Professional Documents
Culture Documents
FastCat Phase 1
Submitted By GROUP 6: Amit Kumar (P10066) Chaitanya S N Peddi (P10076) Himanshu Kapila (P10086) Poorvi Sarin (P10097) Sargam Toor (P10107) Tania Roychoudhary (P10117)
CONTENTS
introduction ............................................................................................................................................ 2 Opportunities ...................................................................................................................................... 3 Decision Areas ..................................................................................................................................... 3 Strategy ............................................................................................................................................... 3 Objectives of Compensation .................................................................................................................... 4 Internal Alignment Objectives.............................................................................................................. 5 Structure ................................................................................................................................................. 5 Strategy Mapping ................................................................................................................................ 7 MANUAL ................................................................................................................................................. 7 Managerial .......................................................................................................................................... 7 Administration ...................................................................................................................................... 10 Marketing ............................................................................................................................................. 15 Engineering .......................................................................................................................................... 19 TECHNICAL ............................................................................................................................................ 22
EXECUTIVE SUMMARY
Fastcat is a company that supplies Business to Business software and this quality of being able to provide customers with reliable and best quality software has been the driving factor behind Fastcats success in the 1980s and 1990s. Economic slowdown has led the company to have a change of leadership and retrenchment of workforce. Employee morale has reduced due to lay-offs and company is striving hard to retain its talented workforce. Two pronged strategy means the company has to focus both on drill down amongst present customers and innovative new products. The requirement of the company is to encourage individual efforts and promote teamwork. We suggest company to divide it into a hierarchical based structure with 5 clearly defined functions having separate structure of compensation. A tailored structure would be needed for the company to perform better.
INTRODUCTION
Company came into existence in 1980s when some resourceful dealers hired software engineers to automate the process of sales. The company grew by translating its core competency of producing excellent quality software into competitive advantage in the field of business to business software applications in the 1990s. The software helped customer get his choice in buying a complex product in a simple way. Some said that the software was ahead of its time. Meltdown of 2000 led company to lay off 10% of the workforce and this step taken by company led to decreased morale in its workforce. Most employees were skeptical about their future and fun of working was gone according to them. Company had to face much bigger challenge on finance front as revenues declined by 15% from their highest levels. Declining sales and rising expenses were a cause of concern for the firm. Customers became more demanding and employee satisfaction survey results showed gap in communication amongst different departments.
OPPORTUNITIES Employees are proud of creativity and innovation that Fastcat offers to its customers Globalization offers a new opportunity as no other company has the ability to give worldwide sales software support to MNCs Future is based on engineering talent. A workforce that is flexible, innovative and willing to accept change is the order of the day.
DECISION AREAS Keeping or removing high revenue but high maintenance customers is the issue.
Design flexible products and offer competitive pricing Mission statement of the company talks about organizational success being directly related to customer success. Company has to get in touch with customers and design innovative products that are cost effective and lead to customer satisfaction.
OBJECTIVES OF COMPENSATION
Support Companys strategy of extending software use and flexible products This is one of the critical success factors for Fastcat as this will give company an opportunity to cater to the needs of business that are at different levels of business development and things like Annual licensing and transaction based pricing to be source of recurring revenue. Attract and Retain talented workforce Employees are an asset to any company and Fastcat has accepted this fact that their success or failure depends on the quality of its workforce and it is this workforce that gives company an edge over its competitors. Utmost care has to be taken to make sure that employees are satisfied and give their 100% to achieve organizational objectives. Encourage Innovation that produces quality Fastcat customers demand reliability, quality and dependability from the company. When innovative path is taken sometimes there will be failures but learning from the failures will help in developing better products. So company has to make sure that compensation strategy encourages innovation. Customer Centric Customers are happy with representatives but want more information on delays and seek higher reliability. On the other hand, company is focused on time, knowledge and trustworthiness which is actually a valid objective but it should also address customers concerns about reliability and information on delays. A proper alignment between companys focus and customers demand should be the objective of this system. Reducing Expenses
Declining Sales/labor and rising Labor costs/expense ratio are cause of concern to the company as it shows resource utilization is inefficient. This inefficiency improvement has to be addressed by the compensation system.
