7-1 Final Project Submission Essay
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
OL 325: Final Project Guidelines and Rubric
Acting as a recently hired compensation consultant, you will assist the burgeoning online music firm e-sonic to develop an internally consistent and market-competitive compensation system that recognizes the achievements of individual contributors. The major portion of the project is divided into three milestones, which will build upon the previous milestone. The milestones are submitted in Modules Three, Five, and Six. The final version of the entire project will be due at the end of Module Seven.
Sample report outlines are included in the project text found in MyManagementLab. Each of the sections for this assignment will be submitted via Brightspace.
The project helps students to meet the following course outcomes:
- Students will gain an understanding of the evolution and administration of compensation and benefit programs for organizations
- Students will explore wage theory, principles and practices, unemployment security, worker income security, group insurance, disability insurance, and pension plans and how these compensation and benefit items are balanced to provide incentive and recruitment of a high-performance workforce
- The connection between the organization’s mission, objectives, policies, and the implementation and revision of their respective compensation and benefit systems will be analyzed to gain a deeper understanding of the importance of such systems to the organization’s overall human resource management
- At the conclusion of this course, students will be able to demonstrate the acquisition and application of theories and concepts that support the enhancement and proficiency in 7 primary competencies: strategic approach, research, teamwork, communication, analytical skills, problem solving, and legal and ethical practices
- Read the Building Strategic Compensation Project narrative linked in the course menu of the MyManagementLab home page. Note: Section 3: Recognition of Individual Achievements WILL NOT be included in the course project. In addition, you will not be using the Compensation Analysis Software shown as a resource in MyManagementlab. Instead, you will be using crowd sourced external competitive salary data from the websites listed below in the Milestone Three area.
Milestone One: Strategic Analysis
The development of a strategic analysis guides all decisions made regarding your compensation systems throughout the project. The strategic analysis reveals firm-specific challenges, objectives, and initiatives that allow you to align the goals of a compensation system effectively with those of the company strategy.
The strategic analysis allows you to better understand the external market challenges e-sonic faces in addition to its internal capabilities. As a consultant, a thorough understanding of e-sonic’s business environment allows you to better align your competitive system design with e-sonic’s goals, challenges, and objectives. Follow the outline below when completing this portion of the project.
The strategic analysis is fully described in the MyManagementLab Building Strategic Compensation Systems casebook for faculty and students, linked in the course menu in MyLab. Follow the explanations and outline to complete this milestone.
Strategic Analysis Outline:
- Executive Summary (Concisely conveys the project objectives and main findings. The executive summary is completed last, but included first in the strategic analysis.)
- Strategic Analysis
- Identification of e-sonic’s industry based on the North American Industry Classification System (NAICS)
- Analysis of e-sonic’s external market environment
- Industry Profile
- Foreign Demand
- Long-Term Industry Prospects
- Labor-Market Assessment
- Analysis of Internal Capabilities
- Functional Capabilities
- Human Resource Capabilities
Each section of the final project should be 5–7 pages in length. The Strategic Analysis section is due at the end of Module Three. It will be graded with the Milestone One Rubric.
Milestone Two: Section 1: Internally Consistent Job Structures
Section 1 introduces you to the specification of internally consistent job structures. Through writing job descriptions, the development of job structures, and both the development and implementation of a point evaluation method to quantify job differences objectively, you build the framework for internal equity.
In Section 1, you will focus on building an internally consistent compensation system. An internally consistent compensation system design will clearly define the relative value of each e-sonic sample job, creating a job hierarchy and an objective rationale for pay differences.
As an e-sonic consultant, you are offered a sample of e-sonic jobs in Section 1. Currently, e-sonic employs 100 people and will be hiring many more. However, for the purpose of this simulation, you are asked to work with the sample of four jobs offered (see Appendix 2 for sample jobs, located in the MyManagementLab
project tab). Limiting the number of jobs removes one level of complexity from the simulation and allows you to focus on learning the functions of compensation system design. The framework you develop classifying sample jobs can easily be adapted in the future to include all e-sonic positions.
Section 1 Outline:
- Create Job Descriptions
- Create Job Structures
- Build Point Evaluation Method
- Select benchmark jobs.
- Choose compensable factors based upon benchmark jobs.
- Define factor degree statements.
- Determine weights for each compensable factor.
- Calculate Point Values for e-Sonic Jobs
- Determine point value for each compensable factor.
- Use the job evaluation worksheet to calculate point values for each position.
- Distribute points for each compensable factor across degree statements.
- Rate jobs using point method.
- Individually rate jobs to ensure reliability.
- Resolve any discrepancies in point totals.
- Rank jobs in each job structure according to results of your point evaluation.
Each section of the final project should be 5–7 pages in length. Section 1: Internally Consistent Job Structures is due at the end of Module Five. It will be graded with the Milestone Two Rubric.
