This is part of a team paper for MBAHR 592 - The full paper is posted on this web site.
MBAHR 592 – Job Design for Department Manager
The department manager is one of the key leaders just below the store manager for Kudler Fine Foods. This means the department manager needs to be able to contribute to the success of the company through the departmental activities. Therefore, the department manager needs to be compensated for contributing to the profit and success of the company through the Kudler Fine Foods compensation system or structure.
The fundamental objectives of a compensation system are to provide a method for structuring and evaluating jobs, attracting, motivating and retaining talented employees within the company salary structure. Consequently, Kudler Fine Foods needs to develop and implement a compensation strategy and pay structure that allows the company to achieve wealth maximization while retaining the best department managers in the gourmet food industry. Two of the most common methods are job based and competency (person-based) based approaches. The contrast between these two approaches can potentially determine a key link between organizational success and the department manager performance.
The job based approached is the more traditional approach to the compensation model. This approach basically places each position in to a grade level, determines the value of the position, and translates this in to a pay structure. In contrast to the job based approach is to compensate an employee according to the value of his or her skills in the marketplace. This is called person or competency based pay structure and is an alternative approach to the job based pay practice. The competency based model is designed on a pay s ...