Reference no: EM131049604
AL HOSANI INFORMATION SYSTEM COMPANY
Exercise 6: Developing Salary Structure Using the Points Method in Evaluating Jobs
Step 1: Select key jobs: (The key jobs have already been selected for you. These jobs are important for wage-setting purposes and are widely known in the labor market. Please refer to the slides)
Step 2: Decide on the compensable factors
Step 3: Develop the Points Manual
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Compensable Factors
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Weight (%)
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1st Degree
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2nd Degree
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3rd Degree
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4th Degree
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Qualification
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Certificate
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Diploma
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Bachelor
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Master
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Responsibility
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Low
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Average
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High
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Experience
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<1 year
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1-3 years
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3-5 years
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>5 years
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Job Condition
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Good
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Poor
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Step 4: Use the Points Manual to evaluate the key jobs by reviewing job descriptions and job specification
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Key Jobs
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Qualification
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Responsibility
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Experience
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Job Condition
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Total Points
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Computer Technician
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Certificate =
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Low =
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1-3 years =
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Poor =
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Programmer
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Diploma =
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Low =
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3-5 years =
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Poor =
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Network Engineer
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Bachelor =
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Average =
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3-5 years =
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Poor =
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Systems Engineer
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Project Manager
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General Manager
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The following table shows the result of a job evaluation (using the Points Method) and salary survey carried out for a computer systems company.
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Key Job
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Job Evaluation
Points
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Current Salary
Per Month (AED)
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Salary Survey (Per Month) (AED)
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Lowest
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Median
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Highest
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Computer Technician
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10000
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6000
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12000
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14000
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Programmer
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15000
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12000
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15000
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18000
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Network Engineer
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16000
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14000
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16000
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20000
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Systems Integrator
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20000
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18000
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21000
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24000
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Project Manager
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26000
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20000
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25000
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28000
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General Manager
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35000
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28000
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35000
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40000
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Step 5: Draw the Salary Curves
Since the company wants to be the employer-of-choice in the industry, they want to be the pay leader.
Use the graph below to draw (and label accordingly) the three salary curves: (i) current, (ii) market (highest in the salary survey), and (iii) your recommendation.
Step 6: Decide the Salary Grades and Pay Range
The company decides to have 4 salary grades. Re-draw the final salary curve and show the four grades and the pay range for each pay grade below.
Complete the following information on the Salary Structure based the above graphical representation.
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Grade
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Points
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Pay Range
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I
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II
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III
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IV
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