Milestone Three: Section 2: External Competitiveness
Section 2 shifts your focus outside the company to compare pay rates of positions inside the firm with similar positions in the external market place. The shift to outside the company will move you away from the previous focus on e-sonic’s internal consistency to external competitiveness. Conducting an analysis of external market data will support your decisions about appropriate pay-policy mixes for job structures in the company.
In section 2 of Milestone Three, you will be introduced to tools compensation professionals use to allocate total compensation within job structures. Total compensation includes base pay, benefits and varied incentives used to attract and retain employees. During the simulation you will use some of these tools to develop pay policies for each e-sonic job structure.
In order to conduct your external market survey you will use web-based salary sites developed by the US Bureau of Labor Statistics and Glassdoor.com. These websites develop salary pay ranges based off of actual pay data from professionals working in specific jobs and potentially represent the most current pay for the job titles at e-sonic. For your final project, you will follow the steps outlined below:
Section 2 Outline:
Executive Summary Findings
- Determine Appropriate Pay-Policy Levels for E-sonic Jobs
- External Market Review
- Research market competitiveness using the free salary websites listed above, which provide salary data by title and region.
- Research trends about cost of living adjustments in e-sonic locations. Apply some discussion around leading, lagging or matching the market to the salary data you found in your market salary research. We are assuming that the salary research you are using is similar to benchmark jobs. As such, you can also incorporate the discussion of whether jobs you researched would match the benchmark jobs or require more or less experience and talent than the benchmark job.
- Update salary data for inflation using CPI-U.
- Implementation of Salary Survey Results
- Create pay grades and ranges by integrating external market data with internal pay grades.
- Evaluate and summarize decisions made for each job structure.
Each section of the final project should be 5–7 pages in length. Section 2: External Marketplace is due at the end of Module Six. It will be graded with the Milestone Three Rubric.
The final project is due at the end of Module Seven. This version will include all revisions based on feedback from your instructor to the Executive Summary/Strategic Analysis, Section 1: Internally Consistent Job Structures, and Section 2: External Competitiveness. It should be prefaced with a 1–2-page historical perspective on compensation and close with a 1–2-page summary of how you used strategic approach, research, communication, analytical skills, and problem-solving to present a compensation package tailored for e-sonic. Each section of the final project should be 5–7 pages in length. This submission will be graded with the Final Project Rubric (below).
Final Project Rubric
Requirements of submission: Each section of the final project must follow these formatting guidelines: 5–7 pages per section, double spacing, 12-point Times New Roman font, one-inch margins, and discipline-appropriate citations.
7-1 Final Project Submission
Historical Perspective on Compensation
An effective employer provides a fair employee compensation as well as benefits package. Moreover, he or she respects their rights as humans and people working in an organization. Nevertheless, the approach to a pro-labor workplace was not always there since it has a history. In an attempt to establish a fair compensation package that attracts and keeps workers it is crucial that employers comprehend the history of contemporary compensation (Barcelona & Martocchio, 2015). It all began during the pre-industrialization period when people treated the home as well as the workplace as a single unit. In this regard, both men and women would share duties among themselves, but this got changed with the emergence of machines and plants. Indeed, the growth of industries led to the belief in stereotype gender roles as well as socio-economic status quo. The result was that men became the head in the middle class families while the women remained at home (Researched Works, n. d.). Poor families sent their members out to toil in separate areas for small families as well as benefits. Things changed with the emergence of the war when men came to the military and women got hired into male dominated jobs. However, they were not offered economic rights or protections. In effect, the prolonged working hours and no predetermined benefits led to protects and strikes by employees (Researched Works, n. d.). Unions were created with the goal of promoting workers’ rights, enhance decent employment chances, improve social protection, as well as safeguard dialogues and mutual understanding in catering for work-associated problems. A good example was the International Labor Organization (ILO) that encouraged tripartism with representatives emanating from state authorities, employer entities, and labor teams that took part in consultations to determine ideal labor policies and principles (Researched Works, n. d.). Indeed, through such unions and organizations, the modern approach of compensation emerged.
Approach Used to Present a Compensation Package
In developing a compensation package that was tailored for E-Sonic there was the application of strategic approach, study, communication, analytical capabilities, and problem-solving skills. The compensation packaged was founded on the rationale that the lack of experience in various posts including software development, market analytics, as well as online coordination among workers at Sonic Records could lead to the need to hire new personnel with talent in these areas or development of a training program for the present ones. In this case, a strategic approach was used to research in an attempt to get the average compensation for worker positions among competitors of E-Sonic. Furthermore, analytical skills and problem-solving abilities were applied to develop salaries that would be attractive to workers at E-Sonic. The benefits highlighted in the compensation package were based on reliable statistics as well. Communication skills were applied in the most effective way to be able to obtain relevant details regarding compensation across the industry. The compensation package had to be relayed to the relevant stakeholders and the executives of E-Sonic, which was through a presentation. A final report is to be presented with all the details of the package. Most importantly, the compensation package that was developed for E-Sonic was founded on the company’s needs to draw to itself and retail personnel with the desirable skills combinations. Indeed, the analysis of the industry led one to understand the variations in compensation packages that rendered some companies more competitive than others in their undertakings. In this regard, the compensation package ought to be reassessed in intervals of five years to make sure that it is able to meet the needs and anticipation of the stakeholders. The company would be evolving with the dynamics in the sector, thus the need to keep the compensation package in tandem with the changes.
