Professional Documents
Culture Documents
Prepared by
Group Dynamic
Kelvin Lye, Wong Shwu Fen & Masood
Case Details
Problem
Pay Policy
• Paying 10% above what he feels
the prevailing rates His colleagues
pay minimum
• Reasons: rates
1. Reduce turnover
2. Foster employee loyalty
Case Details
Jack’s Explanation?
“They’re stronger and can work
harder for longer hours and
besides they all have families to
support”
Questions
Question 1
Is the company at the point where it should be setting up a formal
salary structure based on a complete job evaluation? Why?
Question 2
Is Jack Carter’s policy of paying 10% more than the prevailing
rates a sound one, and how could that be determined?
Question 3
Similarly, is Carter’s male-female differential wise? If not, why not?
Question 4
Specifically, what would you suggest Jennifer do now with respect
to her company’s pay plan?
Question 1
Setting up a formal salary structure based on job
evaluation? Why?
YES!
Why?
Question 1
Setting up a formal salary structure based on job
evaluation? Why?
Why?
High staff turnover
• No mechanism of communication
Why? to address employees’ problems
regarding wages or salary
Problem?
No employee involvement in
setting up salary structure No job evaluation committee
Question 1
Setting up a formal salary structure based on job
evaluation? Why?
Question 2
Paying 10% more than the prevailing rates a sound
move? How to determine?
Carter’s male-female
differential wise? NO!
• Should be based on
performance, not gender
Why?
Question 3
Negative effects of male-female differential
Not perform in
optimum performance
Since it is not their first time to be in the market, John and other managers are already
familiar with the salary survey. So:
1.First step is to price benchmark jobs.
• For each job in their company such as cleaner-presser, they finding a
benchmark to evaluate the value of the job to company is necessary
2.Second Step is to compare each job pay rate with other companies
• This is to determine the pay level of market (External Equity)
3.Third Step is collecting data on benefits such as insurance, vacation payment, and
etc.
• It is very crucial to determine the employee’s benefits.
• According to the Labor Acts, employee’s have certain rights, financial or
spiritual rights, which shall be compensated.
Question 4
Suggestions with respect to CCC’s pay plan
There are various evaluation methods but the best job evaluation method for the job
description of cleaner-spotters, pressers is Point Method
Definition Relative Total point Minimum point
weight value
1. Skill The complexity of skill required for 35% 84 42
performing this job
2. Effort The level of physical or mental effort 35% 84 42
required
3. Working The working conditions, environment 10% 24 12
Conditions and stress level
4. Responsibility The level of responsibility of the 5% 12 6
employee for the job
5. Education The Level of education required for 5% 12 6
the job
6. Work The working experience of the 10% 24 12
experience worker in related fields
Question 4
Suggestions with respect to CCC’s pay plan
Thank You!