Your assignment for week Module 3 is to assume you are a compensation analyst at

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Your assignment for week Module 3 is to assume you are a compensation analyst at Intemational Bakery Company (IBC). You have been assigned to create a simple base pay structure. You will use the attached "Base Pay Structure Chart (D)" to present your design to executives. Note that the first pay grade of the chart has been completed for you. It may help to use the chart as a reference as you move through the parameters introduced belovw Guidelines At IBC, the CEO and VP Human Resources have given you these parameters. Y The pay structure does not include top executive compensation. Neither the CEO nor any of the senior VPs are on the pay grade chart. Part-time/temporary employee positions are not placed on the chart either The maximum full-time pay on the pay grade chart will be $170,000 (maximum base pay for VPs). Other pay elements (e.g, stock options, perks, etc.)are not included in amount on the chart Y minimum starting full-time payis $5.00 an hour. Yes, that's below minimum wage but let's use that starting point to keep things simple You would calculate the equivalent salary as follows: $5.00/hr x 2000 hours (50 weeks a year x 40 hours per week) $10,000 per year. Yes again, there are 52 weeks in a year, but this keeps the math simpl The pay structure will consist of fifteen pay grades Each grade represents a pay range of $20,000. Therefore, the pay range for Grade 1 will be $10,000-$30,000 There are five "steps" in each grade. Employees who stay in the same grade may progress up the steps until they reach the maximum end of the range. For simplicity's ake, each step up in pay within a gradeis equal to $4000. Therefore,if an employee performs well and moves up a step within Grade 1, he or she will then make $14,000 base pay. If the same employee performs well again and moves up another step within Grade 1, he or she will then make $18,000 base pay For simplicity sake, the midpoint of one grade will become the starting point (point of overlap) for the next grade. So, given that the pay range for Grade 1 is $10,000- $30,000. The midpoint would be $20,000. The Grade 2 payrange would therefore begin with $20,000 and end $40,000. Grade 3 would begin with the midpoint of Grade 2 (S30,000) and end with $50,000. You can calculate the rest Your Assignment 1-Complete the Base Pay Structure Chart (I)

Explanation / Answer

Base pay Chart .

Note : The designations have been taken on assumption basis.

The table is prepared for 15 pay grades which start with 10000 and increment every 10000$. The median becomes starting point for next pay grade. Step 1 in each pay grade is increment of 4000$ from the minimum of that pay grade and incremented every 4000$ in each step until it reaches max of that pay grade. After that new pay grade starts.

Pay grade Min Mid point Max Step 1 Step 2 Step3 Step 4 Step 5 JOB title 1 10000 20000 30000 14000 18000 22000 26000 30000 Cashier 2 20000 30000 40000 24000 28000 32000 36000 40000 Assistant 3 30000 40000 50000 34000 38000 42000 46000 50000 Associate 4 40000 50000 60000 44000 48000 52000 56000 60000 Specialist 5 50000 60000 70000 54000 58000 62000 66000 70000 Senior technicians/specialists 6 60000 70000 80000 64000 68000 72000 76000 80000 Supervisor 7 70000 80000 90000 74000 78000 82000 86000 90000 Executive officer 8 80000 90000 100000 84000 88000 92000 96000 100000 Assistant Manager 9 90000 100000 110000 94000 98000 102000 106000 110000 Deputy Manager 10 100000 110000 120000 104000 108000 112000 116000 120000 Manager 11 110000 120000 130000 114000 118000 122000 126000 130000 Senior Manager 12 120000 130000 140000 124000 128000 132000 136000 140000 Assistant general manager 13 130000 140000 150000 134000 138000 142000 146000 150000 Deputy General manager 14 140000 150000 160000 144000 148000 152000 156000 160000 General manager 15 150000 160000 170000 154000 158000 162000 166000 170000 Vice president

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