The music record production and distribution industry has changed significantly over the years. The highest sales were attained in 1999 with a high of $14.6 billion. These sales were mainly from CD sales and cassette sales, with the two sources contributing 95.5% of the ales. Cassettes became obsolete and CD sales dropped to only 5.5% and digital sales dominate the $11.1 billion sales values for music records. These sales are generated from digital record sales which include subscription sales, on-demand streaming, ad-supported streaming, and downloads of singles and album sales. The interoperability between the different sources of revenues is essential because the sales change from the time the album or single is released. The largest music sales location remains to be the United States. Foreign countries where the music sales are high include Japan, France, UK, and Germany. E-sonic therefore needs to penetrate the markets through signing of artists from the prospective markets. Similarly, there is the strong need to engage in a robust campaign on branding and promotion to position the company favorable and deal with the competition that largely includes Spotify and Apple in the United States as well as Tencent and YouTube in different parts of the world. To succeed in the industry, the company requires talent in technical development and maintenance of the application and website. Most importantly the company will require to attract and retain highly skilled digital marketers to assist the company in the online branding campaign. A small but powerful team of marketers is necessary as the company needs to ensure that music does not leak before it is launched. The company will leverage its current experience in the signing of artists to join the brand. Strong growth of 8% in the industry provides key opportunities for the company.
Identification of E-Sonic’s Industry Based on the North American Industrial Classification System (NAICS)
E-sonic is a 512250 company in the NAICS system. NAICS code 512250 is for companies involved in record production and distribution. According to information on NAICS, the industry comprises establishments that are primarily engaged in record production as well as releasing, promoting, and distributing sound recordings to wholesalers, retailers, or directly to the public. The establishments under this categorization may enter into contracts with artists, finance the production of master recordings, and may even own the rights to the master recordings. From the master recordings the establishments generate their revenues by reproduction and sale of records, they may also sell the rights to reproduction of the recordings. At the same time the establishments may buy reproduction rights from other establishments in the industry.
There are various companies classified under NAICS code 512250. These include Sony Interactive Entrmt LLC, Warner Bros Records Inc, Rhapsody International Inc, and Fieldscope Records Inc among other establishments in the industry. While establishments like Amazon, Apple, and Spotify are not provided as examples in the list by NAICS, the companies are increasingly important players in the music recording and distribution industry (NAICS, 2017). Evidence indicates increased shift from the traditional purchase of physical records in CDs and cassettes to subscription business model in which the companies increasingly sell albums through online streaming platforms. There is evidence of a structural shift from physical records to streaming, this being considered as a key disruption to the record distribution business.
Analysis of E-Sonic’s External Market Environment
The all-time high in music sales was recorded in 1999 at $14.6 billion. The sales were dominated by CD format sales at 87.9% of the total sales. Cassette sales accounted for only 7.3% of the sales (U.S. Sales Database, 2020). The remaining 4.8% of the sales came from other formats. From 1999 the sale started declining especially for CD and cassette sales.
The decline in music record sales was caused by economic factors and technological changes. By 2004 digital sales including downloading services started taking root in the industry. The sale of albums was quickly replaced by singles. In 2005 paid subscriptions and on demand streaming of the music started taking over the industry. In 2019 the sales of CD records accounted for only 5.5% of the 11.1 billion sales in records. Download albums accounted for 3.6% of the sales while download singles accounted for only 3.7% of the sales (U.S. Sales Database, 2020). The elephant shares of the music record revenues came from paid subscription at 53.4% of the sales revenue. Ad-supported on-demand streaming accounted for 8.2% of revenues. In general, the industry is observed to be recording significant changes in how music is sold. Technological change is the main driver in the structural change of the music industry.
The competition in the music industry is currently dominated by Spotify. The company is followed by Apple Music then Tencent. Soundcloud, Audiomack, and YouTube are also key competitors in the digital music sales space. The competition in the industry is underscored by brand competitiveness. To start with, Spotify leads the market benefiting from the first-to-market principle. Since the company was the first to establish the subscription model in 2006, the company has had significant advantage in the market (NAICS, 2017). This is followed by Apple Music with the second largest market share in the United States. Apple’s success rides on brand recognition and brand loyalty. Apple music therefore rides on the share of Apple products in the smartphone industry. Tencent is most popular in China while Soundcloud and Audiomack are supported by the increased ease of production of music especially for mix albums from entertainers. For YouTube success is in ad-supported on-demand music with the service riding on the global use of Google products.
