Exercise 1 - Determining Pay Equity
Once a point system has been developed and jobs have been evaluated, the next step in the job evaluation process is to ensure that employees in the jobs with the most number of points are being paid the highest salaries. As discussed in your text, this is usually done by charting the number of points a job is worth with the average current salary of the people in that job.
A wage trend line is then drawn that represents where each job should fall if it is paid fairly. Jobs falling well above the line are considered to be overpaid, and those falling well below the line are considered to be underpaid. The line is drawn by using a regression equation to use point values to predict salaries. For the purpose of this exercise, assume that you have performed a regression analysis on the data found on the following page. This analysis yielded the following formula:
salary = $567 + (60.67 * the number of points)
To draw your wage trend line, enter 400, 500, and 600 points into the equation to obtain their predicted salaries. For example, if you entered 450 points in the equation, the predicted salary would be:
salary = $567 + (60.67 * 450) = $27,868.5
You would then plot the points and the predicted salary on the chart on the next page. Now, enter 400, 500, and 600 points into the above equation and place the predicted salaries below.
400 points _______(predicted salary)
500 points _______ (predicted salary)
600 points _______ (predicted salary)
Plot these three data points on the graph on the next page, and then draw a line through the three points. This line is your wage trend line. When your line is drawn, plot the data found on the next page. Then use your graph to identify which jobs are currently being underpaid and which jobs are currently being overpaid.
|
Job
|
Points
|
Salary
|
|
Computer Operator
|
450
|
$28,000
|
|
Computer programmer
|
550
|
$36,000
|
|
Documents specialist
|
400
|
$26,000
|
|
Secretary I
|
500
|
$27,000
|
|
Secretary II
|
450
|
$25,000
|
|
Computer Analyst
|
600
|
$37,000
|
|
Clerk
|
350
|
$25,000
|
|
Supervisor
|
650
|
$42,000
|
|
Account Representative
|
500
|
$28,000
|
|
Customer Service Agent
|
550
|
$35,000
|
Exercise 2 - Employee Recruitment
Your text discussed a number of methods that organizations use to recruit employees. The purpose of this exercise is to provide you with an opportunity to develop a recruitment program.
The Situation -
The McBurger Queen restaurant chain has serious personnel problems. Each franchise is designed to employ 30 employees as cooks and counter helpers. Unfortunately, all of the franchises are having difficulty recruiting employees because they can pay only minimum wage.
As Assistant Personnel Director, you have been asked to develop a novel recruitment strategy to solve this problem. In addition to using the methods discussed in your text, try to design a recruitment strategy that is both practical and creative. Discuss your strategy and provide examples of your ads and your innovative creations.