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    Compensation Structure: Kudler Foods

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    Given Kudler's new strategy, your team needs to create a compensation structure for the following six positions.
    Store Manager, Cashier, Stock Person, Speciality Department Worker, Department Manager and Bagger.
    Each member of the team should pick one to two positions to analyze. Each team member must analyze all six positions.
    For each position, the team members must do the following.
    a) Assess the value of the position using a job-based approach. The job based approach will assess the value that the specific position brings to the organization.

    b) Assess the value of the position using a person-based approach. The persn based approach will assess the cerain skill sets or competencies that a person will need in order to sccessfully hold the position. NOTE: For the person-based approach, you may use a skill-based analysis or a competency-based analysis. Also discuss why your team selected the approach used.

    In order to cmlete this job position analysis, you will need to research what other companies have done when conducting similar analyses.
    Evaluates bot approaches (job-based and person-based) and creates a compensation structure based on both approaches. In considering both approaches, what will the compensation structure look like for each position? Justify your recommendations with research.

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    Solution Preview

    The response addresses the queries posted in 3045 words with references.

    //For preparing the 'Compensation Structure', it is necessary to analyze the significance of the position in the Organization. This can be done by following job based approach. So here, I am focusing on the Job Design for Kudler Foods. Before moving further, it is essential know about the Kudler Foods. Below is the introduction of the Company://


    I have prepared a paper, which discusses about the compensation structure for six different positions at Kudler Foods including the Store Manager, Cashier, Stock Person, Specialty Department Worker, Department Manager and Bagger. For each of the position, firstly, the job-based approach has been used to assess the value of that position for the organization; after that the person-based approach has been used to assess the skills and competencies required for that position. And finally, the relevant compensation structure (that is best suited to that position) for the different positions has been given. Thus, the paper gives a detailed analysis of the six different positions by analyzing the job, skills and the relevant compensation structure.


    Kudler Fine Foods was founded in the year 1998 by Kathy Kudler. Located in San Diego metropolitan area, the company is an upscale specialty food store. The company is profitable, stable and successful and is located in three different locations I.e. Del Mar, La Jolla and Encinitas having an approximately 16,000 s.f. of retail space. In order to attract large number of customers, the stores of the company (stocked with best domestic and imported food stuffs) are located in the fashionable shopping centers. The stores of the company are divided in the following departments: Fresh Bakery and Pastry Department, Fresh Meat and Seafood department, Cheese's and Specialty Dairy Products, Condiments and Packaged Foods and Fresh produces (Kudler Fine Foods: Overview of Management, 2008).

    //Before moving further to the creation of compensation plan; it is essential to become familiar with the term 'compensation' as it would become easy to formulate structure. Here is the description of compensation: //


    The amount of cash (or money) received by the employees for performing the work or the task along with the several other types of benefits and services that organizations provide to their employees are termed as the compensation. Money in the form of wages and salary I.e. Gross pay comes under the direct compensation while the benefits such as life, accident and health insurance, pay for vacation or illness, the employer's contribution to retirement and payments for employee welfare as social security comes under the indirect compensation. There are various methods of providing compensation to employee, which includes wages and salary, commissions, piece-rate plan, bonuses, profit sharing payments, combination plan, sick pay, etc. (Mamoria & Gankar, 2002).

    // Now, as the meaning of compensation is quite clear, now I am providing you the significance of creating 'Compensation Structure' and the factors that should be kept in mind during its designing in the following manner://

    Compensation Structure

    It is extremely important to give a lot of consideration to the compensation structure of a company because it ultimately reflects that how are the employees valued by the organization. The compensation structure of any organization reflects the kind and amount of compensation received by the employees and the workers. It determines the mechanism and form for giving financial and non-financial rewards, fringe benefits, etc. To the employees with a view to motivate them for work. It means the pattern or the break-up of the salary paid to the employees in their respective organizations.

    For determining the compensation structure, generally, the following factors need to be taken into consideration: (Mamoria & Gankar, 2002)

     The organization's ability to pay

     Supply and demand of labor

     The prevailing market rate

     The cost of living

     Living wage

     Productivity

     Trade union's bargaining power

     Job requirements

     Managerial attitudes

     Psychological and sociological factors

     Levels of skills available in the market

    The compensation system should be performance based because it leads to a win-win situation. This way, the employees will try to perform better and give their best in order to improve their efficiency and therefore, effective performance will be promoted. (Prasad, 2008)

    //While creating the compensation structure, different is approaches are taken into consideration, based on the requirement of query; I am considering Job and Person -Based Approach. To develop greater clarity of the concept, I will be using these approaches separately for positions like Store Manager, Department Manager, Cashier and Stock Person in the following manner://

    Store Manager

    Job-Based Approach

    The store manager of Kudler Fine Food is responsible for performing various activities such as ...

    Solution Summary

    This response addresses the queries posed in 2882 Words, APA References.