Companies that were traditional sellers of CDs and cassettes have been forced to enter into the space of music promotions through exclusive release of music on the popular music platforms. This includes companies like Sony Interactive Entrmt LLC, Warner Bros Records Inc, Rhapsody International Inc, and Fieldscope Records Inc (NAICS, 2017). The companies have to promote the artists ahead of music release. Care has to be considered to ensure that music albums do no leak before the official release data considering the firms generate the highest revenues on the first week of music release. In general, the competitive landscape has changed significantly and the companies have to find an edge either in branding or technology to ensure that there is success in the operations. Marketing therefore play a crucial role in positioning the brand favorably in the increasingly competitive market.
The United States is by far the largest consumer of music records globally. This is also reflected in the successful visibility of the US music industry in the world. Beyond the United States, the demand for music records is high in Japan, Germany, the UK, and France. The markets are ordered by the sales volumes and values (NAICS, 2017). The implications are that E-sonic would need to consider its wide presence in the highlighted foreign markets. Fortunately, the company has a well-established brand in the United States and digital sales of music records mean that the company would not be required to establish bases in the markets. The power of the internet means that the company would only engage in promotion, mostly online promotion and advertising with targeted ads, in the identified key markets for digital music sales. This would include promotion of its website and application solutions. Most importantly, the company may need to sign artists from each of the foreign markets. Where exclusive release on E-sonic is possible, the company should pursue the strategy as it helps in attracting high subscription and streaming of music from the digital platforms.
Long-term Industry Prospects
The industry for digital music sales is growing at a fast rate of 8% and this is expected to continue into the foreseeable future. The strong growth is increasingly attracting players who need to a share in the more than $11.1 billion pie (NAICS, 2017). The challenges with the industry include the large size of the dominant players including Spotify and Apple Music. There is the likelihood of increased consolidation of traditional music brands in order to establish online music outlets. The rationale is that the consumers are increasingly seeking to find all their music in a single platform without having to switch between different online music streaming and downloading platform to enjoy the music. The artists are also aware of the changing structure of the music industry and are therefore increasingly willing to work not just with traditionally big brands but brands that provide the opportunity for increased visibility especially on the digital music outlets. These changes are important because they point to the possible future direction of the increasingly drastic music industry.
The labor market is sharply aligned to the technological changes in the promotion of records. The shift to digital music sales means that promotion of music is increasingly about the marketing role. Digital marketing is taking root in the music industry, hence quickly replacing the studio and mass media promotion of music and the artists (NAICS, 2017). The need to have increasingly small but focused and well remunerated teams is more important in an environment where success is obtained by ensuring that the music albums do not leak before the official music release. Additionally, the roles are changing to the management of the artists to ensure loyalty to brands, an increasingly important role because the artists can actually release the music albums online without the need of a branding company. Case in point is the recent release of Beyoncé the album. These factors demonstrate the areas on which E-sonic should focus when seeking to recruit staff for the company.
Analysis of Internal Capabilities
Functional and Human Resource Capabilities
E-sonic has the benefit of knowing the music industry, at least from the perspective of the traditional record music sales. It has the experience in signing artists, managing music copyrights, and in understanding how the music sells from the release date onwards. Additionally, the company has the experience in the promotion of music through mass media platforms including radio and television experiences (NAICS, 2017). There is the experience of the company in managing music concerts and artist appearances. From this experience the company is considered to possess all the capabilities needed to manage the artist side experience in the music business. The challenge that the company faces is in the sale of the records to the consumers.
The company needs to acquire capabilities and competencies in digital record sales. The record sales include sale of downloaded music, subscriptions, and on-demand streaming of music through the online platforms. The company needs to acquire skills in app development, website development, and management of online sales of music. There is the need to understand the complex interactions in the various platforms on which the company can sell music and how to shift from one sales platform to another (NAICS, 2017). The rationale is that with time the records sales channel has to change, albeit quickly, in order to optimize the sales revenues from albums and single releases. In simple words, the business requires the skills in online sales of music.
The importance of understanding the internal capabilities of the company is knowing the talent that the company needs to acquire and how to ensure the retention of the talent through attractive compensation and remuneration schemes. Ideally, the company will require highly skilled digital marketers and promoters. This means that the talent must understand the changes that have occurred in the music industry and how the changes are impacted by both technology and changing demographics (NAICS, 2017). Additionally, the talent acquisition process must be alive to the projections about the future changes in the industry including changes affecting subscription music streaming and on-demand ad-supported music streaming. Acquiring talent that is already aware of the changes that have taken place in the industry is therefore important.
