COURSE PROJECT
Compensation & Benefits
HRM 430
Fall 2022
I. INTRODUCTION
II. LEARNING OUTCOMES
III. PROJECT FILES
IV. PROJECT SUMMARY (SCENARIO)
V. DELIVERABLES & PROJECT MANAGEMENT
VI. PLAGIARISM
VII. MARKING SCHEME
I. INTRODUCTION
Effective compensation systems achieve three key goals. They provide a firm internal
consistency, market competitiveness, and a means for recognizing individual
achievement. An internally consistent compensation system clearly defines the relative
value of each job among all jobs within a company, providing an objective justification
for their differences in pay. Market competitive pay systems allow firms to attract and
retain the best employees by setting pay levels consistent with a firm’s competitive
strategies. Finally, a compensation system which recognizes individual achievement Market competitive pay systems enable businesses to attract and retain the best employees by aligning pay levels with their competitive strategies. Finally, a compensation system that rewards individual accomplishment.
By effectively rewarding key contributors, you can boost both employee morale and firm performance.
can boost both employee morale and firm performance by effectively rewarding key
contributors. This simulation (E-Sonic) project provides students a framework for
developing a compensation system which achieves these goals through three distinct,
sequential sections.
Minimum size of the team members for this project is 3 and maximum
would be 5.
II. LEARNING OUTCOMES
By the end of this project, students should be able to:
1. Lay the foundation for an internally consistent compensation system by creating job
descriptions and job structures.
2. Build a point Assessment method for comparing jobs, and assigning relative values to
the samples of company.
3. Determine appropriate pay-policy mixes, conduct a market pay survey, and create pay
grades and ranges; preparing the company to effectively compete for talent in the
labor-market.
4. Determine appropriate methods for recognizing the achievements of individual
employees, calculate and distribute merit-pay increases across the employee
population, and make pay adjustments to specific employees based upon your
designed compensation system.
III. PROJECT FILES
Students are advised to consult relevant sources for their research activities.
The project document will be uploaded on Moodle and students as a group (team
leader) will upload the deliverables into TurnItIn on the due date. Minimum size of
the team members for this project is 3 and maximum would be 5.
IV. PROJECT SUMMARY
This simulation (E-Sonic) project provides students a framework for developing
a compensation system which achieves internal consistency, market
competitiveness, and a means for recognizing individual achievement.
Project Deliverable Part 1 (15%):
Internally consistent compensation system
Establishing market-competitive pay rates
Due: Week 6
Word Limit: 2500 words
Project Deliverable Part 2 (15%):
Recognition of Employee Contribution
Due: Week 12
Word Limit: 1500 words
Description of case scenario:
This simulation teaches fundamentals of compensation system design. Acting as a recently
hired compensation consulting team, your student group will Help the bourgeoning online
music firm, e-sonic, to develop an internally consistent and market competitive compensation
system which recognizes the achievements of individual contributors. The following
introduction offers a background and history of your new client in addition to a description of
e-sonic business objectives and a project outline.
Sonic Records, a market leading recording studio and production house, has witnessed
declining demand for music CD’s. Five years ago, Sonic experienced record-breaking
revenues totaling over $15 billion. However, over the past few years, CD burning, international
piracy, and a shift in consumer preferences has reduced revenues by over 30%. A recent
market survey at universities across the nation (a key demographic for Sonic Records)
revealed that over 80% of students had not purchased a CD in the last two years. Sonic
Records, having experienced tremendous success in the recording and music distribution
industry over the past 30 years, realized that the rules of the game were changing. No longer
would music be distributed solely through the traditional retail store channel. Consumers
desired instant delivery of music online and expected a selection of thousands of artists’ work
at their fingertips. Further, consumers expected this music to be portable. Today’s listeners
didn’t want to be constrained to the physical limitations of a CD. They wanted digital files that
could be easily and legally transferred from computer to portable music player to home
receiver interchangeably. Although downloads accounted for only 2% of music sales in 2004,
industry analysts predicted a fundamental change in music delivery methods. Some estimated
that up to 50% of all music sold might be delivered online in the next decade. Sonic executives
understood that their business model needed to adapt quickly, lest they be left behind by other
firms who had correctly anticipated this market shift.
In response, Sonic Records formed a subsidiary company named e-sonic. E-sonic would be
responsible for creating an online music store capable of competing with established players
in the industry. Key executives from Sonic Records were chosen to lead the new company. E sonic’s mission was to create the world’s leading online music store; ensuring Sonic Records’
prominence in the record industry’s future. E-sonic’s key business objective, as dictated by its
parent company Sonic Records, was to develop the world’s leading online music portal.
Realizing the challenging task ahead of them, e-sonic executives had the foresight to
recognize that despite their years of experience in the traditional recording business; outside
consultants might offer them salient insights. Their new venture would require hiring
employees in all business disciplines, especially those with the marketing and technical skills
necessary to help establish e-sonic as the world’s preeminent online music source. In addition,
e-sonic management understood well the importance of establishing a sound compensation
system right from the firm’s inception. They knew that an internally equitable and market
competitive compensation strategy could help e-sonic achieve their business objectives, but
they had no expertise in this area. In response, the e-sonic’s management team has hired you
as their compensation consulting staff. Congratulations and good luck with your new client.
