OL 325: Final Project Guidelines and Rubric Overview Acting as a recently hired compensation consultant, you will assist the burgeoning online music firm e-sonic to develop an internally consistent and marketcompetitive compensation system that recognizes the achievements of individual contributors. The major portion of the project is divided into three milestones, which will build upon the previous milestone. The milestones are submitted in Modules Three, Five, and Six. The final version of the entire project will be due at the end of Module Seven. Sample report outlines are included in the project text found in MyManagementLab. Each of the sections for this assignment will be submitted via Turnitin. Outcomes The project helps students to meet the following course outcomes: Students will gain an understanding of the evolution and administration of compensation and benefit programs for organizations Students will explore wage theory, principles and practices, unemployment security, worker income security, group insurance, disability insurance, and pension plans and how these compensation and benefit items are balanced to provide incentive and recruitment of a high-performance workforce The connection between the organization's mission, objectives, policies, and the implementation and revision of their respective compensation and benefit systems will be analyzed to gain a deeper understanding of the importance of such systems to the organization's overall human resource management At the conclusion of this course, students will be able to demonstrate the acquisition and application of theories and concepts that support the enhancement and proficiency in 7 primary competencies: strategic approach, research, teamwork, communication, analytical skills, problem solving, and legal and ethical practices Preparation 1. Read the Building Strategic Compensation Project narrative linked in the course menu of the MyManagementLab home page. Note: Section 3: Recognition of Individual Achievements WILL NOT be included in the course project. 2. Download the Comp Analysis Software Microsoft Excel file. Directions on accessing this file are located in the Module Resources section of Module One. To run on a PC, the file requires Microsoft Excel 2007 or later. To run on a Mac, the version requires Excel 2011 or later. NOTE: Users of the CompAnalysis software must set the macros to a low level in order for the software to work. If the macros are set on too high of a security level, then the software will be disabled and will not work properly. Navigate to the Tools menu, click Macros, and then click Security. Lower the security level, save the spreadsheet, close, and re-open. o Click on the External Market Survey feature, which will be used in Section 2 of the project, titled Market Competitiveness. Make your decisions first by following the directions in the Building Strategic Compensation Project (Appendix 3 in the student version, Appendix 5 in the instructor's version) and jot down the pertinent information on paper. o After completing the External Market Survey section, move on to the Merit Pay Planning feature, which will be used in Section 3 of the project, titled Recognition of Individual Achievements. Input your choices as indicated in CompAnalysis and analyze the data. o Milestones Milestone One: Strategic Analysis The development of a strategic analysis guides all decisions made regarding your compensation systems throughout the project. The strategic analysis reveals firm-specific challenges, objectives, and initiatives that allow you to align the goals of a compensation system effectively with those of the company strategy. The strategic analysis allows you to better understand the external market challenges e-sonic faces in addition to its internal capabilities. As a consultant, a thorough understanding of e-sonic's business environment allows you to better align your competitive system design with e-sonic's goals, challenges, and objectives. Follow the outline below when completing this portion of the project. The strategic analysis is fully described in the MyManagementLab Building Strategic Compensation Systems casebook for faculty and students, linked in the course menu in MyLab. Follow the explanations and outline to complete this milestone. Strategic Analysis Outline: 1. Executive Summary (Concisely conveys the project objectives and main findings. The executive summary is completed last, but included first in the strategic analysis.) 2. Strategic Analysis a) Identification of e-sonic's industry based on the North American Industry Classification System (NAICS) b) Analysis of e-sonic's external market environment i. Industry Profile ii. Competition iii. Foreign Demand iv. Long-Term Industry Prospects v. Labor-Market Assessment c) Analysis of Internal Capabilities i. Functional Capabilities ii. Human Resource Capabilities Each section of the final project should be 5-7 pages in length. The Strategic Analysis section is due at the end of Module Three. It will be graded with the Milestone One Rubric. Milestone Two: Section 1: Internally Consistent Job Structures Section 1 introduces you to the specification of internally consistent job structures. Through writing job descriptions, the development of job structures, and both the development and implementation of a point evaluation method to quantify job differences objectively, you build the framework for internal equity. In Section 1, you will focus on building an internally consistent compensation system. An internally consistent compensation system design will clearly define the relative value of each e-sonic sample job, creating a job hierarchy and an objective rationale for pay differences. As an e-sonic consultant, you are offered a sample of e-sonic jobs in Section 1. Currently, e-sonic employs 100 people and will be hiring many more. However, for the purpose of this simulation, you are asked to work with the sample of four jobs offered (see Appendix 2 for sample jobs, located in the MyManagementLab project tab). Limiting the number of jobs removes one level of complexity from the simulation and allows you to focus on learning the functions of compensation system design. The framework you develop classifying sample jobs can easily be adapted in the future to include all e-sonic positions. Section 1 Outline: 1. Create Job Descriptions 2. Create Job Structures 3. Build Point Evaluation Method a) Select benchmark jobs. b) Choose compensable factors based upon benchmark jobs. c) Define factor degree statements. d) Determine weights for each compensable factor. 