Assignment #3 Create a multi-tiered performance-based compensation system

This assignment relates to the following Course Learning Requirements:

CLR12 -- Compare employee compensation and benefits

Objective of this Assignment: To compare and contrast, as well as apply a deliberate and clear approach to planning and adopting a competitive, transparent and effective performance-based compensation system.

For this assignment, read the following scenario:

You are the Divisional Lead of Human Resources at a large international mining firm with operations located throughout the world. The senior leadership team wants to move away from providing a 100% base salary plus benefits for manager-level positions and towards a performance-based compensation system. They cite a number of factors in their thinking, including the varying value of the dollar within different jurisdictions, the inability of some administrative staff to motivate themselves when on assignment at centres outside of Canada, and a disparity in what expatriates are paid relative to their host country.

Complete the following tasks:

You will need to research tiered performance-based compensation systems which outlines three levels of administration (managers, vice presidents, CEO). From your research:

1. review how management tiers interact with one another relative to performance measurement and pay. Note that the concept of performance-based compensation systems (pay for performance) is a different concept than performance management systems. Performance-based pay may be used at times in performance management, but it has its own entity.
2. review how performance should be established, including the formulation of goals and metrics on how performance will be monitored.
3. explore how this structure is designed to motivate the team and improve performance.
4. begin to think an argument for or against managers in different countries being paid in local currency vs. Canadian dollars.

The Assignment

Outline your plan for the creation of a performance-based compensation system by including:

• how the three management tiers (managers, vice presidents, CEO) interact with one another relative to performance measurement and pay. You will explain the relationship between the tiers, levels, and positions. Note this addresses managers. The employee level is not included in the discussion. As well, note that the concept of performance-based compensation systems (pay for performance) is a different concept than performance management systems. Performance-based pay may be used at times in performance management, but it has its own entity.
• what elements of compensation you will include and why (explore various types to demonstrate depth and breadth)
• how each element will be administered. Discuss how performance should be established, including the formulation of goals and metrics on how performance will be monitored.
• how specific elements in your new system will improve performance, including motivation, and organizational outcomes as an improvement to the current structure

your argument for or against managers in different countries being paid in local curren