Assignment 6: Pay Structure Design
Step 6. Construct a market pay line.
Three jobs, Accounting Clerk, Manager in Financial Accounting, and Department Head in Financial Accounting are benchmark jobs. Pay survey data of these three jobs is shown in Appendix1. Use the Excel software to compute the simple linear regression equation.
Step 7. Construct your organization’s pay line considering your external competitiveness. The pay will be 10% above the market pay level and construct your pay line accordingly. Justify your decision in constructing your organization’s pay line.
Step 8. Based on your organization’s pay line, calculate the standard pay amounts for the four jobs (don’t forget the Manager in Corporate Social Responsibility Accounting job) in this finance job family. Justify your decision.
Step 9. Construct a payrange for each of these jobs. Justify your decision.
Julia’s Bonus Step. Julia’s job is the Manager in Financial Accounting. Julia’s yearly salary amount is X.
Sam’s job is the Manager in Corporate Social Responsibility Accounting. Sam’s yearly salary amount is Y (X < Y). Julia has filed a discrimination lawsuit against your organization. Julia claims that she is paid less than Sam although she does better work than Sam. Julia claims that this is evidence of gender discrimination within the organization. Based on your organization’s pay structure (based on the pay structure that you have created through Steps 6 to 9), do you agree or disagree with claim? Why or why not? You also can neither agree nor disagree with Julia’s claim and say that a further investigation is needed. But, in this case, you’ll have to clearly explain why, based on the pay structure that you have created (and not based on your thoughts),a further investigation is needed.
| Appendix1. Pay Survey DataOrganization | Average Yearly SalaryAmount (in USD) | ||||
| Accounting Clerk | Manager in
Financial Accounting |
Department Head in
Financial Accounting |
|||
| A | 53,200 | 89,000 | 128,360 | ||
| B | 59,240 | 89,230 | 135,000 | ||
| C | N/A | 79,270 | 153,200 | ||
| D | 62,000 | 92,300 | 162,000 | ||
| E | 43,000 | 73,500 | 99,000 | ||
| F | 48,700 | 82,000 | 119,000 | ||
| G | 52,800 | 90,000 | 143,000 | ||
| H | 51,100 | N/A | 130,800 | ||
| I | 60,100 | 100,200 | 183,000 | ||
| J | 42,300 | 87,200 | 157,800 | ||
| K | N/A | 78,900 | 137,200 | ||
| L | 47,200 | 83,300 | 134,200 | ||
| M | 61,800 | 93,000 | 125,200 | ||
| N | 43,500 | 68,900 | 94,300 | ||
| O | 65,400 | 95,800 | N/A | ||
| P | 64,200 | 93,200 | 169,000 | ||
| Q | 57,600 | 87,300 | 144,300 | ||
| R | N/A | 88,600 | 138,000 | ||
| S | 48,800 | 79,600 | 110,000 | ||
| T | 67,000 | 110,200 | 178,000 | ||
| U | 52,400 | 98,000 | 156,000 | ||