INTERNAL ALIGNMENT OBJECTIVES The objective of internal alignment is to address the problems within the organization and is needed to support the business strategy from all dimensions. Improved Communication amongst various stakeholders Improved communication between customer, Marketing department and Engineering department will be a key for success as proper alignment of these three will aid the company to channelize its resources effectively to meet the organizational goals Transparent performance appraisal systems: All the employees should be well communicated about the procedure followed for performance appraisal and critical success factors of their teams and themselves which will improve the overall performance. All the employees should be given timely feedback about the area of improvement Robust communication within organization: There should be clear understanding of the organization structure and the hierarchy within all the departments at all levels of employees. All the employees should be communicated their goals and objectives and should be assured about job security Flexibility when it comes to internal alignment: The market the firm is operating in is very dynamic and economically volatile. The value and objectives of the firm should reflect the market conditions and customer orientation. So the structure should be flexible to get itself aligned with firms current objectives like cost cutting measures during the periods of economic downturn and increasing market share during the booming periods.
STRUCTURE
Administrative
Office Leader Administrative Assistant Executive Staff Assistant Administrative Assistant II Data Processor Office Aide
Marketing
Technical Marketing Consultant Business Solutions Consultant Field Marketing Representative Marketing Support
Technical
Senior Technician Technical Analyst B Technical Analyst A Technician Massage Therapist
Engineering
Senior Fellow Usability Engineer Software User Interface Architect Software Interface Designer Visual Designer Software Development Engineer
Managerial Cadre
Business Account Leader Project Manager Visionary Champion
STRATEGY MAPPING
5 4 3 2 1 0
MANUAL
Factors to be assessed for compensation are discussed for each of the 5 functions, and the methods and results for such assessment are also explained. MANAGERIAL Managerial cadre is responsible for monitoring the execution of strategy at various levels depends on their position in hierarchy. Among the given job descriptions we have identified the following three under managerial head. Business account leader Project manager Visionary champion
JOB BASED
The managerial cadre has been aligned using job-based approach. Difference between jobs in managerial cadre can be attributed to difference in responsibilities associated with job, nature and extent of client interaction, Knowledge and skills demanded by the job. We have used the point value analysis for assigning the structure.
We have identified the following compensable factors for the above managerial job keeping in mind their job descriptions and criticality of the job alignment with business strategy strategy.
Skills
Analytical skills Problem solving abilities Negotiation and coordination skills Leadership
Relevant work Relevant experience required Business acumen Business Financial knowledge Cross functional Cross knowledge Education qualifications
Responsibility
Scope of job Criticality of work done Initiatives to be undertaken
Analytical skills Problem solving abilities Negotiation and coordination skills Leadership Knowledge Relevant work experience Business acumen Financial knowledge Cross functional knowledge Education qualifications Responsibility Criticality of the work done Scope of job Initiatives to be undertaken Customer interaction Level of communication Amount of work done thorough customer interactions Total
20 15 20 60 50 25 15 20 15 21 52 15 30 20 378
PROJECT MANAGER
Category Skills Weight age 30% Degree Weight Job Title 5 10 5 10 Total
Analytical skills Problem solving abilities Negotiation and coordination skills Leadership Knowledge Relevant work experience Business acumen Financial knowledge Cross functional knowledge Education qualifications Responsibility Criticality of the work done Scope of job Initiatives to be undertaken Customer interaction Level of communication Amount of work done thorough customer interactions Total
10 40 10 40
60 15 5 5 20 25 20 50 50 30 380
VISIONARY CHAMPION
Category Skills Weight age 30% Degree Weight Job Title 5 10 5 10 Total
Analytical skills Problem solving abilities Negotiation and coordination skills Leadership Knowledge Relevant work experience Business acumen
4 5 4 5 40% 4 5
20 50 20 50
5 15
20 75
