Designing A Pay Structure
Case Study and Integrated Application Exercises
Designing A Pay Structure
By Lisa A. Burke, Ph.D., SPHR
Instructor’s Manual
TOTAL REWARDS
©2008 SHRM Lisa Burke, Ph.D., SPHR
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INSTRUCTOR’S MANUAL
Designing A Pay Structure
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©2008 SHRM Lisa Burke, Ph.D., SPHR
Case Study and Integrated Application Exercises
Designing A Pay Structure
Designing a Pay Structure
About this Case
Learning Objectives
In this case, upper-level undergraduate or master’s level HR students
In this case, students will learn to design a pay structure. To do so, they will:
will learn how to design a pay structure using a case scenario and integrated application exercises.
This case is rated as slightly challenging and requires familiarity with and use of the Internet and Microsoft Excel. Instructors can make the case and associated exercises less challenging by eliminating certain tasks assigned in the case, or may increase the difficulty by adding
• Write a job description using the
O*NET website.
• Use the point method to conduct a job evaluation.
• Analyze pay survey data for benchmark jobs.
• Create a market pay line in Excel.
other relevant tasks and questions. Teaching notes accompany the
• Create a pay policy line based on a stated pay-level strategy.
case. Instructors who have previously taught compensation courses,
• Create pay grades.
are familiar with the Internet and Excel, have work experience with
• Establish pay ranges.
pay systems, or who conduct research in compensation area may find the case easier to facilitate.
This case complements the first 40 percent or so of chapters in most compensation textbooks. The amount of time the case takes for students to complete will depend on students’ skills and education level. Time can be allotted during class in a computer lab so the instructor can facilitate students’ work on the associated exercises, but some outside-of-class work is also necessary.
Recommended
References: Milkovich, G., and Newman, J. (2008). Compensation. McGraw-Hill Irwin. Martocchio, J. (2006). Strategic Compensation. Pearson/Prentice Hall.