Pay-for-knowledge Plan This section will outline your planned pay-for knowledge system. You should include the skill blocks you have chosen to compensate. The best way to

29 Nov Pay-for-knowledge Plan This section will outline your planned pay-for knowledge system. You should include the skill blocks you have chosen to compensate. The best way to

Posted at 01:30h in Business & Finance /Operations Management by

Section E: Pay-for-knowledge Plan

This section will outline your planned pay-for knowledge system. You should include the skill blocks you

have chosen to compensate. The best way to show this is using a skill grid that can be found in Chapter

4. Some things that should be included in this section are:

 A table explaining your skill grid. This table should contrast type of skill with the skill level.

 An explanation of how your organization would provide learning opportunities to utilize the

system

 How your organization would certify that a skill was valid to be compensated

 For this section, you will NOT need to price the skill blocks as we will do this in Phase 2

Formatting

The report should be professional and include a title page, table of contents, as well as headings and

subheadings. Use an accessible font and appropriate formatting.

Group Performance

Your team must also define a performance appraisal system for your group members. The Procedure

for Determination of Individual Grades outlines the calculations for this process but your team must

develop a method to score the contributions of each member. Chapter 10 provides some good ideas for

how to develop such a system. Your team will submit your system and the assigned team grades along

with your report.

Exported for Shreesha Thapa Magar on Mon, 28 Nov 2022 19:37:14 GMT

Phase I – Formulating the Compensation Strategy In Phase I, you need to identify the underlying organizational factors that are causing the problems at your

client firm, provide solutions to those problems, develop an effective reward and compensation strategy,

develop and apply a job evaluation plan, and develop a pay-for-knowledge plan.

To successfully accomplish Phase I, you will need to have read and have used appropriate concepts from

Chapters 1 to 8. When preparing your report, please use the following five main headings.

Phase I Report Headings Section A: Identification of Current Organizational Problems. In this section, you need to identify the

underlying strategic and structural factors (including the reward and compensation system) that are causing

the problems that your client is experiencing. Use of key concepts from Chapter 1, application of the

strategic framework in Chapter 2, and application of the behavioural framework in Chapter 3 are all

essential in so doing. Your entire project rests on this foundation.

Section B: Strategic and Structural Recommendations. Describe the proposed strategic and structural

solutions that flow from your analysis in the previous section. Be specific in explaining what you would do.

For example, if you think a different managerial strategy is required, exactly what would you do to

implement that? If you think some jobs need redesign, which jobs should be changed and exactly how

should they be changed? You also need to provide a new job description for any redesigned or combined

jobs. If you think teams are needed, who would be the team members, and what would be their

responsibilities?

Section C: Reward and Compensation Strategy. Next, develop your reward and compensation strategy

by following the first four steps in Figure 6.1 (Chapter 6). You need to define the type of employee

behaviours that your client firm needs, define the role that compensation will play in producing those

behaviours, determine the compensation mix, and determine the compensation level.

If different behaviours are required from different job families, then you will need to repeat this process for

each job family. The outcome of all this should be summarized for each job family in a compensation

strategy template (shown below). All jobs listed on the same compensation strategy template will have the

same mix of compensation elements and the same compensation level relative to the market (i.e., lag the

In completing this section, you should cover everything in Chapter 8 except the sections on “Testing for

Market Fit,” “Exploring Solutions to Job Evaluation Problems,” and “Testing for Total Compensation Costs.”

(These issues will be covered in Phase II.) You should also have read Chapter 7 as background to put the

material in Chapter 8 into context.

Section E: Pay-for-Knowledge Plan. The final section should describe your pay-for-knowledge plan,

including the skill blocks you have chosen, in the form of a skill grid that resembles that in Table 4.1

(Chapter 4). You need to deal with all of the “Issues in Developing a Skill-Based Pay System” (as described in

Chapter 4) except deciding whom to include in the PKS (you explained that in Section C) and pricing the

skill blocks, which you will do in Phase II.

Format and Organization of Report