Control 0pcrator lV:

76 SKILL BUILDER Gloria Lopez-3 years' service-paid $40,350

Developing a Wage Structure Rosemary fensen-5 years' service-paid $44,120
I. OBJECTIVES

- A To familiarize you with how data obtained wtren using the point
system approach to
job evaluation can be used to deverop a wage structure.
B. To give you practice in developing a wage structure.
ll. TIME REeUIRED To CoMprEre: I hour or less
lll. lNsrRucfloNs
Examine the pay data below.

Pay Grade fob EYaluation points

Posftion
Contot Operator I
2 201-.300 $39,00(r ConbclOoerator li
3 301+00 $47,500 Conbol Operabr lll
4 401-500 $53,800 ContolOperator lV

$4o,oooF---+- | |
r ----t----T---l
Exhibit 4'6 shows a partially completed pay structure for control
operator positions. your first
I |

task is to completg th3 chf fo1 dr^^^^^l!til

Pal grades 2, 3, and4. construct pay steps for each of the Wage Rate
remaining pay grades based on the following guidelines for "time
in service" in each pay grade.
Pay Step Data
Entry wage: 65.5 percent oftop for each pay grade $34,000

Step l: After I year wittrin the pay grade 70 percent $32,000

of top
step 2: After 3 years within ttre pay grade 75 percent
of top $30,000
Step 3: After 5 years within the pay grade g2 percent
of top
$28,000
Step 4: After 8 years within the pay grade 90 percent
of top
Top of grade: After l0 years within the pay grade $26,000

In addition, listed below are the names of employees in each

pay grade and their current
salaries'tour second task is to plot each one on Exhibit 4.7 andto
determine which of the
curent salaries fall outside the appropriate pay grade.
Control 0perator l:
Charles Hamilton- 6 years' services-paid 200 300 400 soo
$30,21g
Points
Mary Richardson- l0 years' service-paid $3Z,ZS0
Control 0perator ll:
|erry Smith-2 years' service-paid $29,250
Theresa fones-5 years' service-paid $31,600
Control 0perator lll:
Alicia Wadsworth-5 years' service-paid $3g,950
Connie |ohnston- 7 years' service- paid $40,3g0
Velda Prescott- 1 years' service-paid $33,250

Skill Builder 75 . Developing a Wage Structure

ParT 4. Implementing Compercation and Security