PHASE-I

FASTCAT-ALIGNMENT: DESIGNING AN INTERNAL STRUCTURE

WAGE DETERMINATION & ADMINISTRATION GROUP PROJECT
ANUSHEEL SHRIVASTAVA HIMANSHU SHAH NEELSHEKHAR PURANDARE RAHUL KALRA ADITYA UDUPA H11009 H11021 H11033 H11045 H11057

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EXECUTIVE SUMMARY

Fast Cat Software Company is facing problems due to the financial turmoil and is looking towards cutting costs to achieve cost savings. It recently removed some its excess workforce which has resulted in reduced employee motivation. The management has brought in new CEO to address the volatile situation in the company. We are designing a compensation strategy to address the motivation issues. A job based structure approach is used. A hierarchy based compensation structure has been proposed. Compensable factors have been identified which focus on the performance issue specific to every employee category.

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Sr. No. 1 2 3 4 5

Topic INTRODUCTION
STRATEGY TABLE

Page 4 5 6 7 8

STRATEGY MAP

SAMPLE ORGANIZATION STRUCTURE SUGGESTIONS FOR INTERNAL

ALIGNMENT OF FASTCAT

RATIONAL FOR PROPOSED INTERNAL STRUCTURE RATIONAL FOR PROPOSED

COMPENSATION STRATEGY

7.

10

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INTRODUCTION
FastCat is one of the leading market players in providing personalized e-business sales and marketing software systems to its clients. The companys products are generally targeted at the high end customers. Due to changing financial scenario the company is facing trouble and its revenues are falling. The companys cost is increasing which is further increasing the worries of the company. It removed some of the workforce which it found excess. It also appointed new CEO Ms. Stone to handle turbulent scenario that the company is facing. It has to address the problem of employee motivation which is falling. The customers still hold positive perception about the company. We are trying to design a compensation strategy for the company which will help company retain its best talent, would be cost effective and inline with the companys strategy.

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STRATEGY TABLE
Value addition through continuous Innovation Customer Focus Support Business Strategy Attract & Retain Talent Maintain Internal & External Equity Flexible, agile design De-emphasize differences among jobs Team culture Level: Match Competitors on base Flexi Timing Job Security Individual Performance (merit) Share Team Success ( bonus & stock ) People have choices Open Communication

OBJECTIVES

ALIGNMENT COMPETITVE POSITIONING PERFORMANCE EXECUTION

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STRATEGIC MAP
Strategic Map

Series 1

Importance

1 2 3 4 5

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SAMPLE ORGANISATION STRUCTURE

Fast Cat

Support

Specialist

Development

Marketing

Administrative Assistant I/II

Senior Fellow

Senior Technician

Senior User Interface Architect

Business Solutions Consultant

Marketing Support

Visionary

Technician

Project Manager

Technical Marketing Consultant

Executive Staff Assistant

Visiual Designer

Technical Analyst A/B

Field Marketing Rep

Office Aid

Business Account Leader

Software Development Engineer

Therapist

Software Interface Engineer

Data Processor

Usability Engineer

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SUGGESTIONS FOR INTERNAL ALIGNMENT OF FASTCAT

Increased variable component in salary: Reducing basic component will help in addressing the cost saving objective of the company in this turbulent scenario. Recognition of top performers: Compensation strategy should target the compensable factors which address the high performers concern and helps in retention of top talent. Recognition of team efforts: This is an organization which constantly tries to innovate. A pay structure which recognizes the team effort put in to come with the out of box solution should be rewarded.

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RATIONAL FOR PROPOSED INTERNAL STRUCTURE

We have divided Fastcat into 4 functional areas: 1) Support: These are administrative roles. Their main job is to provide support to other functions in the organization. 2) Marketing: Aim to create market through customers interaction and understand market. They have the additional responsibility of interacting with the development teams to provide inputs about the market requirements. 3) Development: This is the department that develops and tests the products. It is composed of technicians and software developers 4) Specialist: These are individuals with expensive domain knowledge. The functions are further divided based upon the job descriptions.

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RATIONAL FOR PROPOSED COMPENSATION STRATEGY

Our compensation strategy is based on designing a hierarchical system for all the jobs while at the same time maintaining internal equity in the organization. On the basis of relative weightage attached to each compensable factor, each job has been assigned a value. The higher the value, the higher the worth of the job is. However the value of a job is relevant only in the specific category of that job. Thus a value of 2 would attract a different pay in the administrative family as compared to the developmental family. A detailed analysis of the jobs is attached in the excel sheet

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Function Administrative Family

Position

Compensable Weightag Compensable Weightag Compensable Weightag Compensable Weightag Factor (1-5) e (%) Factor (1-5) e (%) Factor (1-5) e (%) Factor (1-5) e (%) Adherence to Problem Knowledge deadlines Experience Solving 2 3 2 2 1 4 30% 30% 20% 20% 20% 20% 2 3 4 2 3 4 25% 25% 30% 30% 30% 10% 1 2 1 2 1 3 25% 25% 10% 10% 10% 20% 1 3 2 0 0 4 5% 5% 10% 0% 0% 20%

Administrative assistant I Administrative assistant II Executive Staff Assistant Massage Therapist Office Aide Office Leader

Engineering Family Software Development Engineer Software Interface Designer Technical Analyst A Technical Analyst B Technician Usability Engineer Senior Technician Project Manager Software User Interface Architect Marketing Family

Technical Skills

Experience in relavent field

Problem Solving Skills

Decision Making Skills

2 2 3 3 2 1 4 5 5 Customer Orientation

20% 25% 30% 30% 40% 15% 40% 10% 5% Communicati on Skills

1 2 1 2 1 1 2 3 4

10% 20% 10% 10% 10% 5% 10% 10% 5% Problem Solving Skills

2 2 2 3 2 2 4 5 5

10% 25% 30% 30% 20% 20% 20% 20% 20%

1 2 1 2 1 2 3 4 5

10% 10% 10% 10% 10% 10% 10% 20% 30%

Experience

Business Solutions Consultant Technical Marketing Consultant Field Marketing Rep

2 2 3

25% 25% 35%

3 3 4

20% 20% 35%

3 2 1

20% 20% 10% Shareholder Value Creation

3 3 1

10% 10% 5%

Specialist Family Senior Fellow Visionary Visual Designer Business Account Leader

Technical Skills 5 2 2 2 40% 10% 20% 20%

Decision Making 2 5 0 2 20% 40% 0% 30%

Tools Known 0 0 4 3 0% 0% 60% 10%

2 4 0 3

10% 30% 0% 10%

Compensable Factor (1-5) Budgetary Complicance 1 1 1 1 1 4

Weightag Compensable Weightag Total e (%) Factor (1-5) e (%) Score Accountability 10% 10% 20% 30% 30% 10% 1 2 2 1 1 3 5% 5% 10% 10% 10% 20% 1.55 2.5 2.3 1.6 1.6 3.6

Communication Skills

Accountability

2 1 1 2 2 3 3 5 5 Technical Understanding

40% 10% 10% 10% 10% 40% 10% 20% 20%

2 2 2 3 1 2 3 5 5

10% 10% 10% 10% 10% 10% 10% 20% 20%

1.8 1.9 2 2.7 1.7 2.2 3.5 4.6 4.95

Accountability

4 5 1

15% 15% 10%

5 2 1

10% 10% 5%

3.1 2.75 2.75

Problem Solving 3 3 2 2

Communicatio n Skills 30% 0 20% 0 20% 2 10% 5

0% 0% 10% 20%

3.5 4 3.4 2.8