SECTION C: DEFINE THE REWARDS AND COMPENSATION STRATEGY

$$ Refer to Figure $6\mathrm{.}1($The Five$-$Step Strategy Formulation process$)$ in your textbook for a

guide on how you should approach answering this part of the assignment.

$$ Define the Required Behaviour that your client needs. Your discussion should include

specific reference to:

o Key employee behaviours $($i$.$e$.$ Task, Membership, Organizational$)$

o Identify$/$list the required dimensions of task behavior. $($You will want to identify

task behaviour as it pertains to each dimension $$ see Required Dimensions of

Task Behaviour $-$ Notebook $6\mathrm{.}1)$

$$ Define the Role of Compensation. Explain what the role of compensation will be at the

organization $($i$.$e$.$ list$/$identify the key points$)$ in producing these behaviours identified. It

is recommended that you reference the $$Role of Compensation and Intrinsic$/$Extrinsic

Rewards in Producing Behaviour for Different Organizations$($Table $6\mathrm{.}1).$ Use the table

in your assignment to help keep your work organized. Then, explain your rationale.

$$ Determine the Compensation Mix

o What role will be played by base pay, performance pay and indirect pay?

o How will each component be structured? $($i$.$e$.$ what will be the foundation for

base pay? Do you recommend job evaluation, market pricing or pay for

knowledge?$)$

o What will performance pay be linked to $-$ group, organizational or individual

performance?

$$ Define Compensation Levels

o Outline your recommendations for the organization as it pertains to each of the

identified job categories. Be specific and identify the percentage of base pay,

performance pay and indirect pay for each of the job categories.

o Give reasons to support your recommendations $($i$.$e$.$ if you are recommending

$60\%$ base pay, $15\%$ performance pay and $25\%$ indirect pay, be specific as to what

performance pay be tied to$.$ Another example $-10\%$ gain sharing and $5\%$ goal

sharing$).$ You need to explain the $$why$.$

o In addition to your explanation, use the Compensation Strategy Template to

document your recommendations for each of the job categories. Ensure you

fully complete the document. Reference figure $6\mathrm{.}2$ for guidance and additional

information on creating the strategy templates.

o Then, will you lag, lead or match the relevant market for each job category?

Identify how much $-$ what is the percentage?

o REMINDER $$ read the tips in your Simulation instructions about the

requirements of completing this section. There are a lot of helpful hints and

guidelines to review before starting this part of your answer.

o Review the in$-$text example, Canada Chemicals, if you need additional support in

this area.

$$ Evaluate the System. Explain how you will evaluate your proposed compensation

system. Identify specific goals and indicators. Please see your textbook for information

on this step. HINT: You can use a similar format to Table $6\mathrm{.}2.$

$$ Section C should be maximum $6-7$ pages written, with $1\mathrm{.}5$ or double spacing. Then you

will have one Compensation Strategy Template for each job family