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Review the SHRM case, “Designing a Pay Structure.”
You will prepare the SHRM case analysis on “Designing a Pay Structure,” which consists of your completion of
Tasks A–J that simulate the creation of a compensation system for an organization in meeting its goals and
supporting its mission. In your analysis, respond to the following tasks found in the case study by using Excel.
Your case analysis should consist of:

A: Create a complete job description for the benefits manager position using O*NET.

Task B: Calculate the job evaluation points for the administrative assistant, payroll assistant, operational
analyst, and benefits manager jobs. Provide a rationale for assigning specific degrees to the various jobs.
Task C: If there were any outliers (i.e., extreme data points) in the data, what would you recommend doing with
them? From this point forward, assume no extreme data points exist in the dataset.
Task D: Conduct a simple regression in Excel to create a market pay line by entering the job evaluation points
(on the X axis) and the respective weighted average market base pay (on the Y axis) for each benchmark job.
Task E: What is your R squared (variance explained)? Is it sufficient to proceed?
Task F: Calculate the predicted base pay for each benchmark job.
Task G: Because your company wants to lead in base pay by 3%, adjust the predicted pay rates to determine
the base pay rate you will offer for each benchmark job.
Task H: Create pay grades by combining any benchmark jobs that are substantially comparable for pay
purposes. Clearly label your pay grades and explain why you combined any benchmark jobs to form a grade.
Task I: Use your answer to Task H to determine the pay range (i.e., minimum and maximum) for each pay
grade.
Task J: Given the pay structure you have generated, consider the following: Does this pay structure make good
business sense? Do you think it is consistent with the organization’s business strategy? What are the
implications of this pay structure for other HR systems, such as retention and recruiting?
Your analysis of this case and your written submission should reflect an understanding of the critical issues of
the case, integrating the material covered in the text, and present concise and well-reasoned justifications for
the stance that you take. You are to complete this case analysis using Excel in a spreadsheet analysis format.
You may discuss your case analysis assignment with the class, but you must submit your own original work.
Case analysis tips: Avoid common errors in case analyses, such as:
Focusing too heavily on minor issues.

Sample Solution

incited Saudi Arabia and other countries such as UAE, Senegal, Sudan, Morocco, and Qatar, to bomb-strike with the hopes of Hadi regaining power and stability being renewed to Bab el-Mandeb. There have been many strikes since on both sides. At one point, Saudi Arabia tightened its blockade of Yemen even further due to a ballistic missile being fired with the intent of hitting Riyadh (Yemen Crisis). This blockade has ruined Yemen’s economy. Saudi Arabia has taken over the Yemen Central Bank, engineered a currency crisis, collapsed purchasing power, left ¾ of the Yemeni population with little to no food or healthcare, and in the process of bombing have contributed to over 56,000 civilian deaths since 2016 (Mohamed). Yemen is not the only political climate inciting volatility in Saudi Arabia’s oil market. After the brutal kidnapping and dismemberment of highly connected Washington Post writer, Jamal Khashoggi, within the Saudi Consulate in Istanbul, it has become obvious that Saudi Arabia, Turkey, and the United States are playing a game of political poker and using oil as the cash-out. President Erdogan of Turkey has been in power for 15 years. In this time period he has managed to gain control of nearly all Turkish news and media; Erdogan is not above promoting his own personal agenda through these means. Just as news broke of Khashoggi’s murder, Turkish officials and the news outlets controlled by them alerted the world that they had possession of audio recordings of Khashoggi’s death. Turkey then attempted to use their possession of these recordings as a direct threat to Saudi Arabia; this kind of pressure was put in place on Saudi Arabia and the United States in order to have the outcome turn to be in Turkey and/or President Erdogan’s favor (Gall).>

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