Project Outline
As e-sonic compensation consultants, your project work will be divided into three distinct
sections preceded by an optional strategic analysis. Effective compensation systems achieve
three key goals. Each section of the simulation addresses one of these objectives. First,
effective compensation systems provide a firm internal consistency. An internally consistent
compensation system clearly defines the relative value of each job among all jobs in the
company, allowing a firm to objectively and legally justify differences in pay. In Section I, your
consulting team will lay the foundation for an internally consistent compensation system by
creating job descriptions and job structures, building a point Assessment method for comparing
jobs, and assigning relative values to a sample of e-sonic positions. The second goal of a
successful compensation system includes establishing market-competitive pay rates for an
organization. In Section II, your team will determine appropriate pay-policy mixes, conduct a
market pay survey, and create pay grades and ranges; allowing e-sonic to effectively compete
for talent in the labor-market. Finally, in performance-based pay cultures, successful
compensation systems recognize the contributions of individuals. In Section III, your
compensation team will determine appropriate methods for recognizing the achievements of
individual employees, calculate and distribute merit-pay increases across the employee
population, and make pay adjustments to specific employees based upon your designed e sonic compensation system.
V. DELIVERABLES & PROJECT MANAGEMENT
Deliverable Part 1 – Internally consistent compensation
system; Establishing market-competitive pay rates – Week
6 – 15%
By using the below titles, it is required to design an effective compensation system for e-sonic.
The system should provide a firm internal consistency to the compensation system.
E-sonic has the following job titles:
Director of
Operations
Director of
Sales Office Manager Engineering
Director
Manager of
Benefits
Operations
Manager
Sales
Manager
Executive
Helpant
Engineering
Team Leader
Benefits
Counselor III
Operations
Analyst
Marketing
Manager
Administrative
Helpant II Engineer Benefits
Counselor II
Operations
Helpant
Sales and
Marketing
Analyst
Administrative
Helpant I
Engineering
Trainee
Benefits
Counselor I
1. Create Job Descriptions for ONLY 5 job titles from the above—use O*NET,
provide job summaries and firm specific information to conduct job analysis and
create job descriptions (task, knowledge, abilities, skills).
2. Create Job Structures (for all the above job titles)—decide upon the most
appropriate job structures for classifying company positions and place jobs
within these structures. Each job structure contains positions grouped by
related job duties and lists these positions hierarchically by responsibility.
3. Build Point Assessment System for ONLY the 5selected job titles —you can
follow detailed instructions provided in Chapter 6 of Strategic Compensation to
construct their job Assessment system.
i. Select Benchmark Jobs
ii. Choose Compensable Factors Based upon Benchmark Jobs
iii. Define Factor Degree Statements
iv. Determine Weights for Each Compensable Factor
4. Calculate Point Values for Each Job
i. Determine Point Values for Each Compensable Factor
ii. Use Point Assessment Worksheet to Calculate Point Values for Each
Position
iii. Independently Rate Jobs
iv. Resolve Any Discrepancies in Point Totals
v. Rank Jobs in Each Structure According to Their Values Determined
by the Point Assessment Method.
Establishing market-competitive pay rates:
Your team will determine appropriate pay-policy mixes, conduct a market pay survey, and
create pay grades and ranges; allowing e-sonic to effectively compete for talent in the labor market.
1. Determine Appropriate Pay-Policy Mix (intrinsic and extrinsic)
2. Pay-Policy Level Decisions
3. Compensation Survey—External Market Analysis
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 Benchmark Job Comparison Sheet
4. Implementation of Salary Survey Results
5. Integrate External and Internal Structures by Creating Pay Grades and Ranges
6. Evaluate and Summarize Decisions Made for Each Job Structure
Deliverable part 2 – Recognition of Employee Contribution –
Week 12 – 15%
Your compensation team will determine appropriate methods for recognizing the
achievements of individual employees, calculate and distribute merit-pay increases across the
employee population, and make pay adjustments to specific employees based upon your
designed e-sonic compensation system.
1. Decide upon an Appropriate Contributions Policy for Each E-sonic Job Structure
2. Adjust Employee Pay Based upon Hypothetical Pay Scenarios
3. Design a Merit-Pay System for E-sonic
4. Summarize Compensation Design Project
Important Notes about Case Deliverables
1. There are two parts (deliverables) at the end of each of the three sections of the case.
2. You should refer to the AUM library databases as a source for your references.
3. Refer to the course calendar for the due dates of each deliverable.
4. This is a team-based assignment.
5. Each team is required to submit a project plan, project status report, a final report, and
be involved in the discussion/interview part of the project.
6. Each team will be interviewed by the class instructor and members of other teams to
assess project’s knowledge, participation, commitment, and achieved learning
outcomes.
7. The project worth 25% of the final grade of the course.
VI. PLAGIARISM
One of the signs that the course material has been properly understood is honesty
when accomplishing the assignments. Lack of academic integrity (e.g. plagiarism,
copying another person’s work, the use of unauthorized aids on examinations,
cheating, facilitating acts of academic dishonesty by others) will not be tolerated.