In conclusion, E-sonic faces a major competition from Spotify ad Apple Music in the United States. Across the world there are other competitors including Tencent and YouTube. The company however has a major opportunity because the industry is growing at a fast rate of 8% with the growth being sold by digital music sales. The digital sales are however different from the CD and cassette sales and require significant investment in marketing of the company on digital platforms. Exclusive releases of the music are also essential. Additionally, the company needs to manage how he music sales are adjusted with time to combine the power of subscription sales with on-demand ad-supported music sales. All these developments in the music industry require skilled personnel in marketing and promotion as well as digital skills to enable the company navigate the environment of changing technologies and changing consumption of music.
- Office Manager
The office manager is mandated with daily operations of the office through coordination of smooth running and effectiveness of the office.
- Monitoring the application, up keep, and operation of the office equipment
- Responding to phone calls, direct calls, and receives messages
- Maintaining filling, mailing, and database systems
- Role of maintaining the office budget
- Drafting timelines and overseeing administration of annual reviews
- High school diploma is needed
- The experience of handling an office environment
- Creative Director
The creative director plays the role in the creative process through encouragement of other people and safeguards the copy writers of all works (O*Net Online, 2015).
- Offers creative help, with response, to copy writers associated with advertising
- Management of all the copy writers
- Assists and encourages copy writers with concepts and presentations forwarded to management
- Creates schedules, assigns tasks, and coordinates the administration of annual reviews
- High school diploma is needed
- A degree in marketing field, advertising, or any other creative discipline
- Requires four years of experience in the field of technology or music production settings
- Director of Customer Service
The director of consumer service is mandated to supervise as well as coordinate all workers taking part in client service operations (O*Net Online, 2015). One also occasionally handles extreme challenging clients in the organization.
- Supervising all workers within the consumer service roles
- Offers workers with models of settling customer complaints
- Preparing timelines, allocating tasks, and coordinating the administration of annual reviews
- Creating and implementing policies, objectives, educational initiatives, and processes with the help of the board, organizational executives, support staff, and human resources officials
- Planning of sales promotion exercises while overseeing the practices and direction with other divisions of the organization
- High school diploma will be needed
- A degree in an associated business field or nine years of experience in consumer service sector
- A minimum of five years of experience in consumer service sector
- A minimum of four years of experience as a store manager or even a higher position with detailed education and training in matters of conflict resolution
- Efficient customer services skills
- Artist Relationship Manager
The artist relationship manager conducts the creation of novel associations with artists and production entities. He or she is also responsible for maintenance of the present artists as well as production firms (O*Net Online, 2015). The post is also mandated with the role of favorable negotiations of royalties for enrolled artists and production firms.
- Create and maintain reliable working associations with artists and production firms.
- Fostering the relationships while utilizing them to create and enhance novel ones
- Writing interesting and capturing press released regarding artists
- Developing as well as maintaining the company’s image and brand with artists and production firms
- Helping external bodies with the creation and actualization of communication mechanisms and information initiatives
- Reviewing and assessing promotions for compatibility with artists and production firms
- A high school diploma is needed
- A minimum of a four-year degree in business
- A minimum of five years of experience in creation of business in a technologically or musically-oriented setting
The next step after creating the job descriptions would be to establish the structures. The consulting team is responsible for deciding upon the kind and type of job structures to be classified (Martocchio, 2015). The table below shows an illustration of various jobs and their categories at E-Sonic.
Administrative Sales and Marketing Development Consumer Service Executive Assistant Marketing Director Director of Software Development Director of Consumer Service Administrative Assistant Creative Director Software Project Manager Customer Service Manager Office Manager Copy Writer Software Engineer Customer Service Agent I Artist Relationship Manager Market Research Analyst Software Testing Customer Service Agent II
Point Evaluation Method
The point method refers to a job-content assessment approach that utilizes a quantitative mechanism. In this regard, the quantitative methods tend to assign figure to compensable elements that define jobs (Martocchio, 2015). The values are then totaled as an indication of the general value for a job. Upon doing this, the relative value of the jobs is created by ranking their general total numerical value (Martocchio, 2015). The steps involved in this include the selection of benchmark jobs, choosing compensable elements on the basis of benchmark jobs, definition of the factor degree statements, and identification of the weight of each compensable aspect.