4. Calculate Point Values for e-Sonic Jobs a) Determine point value for each compensable factor. b) Use the job evaluation worksheet to calculate point values for each position. c) Distribute points for each compensable factor across degree statements. d) Rate jobs using point method. e) Individually rate jobs to ensure reliability. f) Resolve any discrepancies in point totals. g) Rank jobs in each job structure according to results of your point evaluation. Each section of the final project should be 5-7 pages in length. Section 1: Internally Consistent Job Structures is due at the end of Module Five. It will be graded with the Milestone Two Rubric. Milestone Three: Section 2: External Competitiveness Section 2 shifts your focus outside of the firm to understand its relationship with the external marketplace. You will use market survey data to compare pay rates of positions inside the firm with those in the marketplace to establish the foundations of market-competitive pay. The analysis of market data also leads you to the determination of appropriate pay-policy mixes for each of its job structures. In this section, you are asked to use CompAnalysis software developed by Howard Weiss at Temple University, which is also available in MyManagementLab. In Section 2 of this simulation, you will shift your focus from concentrating on e-sonic's internal consistency to its external competitiveness. First, you will be introduced to the tools compensation professionals use to allocate total compensation most effectively within job structures. Many employees are unaware that their total compensation consists of much more than just base pay. Compensation professionals allocate total pay (for example, base pay, benefits, and different types of incentives) to motivate employees in different ways. You will use some of these tools to develop pay policy mixes for each e-sonic job structure. Next, you will consider pay policy level decisions for each job structure. You will then use CompAnalysis (the included software program) to conduct an external market survey. Specific instructions provided with the software program will guide you through the steps involved in the compensation survey exercise. Finally, you will report survey findings, interpreting regression analysis results generated by the software, and provide an explanation of major decisions reached. Section 2 Outline: Executive Summary Findings 1. Determine Appropriate Pay-Policy Mix 2. Pay-Policy Level Decisions 3. Compensation Survey a) Choose competitors based upon industry, size, and union status. b) Select benchmark jobs for each structure using benchmark job descriptions. c) Reconcile differences using the benchmark job comparison sheet. d) Update salary data for inflation using CPI-U. 4. Implementation of Salary Survey Results a) Report and interpret results of regression analysis for each job. b) Integrate external and internal structures by creating pay grades and ranges. c) Evaluate and summarize decisions made for each job structure. Each section of the final project should be 5-7 pages in length. Section 2: External Marketplace is due at the end of Module Six. It will be graded with the Milestone Three Rubric. Final Submission The final project is due at the end of Module Seven. This version will include all revisions based on feedback from your instructor to the Executive Summary/Strategic Analysis, Section 1: Internally Consistent Job Structures, and Section 2: External Competitiveness. It should be prefaced with a 1-2-page historical perspective on compensation and close with a 1-2-page summary of how you used strategic approach, research, communication, analytical skills, and problem-solving to present a compensation package tailored for e-sonic. Each section of the final project should be 5-7 pages in length. This submission will be graded with the Final Project Rubric (below). Final Project Rubric Requirements of submission: Each section of the final project must follow these formatting guidelines: 5-7 pages per section, double spacing, 12-point Times New Roman font, one-inch margins, and discipline-appropriate citations. This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Instructor feedback: Students can find their feedback in the Grade Center. Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value Meets \"Proficient\" criteria and Describes compensation in the Describes compensation in the Does not present a historical 10 Historical perspective of compensation in U.S., including several facts Perspective includes pertinent facts that U.S., including facts from a the U.S. from a historical perspective demonstrate a sound grasp of historical perspective, but may the historical perspective have gaps in the chronology The Strategic Analysis Provides in-depth analysis that includes an executive summary and the strategic analysis with all of the elements of the outlines provided in the Building Strategic Compensation Project documentation, demonstrating a complete understanding of all concepts Provides in-depth analysis that includes an executive summary and the strategic analysis with most of the elements of the outlines provided in the Building Strategic Compensation Project documentation Section 1: Internally Provides in-depth job structures with all of the elements of Consistent Job Section 1 of the Building Structures Strategic Compensation Project documentation Provides all job structures with most of the elements of Section 1 of the Building Strategic Compensation Project documentation Section 2: External Competitiveness Summary Writing (Mechanics/ Citations) Comments: Provides an analysis that includes an executive summary and the strategic analysis with some of the elements in the outlines provided in the Building Strategic Compensation Project documentation Does not provide an analysis that includes an executive summary and/or the strategic analysis with elements in the outlines provided in the Building Strategic Compensation Project documentation 20 Does not provide job structures with elements of Section 1 of the Building Strategic Compensation Project documentation 25 Does not provide market competitiveness report with elements of the outline provided in Section 2 of the Building Strategic Compensation Project documentation 25 Does not present a summary explaining use of strategic approach, research, communication, analytical skills, and problem-solving to present a compensation package tailored for e-sonic 10 Provides most job structures with some of the elements of Section 1 of the Building Strategic Compensation Project documentation Provides in-depth market Provides market Provides market competitiveness report with all competitiveness report with competitiveness report with of the elements of the outline most of the elements of the some of the elements of the provided in Section 2 of the outline provided in Section 2 of outline provided in Section 2 of the Building Strategic the Building Strategic Building Strategic Compensation Project Compensation Project Compensation Project documentation documentation documentation Presents a 2-page summary Presents a 1-2-page summary Presents a 1-2-page summary explaining in depth use of explaining use of Strategic explaining use of some of the strategic approach, research, Approach, research, elements such as strategic communication, analytical skills, communication, analytical skills, approach, research, and problem-solving to present and problem-solving to present communication, analytical skills, and problem-solving to present a compensation package a compensation package a compensation package tailored for e-sonic tailored for e-sonic tailored for e-sonic No errors related to organization, grammar and style, and citations Minor errors related to organization, grammar and style, and citations Some errors related to organization, grammar and style, and citations Major errors related to organization, grammar and style, and citations Earned Total 10 100% Annick Kapila OL 325 Diana Alvis 6-21-2015 Colombia Records This paper contains the strategic Analysis of Colombia Records by providing a better understanding of external market challenges that the company faces in addition to internal capabilities. In addition, the goals of the company have been aligned with its business environment with an aim of better understanding the level of