Kudler Fine Food Compensation Plan Essays

Kudler Fine Food Compensation Plan Essays Kudler Fine Food Compensation Plan Essay Kudler Fine Food Compensation Plan Essay Kudler Fine Foods (KFF) is an upscale specialty food store that stocks the very best domestic and imported foods products. Kudler is divided into five departments; fresh bakery and pastries, fresh produce, fresh meat/seafood, condiments, packaged foods, cheeses, and specialty dairy products. As an upscale specialty food store, KFF has provided its customers with the finest selection of gourmet products imported from around the world. The organization has had enormous success because of the products they sell as well as the service they provide. The organization has developed new strategies and objectives that will help promote growth and profitability. Kathy Kudler, founder of KFF now wants to focus on expanding their services, improving the efficiency of its operation, and increasing the consumer purchase cycle as a means to increasing the loyalty and profitability of its consumers (UOP, 2009). Kudlers strategic objectives are to increase customer loyalty through a frequent shopper program and expanding services. The new strategy is very customer service oriented and requires the organization also to develop and implement a new compensation strategy. This paper will develop compensation for the six critical positions within the KFF organization, provide a job analysis along with a job description, explain the skill-based job-design preference, examine competitive compensation rates within the market, describe the message that compensation strategies covey to employees, provide a recommendation and implementation of the new compensation plan and illustrate a performance appraisal that will be used by KFF for each level within the organization. This paper will ultimately propose a compensation plan with strategies that will help KFF obtain their long-term profitability and human resource objectives. Job Analysis Job analysis is in essence is the combination of job descriptions and job specifications or skills necessary to perform the duties and responsibilities of a job. Job analysis involves the determination of the skills require to perform a particular job. It details the tasks, procedures, skills, and attitude needed for successful performance of the job or position. Many companies and managers use job descriptions and job analysis to set employee goals and objectives, so they are tied into the needs of the work unit or company (Bhushan, 2000, p. 2). Job analysis plays an important role in developing a compensation strategy. Job analysis should be used when developing a compensation package, the job requirements and skills listed in a job analysis should be used to help determine salary. Organizations use information obtained by job analysis for recruitment, selection, placement, organization planning, job design, training, grievance settlement, as well as job evaluation and other compensation programs (Bhushan, 2000, p. 2). The following is a Job Analysis Table that will help KFF in determining the proper compensation structure for their six critical positions; Store Manager, Assistant Store Manager, Department Manager, Cashier, Stock Person, and Bagger. Job design is an integral part of the job analysis process. Job design is made up of two approaches; job-based approach and skill-based approach. It helps to decide the content of the job in terms of responsibilities. Job-based approach deals with the responsibilities of a job or position. With this approach employees are hired to fill open positions, trained to perform the tasks, and rewarded based on performance levels (Lawler, 1994). Job-based approach relies heavily on the contents of the job and the duties and tasks related to completing the job, this approach is strictly concerned with the job itself and human capital or skills. A job-based plan pays employee for the job to which they are assigned, regardless of the skills they possess (Milkovich, 2005). Job-based pay structure is based on job performed and job market and pay increases are through promotion. Skill-based approach deals with the skills it takes to complete the responsibilities and duties of a position. This approach has a major focus on the skills employees possess as oppose to the job. Skill-based approach is most effective in work situations where knowledge work is involved and where individuals can add significant value to the product or service (Lawler Ledford, 1992, p. 384). The skill-based approach pay structure is based on skills certification and the market and pay increases are provided through on skill acquisition. Structures based on skill pay individuals for all the skills for which they have been certified regardless of whether the work they are doing requires all or just a few of those particular skills (Milkovich, 2005). Both approaches offer valid advantages and disadvantages however I strongly prefer the use of skills-based approach. This approach will be the approach for Kudler Foods as it is in the growth stage of business. As organizations grow their business needs change and the jobs they offer change as well. The skill sets for the organization evolve and become more important and valuable.