Compensable Factor Degree Statements Weights in Percentages Administrative and Management Knowledge 1st Degree: Handle reports and records appropriately
2nd Degree: Deal with all the administrative and management duties well
3rd Degree: Handle new entrants and recruitments
4th Degree: Be able to review all financial statements and records
5th Degree: Prepare annual reviews
30% Computer Software Application Knowledge and Skill 1st Degree: Understand general computer software
2nd Degree: Be able to use the computer software
3rd Degree: Make recommendations for software improvement
4th Degree: Get involved in actual implementation of software
5th Degree: Provide annual reviews
15% Writing and Attention to Detail Knowledge and Skills 1st Degree: Write simple phrases and sentences
2nd Degree: Draft compound and complex statements
3rd Degree: Draft reports and essays
4th Degree: Create business letters, summaries, and reports
5th Degree: Draft speeches and press releases
15% Oral and Written Skills 1st Degree: Communicate using simple language
2nd Degree: Comprehend and interpret complex statements
3rd Degree: Create reports in writing
4th Degree: Develop business letters and make presentations
5th Degree: Communicate in board meetings
25% Time Management Skills 1st Degree: Manage time effectively
2nd Degree: Create timelines of own tasks
3rd Degree: Develop schedules for others
4th Degree: Conduct time analysis against tasks
5th Degree: Offer recommendations on timelines
Sales and Marketing
Compensable Factors Degree Statements Weights in Percentages Marketing and Sales Knowledge 1st Degree: Knowledge about marketing and sales
2nd Degree: Able to comprehend marketing plans
3rd Degree: Can draft marketing campaigns
4th Degree: Can understand sales analysis
30% Knowledge about Society 1st Degree: Understand the target society
2nd Degree: Knows about complex values of the society
3rd Degree: Can provide recommendations regarding the society
4th Degree: Can understand the tastes and preferences of clients
5th Degree: Can review societal reports
15% Critical Thinking Skills 1st Degree: Can create ideas
2nd Degree: Can work in teams to come up with innovative concepts
3rd Degree: Can implement creative ideas
4th Degree: One understands how to solve complex issues
5th Degree: One can apply critical analysis to find solutions
15% Communication and Media Association Skills 1st Degree: Able to communicate and relay information effectively
2nd Degree: Can easily read and interpret media information
3rd Degree: Can create promos
4th Degree: Can easily relate to media personnel
5th Degree: Can communicate through media
25% Oral and Written Statement Capabilities 1st Degree: Able to communicate orally and through writing
2nd Degree: Can read and interpret written statements
3rd Degree: Can speak confidently in public
4th Degree: Can write press releases
5th Degree: Able to relay team reports
Compensable Factors Degree Statements Weights in Percentage Engineering Knowledge 1st Degree: Able to engage in engineering thoughts
2nd Degree: Has knowledge in technology
3rd Degree: Applies technological concepts into real issues
4th Degree: Able to articulate engineering development into processes
5th Degree: Can develop software
30% Decision Making Skills 1st Degree: Can engage in general decision making
2nd Degree: Can present reliable alternatives
3rd Degree: Able to engage in collaborative decision making
4th Degree: Can easily persuade others
5th Degree: Can articulate decisions into action
15% Design Knowledge 1st Degree: Can understand design
2nd Degree: Can analyze design into parts
3rd Degree: Can create design
4th Degree: Can implement design into processes
5th Design: Can train others on design
15% Critical Thinking Skills 1st Degree: One applies cognitive thinking
2nd Degree: One is able to think critically to find solutions
3rd Degree: One is able to select the best among alternatives
4th Degree: One provide solutions to complex issues
5th Degree: One can challenge ideas
25% Oral and Written Expression Abilities 1st Degree: Able to relay information
2nd Degree: Able to persuade others
3rd Degree: Able to read and write complex statements
4th Degree: Capable to expressing through oral communication
5th Degree: Can create complex reports
Compensable Factors Degree Statements Weights in Percentages Customer Service Knowledge 1st Degree: Able to understand consumers
2nd Degree: Associates with customers well
3rd Degree: Provides convincing information to clients
4th Degree: Understands customer complexities
5th Degree: Resolves consumer matters
30% Computer Skills 1st Degree: Able to use a computer
2nd Degree: Can analyze consumer data on computer
3rd Degree: Can act with speed and efficiency
4th Degree: Can use complex computer software
5th Degree: Can easily help customers understand data
15% Critical Thinking Skills 1st Degree: One can think critically about consumer problems
2nd Degree: Can develop complex solutions
3rd Degree: Can reason together with customers
4th Degree: Can use available solutions
5th Degree: One can develop new remedies
15% Problem Solving Skills 1st Degree: One understand problem solving
2nd Degree: One finds solutions from options
3rd Degree: One engages in teams effectively
4th Degree: One can implement solutions
5th Degree: One can report issues
25% Oral and Written Communication Skills 1st Degree: One communicates orally and in writing about clients
2nd Degree: One communicates with customers effectively
3rd Degree: Able to interpret complex statements
4th Degree: Able to communicate solutions
5th Degree: Able to settle conflicts effectively
Calculating Point Values for E-Sonic Jobs
Administrative Job Structure
Compensable Factor Total Degree 1 2 3 4 5 Administrative and Management Knowledge 85 170 255 340 425 170 Computer Software Application Knowledge and Skill 35 70 105 140 175 345 Writing and Attention to Detail Knowledge and Skills 35 70 105 140 175 275 Oral and Written Skills 60 120 180 240 300 350 Time Management Skills 35 70 105 140 175 275
Total Points for Administrative Job Structure: 170+175+105+180+105 = 630
Sales and Marketing
Compensable Factor Total Degree 1 2 3 4 5 Marketing and Sales Knowledge 85 170 255 340 425 85 Knowledge about Society 35 70 105 140 175 155 Critical Thinking Skills 35 70 105 140 175 155 Communication and Media Association Skills 60 120 180 240 300 205 Oral and Written Statement Capabilities 35 70 105 140 175 190