competitiveness and the challenges that the company faces. Colombia Records has dominated the Music industry in the United States due to its market of strong brands. The uses of strategic promotional tactics combined with its unique music styles have given the label advantage over the others as a result of its effective performance over time. As a corporation, Colombia Label has taken advantage of the market by ensuring that it has dominated the industry through its online marketing content. It is evident that over the years the growth of the internet, has led to the downfall of many labels as a result of limited distribution and marketing channels (Besanko, 2010). The emergence of a digital format has led to decline of many labels in the United States. However, it is evident that Colombia label has stood the test of time by ensuring that it has improved performance over time. It is evident that over the years Colombia has become a dominant force despite the music industry having undergone a period of improved transition. This include; tremendous changes by the development of news media and the internet. Although the industry is slowly learning to adopt the current changes in globalization, Colombia Records has set out many objectives to become one of the best performing Record companies in the world (Deb, 2009). a) Analysis of the Industry Colombia Records has been in existence on the American music industry for many decades. In spite of the available competition in the company, it has emerged the best due to adoption of the best technological platforms that has been in existence. Despite being labeled as the oldest label in the Music industry, Colombia Records has proved to be consistent by providing people with music and many collaborators. The company owns 15% share of the music industry in the United States. Although there is stiff competition from radio stations, television, internet platforms and other music labels, Colombia has maintained consistency by working directly with most famous record artists. The company also owns many streaming networking sites and is also based on commercial engagements. The commercial partnerships have helped to finance most of the company's initiatives since it was started (Mathis & Jackson, 2012). b) Analysis of External Market Environment In spite of the growing trends in the internet streaming platforms, it is evident that Colombia Records has continued to enhance its performance over time. The company has many international subsidiaries some of which are located in Europe. It is evident that Colombia Records has grown to become one of the largest and most competitive companies within the United States. This has been attributed to its focus on commercial entities rather than sales from music performances. This is because most of the music performances have been affected by increased online piracy and copyrights from many unsuspecting individuals. In addition, the Music industry in the United States has been affected by increased swapping of some of the most important albums that have ever been produced in the area. It is evident that the intensive marketing strategies adopted by Colombia Records have helped the corporation to overcome the challenges affecting other Music Labels in the United States (Besanko, 2010). Colombia Records owns the savviest and smartest digital product managers in the world. This is because of their ability to market an artist from grassroots to become a well known star all over the world. The company adopts several strategic marketing campaigns for its brands. The company is always focusing on promoting and discovering music for its fans all over the world. In order to remain competitive, the company ensures that it has owned the best technologies in the world and markets it across all music networks. It is evident that the trend in this company has increased over the years since it has helped the company to become one of the best in the industry. This is because most of the changes that can be achieved in any company are done through the technological platforms (Singh, 2008). Colombia Label stands out as one of the best labels in spite of the stiff competition in the Music Industry. This is because the company has increased foreign demand from individuals who would like to listen to its artists. The company has taken advantage of streaming platforms such as YouTube to ensure that its music has been heard in many areas across the world. This has helped to promote the understanding and level of competitiveness in the company. In addition, the company has used the internet to share its videos, audios and even providing charting platforms with its musicians. This has helped to ensure that the company has been well placed over its competitors hence increasing its performance over time. The company is working on promoting its downloader so as to increase the number of individuals who can access the site on a daily basis (Singh, 2008). Colombia Records has a long term vision of creating the most dominant artists in the Music industry. Some of the prospects of the company include; having effective transition from the sellable products to tangible digital files that will have peer to peer sharing turned into distributors. The company wants to have effective sale of its music worldwide so as to achieve improved performance all over the world. This will help it to have improved performance and enable the label to become one of the most competitive in the world. The company has continued to nurture young talent and has improved its performance through its new signings (Mathis & Jackson, 2012). c) Analysis of Internal capabilities Colombia Records has the most competitive employees in the industry. From the artists, to the marketing department, the employees are the best the music industry can offer. Not only are they agile employees but also they work as a team to ensure that they have achieved growth over time. The performance contracting in the company helps employees to give their best since they know that at the long run, they should be accountable for every action they take in the workplace. The management also compensates them effectively by ensuring that they are offered improved remuneration and benefits. The employees are not only innovative but able to identify the best technology to help enhance growth in the music industry. In sum, it is evident that music labels have been threatened by the transition of news media and the development of the internet. However, Colombia Records has taken advantage of a wider audience and continued to market its brands through the internet. As a matter of fact, the label has ensured that most of its top brands have been promoted through the social networking platforms. If the company embraces the modern changes in technology, it is evident that Colombia Records would continue to become a force to recon with in the Music Industry (Mathis & Jackson, 2012). Job Descriptions The following job descriptions for employees in Colombia Records help in the formulation of internal equity. The manager is responsible for overall management functions in the company. He shall be responsible for management of employees and internal operations of the company. Duties for the accountant: The management will be responsible for the following duties: Oversight of monthly financial statements Carry out management functions Secures financial information from any loss or leakage from outside entities Being