COURSE PROJECT: COMPENSATION MANAGEMENT (MGMT 3062)
Title: Designing a Comprehensive Compensation Package for a Medium-Sized Organization
Objective: The objective of this project is to provide students with practical experience in designing
a compensation package. Students will apply theoretical knowledge, critical thinking, and analytical
skills to address real-world compensation challenges while aligning with organizational goals and
strategies.
Project Requirements:
1. Organizational Context (10%)
• Identify and describe a large/medium-sized organization.
• The details of the organization, including the industry, size, structure, and workforce
composition (e.g. number of employees, key departments), will be selected and assigned to
each group by the lecturer. These assignments will be communicated via the myelearning
platform.
• Provide a brief summary of the organization’s mission, vision, and strategic goals.
• Explain how the compensation strategy aligns with these goals.
2. Job Analysis and Evaluation (20%)
• Select three key roles within the organization (e.g., HR Manager, Sales Executive, and
Software Developer).
• Conduct a detailed job analysis for each role:
o Create job descriptions: Include job titles, key responsibilities, and expected
outcomes.
o Develop job specifications: Highlight required qualifications, skills, and experience.
o Discuss how these roles contribute to the organization’s success.
• Propose a suitable job evaluation method (e.g., point-factor method, ranking method) and
justify your choice.
o Outline the steps involved in applying the chosen method.
3. Pay Structure Design (20%)
• Develop a pay structure based on:
o Internal Consistency: Align roles with organizational hierarchy and responsibilities.
o External Competitiveness: Use real or hypothetical market survey data to determine
salary ranges. Identify sources of data (e.g., industry salary reports).
o Equity Considerations: Ensure fairness within the organization and competitiveness
in the market.
• Present a pay grade system with:
o Clearly defined pay grades and ranges.
o An explanation of progression within and across pay grades.
• Include tables, charts, or graphs to illustrate the pay structure.
4. Performance-Based Compensation (20%)
• Design a performance-based pay system:
o Include incentives for individual, team, or organizational performance.
o Outline performance appraisal methods (e.g., 360-degree feedback, goal-setting
frameworks).
• Highlight key metrics used to evaluate performance (e.g., sales targets, customer satisfaction
scores).
• Discuss potential implementation challenges and provide strategies to address them.
5. Executive and International Compensation (15%)
• Propose an executive compensation plan:
o Include elements such as base salary, bonuses, stock options, and long-term
incentives.
• Address international compensation considerations if applicable (e.g., expatriate pay,
currency adjustments, tax implications).
• Discuss how the executive compensation aligns with organizational goals and market
practices.
6. Trade Union/Employee Representative Interaction (10%)
• Analyze the role of employee representative groups (e.g., trade unions) in shaping
compensation policies.
• Provide strategies for engaging with these groups during negotiations on pay and benefits.
• Discuss methods for resolving conflicts related to compensation and maintaining positive
labor relations.
7. Presentation and Formatting (5%)
• Submit a professional and well-organized report that includes:
o Title page, table of contents, and executive summary.
o Clear section headings and subheadings.
o Proper citations for all references (APA format recommended).
o Visual aids such as tables, graphs, and flowcharts to enhance understanding.
• Ensure the report is free of grammatical and typographical errors.
Deliverables:
• Written Report: 3,500-4,000 words.
• Submission Deadline: April 11, 2025.
• Format: Typed, double-spaced, Calibri, 12-point font, 1-inch margins.
Evaluation Rubric:
Criteria Weight (%)
Organizational Context 10
Job Analysis/Evaluation 20
Pay Structure Design 20
Performance-Based Pay 20
Executive/International 15
Trade Union Interaction 10
Presentation/Formatting 5
Policies:
• Late Submissions: A 20% penalty per day, up to 5 days. No submissions will be accepted
after 5 days.
• Plagiarism and AI Usage:
o All submissions will be checked for originality using Turnitin.
o Turnitin similarity scores must not exceed 15%. Similarly, AI-assisted content usage
must not exceed 10%.
o Penalties for exceeding these limits will apply as follows:
§ For Turnitin similarity scores exceeding 15%, your final project grade will be
penalized by the same percentage. For example, a Turnitin score of 30% will
result in a 15% deduction in marks.
§ For AI-assisted content exceeding 10%, penalties will apply based on the level
of overuse. For example, an AI-assistance score of 30% will result in a 20%
deduction in marks.
• Instances of plagiarism or excessive AI use will result in additional disciplinary actions per
UWI’s academic integrity policies.
Tips for Success:
1. Begin early and allocate time for research, writing, and revisions.
2. Use recommended readings and additional resources for guidance.
3. Collaborate effectively if completing the project as a group.
4. Seek clarification from the lecturer during office hours if needed.
Essential Resources:
• Henderson, R. (2006). Compensation Management in a Knowledge-Based World.
• Milkovich, G. & Newman, J. (2017). Compensation.
• Relevant HR journals (including but not limited to): HR Magazine, Harvard Business Review.
Contact: For further questions or guidance, email Dr. Jacqueline Stephenson at
[Link]@[Link].