Total Points for Sales and Marketing Job Structure: 85+70+70+120+105 = 450
Compensable Factor Total Degree 1 2 3 4 5 Engineering Knowledge 85 170 255 340 425 255 Decision Making Skills 35 70 105 140 175 290 Design Knowledge 35 70 105 140 175 290 Critical Thinking Skills 60 120 180 240 300 375 Oral and Written Statement Capabilities 35 70 105 140 175 430
Total Points for Development Job Structure: 255+35+35+120+175 = 620
Compensable Factor Total Degree 1 2 3 4 5 Customer Service Knowledge 85 170 255 340 425 85 Computer Skills 35 70 105 140 175 120 Critical Thinking Skills 35 70 105 140 175 120 Critical Thinking Skills 60 120 180 240 300 205 Oral and Written Statement Capabilities 35 70 105 140 175 155
Total Points for Customer Service Job Structure: 85+35+35+120+70 = 345
Appropriate Pay-Policy Levels for E-sonic Jobs
Various roles were identified in the previous submission. The roles include office manager, creative director, director of customer service, and artist relationship manager. For each of the roles, this section presents salary data from various sources of data from the US Bureau of Labor Statistics and Glassdoor.
The policy of E-sonic should be lead the competition in compensation of the employees in the roles above. Since the industry is characterized by stiff competition, obtaining the best skill would require leading the competition in the compensation package offered to the employees for the roles. The median salaries in the industry act as a guide in the design of the policy.
External Market Review
Data indicates that the role of an office manager attracts a median salary of $34,040, which is specific to the general office manager. According to the US Bureau of Labor Statistics, the role of general office manager involves clerical tasks like answering telephones, documentation, and filing. The office manager only requires a high school diploma. However, the salary may range to about $49,000 on the higher side and $25,000 on the lower side.
The role of the creative director was considered similar to arts director. Specifically, it involved the sound recording artists. Evidence demonstrates that the median salary range is $94,220 with a range between $88,000 and $135,000 (BLS, 2020). The minimum requirements for the role is a bachelor’s degree with experience being a major factor in determining the salary offered for the role. On the other hand, the role of a director of customer service is majorly occupied by a marketing manager to differentiate it from the customer representative. A customer representative attracts a salary of $34,710 as the median salary (BLS, 2020). The requirement for this role is a high school diploma. However, considering that E-sonic requires a skilled manager for this function owing to the developments in the sound recording industry, it was determined that the best comparison would be with the marketing manager. A marketing manager in the sound recording industry earns a median salary of $135,900 (BLS, 2020). However, it can range between $85,000 and $150,000 (BLS, 2020). The high median income demonstrates the importance of the role in the industry. Similarly, it reveals the factors that must be assessed during recruitment. Academic qualifications and particular experiences in the industry will be very important considerations when seeking talent for the director of customer service and E-sonic.
The last role in the analysis is artist relationship manager. The artist relationship manager is similar to the agency role for artists. The artist relationship manager attracts a median income of $88,060. The range of the salary is $91,120 to $108,010 in the highest paying locations in the United States, specifically in New York and Washington among a few other states (BLS, 2020). The data is important in demonstrating the salary range that the company would be considering in order to attract the best talent to the role.
Understanding the high importance accorded to the roles in the case of E-sonic is vital. The company is dealing with an increasingly complex marketing environment in the sale of music records. The environment is characterized by the need to understand current trends in the industry, including the important function that the Internet plays in the way the sale of music records is conducted. For instance, the companies in the sector understand that multichannel promotion of music and that the promotions and sales of music are time barred or limited (Hull Hutchison & Strasser, 2011). For instance, majority of the sales take place within the first week. With Internet sales, this comes down to with in the first few hours of release. The factor creates the need for the organization to understand that marketing before the a single or album is released makes a huge difference in the success of the sound in the market.
Given the knowledge above, the company will be seeking to recruit the most qualified, skilled, and experienced talent. To attract such talent, the firm needs to offer the most competitive compensation package (Bratton & Gold, 2017). This includes salaries that are at least within the median salaries recorded by the market in the roles. The vitality of offering competitive compensation and remuneration package is to ensure that the firm can attract the right talent, including poaching expertise from competing firms.
The salaries offered to the various roles will depend on the necessity of the role in the strategic focus of E-sonic. A role like that of the office manager may not have significant strategic impact for the firm. However, the functions of creative director and director of customer relationship are central to the success of the firm. The company requires highly skilled creative director, probably one who has worked in the industry and has wealth of experience. For such a role, the management would require to offer a salary above the median in the industry. Similarly, the role of the director of customer relationship is central to the success of E-sonic. Apart from qualifications and skills, a person who has wealth of experience in the current trends of the sound recording industry will be important for this post. It must be filled by the most qualified marketing manager and to attract such, the organization may need to poach the talent from competition (Spilker, 2017). Some of the strategies that can be adopted include offering a highly competitive salary, remuneration, and compensation package.