the top manager of the team to lead in the preparation of the talent recruitment Providing assistance in terms of external and internal leadership in the organization Oversees the compliance of the standards of the music company Experience Required for the Manager The required experience is 5 to 7 years with adequate knowledge of managing Music Labels. Education: Bachelors Degree in Business Management Any Knowledge of Music Industry is a plus Skills Required Characteristics and Knowledge: The following are some of the essential qualifications of the manager. Strong and highly developed teamwork skills. Efficient Leadership skills Effective skills in business presentations and highly competent interpersonal communication means. Ability to adopt constant change in an organization. The function of organizations keeps on changing. Demonstrate the skills of providing strategic advice in an organization especially after a change Colombia's accountant will be responsible for the production and analysis of financial statements and accounts as well as harmonizing payments for the employees. Roles for the accountant: The company's accountant will be responsible for carrying out the following duties: Preparation of monthly financial statements Provides documentation of financial transactions through analysis of accounting options Provides reconciliation to any financial discrepancies that can occur in the organization Reviewing of the expected cash flows and the balance sheets Maintenance of the approved budgets and financial forecasts Dealing with varied analysis of the budget Required Experience for an Accountant: Experience on the management of audits and financial statements for at least 7 years Education: Masters Degree in Accounting or any other business related course Certified public accountant Skills Required Characteristics and Knowledge: The following are some of the essential qualifications of an accountant: Ability to adopt the current financial approaches and methods. Accounting principles keep on changing with daily basis. An efficient accountant should be aware of the changing accounting principles so as to have the ability to recognize any mistakes and material errors from the people. Ability to adopt constant change in an organization. The function of organizations keeps on changing. For this reason, the accountant should have the capacity to recognize any changes that occur in the organization and developing efficient policies that can help to deal with the challenges in the organization. For this reason, measures should be established to ensure that any changes Point Evaluation Method The employees of the company will be evaluated according to the following factors. 1. Effort 2. Role 3. Skill 4. Conditions for work The benchmarks for the aforementioned will be as follows; 1. Effort a. Physical b. Mental 2. Skill a. Ability b. Education c. Experience 3. Working Conditions a. Hazards b. Location 4. ROLES a. Supervisory b. Fiscal Point Values for Colombia Records Company The values for scoring the performance on each individual achievement will be measured in the following sequence (1-4 = poor, 5-6 = satisfactory, 7-9 = good, 10 = excellent). The skills to be tested at every end of the contract will be measured in the following (1-4 = poor, 5-6 = satisfactory, 7-9 = good, 10 = excellent). Any individual who scores the highest points will be given more benefits as compared to their peers. Appropriate Pay Policy Mix The pay policy of the employees in the company will be determined by a number of factors. Firstly, it would be determined by the company's performance in the industry. Secondly, it would be determined by how other companies pay their employees. Colombia Records has tremendous performance over time since it has used its marketing and distribution departments to ensure that it has increased its sales. This means that the employees should be compensated well. The company has high talented artists whom its uses to market its brands. Due to its financial stability, the company has the ability of binding its artists in long term contracts that help it to perform better on every performance (Bhimani & Bromwich, 2010). Pay Policy Level Decisions Just like any other company, it is expected that the top management will receive the highest compensation. The least compensated people will be the artists. Although most of the emerging artists are unable to compete with themselves, the company has had the ability to have improved performance over time. This would mean that with time, they would receive effective compensation for their efforts and their contributions in the company. Although increased demand of the artists has lowered its performance, it is evident that the company has dominated in terms of wining the best commercials that industries offer. This has helped to improve its performance over time (Mathis & Jackson, 2012). Compensation Survey Colombia Records is not the top in terms of compensation for its employees. Colombia Records has received stiff competitions by labels that are growing on a daily basis. These include; Warner Bros, Def Jam, Aftermath, Epic, Cash Money Billionaire Records, Atlantic and even Shady Records. These record labels always compensate their employees effectively. It is evident that a record does not become the best by only delivering good music to the industry; a good record should have the capacity to share its music to the people and also have improved performance over time. These record labels have helped to change mainstream perceptions of the Music industry. Apart from changing the music scene, the record labels have helped to promote effective understanding of individuals by improving the culture and the thoughts of the people (Deb, 2009). Benchmarking for the Employees Salaries and Benefits Artists are paid depending on their contribution to the music label. Each artist has their own individual contribution to the organization. Most of the artists are highly attracted to companies that provide competitive payments and comprehensive benefits that help them to perform better hence improve their performance. The comprehensive benefits plan includes the following: Paid performances and also other contributions Benefits for employee travel and accommodations. Comprehensive coverage. The job offers comprehensive insurance cover to most of the risks that occur in life. A balance of work and life resources. There should be an efficient balance of one's life to help in the achievement of success. Accidental insurance is provided to accountants hence securing them throughout their lives. Implementation of Salary Survey Results The aforementioned job structures require each person to have effective compensation of their jobs as required. One of the main considerations is the measurement of the goals and objectives. The performance program measures both organizational and personal goals that need consideration in the workplace. Each artist should be paid according to their contribution in the workplace. Secondly, the tool also puts into consideration the opportunities that need to be improved in the workplace. The elements of accounting job have also been put into consideration to help managers identify the areas that need to be improved. Training needs analysis has been used as a tool that can help to provide information from the employees on the areas that do not provide satisfaction. The current status of the SWOT analysis has also been used