Section 1: Internally Consistent Job Structures

Section 1 introduces you to the specification of internally consistent job structures. Through writing job descriptions, the development of job structures, and both the development and implementation of a point evaluation method to quantify job differences objectively, you build the framework for internal equity.

In Section 1, you will focus on building an internally consistent compensation system. An internally consistent compensation system design will clearly define the relative value of each e-sonic sample job, creating a job hierarchy and an objective rationale for pay differences.

As an e-sonic consultant, you are offered a sample of e-sonic jobs in Section 1. Currently, e-sonic employs 100 people and will be hiring many more. However, for the purpose of this simulation, you are asked to work with the sample of four jobs offered (see Appendix 2 for sample jobs, located in the MyManagementLab project tab). Limiting the number of jobs removes one level of complexity from the simulation and allows you to focus on learning the functions of compensation system design. The framework you develop classifying sample jobs can easily be adapted in the future to include all e-sonic positions.

Section 1 Outline:

1. Create Job Descriptions

2. Create Job Structures

3. Build Point Evaluation Method a) Select benchmark jobs. b) Choose compensable factors based upon benchmark jobs. c) Define factor degree statements. d) Determine weights for each compensable factor.

4. Calculate Point Values for e-Sonic Jobs a) Determine point value for each compensable factor. b) Use the job evaluation worksheet to calculate point values for each position. c) Distribute points for each compensable factor across degree statements. d) Rate jobs using point method. e) Individually rate jobs to ensure reliability. f) Resolve any discrepancies in point totals. g) Rank jobs in each job structure according to results of your point evaluation.

The Internally Consistent Job Structures section is fully described in the MyManagementLab Building Strategic Compensation Systems casebook for faculty and students, linked in the MyLab course menu. Follow the explanations and outline to complete this milestone. Section 1: Internally Consistent Job Structures is due at the end of Module Five.