Human Resources Management



Research paper

Research how you would design an organization’s compensation system by

utilizing “The Pay Model”.  Follow the directions provided in Dr. Pool's

syllabus. It explains the requirements for the paper. The directions follow the

Pay Model and its components  

1. Alignment,

2. Competitiveness,

3. Contributors, and

4. Administration in “The Pay Model”.  

The paper should be 5 pages in length. You will not be penalized if longer.


Purpose: Each student will choose a company and study its compensation system in depth. The purpose

of this paper is to describe and evaluate the pay system and the benefits package of your company. This

research can be done in a variety of ways such as looking on the company’s web page for information;

interviewing HR managers, managers, or employees; reading the company’s mission, vision, and value

statement; reading articles about the company, and touring the company. The goal of this paper is for you

to compare a compensation system in the “real world” with what you have learned in class in order to

identify similarities, differences, and provide your analysis and critique of the system based on what you

have learned. You may create your own compensation plan for a “fictional” company, but you must

complete each of the five sections as listed below.

The Paper: There are five sections you need to include in your paper. The first section should look at

internal consistency. How does the company you chose to determine the relative worth of jobs? Does it

use a job or person based system? Describe the system it uses. If it is a job based, what type of job

evaluation is used? If it is a person based, does it pay based on skills or knowledge?

The second section of the paper should describe how your company achieves external competitiveness.

How does it assess what its competitors are paying? Does it conduct its own wage surveys or use ones

done by others? What is its pay policy? Does it lag, match, or lead its competitors? How is this external

information combined with the internal worth of jobs to determine pay? Please do not ask individuals

within your company what they are being paid. This is often a sensitive, private, and confidential issue.

Focus on the procedures used to determine pay, not specific amounts actually paid.

Individual employee contributions are addressed in the third section. Does your company base pay on

individual contributions? If so, how does it evaluate performance? What things does it pay and reward

for? What type of pay for performance plan does it have? Does its reward individuals, teams, or

organization-wide? Does pay increase based solely on merit or does seniority make a difference?

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