Assignment #3 – Create a multi-tiered performance-based compensation system

Assignment #3 – Create a multi-tiered performance-based compensation system

This assignment relates to the following Course Learning Requirements: 

CLR12 — Compare employee compensation and benefits

Objective of this Assignment:  To compare and contrast, as well as apply a deliberate and clear approach to planning and adopting a competitive, transparent and effective performance-based compensation system.

For this assignment, read the following scenario:

You are the Divisional Lead of Human Resources at a large international mining firm with operations located throughout the world. The senior leadership team wants to move away from providing a 100% base salary plus benefits for manager-level positions and towards a performance-based compensation system. They cite a number of factors in their thinking, including the varying value of the dollar within different jurisdictions, the inability of some administrative staff to motivate themselves when on assignment at centres outside of Canada, and a disparity in what expatriates are paid relative to their host country.

Complete the following tasks:

You will need to research tiered performance-based compensation systems which outlines three levels of administration (managers, vice presidents, CEO). From your research:

  1. review how management tiers interact with one another relative to performance measurement and pay. Note that the concept of performance-based compensation systems (pay for performance) is a different concept than performance management systems. Performance-based pay may be used at times in performance management, but it has its own entity.
  2. review how performance should be established, including the formulation of goals and metrics on how performance will be monitored.
  3. explore how this structure is designed to motivate the team and improve performance.
  4. begin to think an argument for or against managers in different countries being paid in local currency vs. Canadian dollars.

The Assignment

Outline your plan for the creation of a performance-based compensation system by including:

  • how the three management tiers (managers, vice presidents, CEO) interact with one another relative to performance measurement and pay. You will explain the relationship between the tiers, levels, and positions. Note this addresses managers. The employee level is not included in the discussion. As well, note that the concept of performance-based compensation systems (pay for performance) is a different concept than performance management systems. Performance-based pay may be used at times in performance management, but it has its own entity.
  • what elements of compensation you will include and why (explore various types to demonstrate depth and breadth)
  • how each element will be administered. Discuss how performance should be established, including the formulation of goals and metrics on how performance will be monitored.
  • how specific elements in your new system will improve performance, including motivation, and organizational outcomes as an improvement to the current structure
  • your argument for or against managers in different countries being paid in local currency vs. Canadian dollars.

Notes:

  • You must design the program from the scenario provided above.  If there is information that you require that is not noted in the scenario, just make your own assumptions but ensure to note them in your assignment.
  • The assignment details should be captured in 3 – 4 pages (750 – 1000 words).  It will be marked out of 20 based on the rubric below. You will cite all your sources of information using APA formatting.  Remember, personal communications from a professional in the field count as a reference source.
  • Include a cover page with the course code and course name, the assignment number, the title of your assignment, your student ID, your name, the instructor’s name, and the date the assignment is created.
  • Ensure your first page has the title at the top of the page and the sections of your report have headings and subheadings to chunk your paper into sections for each of the topics you are writing about.
  • Font should be either Calibri or Arial, 11pt. Text must be double spaced.
  • You must cite all your sources of information using APA formatting.  Remember, personal communications from a professional in the field count as a reference source.
  • Create a separate reference page that lists all of your sources that you have cited in text

Assignment Grading Rubric (20%)

Criteria Excellent 80-100% Good 50-79% Requires Improvement <50% Points  
Assignment Quality The assignment content demonstrates an exceptional understanding of the  concepts and themes regarding the creation of a performance based compensation framework   The submission meets all of the assigned tasks:   inclusion of a 3 level performance based compensation structureexplanation of how each level applies to 3 layers of administrationan outline of how performance will be managed and how full performance will be measuredat least 5 individual or team performance metrics2 links to course content on how the structure will improve performance The assignment content demonstrates a good understanding of the concepts and themes regarding the creation of a performance based compensation framework     The submission meets most of the assigned tasks:   inclusion of a 3 level performance based compensation structureexplanation of how each level applies to 3 layers of administrationat least 3 individual or team performance metrics1 link to course content on how the structure will improve performance   The assignment content demonstrates some understanding of the concepts and themes regarding the creation of a performance based compensation framework       The submission meets some of the assigned tasks:   inclusion of a 3 level performance based compensation structureat least 1 individual or team performance metricno links to course content on how the structure will improve performance   /4
Comments        
Assignment Knowledge and Skills Demonstration       Clear, concise application of course content to demonstrate understanding of topic     All ideas are clearly developed, organized logically, and connected with effective transitions     Explores ideas, supports points fully using a balance of evidence, Uses effective reasoning to make useful distinctions   All relevant course and topic links are made Evidence of some application of course content to demonstrate understanding of topic   Some unified and coherent ideas are developed with effective transitions     Supports most ideas with effective examples, and/or references, and details, makes key distinctions   Most relevant course and topic links are made Lack of evidence or weakness in the application of course content to demonstrate understanding of topic   Develops and organizes ideas that are not necessarily connected.  Some ideas seem illogical and/or unrelated   Presents ideas in general terms, Most ideas are inconsistent/unsupported, and reasoning  is flawed or unclear   Some or no relevant course and topic links are made /12
Comments        
Assignment Structure Formatted as per assignment details   Structure and format enhances delivery of the information     Clear language is used which leads to easy readability   Correct grammar and spelling is consistently used   No issues with APA using citations or references Formatted as per assignment details in most components   Structure and format fits well with the delivery of the information   Mostly clear language is used  with minor readability issues   Few or no spelling and/or grammatical errors   Minor issues with APA citations or references Formatting has not been followed   Structure and format is unclear and impedes delivery of the information   Language used is often unclear which impedes readability   Many spelling and grammatical errors   Incorrect use of APA formatting for citations and references[1] /4
Comments        
Total Points       /20

[1] If there is evidence of plagiarism in which citations or references are missing altogether, this assignment will receive a grade of ‘0’ and the regulations of academic dishonesty will apply.