1: According to the existing plan, Company is
paying its employees/workers somewhere around the average and few cases also depict
pays that are below average. Lisa should do a market research/survey and job
evaluation first to get to know about the range of salary packages according to
the rating of the job’s importance. In this way, she would be able to design a
pay plan in which better rated jobs are paid higher salaries than lower rated
So a new plan should be
made by going through the following factors:
is the process in which in an organization, all the jobs are compared with the
job position which is to be evaluated so that the significance of that job
could be identified. One job could be more important as compared to other job because
it can be multifaceted and require more skills, responsibilities and knowledge
to deal with. So an employee who is dealing with a job of this caliber should
be paid higher and get more benefits from the company as compared to the job of
slightly less or less importance.
Survey: This is the second step after Job Evaluation. Now we
need to know about the market rate of that particular job position. This would
inform us about the average pay in the industry and we can plan the pay
packages keeping the research data at hand. If the research shows that The
Hotel Paris is paying below average to that of the market rates, it will fix
the pay packages based on the result we got from market survey.
we are dealing with the compensation planning, I would suggest that The Hotel
Paris should consider Competency Based Pay Plan for its non-managerial staff because
in this way the morale and motivation of the employees would get increased and
they would perform more efficiently and effectively in their working areas.
Following are the steps
they need to take to implement competency based pay plan:
Indentify Employees’ Job
Search Job Responsibilities
Employees’ Job: first all the employees and jobs are
needed to be listed according to their departments in order to make the pay
plan according to competency basis.
Job Responsibilities: Responsibilities of every job is
then searched which would give an idea about the performance measures and which
job require more responsibilities as compared to others.
Rotation: This is the best way to indentify the competencies
employees possess. Changing the jobs or rotating the job of employees would
help us observe which employee is performing well in other departments and this
would lead us to design a pay plan based on competencies.
Plan: After identifying which employees are competent, a
revised or updated pay plan would be created for them. If an employee performed
well in another department he will be paid according to the pay structure of