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Compensation Plan for Kudler Fine Foods

The recommendation of Kudler Food's compensation plan will include components of the following:

a) The job analysis using the job position and new job descriptions.
b) The job design which includes the job based and person based assessment.
c) A discussion on the competitive compensation rates in the market.
d) Performance evaluations at each level within the organization.

Prepare a response that discusses how the components of the recommended plan helps Kudler achieve its new strategy. Describe the message that a compensation strategy conveys to employees. Also recommend an administration approach for Kudler¡¦s Human Resource Functions. This discussion should include how the recommended compensation plan will be carried out and implemented within the Kudler Foods organization.

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The response addresses the queries posted in 3371 words with references.

// Designing a Compensation Plan for a Company involves studying various factors. It involves job analysis, job design, as well as studying various other aspects. Compensation Plan for Kudler Fine Foods would also involve studying various factors. In order to write such a compensation we have to give a succinct introduction wherein we introduce the topic. //


Kudler Fine Foods (KFF) in La Jolla is a gourmet fine food store. The company was founded by Kathy Kudler. The company is profitable, stable and successful. Heidi Wagner heads the Human Resource department. The major responsibility of HR is to align the administrative and human resource activities including employment, compensation, benefits and training and employee services. She needs to report to the president directly. It is found out that the company is not having an equitable salary compensation plan due to which the company may face difficulty in employee retention.

// Job Analysis involves analyzing various factors associated with the job like job description, job identification and job specification. We'll now discuss job analysis by giving a brief review of the process and its components.//

Job Analysis

Job analysis includes the determination of the tasks that comprise the job. This is done through observation and study. It will also include the work procedures, skills and attitudes required for the successful performance of the job. Job analysis will be done for a short period of time because jobs are always subject to changes. (Mamoria & Gankar, 2002)

Job position: Job position will specify the collection of tasks and duties regularly assigned to one person. Several persons may be classified under the same job but each may perform different work.

Job description: Job description involves the following information:
Identity of the job in terms of its title and code number.
The operations and tasks involved in the job including their timing, significance, complexity and sequence.
Location, physical setting, discomforts, supervision (given and received) and other significant characteristics of the job.
Duties involved in the job along with the frequency of occurrence of each duty.
Materials, methods and equipments used in performing the job.
How the job is performed, I.e., the nature of operations like clearing, handling, guiding, feeding, etc.
Relationship of the job with other jobs in the organization.
Human resource attributes required for performing the job, e.g., physical strength, education, mental skills, attributes, experience, training, etc.
Job description assists the compensation plan of the company in the following ways:

Grading and classification of the jobs.
Promotion and transfer of the employees.
Defining and outlining the career path of the employees.
Locating the faulty areas in work.
Measurement of work and areas of improvement in work.
Developing performance standards.
Job analysis plays a crucial role in the formulation of compensation strategy for an organization. Job analysis could be used for setting up the compensation packages, for reviewing the employees¡¦ performance with the standard level of performance, determining the training needs for employees who lack in certain skills.

A conceptual incorporation of job design and compensation draws on interdisciplinary job design, job evaluation, and labor economic theory. It is argued that the job design influences the number and level of skills required and the degree to which jobs are physically hazardous. Job evaluation links job design and market forces by analyzing jobs - compensable factors that reflect these requirements and then, relating them to the market through wage surveys across the firms.

// After giving a brief overview of Job Analysis, we would now describe the process of job design. Job Design is an integral part of the job analysis process. Here I have tried to give a brief description of the process. //

Job Design

Job Design attempts to match the job requirements with the capabilities of the jobholder. Job design decides the content of the job in terms of duties and responsibilities, methods to be used in carrying out the job in terms of systems and procedures and relationship among the jobholders with their superiors. Job design aids in structuring the operational and social aspect of the work so as to improve the efficiency of the organization and develop job satisfaction. Thus this job design sets organizational standards that are used in preparing compensation plan. Job design helps to assess both the job as well as the jobholders. The job that has a high propensity to intrinsically motivate employees is identified and the jobholders with strong growth needs and satisfaction are identified. This assessment helps to compensate those employees that fit into the job efficiently.

The company needs to ensure that the employees whose employment is turned out should be protected through fair compensation for their services. Kudler should be able to explain the termination of the employee.

// Above we have discussed the process of job analysis and its components, Moving ahead now we would be making a compensation plan for the Company. In order to write a compensation plan, first we would start with a brief description of the process.//

Compensation Plan

The key factor in the development of the human resource function is motivation. Determining efficient methods for employee motivation is quite essential and challenging for any manager, irrespective of the sector. The compensation system should be specific and narrowed down in ...