Case: Problem in Pay System

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MGT 302
Case: problems in pay system
Xiamiao Zhu
1. Are the CCUA department’s current pay practices concerning data processor IIs and computer analyst Is externally equitable? Explain your answer. Pay practice in CCUA:
* Data processor II position:
* $11.00---$12.70 per hour.
* $24,960 per year based on their 40-hour workweek.
* Health and life issuance is provided by the company at a cost of $950 per year per employee. * Computer analyst I position:
* Salary range $25,500---$32,500.
* The average salary paid to the eight incumbents is $31,500. * Health and life issuance is provided by the company at a cost of $950 per year per employee. Survey data:
| CCUA| Average salary| Mfg/ Consumer| Mfg/ Industrial | Banking | Other Financial service| DP services| Wholesale distribution| Junior analyst and programmer| 31,500| 35,156| 33,750| 40,714| 35,000| 32,143| 37,500| 32,875| Data processor| 24,960| 27,500| 26,000| 29,000| 28,000| 26,500| 26,000| 27,000| * Data processor II position closely matches the survey’s Data processor. * Computer analyst position is most comparable with survey’s junior analyst and programmer. * Both DP II’s and CA I’s at CCUA are underpaid compare to the market. * Both DP II’s and CA I’s at CCUA have $950 health and life insurance.

2. What specific action, if any, do you recommend be taken now? Be specific and justify your recommendations as fully as possible. * Conduct a wage survey: Who is the relevant labor market? What is the competition paying? What sources for market data? What benchmark jobs should be included? Get the survey done in the rural southwest area more in the locality where department is situated so that data is more comparable and find the other benefits of the survey companies. * Choose a pay policy and develop a pay structure: decrease the number of the employee and pay the higher salary. Or hire employee buy using less...
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