This Competency Assessment assesses the following outcome(s):GB520M3-3: Analyze Human Resource considerations to business decision making.Review the SHRM case, “Designing a Pay Structure.”You will prepare the SHRM case analysis on “Designing a Pay Structure,” which consists of your completion ofTasks A–J that simulate the creation of a compensation system for an organization in meeting its goals andsupporting its mission. In your analysis, respond to the following tasks found in the case study by using Excel.Your case analysis should consist of:Task A: Create a complete job description for the benefits manager position using O*NET.Task B: Calculate the job evaluation points for the administrative assistant, payroll assistant, operationalanalyst, and benefits manager jobs. Provide a rationale for assigning specific degrees to the various jobs.Task C: If there were any outliers (i.e., extreme data points) in the data, what would you recommend doing withthem? From this point forward, assume no extreme data points exist in the dataset.Task D: Conduct a simple regression in Excel to create a market pay line by entering the job evaluation points(on the X axis) and the respective weighted average market base pay (on the Y axis) for each benchmark job.Task E: What is your R squared (variance explained)? Is it sufficient to proceed?Task F: Calculate the predicted base pay for each benchmark job.Task G: Because your company wants to lead in base pay by 3%, adjust the predicted pay rates to determinethe base pay rate you will offer for each benchmark job.Task H: Create pay grades by combining any benchmark jobs that are substantially comparable for paypurposes. Clearly label your pay grades and explain why you combined any benchmark jobs to form a grade.Task I: Use your answer to Task H to determine the pay range (i.e., minimum and maximum) for each paygrade.Task J: Given the pay structure you have generated, consider the following: Does this pay structure make goodbusiness sense? Do you think it is consistent with the organization’s business strategy? What are theimplications of this pay structure for other HR systems, such as retention and recruiting?
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