Case: Problem in Pay System

MGT 302 Case: problems in pay system Xiamiao Zhu 1. Are the CCUA department’s current pay practices concerning data processor IIs and computer analyst Is externally equitable? Explain your answer. Pay practice in CCUA: * Data processor II position: * $11. 00---$12. 70 per hour. * $24,960 per year based on their 40-hour workweek. * Health and life issuance is provided by the company at a cost of $950 per year per employee. * Computer analyst I position: * Salary range $25,500---$32,500. * The average salary paid to the eight incumbents is $31,500. Health and life issuance is provided by the company at a cost of $950 per year per employee. Survey data: | CCUA| Average salary| Mfg/ Consumer| Mfg/ Industrial | Banking | Other Financial service| DP services| Wholesale distribution| Junior analyst and programmer| 31,500| 35,156| 33,750| 40,714| 35,000| 32,143| 37,500| 32,875| Data processor| 24,960| 27,500| 26,000| 29,000| 28,000| 26,500| 26,000| 27,000| * Data processor II position closely matches the survey’s Data processor. Computer analyst position is most comparable with survey’s junior analyst and programmer. * Both DP II’s and CA I’s at CCUA are underpaid compare to the market. * Both DP II’s and CA I’s at CCUA have $950 health and life insurance. 2. What specific action, if any, do you recommend be taken now? Be specific and justify your recommendations as fully as possible. * Conduct a wage survey: Who is the relevant labor market? What is the competition paying? What sources for market data? What benchmark jobs should be included?

Get the survey done in the rural southwest area more in the locality where department is situated so that data is more comparable and find the other benefits of the survey companies. * Choose a pay policy and develop a pay structure: decrease the number of the employee and pay the higher salary. Or hire employee buy using less recruitment cost and training cost. Hire and pay employee following the policy and the structure. 3. What specific strategy do you recommend for the future so that these types of problems can be anticipated and avoided. Exit interviews: understand the reason for not stay in the company and find the solution to avoid it. * Better scanning of local and regional external pay referents, do let employee think you are paying much less than others. * Better two-way communication with employee. Do the employee satisfaction survey once a year before somebody is trying to quit. * Provide no monetary benefits * Provide larger budget for job categories 4. What additional information in this situation would have enable you to improve the quality of your recommendations? Improve the exit interview and focus on the questions like: * What is your primary reason for leaving? * Did anything trigger your decision to leave? * What was most satisfying about your job? * What was least satisfying about your job? * What would you change about your job? * Find some information about pay equity information: http://www. hrsdc. gc. ca/eng/labour/equality/pay_equity/about/guide. shtml * Conduct the web search O*NET to find if there is any help. 5. Occupations:| Wage & employment trend:| Computer systems analysts:| Median wages (2011) $37. 7 hourly, $78,770 annual Employment (2010) 544,000 employees Projected growth (2010-2020) Faster than average (20% to 28%) Projected job openings (2010-2020) 222,500 Top industries (2010) Professional, Scientific, and Technical Services (33% employed in this sector)Finance and Insurance (14%)| Computer programmer:| Median wages (2011) $34. 92 hourly, $72,630 annual Employment (2010) 363,000 employees Projected growth (2010-2020) Average (10% to 19%) Projected job openings (2010-2020) 128,000 Top industries (2010) Professional, Scientific, and Technical ServicesInformation| Computer and information system manager:| Median wages (2011) $56. 4 hourly, $118,010 annual Employment (2010) 308,000 employees Projected growth (2010-2020) Average (10% to 19%) Projected job openings (2010-2020) 102,800 Top industries (2010) Professional, Scientific, and Technical ServicesFinance and Insurance| Operations research analysts:| Median wages (2011) $34. 59 hourly, $71,950 annual Employment (2010) 65,000 employees Projected growth (2010-2020) Average (10% to 19%) Projected job openings (2010-2020) 30,000 Top industries (2010) Professional, Scientific, and Technical Services (23% employed in this sector)Finance and Insurance (22%)Government (17%)|