Reference no: EM133163927

• Define the required behaviour your client needs from its employees and the role compensation will play in getting that behaviour (Note: this is a key first step in formulating the compensation strategy).

Your discussion should include specific reference to:

• Key employee behaviours (i.e., task, membership, citizenship)
• Explain what the role of compensation will be at Kapote (i.e., list/identify the key points) in producing these behaviours identified.
  TIP: For this section I recommended you reference the "Role of Compensation and Intrinsic/Extrinsic Rewards in Producing Behaviour for Different Organizations" (Table 6.1). If using this table, set it up as shown in the textbook and put it in the appendix of your report (this will help keep your work organized). Remember to explain your rationale in the body of your report.
• Determine the Compensation Mix 
  • What role will be played by base pay, performance pay and indirect pay?
  • How will each component be structured? (i.e., what will be the foundation for base pay? - which do you recommend job evaluation, market pricing, or pay for knowledge)
  • What will performance pay be linked to? Group, organizational or individual performance?
• Define Compensation Levels 
  Identify the percentage of base pay, performance pay and indirect pay for each of the existing positions at Kapote: Owner/General Manager, Office Manager, Administrative Assistant, Bookkeeper, Craftsperson, Head Artisans and Sewing Machine Operators.
  • Support your recommendations (example: if you are recommending 60% base pay, 15% performance pay and 25% indirect pay... be specific as what will the performance pay be tied to... 10% gain sharing and 5% goal sharing). You will need to explain the "why."