Assignment 2 Compensation Policies
Assume you are leading a team of consultants hired by MPBS
to help develop their total compensation plan.
MPBS wants to implement a compensation plan to support their business
strategy. Your team has completed the preliminary review of the organization,
including discussions with
management, and compiled initial information about
MPBS. That information is detailed in
the team report.
MPBS views their mission statement as the driver behind the
alignment of policies, purposes and objectives of all operating units in the
entire organization. Your first task is
to help the human resources department create a compensation mission statement
as the first step in designing
their compensation plan.
You are to consider the various factors affecting mission statements and
objectives and then:
Recommend a specific compensation mission statement and the
specific objectives of the MPBS compensation system that aligns the
compensation plan to the company’s mission and strategy. Provide a rationale to support your mission
statement and objectives.
Your second task is to overcome the past reluctance of top
management at MPBS to have anyone put much effort into administrative
detail. They have generally opted for a
quick and easy approach to policy and practice.
You should plan to educate the top management group regarding
the need for more sophisticated and detailed approaches to
compensation. To do so, you must include
answers to the following questions that were posed by the new HR manager. Justify your responses using scholarly
sources.
What are the relevant markets that each of MPBS’s major
occupational groups should be compared to?
Should MPBS lead, match, or follow competitors? Why?
How will decisions on external competitiveness help MPBS
align compensation policies with mission and strategy?
Why is it important and is it worth the effort and cost for
MPBS to bother with specifying pay grades and pay ranges?
If pay grades are used, is it better to have few or more
grades?
How should the ranges vary by job type and level?
How much overlap should be built into the grade ranges?
In what ways might the plan MPBS develops and the related
compensation policies impact job performance?
To complete this assignment, write a 5–7 page report in Word
format and provide rationale and scholarly support.
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