Therefore, if students include ideas, sentences, or other material that are not theirs in
their work, they must properly quote the source(s). Students are encouraged to consult
with the instructor if they have any questions on the issues of academic integrity or
technical formatting of the references.
Upon suspicion and doubt of the authenticity of the work submitted, the Instructor has
the right to ask the student to verify her/his work. This can be done through, but not
limited to, repeating the work, oral examination or discussion, alternative or similar on
spot class assignment, pop quiz, or any other action deemed necessary. If the student
fails to prove the authenticity of the work, then the Instructor will apply the academic
misconduct rules as mentioned in the AUM Student Handbook which may include
awarding the work a zero grade.
Students are expected and encouraged to be honest and to maintain the highest
standards of academic integrity in their academic work and assignments at the
University. Any act of Academic Dishonesty may result in severe consequences for
violations range from zero grades given for the assignments, failing the course, and
suspension from the University. Students will refrain from any academic dishonesty or
misconduct including, but not limited to:
Plagiarism: the presentation of someone else’s ideas, words, or artistic,
scientific, or technical work as one’s own creation. Also, paraphrasing,
summarizing, like direct quotation, is considered as plagiarism, if the original
source is not properly cited.
Cheating: is an act of lying, deception, trickery, imposture, or imposition.
Cheating characteristically is employed to create an unfair advantage, usually
in one’s own interest, and often at the expense of others. The person who is
sending or receiving Helpance is considered cheating.
Helping in cheating
Substituting for another student in the taking of an examination
Substituting examination booklets/papers
Submitting the same work for more than one course
Submitting papers and other work written by others
Receiving or providing unauthorized help or Helpance in any academic work
or assignment
Intentional violation of program and degree requirements and regulations as
established by the University
Dishonest reporting of computational, statistical, experimental, and research
results, or the like
Using any format of smart or electronic devices as a tool of cheating
For a detailed description of academic misconduct, please refer to the undergraduate
AUM Student Handbook.
• Copyrights
Students are expected to adhere to copyright practices, refer to the undergraduate
AUM Student Handbook.
VII. MARKING SCHEME OF A DELIVERABLE
Sample Grade distribution Percentage Due Date
Project Deliverable Part 1 15.00% Week 6
Project Deliverable Part 2 15.00% Week 12
Pass mark (60%)
Show marginal knowledge of concepts and applications of management.
Able to apply some course content in practical situations.
Occasionally active when urged.
Poor writing skills.
C classification
Show acceptable knowledge of concepts and applications of management.
Able to apply course content in practical situations.
Active when prompt, contribute to team work reactively.
Acceptable writing skills.
B classification
Show good knowledge of concepts and applications of management.
Demonstrate good ability to apply course content in practical situations.
Active, contribute to team work keenly.
Good writing skills.
A classification
Show excellent knowledge of concepts and applications of management.
Demonstrate excellent ability to apply course content in practical situations
Enthusiastic, contribute to team work proactively.
Excellent writing skills.
MARKING SCHEME FOR PROJECT SUBMISSIONS
These are additional, qualitative descriptions of the possible meanings of a mark range for the
overall mark on a typical piece of assessed work. These grade descriptions should not be
seen as either comprehensive or necessary for any one piece of work and there is no direct
correspondence with the feedback identified overleaf. These are the descriptors with
assessment regulations that stipulate a pass mark of 60% and are used where appropriate
when marking project report.
FAIL >60% PASS 60-79% DISTINCTION 80-100%
Quality of
argument
Poor or non-existent
argument. Reasoning unclear
throughout and no justification
given to ideas and opinions
offered.
Good use of arguments to
support ideas and opinions.
Reasoning clear throughout
Very good use of arguments.
Reasoning clear, balanced and fair.
Argument very thorough &
comprehensive (watertight)
Use of theory in
argument
No theories referenced. Or
some theories referenced but
which do not support
argument
Good use and justification in
selection of theories.
Theories used both to
support and/or to explore
alternative arguments
+ Very good use and justification in
selection of theories. Use of theories
demonstrates the ability to critically
evaluate and/or demonstrate
innovative use of theory
Use of case
study and other
examples in
argument
No use of case study and/or
other examples. Or Some us
of case study and/or other
examples, but in a way which
does not support the argument
Good use of case study
and/or examples used to
support, explore and justify
argument and/or explore
alternative arguments
+ Some critical Assessment of case
study and/or examples used.
Demonstrates ability to critically
evaluate and/or demonstrate
innovative use of case study and or
examples
Quality of
Conclusion
No conclusion or a Conclusion
which does not attempt to
answer question
A well-structured and
balanced conclusion which
addresses the question with
some development of
original ideas
+ Demonstrates development of
original models/ theories
Structure &
approach
No apparent structure or
confusing writing style
A well written, clear and
concise style, within the
word limit Approach
explained/ question refined
and justified
+ Structure/ style used to emphasize
argument & conclusion. Approach
evaluated/ validity of work discussed
with reference to relevance of work to
body of knowledge evaluated