Financial knowledge Cross functional knowledge Education qualifications Responsibility Criticality of the work done Scope of job Initiatives to be undertaken Customer interaction Level of communication Amount of work done thorough customer interactions Total
3 5 5 15% 4 5 5 15% 5 3
5 10 5 5 5 5 10 5
15 50 25 20 25 25 50 15 460
ADMINISTRATION Administration ensures that the day to day systems and processes run smoothly. This function does not require a high degree of analytical skills but needs a high level of communication skills, dedication and intrapersonal abilities by an individual. Prior work experience also counts for the c efficiency and the job function basically needs to be assessed on the following parameters for different positions:
Office Aide Office Leader Administrative Assistant Administrative Assistant II Data Processor Executive Staff Assistant
The following compensable factors would be taken into account while evaluating the jobs that ollowing come under the administrative department:
Knowledge
Skills
Communication/int erpersonal and writing skills Innovation skills Analytical/Problem solving skill Team working skills Planning and judgment skills Telephone skills
Relevant work experience Computer proficiency Business strategy and prioritization Cross functional knowledge Knowledge about software development cycle and design Education qualifications Statistics and mathematical modeling knowledge
Responsibility
Criticality of the work done Scope of job Initiatives to be undertaken
Nature of job
Multiple assignments to be handled Work load ( Mental effort)
OFFICE AIDE
Category Skills Weight age 25% Degree Weight (1-5) (%) Office Aide 5 10 1 1 5 1 5 25% 1 2 1 1 1 2 1 25% 4 2 4 25% 5 2 20 5 100 100 10 375 10 5 10 40 10 40 0 20 0 0 0 5 0 0 40 0 0 0 10 0 0 0 10 0 5 Total
Communication/interpersonal and writing skills Innovation skills Analytical/Problem solving skill Team working skills Planning and judgment skills Telephone skills Knowledge Relevant work experience Computer proficiency Business strategy and prioritization Cross functional knowledge Knowledge about software development cycle and design Education qualifications Statistics and mathematical modeling knowledge Responsibility Criticality of the work done Scope of job Initiatives to be undertaken Nature of job Multiple assignments to be handled Work load ( Mental effort) Total
50 0 0 50 0 25
OFFICE LEADER
Category Skills Weightage Degree 25% Communication/interpersonal and writing skills Innovation skills Analytical/Problem solving skill 5 4 3 Weight Total
Office Leader 8 3 2
40 12 6
Team working skills Planning and judgment skills Telephone skills Knowledge Relevant work experience Computer proficiency Business strategy and prioritization Cross functional knowledge Knowledge about software development cycle and design Education qualifications Statistics and mathematical modeling knowledge Responsibility Criticality of the work done Scope of job Initiatives to be undertaken Nature of job Multiple assignments to be handled Work load ( Mental effort) Total
5 5 2
25 25 4
5 5 5 5 0 5 0
25 20 20 20 0 20 0
15 5 5 15 10 100
75 20 25 75 40 452
ADMINISTRATIVE ASSISTANT
Category Skills Weight age 25% Degree Weight (%) Administrative Assistant 5 10 1 2 4 3 5 25% 5 5 2 3 5 8 2 5 25 40 4 15 0 2 5 3 5 Total
Communication/interpersonal and writing skills Innovation skills Analytical/Problem solving skill Team working skills Planning and judgment skills Telephone skills Knowledge Relevant work experience Computer proficiency Business strategy and prioritization Cross functional knowledge
50 0 4 20 9 25
Knowledge about software development cycle and design Education qualifications Statistics and mathematical modeling knowledge Responsibility Criticality of the work done Scope of job Initiatives to be undertaken Nature of job Multiple assignments to be handled Work load ( Mental effort) Total
1 3 1 25% 5 4 4 25% 4 4
0 5 0
0 15 0
15 5 5 10 15 100
225 20 20 40 60 572
ADMINISTRATIVE ASSISTANT II
Category Skills Communication/interpersonal and writing skills Innovation skills Analytical/Problem solving skill Team working skills Planning and judgment skills Telephone skills Knowledge Relevant work experience Computer proficiency Business strategy and prioritization Cross functional knowledge Knowledge about software development cycle and design Education qualifications Statistics and mathematical modeling knowledge Responsibility Criticality of the work done Scope of job Initiatives to be undertaken Weight age 25% Degree Weight Total
Administrative assistant II 5 6 3 2 3 4 4 2 2 5 5 5
30 6 4 15 20 20
25% 5 5 2 1 1 2 1 25% 4 2 3 15 5 5 60 10 15 10 10 3 0 0 2 0 50 50 6 0 0 4 0
Nature of job Multiple assignments to be handled Work load ( Mental effort) Total
