You are on page 1of 19

| |

| | |

½  
   


ë    
 

Prepared by
Group Dynamic
Kelvin Lye, Wong Shwu Fen & Masood
|  

  

G   
   

ΠG 
  ΠG 


     
|  

ΠG 
 



    
º ased on   
 in the º o    pay survey
surrounding community º se   almost everyday
º n attempt by Jack to maintain some º onduct     among
   between his friends in the trade association
workers with different duties

   
º Paying  what he feels
the prevailing rates  

  
º   

   
      
|  

ΠG 
     

º sing informal policy of  


 
  than women for
the same job.

 !"#  $
³They¶re 
 and can work
%  for 
 %  and
besides they all have families to
 ´
† 

† 
Is the company at the point where it should be setting up a formal
salary structure based on a complete job evaluation? Why?

† 
Is Jack arter¶s policy of paying 10% more than the prevailing rates
a sound one, and how could that be determined?

† &
Similarly, is arter¶s male-female differential wise? If not, why not?
† '
Specifically, what would you suggest Jennifer do now with respect
to her company¶s pay plan?
† 
(
          ) 
   $%$

 

eed to set up a        


based on )    


† 
(
          ) 
   $%$



%  

*    


ΠGfor job evaluation   % 

     


º ddress issues regarding      
    
   
among employees
† 
(
          ) 
   $%$

º o  %      
 to address employees¶ problems
regarding wages or salary

 $
Πo     in
setting up salary structure o )     

%  %
 $

º mployees can give   


º Maintain         regarding the nature of the
    jobs
among employees º nsure employees view pay process as
       
K

† 
(
          ) 
   $%$


º valuate and determine the
  %  %)
compared to key jobs
º | 
+, ,   jobs
Πo      into rate ranges or pay grades
  $ º nsure    in terms
of gender, religion and race
º elated to  !  
   
(  " 

    
   º Maintain   
among employees
K

† 
 
 % %  
    
 $    $

Paying 10% more ttract more applicants for job

º    of employees


who only concern about the
Jack believes that it
salary rate
º reduces  
º Indirect financial payments and
º fosters    
other factors also    the
employees¶ turnover

º    that employees


are paid 10% more than
prevailing rate
º nly    to high pay rate
† &
*|  ! -    $* .%
$

|  ! - 


   $ G 

º Should be based on
performance, not gender


Disobey the       *   


"        against   pay plan
/ 012&3 individual  
equity
K

† &
G
   -    

ot perform in
optimum performance

ffect for male


G
  
 -    
ffect for female

More More
  Job

  for pay rate   

  
 ncourage *   in
(stop working as   
part of a protest)     
† '
(

 %   |||! 

º We suggest her to set up a logical pay plan properly .


º This process is time-consuming and may need further
   .

Jennifer and Jack shall take these steps


to establish an     :

Π|   Π"   Π4  Π   


     %) ) 

† '
(

 %   |||! 

Πonduct salary survey

The best source of salary information in this case is:


 (-  ( 
2. Professional and governmental resources (with lower consideration)
† '
(

 %   |||! 

Πonduct salary survey


(Self-conducted survey)

Since it is not their first time to be in the market, John and other managers are already
familiar with the salary survey. So:
 is to     % ) .
º 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
( (is to   %)   % %   
º This is to determine the pay level of market Õ     
&5% (is collecting data on M    %   .    . 
  
º It is very crucial to determine the employee¶s benefits.
º ccording to the Labor cts, employee¶s have certain rights, financial or
spiritual rights, which shall be compensated.
† '
(

 %   |||! 

Πonduct Job valuation

There are various evaluation methods but the best job evaluation method for the job
description of   -  .   is    
{   

 


  

 
 


  

 !" "#
 
 

#
 
 

 

 

 !" "#
  

$


&
  
' #" #
% 
 
 

"
  
 

 


 # (





 
) 


  

 # (


(
$


  


' #" #
    

  
 
† '
(

 %   |||! 

ΠGrouping similar jobs into pay grades

There are     )  discussed in the case:


( 
 .   -  .       

s we know pay grades are comprised of jobs with   
or   , hence:

|    ,   - ( 
 in all
   and    in branches
all branches in  4 
in  4 
† '
(

 %   |||! 

ΠPrice each pay grade by plotting wage curve

The graph shows an example of



  for the  
  !  (cleaner-spotters
and pressers)
/ 
 

X