The firm does not just need to use salaries and wages to attract talent. Compensation and remuneration include other instruments such as bonus and shares or part ownership in the company (Spilker, 2017). Such instruments are necessary, especially in directorship. Study of data from Glassdoor indicates that bonuses and shares are important in compensation packages offered to the managers especially those charged with roles that significantly influence the strategic direction of the firm.
Overall, the median salaries recorded herein are simply benchmarks in setting pay grades and ranges for the roles described. The benchmarks are consistent with the job descriptions that the company developed as befitting the roles. The implications are that attracting talent with the exact skills described in the benchmarks would fulfil the minimum requirements for the roles. However, the organization is not just interested in satisfying the minimum requirements. Rather, E-sonic needs highly competent skill for the roles considering the very important function that the team will be playing in positioning the company strategically for success in the sound recording industry. The implications are that the median salaries recorded in the industry will simply be the minimum that the company should be expecting to offer for the best talent. The maximum salaries for the roles may be used to determine when the organization has fairly priced the salary and wages for the roles (Spilker, 2017). The idea is to use the salary as one of the points of attracting competitive skill for the roles. Therefore, the firm will be offering slightly higher salary packages for the four roles in this discussion with caution being considered to ensure that the salary does not exceed the maximum offered in the industry.
The inflation rate in the United States as measured by the consumer price index was recorded at 0.1% in May of 2020. In April, the rate was at 0.3% and in March it was at 1.5% (Federal Reserve Bank, 2020). In February the rate was recorded at 2.3% and January it was at 2.5%. The Fed’s target inflation rate remains at 2% (Federal Reserve Bank, 2020). Effectively, the current state in the economic is one characterized by falling inflation, meaning that the prices of goods and services are not rising as first as they rose in January. The rate of inflation is an indication of falling consumption rates, which by extension means less demand even for services like music sales. On the other hand, there is the rising rate of unemployment which was recorded at 13.3% in May 2020, compared to a lower rate of less than 4% for February 2020 (Federal Reserve Bank, 2020). Such trends in CPI and unemployment are as a result of COVID-19 and they have significant implications in the setting of the salary ranges for the roles herein identified.
The organization may set salary ranges within the currently prevailing ranges as introduced and described in the sections above. At least in the short-term, it would not be expected for the salaries to increase significantly. However, in the long-term, E-sonic would anticipate that the salaries and wages would grow by the targeted rate of inflation at 2% per annum. The figure is consistent with the target of the Fed for the inflation rate (Federal Reserve Bank, 2020). The rationale is that the Fed will likely implement measures to help raise the rate of inflation in the economy to avert possible economic recession and depression that would come with low inflation rate as recorded in the month of May. Therefore, consistent with these expectations, the salary ranges should be set to demonstrate the range within which the roles would be offered acceptable pay.
When the salaries are two percent higher, the median salary for office manager is recorded at $34,720. Furthermore, the median salary for creative director rises to $96,104 while the median salary for director of customer service rises to $138,618. The figure for the artist relationship manager would rise to $89,821. These median salaries can then be considered as the minimum salaries that the company will be offering the employees in the various roles. Ensuring that the salaries are adjusted for inflation is considered highly important since the employees are protected from the changes in the economy with respect to inflation.
Implementing Salary Survey Results
Having considered the external data on salaries for the roles for which E-sonic seeks to recruit, the following salary ranges should be introduced. The salaries are consistent with the job structures of the company and the interest of the firm in recruiting the most talented skill for the roles. Additionally, the analysis considered the impact of the various roles on the strategic positioning of the firm in the industry.
Median Salary Salary Range Office Manager $34,720 $30,000 to $49,000 Creative Director $96,104 $90,000 to $110,000 Director of Customer Service $138,618 $120,000 to $150,000 Artist Relationship Manager $89,821 $85,000 to $105,000
The lowest salary is for the office manager because the holder of this role provides administrative support with no involvement in decision making about the strategic positioning of the firm. Nonetheless, the salary guide is provided to give a higher offer for the motivated office manager. For the rest of the roles in the analysis, it is considered that the holders will have significant impact in the strategic positioning of the firm. Holders of these offices are required to be highly qualified. For instance, the holder of the director of customer service role attracts the highest income because as the marketing manager, the function is anticipated to be a high octane roll. The manager will be responsible of ensuring the success of the sound tracks sold by E-sonic in the market. It is vital considering the fact that the music industry is a fast paced industry. The holders of these offices will be evaluated and remunerated further based on performance. This is critical when considering the salary package that is offered to the roles.
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