DATA PROCESSOR
Category Skills Weight age 25% Degree Weight Total
Communication/interpersonal and writing skills Innovation skills Analytical/Problem solving skill Team working skills Planning and judgment skills Telephone skills Knowledge Relevant work experience Computer proficiency Business strategy and prioritization Cross functional knowledge Knowledge about software development cycle and design Education qualifications Statistics and mathematical modeling knowledge Responsibility Criticality of the work done Scope of job Initiatives to be undertaken Nature of job Multiple assignments to be handled Work load ( Mental effort) Total
Data Processor 10 0 5 5 0 5
40 0 15 15 0 15
5 10 2 0 0 3 5
25 50 4 0 0 6 15
20 5 0 15 10 100
80 10 0 75 40 390
Communication/interpersonal and writing skills Innovation skills Analytical/Problem solving skill Team working skills Planning and judgment skills Telephone skills Knowledge Relevant work experience Computer proficiency Business strategy and prioritization Cross functional knowledge Knowledge about software development cycle and design Education qualifications Statistics and mathematical modeling knowledge Responsibility Criticality of the work done Scope of job Initiatives to be undertaken Nature of job Multiple assignments to be handled Work load ( Mental effort) Total
50 9 0 8 25 25
MARKETING Marketing department plays a vital role in Fastcat, as they serve as the bridge between the engineering departments which innovates and produce the product and the customers who use the product. Hence a clear communication of the needs and requirements of customers to engineers as well as of design and development constraints to customers becomes essential. As we go up the marketing ladder, the technical knowledge of engineering processes and negotiation skills becomes a part of the job as it results in better understanding of customer needs which results in customer delight, over and above customer satisfaction.
Compensation structure for marketing should be based on competencies as interpersonal and a leadership skills take a front seat than educational qualification and innovative skills. The qualification objective is to look for competencies that result in value addition and are aligned with overall objective of the compensation. It should lay down the guidelines for behavior and performance performan in the marketing department.
COMPETENCY SETS
Leadership based
Initiative taking Team leadership Time management
Collaboration based
Team work Interpersonal understanding Flexibility
Knowledge based
Market awareness Information Seeking Technical Expertise Organizational awareness Cross functional knowledge
Customer based
Analytical Ability Problem solving Communication skills Maximize customer satisfaction Innovation
We used levels to define what level of competency a person should possess in order to achieve certain pay levels. Our competency structure is defined on four levels.
Level/ Phase Fundamental Competitive Advanced Expert Visionary Title Associate, support Contributor, professional Coach; leader Champion; Executive
o Cross functional knowledge Customer based o Analytical Ability o Problem solving o Communication skills o Maximize customer satisfaction TOTAL
2 30% 3 1 4 5 100
5 5 5 10 10 100
10 15 5 40 50 360
MARKETING SUPPORT
Category Leadership based o Initiative taking o Team leadership o Time management Collaboration based Weightage 10% 4 0 0 25% 10 40 0 0 0 Degree Weight Total
o Team work o Interpersonal understanding o Flexibility Knowledge based o Market awareness o Information Seeking o Technical Expertise o Organizational awareness o Cross functional knowledge Customer based o Analytical Ability o Problem solving o Communication skills o Maximize customer satisfaction TOTAL
10 10 5 10 5 5 5 5 5 5 15 10 100
50 40 25 0 40 25 15 10 15 0 20 20 60 40 400
Engineering
Engineering represents the core activity of the company. It is skill intensive and requires adherence to the strictest standards. It also warrants the most careful selection and compensation of talent. Keeping these in mind the Engineering job family has been aligned using a mix of job based and person based structure and the point method has been used to know the relative worth of each job. Skills consist of different computer skills and have been given a weight of 30% and the job based compensable factors have been given a weight of 70%. Computer skills have been given higher weight age because they are at the core of the engineering expertise and also it will encourage the employees to learn new skills. This will help in deploying the employees in different teams which will help in developing a lean workforce thus reducing the labor cost.