in consideration of the employment requirements (Bensanko, 2010). References Besanko, D. (2010). Economics of strategy. Hoboken, NJ: John Wiley & Sons. Bhimani, A., & Bromwich, M. (2010). Management accounting: Retrospect and prospect. Amsterdam: CIMA. Chelladurai, P. (2006). Human Resource Management in Sport and Recreation. Leeds: Human Kinetics. Deb, T. (2009). Managing human resources & industrial relations. New Delhi: Excel Books Mathis, R. L., & Jackson, J. H. (2012). Human resource management: Essential perspectives. Mason, Ohio: South-Western Cengage Learning Riahi-Belkaoui, A. (2001). Advanced management accounting. Westport, Conn.: Quorum Books Singh, P. (2008). Job analysis for a changing workplace. Human Resource Management Review, 18(2), 87-99. OL 325: Final Project Guidelines and Rubric Overview Acting as a recently hired compensation consultant, you will assist the burgeoning online music firm e-sonic to develop an internally consistent and marketcompetitive compensation system that recognizes the achievements of individual contributors. The major portion of the project is divided into three milestones, which will build upon the previous milestone. The milestones are submitted in Modules Three, Five, and Six. The final version of the entire project will be due at the end of Module Seven. Sample report outlines are included in the project text found in MyManagementLab. Each of the sections for this assignment will be submitted via Turnitin. Outcomes The project helps students to meet the following course outcomes: Students will gain an understanding of the evolution and administration of compensation and benefit programs for organizations Students will explore wage theory, principles and practices, unemployment security, worker income security, group insurance, disability insurance, and pension plans and how these compensation and benefit items are balanced to provide incentive and recruitment of a high-performance workforce The connection between the organization's mission, objectives, policies, and the implementation and revision of their respective compensation and benefit systems will be analyzed to gain a deeper understanding of the importance of such systems to the organization's overall human resource management At the conclusion of this course, students will be able to demonstrate the acquisition and application of theories and concepts that support the enhancement and proficiency in 7 primary competencies: strategic approach, research, teamwork, communication, analytical skills, problem solving, and legal and ethical practices Preparation 1. Read the Building Strategic Compensation Project narrative linked in the course menu of the MyManagementLab home page. Note: Section 3: Recognition of Individual Achievements WILL NOT be included in the course project. 2. Download the Comp Analysis Software Microsoft Excel file. Directions on accessing this file are located in the Module Resources section of Module One. To run on a PC, the file requires Microsoft Excel 2007 or later. To run on a Mac, the version requires Excel 2011 or later. NOTE: Users of the CompAnalysis software must set the macros to a low level in order for the software to work. If the macros are set on too high of a security level, then the software will be disabled and will not work properly. Navigate to the Tools menu, click Macros, and then click Security. Lower the security level, save the spreadsheet, close, and re-open. o Click on the External Market Survey feature, which will be used in Section 2 of the project, titled Market Competitiveness. Make your decisions first by following the directions in the Building Strategic Compensation Project (Appendix 3 in the student version, Appendix 5 in the instructor's version) and jot down the pertinent information on paper. o After completing the External Market Survey section, move on to the Merit Pay Planning feature, which will be used in Section 3 of the project, titled Recognition of Individual Achievements. Input your choices as indicated in CompAnalysis and analyze the data. o Milestones Milestone One: Strategic Analysis The development of a strategic analysis guides all decisions made regarding your compensation systems throughout the project. The strategic analysis reveals firm-specific challenges, objectives, and initiatives that allow you to align the goals of a compensation system effectively with those of the company strategy. The strategic analysis allows you to better understand the external market challenges e-sonic faces in addition to its internal capabilities. As a consultant, a thorough understanding of e-sonic's business environment allows you to better align your competitive system design with e-sonic's goals, challenges, and objectives. Follow the outline below when completing this portion of the project. The strategic analysis is fully described in the MyManagementLab Building Strategic Compensation Systems casebook for faculty and students, linked in the course menu in MyLab. Follow the explanations and outline to complete this milestone. Strategic Analysis Outline: 1. Executive Summary (Concisely conveys the project objectives and main findings. The executive summary is completed last, but included first in the strategic analysis.) 2. Strategic Analysis a) Identification of e-sonic's industry based on the North American Industry Classification System (NAICS) b) Analysis of e-sonic's external market environment i. Industry Profile ii. Competition iii. Foreign Demand iv. Long-Term Industry Prospects v. Labor-Market Assessment c) Analysis of Internal Capabilities i. Functional Capabilities ii. Human Resource Capabilities Each section of the final project should be 5-7 pages in length. The Strategic Analysis section is due at the end of Module Three. It will be graded with the Milestone One Rubric. Milestone Two: Section 1: Internally Consistent Job Structures Section 1 introduces you to the specification of internally consistent job structures. Through writing job descriptions, the development of job structures, and both the development and implementation of a point evaluation method to quantify job differences objectively, you build the framework for internal equity. In Section 1, you will focus on building an internally consistent compensation system. An internally consistent compensation system design will clearly define the relative value of each e-sonic sample job, creating a job hierarchy and an objective rationale for pay differences. As an e-sonic consultant, you are offered a sample of e-sonic jobs in Section 1. Currently, e-sonic employs 100 people and will be hiring many more. However, for the purpose of this simulation, you are asked to work with the sample of four jobs offered (see Appendix 2 for sample jobs, located in the MyManagementLab project tab). Limiting the number of jobs removes one level of complexity from the simulation and allows you to focus on learning the functions of compensation system design. The framework you develop classifying sample jobs can easily be adapted in the future to include all e-sonic positions. Section 1 Outline: 1. Create Job Descriptions 2. Create Job Structures 3. Build Point Evaluation Method a) Select benchmark jobs. b) Choose compensable factors based upon benchmark jobs. c) Define factor degree statements. d) Determine weights for each compensable factor. 