Exempt 750 Total $4,250 Data Collectors $2,500 a month * 2 collectors $5,600 Data Editor $2250 a month * ½ month $1,125 Systems Analyst $60/hr. * 50 hours $3,000 Programmer […]

Since the introduction of compensable factor-based job evaluation methods into the world of work in the 1920s by such innovative pioneers as Lott, Benge, and Bass, much controversy has been directed toward the suitability and validity of compensable factors. Do […]

163 EXERCISE 8 EVALUATING JOB EVALUATION SYSTEMS This exercise provides students with an opportunity to compare and contrast the different evaluation methods they used in Exercises 6 and 7. This exercise makes a very good mid-term examination question, as it […]

3. The importance of well-written, understandable responsibility and duty statements. the organization. If the organization uses a compensable-factor based job evaluation method, it is most helpful if the level of the factor required in the completion of the job is […]

161 Business Application Programmer I Systems Analyst – Level 2 Business Application Programmer II Systems Analyst – Level 3 Business Application Programmer III Systems Analyst – Level 4 Business Application Programmer IV Systems Analyst – Level 5 Database Analyst Database […]

3. Identifying and analyzing organizational uses of job content information. and improve the process (organization chart, flow charts, process charts) by identifying factors that may influence the process and require special attention. 6. Assessing present situation. 8. Reviewing, collecting, and […]

156 The groups assigned for the term project—compensation manual—can be used. The authors assign the job evaluation exercises as part of the compensation manual project. The students evaluate the jobs using a job evaluation method of their choice. The results […]

Olympia Electrical Manufacturing Job Description Job Title: Office Secretary Prepared By: James H. Gray Date: 12/16/05 Department: Information Systems Approved By: Date: Reports To: Manager, Information Systems SUMMARY: Performs a variety of office management, administrative, and secretarial duties, with primary […]

152 EXERCISE 5 WRITING A JOB DESCRIPTION Students need to recognize that there is not one correct job description for a job. The major learning objective is to show students how better job descriptions can be written/developed through more work/effort […]

1. Evolution and influence of wages, hours, and benefits legislation. 3. The influence federal legislation is having on civil rights at the workplace. 5. The upward force of minimum wage and welfare legislation on pay practices. Legislation influences all aspects […]

Once the task inventory is completed, you could require different students (or student groups) to complete one or the other of the two job analysis questionnaires for Nancy Horn (Assignments 4.3 and that the other questionnaire provides more complete and […]

To acquire an understanding of the modern organization, it is essential to understand the concept of division of labor. Evolution of life itself on this planet is a story of increased specialization. The basic secret underlying the advancement of the […]

138 Participate in interview (if using interview) 60 min. Review and modify first draft of job definition- job responsibilities and duties 30 min. Complete job specification questionnaire (if used) 45 min. Review, modify, and approve job description 30 min. Total […]

Advancements in telecommunication, computerization, and transportation had similar effects on many service-related jobs in the 1990s. No longer have differences in pay been the only consideration when developing the labor cost for producing a good or service. Business executives, government […]

EXERCISE 2 IDENTIFYING JOB ANALYSIS METHODS Answers to the assignment: There are no “absolutely right” answers to this assignment. The methods used to obtain job content information can vary depending on such factors as time/money available, sophistication of the job […]

2. Pay for time not worked 3. Disability income continuation 4. Loss of job income continuation 7. Health, accident, and liability protection 8. Income equivalent payments 3. Promote constructive social relationships with co-workers 4. Design jobs that require adequate attention […]

134 commission and that figure divided by hours worked during that period. This provides her base hourly earnings. Overtime is then calculated for that period. For example, Mabel works 50 hours each week, is paid $795 per week, and receives […]

the highest levels of the political and business world regarding class structure in the USA, little has been done to identify with some degree of precision just who are the members of these social groups. Useful identification of these groups […]

120 PART III NOTES FOR THE EXERCISE BOOK 121 The Term Project can become a major project that will give students an opportunity to develop a compensation manual for Olympia, Inc. (a hypothetical company) that can be one of their […]

ENTREPRENEURSHIP FOR SCIENTISTS AND ENGINEERS CHAPTER 13 TECHNOLOGY VALUATION LEARNING OBJECTIVES After studying this chapter, students should be able to 2. Explain the various financial models for assessing value 3. Describe how venture capitalists typical value technology companies 4. Explain […]