CASE STUDY

Case Study

Case Study: Appletree Housing Association

Introduction

In this paper the focus would be on Case Study: Appletree Housing Association where there is huge fluctuation in pay structure of employees i.e. there is no standard for remuneration. This paper will recommend suitable remuneration policy and structures at Appletree Housing Association that are based on a critical evaluation of the current situation of this company. Beside this, there would be a strong justification for the recommended policy and also acting as group of union representatives for another student group putting forward proposals for Appletree.

Discussion

Recommendations for a Suitable Remuneration Policy and Structures

Remuneration policy refers as compensation policies in which payment plan of company has been defined. This policy state the basic salary that employee will get along with the additional benefits. These benefits includes annual bonuses, overseas trips, allowance depending on the post and designations (Gerhart, Rynes, 2012, p. 117).

Considering the Appletree Housing Association, currently there is no appropriate remuneration structure. This should be noted that employee are only motivated with reward i.e. they should have reward system. Evaluation of work / jobs is an important concept at this point due to compensable factors. Reimbursable factors are measurable quality characteristics of the claimant or structural components that are common to many different work / jobs. Because these factors are not usually identifiable activities in the work / job specific observable behaviours or measurable results, they constructed synthetically. Synthetically in this context means that these factors is the composition or combination of qualities, properties or requirements of work / office, which, taken together, form a kind of coherent whole (Upadhyay, 2012, p. 269).

The following Remuneration Policy and Structures has been designed for Appletree Housing Association.

Level 1: Board of Directors

Step

Salary

Per Hr

1

100,000

500

2

105,000

525

3

110,250

551

4

115,763

579

5

121,551

608

Level 2: Senior Managers

Step

Salary

Per Hr

1

50,000

250

2

52,500

263

3

55,125

276

4

57,881

289

5

60,775

304

Level 3: Managers

Step

Salary

Per Hr

1

30,000

150

2

31,500

158

3

33,075

165

4

34,729

174

5

36,465

182

Level 4: Senior Executive

Step

Salary

Per Hr

1

20,000

100

2

21,000

105

3

22,050

110

4

23,153

116

5

24,310

122

Level 5: Executive

Step

Salary

Per Hr

1

15,000

75

2

15,750

79

3

16,538

83

4

17,364

87

5

18,233

91

These level has been based on designations such as level 1 defines Board of directors, level 2 defines Senior Managers, level 3 is for Managers, level 4 is for Senior Executive and last level is for Executive. These level has been further divided into sub-level. The difference is that each increase in post will be increased in their package via 5%. Above mention pay scale is just for the gross salary (Heneman, 2012, p. 200).

Level 1: These remuneration would be for people that are for Board of Directors. Salary range from 100,000 to 121, 000. Beside this, they would offer additional benefit as well such as bonus which will be based on their targets, holiday's packages, mobile allowance, car along with the driver and fuel.

Level 2: The indication point would for people that are looking entire operation and ...