4. Calculate Point Values for e-Sonic Jobs a) Determine point value for each compensable factor. b) Use the job evaluation worksheet to calculate point values for each position. c) Distribute points for each compensable factor across degree statements. d) Rate jobs using point method. e) Individually rate jobs to ensure reliability. f) Resolve any discrepancies in point totals. g) Rank jobs in each job structure according to results of your point evaluation. Each section of the final project should be 5-7 pages in length. Section 1: Internally Consistent Job Structures is due at the end of Module Five. It will be graded with the Milestone Two Rubric. Milestone Three: Section 2: External Competitiveness Section 2 shifts your focus outside of the firm to understand its relationship with the external marketplace. You will use market survey data to compare pay rates of positions inside the firm with those in the marketplace to establish the foundations of market-competitive pay. The analysis of market data also leads you to the determination of appropriate pay-policy mixes for each of its job structures. In this section, you are asked to use CompAnalysis software developed by Howard Weiss at Temple University, which is also available in MyManagementLab. In Section 2 of this simulation, you will shift your focus from concentrating on e-sonic's internal consistency to its external competitiveness. First, you will be introduced to the tools compensation professionals use to allocate total compensation most effectively within job structures. Many employees are unaware that their total compensation consists of much more than just base pay. Compensation professionals allocate total pay (for example, base pay, benefits, and different types of incentives) to motivate employees in different ways. You will use some of these tools to develop pay policy mixes for each e-sonic job structure. Next, you will consider pay policy level decisions for each job structure. You will then use CompAnalysis (the included software program) to conduct an external market survey. Specific instructions provided with the software program will guide you through the steps involved in the compensation survey exercise. Finally, you will report survey findings, interpreting regression analysis results generated by the software, and provide an explanation of major decisions reached. Section 2 Outline: Executive Summary Findings 1. Determine Appropriate Pay-Policy Mix 2. Pay-Policy Level Decisions 3. Compensation Survey a) Choose competitors based upon industry, size, and union status. b) Select benchmark jobs for each structure using benchmark job descriptions. c) Reconcile differences using the benchmark job comparison sheet. d) Update salary data for inflation using CPI-U. 4. Implementation of Salary Survey Results a) Report and interpret results of regression analysis for each job. b) Integrate external and internal structures by creating pay grades and ranges. c) Evaluate and summarize decisions made for each job structure. Each section of the final project should be 5-7 pages in length. Section 2: External Marketplace is due at the end of Module Six. It will be graded with the Milestone Three Rubric. Final Submission The final project is due at the end of Module Seven. This version will include all revisions based on feedback from your instructor to the Executive Summary/Strategic Analysis, Section 1: Internally Consistent Job Structures, and Section 2: External Competitiveness. It should be prefaced with a 1-2-page historical perspective on compensation and close with a 1-2-page summary of how you used strategic approach, research, communication, analytical skills, and problem-solving to present a compensation package tailored for e-sonic. Each section of the final project should be 5-7 pages in length. This submission will be graded with the Final Project Rubric (below). Final Project Rubric Requirements of submission: Each section of the final project must follow these formatting guidelines: 5-7 pages per section, double spacing, 12-point Times New Roman font, one-inch margins, and discipline-appropriate citations. This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Instructor feedback: Students can find their feedback in the Grade Center. Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value Meets \"Proficient\" criteria and Describes compensation in the Describes compensation in the Does not present a historical 10 Historical perspective of compensation in U.S., including several facts Perspective includes pertinent facts that U.S., including facts from a the U.S. from a historical perspective demonstrate a sound grasp of historical perspective, but may the historical perspective have gaps in the chronology The Strategic Analysis Provides in-depth analysis that includes an executive summary and the strategic analysis with all of the elements of the outlines provided in the Building Strategic Compensation Project documentation, demonstrating a complete understanding of all concepts Provides in-depth analysis that includes an executive summary and the strategic analysis with most of the elements of the outlines provided in the Building Strategic Compensation Project documentation Section 1: Internally Provides in-depth job structures with all of the elements of Consistent Job Section 1 of the Building Structures Strategic Compensation Project documentation Provides all job structures with most of the elements of Section 1 of the Building Strategic Compensation Project documentation Section 2: External Competitiveness Summary Writing (Mechanics/ Citations) Comments: Provides an analysis that includes an executive summary and the strategic analysis with some of the elements in the outlines provided in the Building Strategic Compensation Project documentation Does not provide an analysis that includes an executive summary and/or the strategic analysis with elements in the outlines provided in the Building Strategic Compensation Project documentation 20 Does not provide job structures with elements of Section 1 of the Building Strategic Compensation Project documentation 25 Does not provide market competitiveness report with elements of the outline provided in Section 2 of the Building Strategic Compensation Project documentation 25 Does not present a summary explaining use of strategic approach, research, communication, analytical skills, and problem-solving to present a compensation package tailored for e-sonic 10 Provides most job structures with some of the elements of Section 1 of the Building Strategic Compensation Project documentation Provides in-depth market Provides market Provides market competitiveness report with all competitiveness report with competitiveness report with of the elements of the outline most of the elements of the some of the elements of the provided in Section 2 of the outline provided in Section 2 of outline provided in Section 2 of the Building Strategic the Building Strategic Building Strategic Compensation Project Compensation Project Compensation Project documentation documentation documentation Presents a 2-page summary Presents a 1-2-page summary Presents a 1-2-page summary explaining in depth use of explaining use of Strategic explaining use of some of the strategic approach, research, Approach, research, elements such as strategic communication, analytical skills, communication, analytical skills, approach, research, and problem-solving to present and problem-solving to present communication, analytical skills, and problem-solving to present a compensation package a compensation package a