Answer Sheet Format for Assignment #4
(Pay Structure Design) – MGMT 4303
6. Step 9: What is the pay range for each job? Fill in the below table and justify your choice. (10 points)
Job
Pay Range
How the range was calculated
Accounting Clerk
52,669.62 to 64,373
196.70*(420) – 24,092.2 times 1.10
And
196.70*(420) – 24,092.2 times 0.90
Manager in
Financial Accounting
90,669.62 to 110,892.43
196.70*(635) – 24,092.2 times 1.10
And
196.70*(635) – 24,092.2 times 0.90
Manager in Corporate Social
Responsibility Accounting
102,238.02 to 124,957.58
196.70*(700) – 24,092.2 times 1.10
And
196.70*(700) – 24,092.2 times 0.90
Department Head in
Financial Accounting
137,644.02 to 168,231.58
196.70*(900) – 24,092.2 times 1.10
And
196.70*(900) – 24,092.2 times 0.90
Justification of the ranges that you have chosen: I have chosen a 10% pay range
(10% more and less from the organizational pay line). The reason I chose this range is because I feel that it is a sufficient range for everyone to be able to perform better and have the opportunity to be payed more. Employees will get discouraged and unmotivative if the pay is just the organizational pay line. I think 10% less and more from the organizational pay will allow more factors to be considered when deciding the pay amount for each employee. 7. Bonus Step: Do you agree or disagree with Julia’s claim? Why or why not? Your answer must be based on the pay structure that you have created in this assignment. (5 points)
Your answer: I would mostly disagree with Julia’s claim because the pay range for Manager in Financial Accounting is lower than Manager in CSR Accounting. The pay range for Julie is 90,669.62 to 110,892.43 and Sam’s
pay range is 102,238.02 to 124,957.58. The only case where Julie MIGHT be payed more than Sam is if Julie should be receiving the absolute max pay within her job pay range (110,892.43) and Sam gets payed the the absolute minimum within his job pay range (102,238.02 ), than the investigation will be further looked into. Based on the information given, we can’t assume how well Sam performs in his job to address this investigation. There is a very high chance that Julie’s claim will not be supported due to the significant difference of pay in their jobs in this pay structure.
