Compensation Study

Running head: OFFICE FURNITURE PROS

Office Furniture Pros

Lauren A. Beckett

Gary Denbigh

Phillip A. Heimbecker

Saint Leo University

HRA 562

Dr. Jean Gordon

June 22, 2008

Table of Contents

Overview of Office Furniture Pros 3

Organizational Chart 4

Job Analysis for Cost Accountant (Exempt) 5

Job Description for Cost Accountant 7

Job Analysis for Woodworker (Non Exempt) 9

Job Description for Woodworker 11

Summary Report (Cost Accountant) 14

Summary Report (Woodworker) 15

Job Evaluations 16

Performance Appraisals 17

Performance Appraisal Chart (Cost Accountant) 18

Perofrmance Appraisal Chart (Woodworker) 19

Market Increase and Pay Line 20

References 21

Office Furniture Pros

Overview of Office Furniture Pros

The organization is experiencing a turnover rate of 75% in their hourly workforce. The organization is a heavy industrial manufacturer of office furniture. They have 2 shifts. The first shift works 5, 8 hour days with the 2nd shift working 4, 10 hour days. The day shift will normally work their overtime on Saturday where the 2nd shift will work theirs on Fridays. The first shift works from 6:30 am to 3 pm with a 30 minute break for lunch. The 2nd shift works from 3 pm to 2 am with two 15 minute breaks and a 30 minute lunch. The hourly wage for shop employees is $8.50 per hour. The 2nd shift receives a shift premium of .35 per hour more. The wages have not been adjusted for several years, nor has a salary review been completed. Job descriptions have been completed, but have not been reviewed for 5 years. The organizational philosophy is to lag the market. The margin on their products is fairly small averaging approximately 11вЂ"15 % over production costs. The company is growing and trying to figure out what can be done to decrease turnover and increase their recruiting efforts. Due to demand for their product, they expect to increase the hourly headcount by 30 additional employees over the next 90 days.

Org Chart for Office Furniture Pros

Job Analysis for Cost Accountant

A job analysis was recently conducted to identify the required KSA’s and appropriate pay scales for the position of Cost Accountant within the accounting department of the Office Furniture Pros Company. The analysis consists of employee interviews, questionnaires, organizational charts resulting in the final output of a job description. This analysis identified the need for candidates with further education in the accounting field as well as appropriate certifications and computer experience. Work experience will be valued highly as this position will have under it two subordinates.

Previous employees in the cost accountant position were asked to provide a diagram of their position in relation to the overall picture of the company.

Immediate Supervisor VP of Finance Brian Jenkins

Your Position Cost Accountant Sam George

Your Subordinates Accountant I Karen Johnson

Brian Allen

The position of Cost Accountant reports directly to the VP of finance at Office Furniture Pros and currently has two subordinates in the Accountant I position to assist with the company’s accounting procedures. Interviews have revealed that this position must be able to collect and interpret cost data, provide reports and increase efficiency in spending.

In order to establish the responsibilities of the position a responsibility identification form was circulated throughout the accounting department. The results are as follows:

Department: Accounting Employee’s Name: Sam George

Job Title: Cost Accountant Date: May 22, 2008

Responsibility Identification Form

Rank Order What is Done? To What is it Done?

1 Analyze, collect, interpret Cost and spending data

report

2 Supervise, evaluate, interviewing Subordinates and new hires

Training

3 Reasoning, solving practical problems with

limited standardization

4 Read, understand, interpret business periodicals

journals, regulations

From this basic form the body of the job description begins to take shape. It is easy to see what some of the responsibilities and expectations are for the position after reviewing the reports of current and previous employees.

In order to determine job value and pay-scale among other positions at Office Furniture Pros it was necessary to perform a Factor Evaluation System table assigning a point system to the necessary responsibilities of the job:

Factor Points Percentage Levels Points/Level

Knowledge required 1,250 .53 7 1,250

Supervisory Controls 450 .19 4 450

Guidelines 275 .12