compensation package tailored for e-sonic tailored for e-sonic tailored for e-sonic No errors related to organization, grammar and style, and citations Minor errors related to organization, grammar and style, and citations Some errors related to organization, grammar and style, and citations Major errors related to organization, grammar and style, and citations Earned Total 10 100% OL 325: Final Project Guidelines and Rubric Overview Acting as a recently hired compensation consultant, you will assist the burgeoning online music firm e-sonic to develop an internally consistent and marketcompetitive compensation system that recognizes the achievements of individual contributors. The major portion of the project is divided into three milestones, which will build upon the previous milestone. The milestones are submitted in Modules Three, Five, and Six. The final version of the entire project will be due at the end of Module Seven. Sample report outlines are included in the project text found in MyManagementLab. Each of the sections for this assignment will be submitted via Turnitin. Outcomes The project helps students to meet the following course outcomes: Students will gain an understanding of the evolution and administration of compensation and benefit programs for organizations Students will explore wage theory, principles and practices, unemployment security, worker income security, group insurance, disability insurance, and pension plans and how these compensation and benefit items are balanced to provide incentive and recruitment of a high-performance workforce The connection between the organization's mission, objectives, policies, and the implementation and revision of their respective compensation and benefit systems will be analyzed to gain a deeper understanding of the importance of such systems to the organization's overall human resource management At the conclusion of this course, students will be able to demonstrate the acquisition and application of theories and concepts that support the enhancement and proficiency in 7 primary competencies: strategic approach, research, teamwork, communication, analytical skills, problem solving, and legal and ethical practices Preparation 1. Read the Building Strategic Compensation Project narrative linked in the course menu of the MyManagementLab home page. Note: Section 3: Recognition of Individual Achievements WILL NOT be included in the course project. 2. Download the Comp Analysis Software Microsoft Excel file. Directions on accessing this file are located in the Module Resources section of Module One. To run on a PC, the file requires Microsoft Excel 2007 or later. To run on a Mac, the version requires Excel 2011 or later. NOTE: Users of the CompAnalysis software must set the macros to a low level in order for the software to work. If the macros are set on too high of a security level, then the software will be disabled and will not work properly. Navigate to the Tools menu, click Macros, and then click Security. Lower the security level, save the spreadsheet, close, and re-open. o Click on the External Market Survey feature, which will be used in Section 2 of the project, titled Market Competitiveness. Make your decisions first by following the directions in the Building Strategic Compensation Project (Appendix 3 in the student version, Appendix 5 in the instructor's version) and jot down the pertinent information on paper. o After completing the External Market Survey section, move on to the Merit Pay Planning feature, which will be used in Section 3 of the project, titled Recognition of Individual Achievements. Input your choices as indicated in CompAnalysis and analyze the data. o Milestones Milestone One: Strategic Analysis The development of a strategic analysis guides all decisions made regarding your compensation systems throughout the project. The strategic analysis reveals firm-specific challenges, objectives, and initiatives that allow you to align the goals of a compensation system effectively with those of the company strategy. The strategic analysis allows you to better understand the external market challenges e-sonic faces in addition to its internal capabilities. As a consultant, a thorough understanding of e-sonic's business environment allows you to better align your competitive system design with e-sonic's goals, challenges, and objectives. Follow the outline below when completing this portion of the project. The strategic analysis is fully described in the MyManagementLab Building Strategic Compensation Systems casebook for faculty and students, linked in the course menu in MyLab. Follow the explanations and outline to complete this milestone. Strategic Analysis Outline: 1. Executive Summary (Concisely conveys the project objectives and main findings. The executive summary is completed last, but included first in the strategic analysis.) 2. Strategic Analysis a) Identification of e-sonic's industry based on the North American Industry Classification System (NAICS) b) Analysis of e-sonic's external market environment i. Industry Profile ii. Competition iii. Foreign Demand iv. Long-Term Industry Prospects v. Labor-Market Assessment c) Analysis of Internal Capabilities i. Functional Capabilities ii. Human Resource Capabilities Each section of the final project should be 5-7 pages in length. The Strategic Analysis section is due at the end of Module Three. It will be graded with the Milestone One Rubric. Milestone Two: Section 1: Internally Consistent Job Structures Section 1 introduces you to the specification of internally consistent job structures. Through writing job descriptions, the development of job structures, and both the development and implementation of a point evaluation method to quantify job differences objectively, you build the framework for internal equity. In Section 1, you will focus on building an internally consistent compensation system. An internally consistent compensation system design will clearly define the relative value of each e-sonic sample job, creating a job hierarchy and an objective rationale for pay differences. As an e-sonic consultant, you are offered a sample of e-sonic jobs in Section 1. Currently, e-sonic employs 100 people and will be hiring many more. However, for the purpose of this simulation, you are asked to work with the sample of four jobs offered (see Appendix 2 for sample jobs, located in the MyManagementLab project tab). Limiting the number of jobs removes one level of complexity from the simulation and allows you to focus on learning the functions of compensation system design. The framework you develop classifying sample jobs can easily be adapted in the future to include all e-sonic positions. Section 1 Outline: 1. Create Job Descriptions 2. Create Job Structures 3. Build Point Evaluation Method a) Select benchmark jobs. b) Choose compensable factors based upon benchmark jobs. c) Define factor degree statements. d) Determine weights for each compensable factor. 