Management Assignment: Applying a Compensation Strategy Presentation

Compensation Strategy Application
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Your Institution of Affiliation
March 5, 2018
Introduction: AEY is a start-up company that creates Android games for the consumption of the general masses. As of today, it only has a total of 10 members including executives and employees. It has 1 CEO, 2 managers working on two different market segments (game development and other areas – marketing, accounting, etc.), 4 developers, 1 accountant, and 1 marketing specialist. It’s primary source of revenue comes from in-game advertisements, in-game purchases, and consultancy services (for other development companies). It’s mission is simply laid out as “To develop an interactive and dynamic gaming environment that shifts with the influx of new technologies”. It’s vision, on the other hand, states that “To become a significant player in the game development industry”.
Pay Structure: Based on the size of the company and its hierarchical structure, three kinds of pay structure would be best: (1) Graded-structure, (2) Broadband, and (3) Job family Structures.
Graded-structures: are salary types where the job grades are overlapping with one another. Each of these grades has its own range and an almost equal role distribution. For each grade, the maximum allowance goes between 20% to 50% above the base salary CITATION Ashnd \l 1033 (Ashworthblack.co, n.d.).
Broadband: although it is almost similar with graded-structures the broadband increases the “salary bands” by widening them to include more people. This creates more flexibility and less number of “bands” CITATION Codnd \l 1033 (Code, n.d.).
Job families: As compared to the previous classifications above, job-families categorizes the pay structures based on the different jobs and their functions. Some examples of this would be a pay structure that differentiates IT department, HR department, and Accounting and Audit departments.
Graded-structures:
Graded-structures are one of the most common types of pay-systems utilized by many corporations around the world. It’s sheer simplicity of allotting a particular amount of compensation per “pay-grade” makes distribution of resources easier. However, while this could be efficient in the distribution and allocation of salaries, it is mostly “inflexible” and one the main criteria for getting a higher salary is promotion. For huge companies and other big public sectors this pay structure would be beneficial due to the established roles and functions that each job has to make. However, when it comes to a start-up this would not be ideal for different employees could perform different functions based on the need (i.e. manager helping in coding the program). Thus, this pay structu...