SKILLS BASED
Following are the computer skills with the fractional weight against each one of them. The skills may be updated in keeping with the changing technology.
1. C/C++ 2. OS Linux/Unix/Solaris 3. XML 4. HTML/DHTML 5. Java/VB Scripting 6. COM/DCOM 7. Relational Database Oracle/SQL 8. ERP SAP/PEOPLESOFT/ORACLE 9. E-Commerce 10. Lotus Notes 11. Integration Comp. Based Arch. 12. ASP/JSP 13. MTS 14. Shell Script 15. Perl 16. Make 17. CVS 18. CORBA 19. High-end Animation Tools 20. Windows Development OOAD 21. Interactive media design/navigation design/Information design 22. Macromedia flash development 23. Photoshop/Dreamweaver/Flash and other design tools 10 30 40 40 50 30 50 40 45 25 40 40 25 35 40 30 20 30 50 30 50 25 25
Based on our analysis of the job descriptions, we have defined a 5 point scale for each of these factors as follows:
Compensable Factors Educational Qualification Work Experience Problem Solving Decision making Degree High Graduation School/Diploma None Understands Problems Individual 02 Post Graduation 24 Grad/PG + MBA 46 Doctoral/Post Doctoral 6-8 Creates problem recognition systems Organization
Complexity
Simple, routine
Scope of job
Single activity
Adapts to changing demands Intra-team Inter-team Singlecustomer account Gathers Info Disseminates Two way only info only interaction Working in Works in Handles multiple teams multiple single multiple function and singlecrossfunction functional teams teams Routine with Substantial High degree minimal of number of of innovation new new functionalities functionalities Multiple Multiple team Multiple involving and single single team single function function and crossfunctional teams
High degree of innovation, research and development Multiple interteams and crossfunctional
It may be noted that meeting customer specification and deadline are critical factors for any project. But they have not been added in compensable factors for the reason that they will be critical across all the jobs in the job family and so will not make any relative difference in the worth of the job. Based on these definitions, we have assigned degrees, which when weighed add up to a total score as shown.
Job Title
EQ (5) 5 4 4 4 4 4
WE (10) 5 4 4 3 1 1
PS (10) 5 4 4 3 2 1
DM (5) 5 5 4 4 2 1
CS (10) 4 4 5 3 1 2
TS (10) 5 5 4 4 4 4
CX (10) 5 5 4 4 3 2
JS (10) 5 4 4 4 4 4
Senior Fellow Soft. User Interface Arch. Soft. Interface Visual Designer Soft. Dvpt Usability Eng.
LEGEND: 1. TechS Technical or computer skill 2. EQ Educational Qualification 3. WE Work Experience 4. PS Problem Solving 5. DM Decision making 6. CS Communication Skill 7. TS Team Skill 8. CX Complexity 9. JS job Scope
For Skill the points have been determined by first summing up the weights for different computer skills required and then dividing them by 700 which is the sum of weights for all the computer skills. This gives us the scale which is then multiplied with 30 to get the points for skill. For example for software user interface architect the summation of weights for different computer skills required come out to 415. So the scale would be (415/700)*5=3.0. Hence the points will be 3.0*30=90 For FastCat Employees working in engineering profiles, Computer Skills of the employee were
given the highest weight age amongst the compensable factors as the knowledge of these would be critical in deciding the efficiency of the employee at work. The computer languages and platforms were assigned different weights depending on their applicability by the employee. Apart from technical skills, these employees need to possess certain competencies like interpersonal and communication skills as their work also involves interaction with clients, especially during the requirements analysis stage, and analytical and team skills besides others.