4. Calculate Point Values for e-Sonic Jobs a) Determine point value for each compensable factor. b) Use the job evaluation worksheet to calculate point values for each position. c) Distribute points for each compensable factor across degree statements. d) Rate jobs using point method. e) Individually rate jobs to ensure reliability. f) Resolve any discrepancies in point totals. g) Rank jobs in each job structure according to results of your point evaluation. Each section of the final project should be 5-7 pages in length. Section 1: Internally Consistent Job Structures is due at the end of Module Five. It will be graded with the Milestone Two Rubric. Milestone Three: Section 2: External Competitiveness Section 2 shifts your focus outside of the firm to understand its relationship with the external marketplace. You will use market survey data to compare pay rates of positions inside the firm with those in the marketplace to establish the foundations of market-competitive pay. The analysis of market data also leads you to the determination of appropriate pay-policy mixes for each of its job structures. In this section, you are asked to use CompAnalysis software developed by Howard Weiss at Temple University, which is also available in MyManagementLab. In Section 2 of this simulation, you will shift your focus from concentrating on e-sonic's internal consistency to its external competitiveness. First, you will be introduced to the tools compensation professionals use to allocate total compensation most effectively within job structures. Many employees are unaware that their total compensation consists of much more than just base pay. Compensation professionals allocate total pay (for example, base pay, benefits, and different types of incentives) to motivate employees in different ways. You will use some of these tools to develop pay policy mixes for each e-sonic job structure. Next, you will consider pay policy level decisions for each job structure. You will then use CompAnalysis (the included software program) to conduct an external market survey. Specific instructions provided with the software program will guide you through the steps involved in the compensation survey exercise. Finally, you will report survey findings, interpreting regression analysis results generated by the software, and provide an explanation of major decisions reached. Section 2 Outline: Executive Summary Findings 1. Determine Appropriate Pay-Policy Mix 2. Pay-Policy Level Decisions 3. Compensation Survey a) Choose competitors based upon industry, size, and union status. b) Select benchmark jobs for each structure using benchmark job descriptions. c) Reconcile differences using the benchmark job comparison sheet. d) Update salary data for inflation using CPI-U. 4. Implementation of Salary Survey Results a) Report and interpret results of regression analysis for each job. b) Integrate external and internal structures by creating pay grades and ranges. c) Evaluate and summarize decisions made for each job structure. Each section of the final project should be 5-7 pages in length. Section 2: External Marketplace is due at the end of Module Six. It will be graded with the Milestone Three Rubric. Final Submission The final project is due at the end of Module Seven. This version will include all revisions based on feedback from your instructor to the Executive Summary/Strategic Analysis, Section 1: Internally Consistent Job Structures, and Section 2: External Competitiveness. It should be prefaced with a 1-2-page historical perspective on compensation and close with a 1-2-page summary of how you used strategic approach, research, communication, analytical skills, and problem-solving to present a compensation package tailored for e-sonic. Each section of the final project should be 5-7 pages in length. This submission will be graded with the Final Project Rubric (below). Final Project Rubric Requirements of submission: Each section of the final project must follow these formatting guidelines: 5-7 pages per section, double spacing, 12-point Times New Roman font, one-inch margins, and discipline-appropriate citations. This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Instructor feedback: Students can find their feedback in the Grade Center. Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value Meets \"Proficient\" criteria and Describes compensation in the Describes compensation in the Does not present a historical 10 Historical perspective of compensation in U.S., including several facts Perspective includes pertinent facts that U.S., including facts from a the U.S. from a historical perspective demonstrate a sound grasp of historical perspective, but may the historical perspective have gaps in the chronology The Strategic Analysis Provides in-depth analysis that includes an executive summary and the strategic analysis with all of the elements of the outlines provided in the Building Strategic Compensation Project documentation, demonstrating a complete understanding of all concepts Provides in-depth analysis that includes an executive summary and the strategic analysis with most of the elements of the outlines provided in the Building Strategic Compensation Project documentation Section 1: Internally Provides in-depth job structures with all of the elements of Consistent Job Section 1 of the Building Structures Strategic Compensation Project documentation Provides all job structures with most of the elements of Section 1 of the Building Strategic Compensation Project documentation Section 2: External Competitiveness Summary Writing (Mechanics/ Citations) Comments: Provides an analysis that includes an executive summary and the strategic analysis with some of the elements in the outlines provided in the Building Strategic Compensation Project documentation Does not provide an analysis that includes an executive summary and/or the strategic analysis with elements in the outlines provided in the Building Strategic Compensation Project documentation 20 Does not provide job structures with elements of Section 1 of the Building Strategic Compensation Project documentation 25 Does not provide market competitiveness report with elements of the outline provided in Section 2 of the Building Strategic Compensation Project documentation 25 Does not present a summary explaining use of strategic approach, research, communication, analytical skills, and problem-solving to present a compensation package tailored for e-sonic 10 Provides most job structures with some of the elements of Section 1 of the Building Strategic Compensation Project documentation Provides in-depth market Provides market Provides market competitiveness report with all competitiveness report with competitiveness report with of the elements of the outline most of the elements of the some of the elements of the provided in Section 2 of the outline provided in Section 2 of outline provided in Section 2 of the Building Strategic the Building Strategic Building Strategic Compensation Project Compensation Project Compensation Project documentation documentation documentation Presents a 2-page summary Presents a 1-2-page summary Presents a 1-2-page summary explaining in depth use of explaining use of Strategic explaining use of some of the strategic approach, research, Approach, research, elements such as strategic communication, analytical skills, communication, analytical skills, approach, research, and problem-solving to present and problem-solving to present communication, analytical skills, and problem-solving to present a compensation package a compensation package a compensation package tailored for e-sonic tailored for e-sonic tailored for e-sonic No errors related to organization, grammar and style, and citations Minor errors related to organization, grammar and style, and citations Some errors related to organization, grammar and style, and citations Major errors related to organization, grammar and style, and citations Earned Total 10 100%