TECHNICAL
The technical job family at FastCat does the core technical work of the company. They should be differentiated from the Engineering family of jobs which require higher skills and experience. The technicians do the actual work of coding, testing, etc, while the Engineering family of jobs is mostly related to high level designing, conceptualization, etc. This job family should have a skill based pay, as in an employee in this category should be paid in accordance to the number of skills possessed by him/her as that is vital to his contribution to the organizations success. The jobs under this job family are: Technician Technical Analyst A Technical Analyst B Senior Technician TECHNICIAN Category Skills Weightage Degree 25% 4 0 0 4 2 0 25% 0 5 0 20 Weight Total
Communication/interpersonal and writing skills Innovation skills Analytical/Problem solving skill Team working skills Planning and judgment skills Telephone skills Knowledge Relevant work experience Computer proficiency
Job Title 10 0 0 10 5 0
40 0 0 40 10 0
100
Business strategy and prioritization Cross functional knowledge Knowledge about software development cycle and design Education qualifications Statistics and mathematical modeling knowledge Responsibility Criticality of the work done Scope of job Initiatives to be undertaken Nature of job Multiple assignments to be handled Work load ( Mental effort) Travel Total
0 0 0 2 0 25% 3 3 0 25% 5 3 0
0 0 0 5 0
0 0 0 0 0
15 10 0 20 5 0
45 30 0 100 15 0 380
TECHNICAL ANALYST A Category Skills Weightage Degree 25% 5 0 4 4 4 0 25% 0 5 0 0 0 0 15 5 0 0 0 70 0 0 0 Weight Total
Communication/interpersonal and writing skills Innovation skills Analytical/Problem solving skill Team working skills Planning and judgment skills Telephone skills Knowledge Relevant work experience Computer proficiency Business strategy and prioritization Cross functional knowledge Knowledge about software development cycle and design
Job Title 5 0 5 10 5 0
25 0 20 40 20 0
Education qualifications Statistics and mathematical modeling knowledge Responsibility Criticality of the work done Scope of job Initiatives to be undertaken Nature of job Multiple assignments to be handled Work load ( Mental effort) Travel Total
4 0 25% 4 4 3 25% 5 3 0
5 0
20 0
10 10 5 15 10 0
40 40 15 75 30 0 395
TECHNICAL ANALYST B Category Skills Weightage Degree 25% 5 0 4 4 5 0 25% 0 5 0 0 0 4 0 0 15 5 0 0 5 0 0 70 0 0 0 20 0 Weight Total
Communication/interpersonal and writing skills Innovation skills Analytical/Problem solving skill Team working skills Planning and judgment skills Telephone skills Knowledge Relevant work experience Computer proficiency Business strategy and prioritization Cross functional knowledge Knowledge about software development cycle and design Education qualifications Statistics and mathematical modeling knowledge
Job Title 5 0 5 10 5 0
25 0 20 40 25 0
Responsibility Criticality of the work done Scope of job Initiatives to be undertaken Nature of job Multiple assignments to be handled Work load ( Mental effort) Travel Total
SENIOR TECHNICIAN Category Skills Weightage Degree 25% 5 0 4 4 5 0 25% 5 5 4 0 0 5 5 25% 5 5 25 5 5 5 0 0 5 5 25 25 20 0 0 25 25 Weight Total
Communication/interpersonal and writing skills Innovation skills Analytical/Problem solving skill Team working skills Planning and judgment skills Telephone skills Knowledge Relevant work experience Computer proficiency Business strategy and prioritization Cross functional knowledge Knowledge about software development cycle and design Education qualifications Statistics and mathematical modeling knowledge Responsibility Criticality of the work done
Job Title 5 0 5 5 10 0
25 0 20 20 50 0
Scope of job Initiatives to be undertaken Nature of job Multiple assignments to be handled Work load ( Mental effort) Travel Total
5 5 25% 5 3 0
15 5 15 10 0
75 25 75 30 0 465
Over and above this job based model, we use a skill based model to determine the computer proficiency of the employees of the technical family. Skills VB HTM/DHTML/XML ASP ADO/OLE-DB Microsoft IIS ActiveX/Com/DCOM Java Lotus Notes ERP Visual Test SQA Silk Performer SQL Oracle MS Access Microsoft PC Applications Grade 1 1 1 1 1 2 3 3 3 1 1 1 1 1 1 Technician Technical Analyst A Technical Analyst B Senior Technician
Each of the jobs are then evaluated on the basis of the sum of the grade of that software skill possessed multiplied by the number of core technical skills in that grade possessed by the employee.