Techtron Corporation is developing a compensation strategy for 140 hourly production technicians, 3 production supervisors, 2 manufacturing engineers, and 1 computer technician at its new manufacturing facility. As the HR compensation strategist, you must propose compensation bandwidths, benefits plans, and an employee evaluation process for determining compensation adjustments for each of the four job classifications. The proposal should be data-driven, grounded in theory/literature, and consider environmental factors like union status and benefits legislation in the state.

1. BUS 571 Compensation and Benefits
Compensation Strategy Project
Techtron Corporation is a developer and manufacturer of
electronic window systems for small and medium-size
automobiles. It has several international customers, including
Vauxhall Motors (UK) and General Motors Holden Ltd. (Port
Melbourne, Australia). Techtron has recently landed a contract
to produce electronic window systems for the Hyundai Sonata,
manufactured in Montgomery, Alabama. They have nearly
completed a manufacturing facility within the suburban
perimeter of the largest city in your state, and the senior
leadership and support staff are in place. The company is now
ready to begin the recruiting and hiring process for production
floor employees.
Here is the projected income statement for Techtron in its first
year:
Revenues (from sales and all sources)
$35,000,000
Manufacturing expenses:
Cost of materials (10,000,000)
Cost of manufacturing operations (2,000,000)
(includes all plant and equipment
maintenance and depreciation)
(12,000,000)
Administrative Costs and Overhead
Administrative Overhead and Expense (1,000,000)
Research and Development (1,000,000)
Employee Expenses (10,500,000)

2. (target is 30% of sales over time)
(12,500,000)
Capital Budget
Capital purchases (2,000,000)
Loans payable (4,000,000)
(for the first seven years, then
dependent on plant expansion)
(6,000,000)
___________
Projected Pretax income for the first year of startup
4,500,000
Depending on tax policy of state and federal governments,
net income may be used for additional research and
development,
capital purchases, reduction of debt, dividends, and/or retained
earnings.
The company projects that sales for years 2-6 will increase by
2%, 4%. -3%, 3%, and 4%.
The company projects that materials and overhead costs will
rise by approximately the current rate of inflation (about 2.4%)
for years 2-6.
Techtron will require approximately 140 hourly production
technicians, 3 production supervisors, 2 manufacturing
engineers, 1 process engineer, and 1 computer technician for
their floor operations. Minimum qualifications and job
descriptions for these jobs are as follows:
Hourly production technicians: Responsible for production and
assembly of electronic window system components and
subassemblies. Responsible for quality control of manufactured
products. Minimal educational requirement is an associate’s
degree in business or manufacturing technology; applicants

3. must have general mathematics skills and be able to interpret
control charts and basic computer output. Prior experience
valued but not required.
Production supervisor: Responsible for supervision of
manufacturing processes, including troubleshooting problems
and interfacing between production technicians and other
company functions such as HR, Information Systems, etc.
Minimal educational requirement is a BA degree in industrial
management or quality management; applicants must have
general mathematics skills and be able to interpret control
charts and basic computer output. Three years of supervisory
experience at the manufacturing floor level with JIT systems is
required.
Manufacturing and Process engineers: Responsible for (but
limited to) production scheduling, overview of quality systems,
safety systems and ergonomics, and cost management within a
JIT production system. The successful applicant should be an
innovative thinker who anticipates problems and looks for ways
to maximize production efficiency. Minimal educational
requirements include BA degrees in manufacturing or process
engineering, with a minimum of five years of successful
experience in the multiple functions of a robotics-based JIT
manufacturing system.
Computer Technician: Responsible for floor support of
robotics, data management, and software maintenance for a JIT
components manufacturing system. The successful applicant
should be an innovative thinker who anticipates problems and
looks for ways to maximize production efficiency. Minimal
educational requirements include an associate’s degree (BA
preferred) with majors in software support or database support,
with a minimum of three years of successful experience in JIT
manufacturing support.

4. Requirements for the Compensation Strategy
As the HR compensation strategist for Techtron, your task is to
develop a compensation strategy for the production employees
at the new facility, which is located within the suburban
perimeter of the largest city in your state. Some factors you
will need to consider when developing this compensation
strategy are:
1) The compensation bandwidth for employees performing
similar functions at companies of similar size in the
employment area in which the plant will be located.
2) The union status of your state. It is the intent of Techtron
for this facility to be non-union, but whether your state is a
union shop state (like New York) or a right to work state (like
Alabama) will affect your compensation strategy. Specifically,
if your compensation plan is competing with the compensation
of area union employees, their pension may be a defined benefit
pension as opposed to a 401K. You are not required by law to
provide any pension benefits in any state.
3) The legislation in your jurisdiction regarding partner benefits
or gay marriage will affect your benefits strategy.
4) There are no laws in any state regarding a requirement to
perform performance evaluations as the basis of compensation
adjustment, but you desire to make a performance evaluation the
basis of compensation adjustment as well as promotion
consideration. What are the relevant policies on performance
evaluations among other companies similar to yours in your
area?
5) Your compensation and benefits plan and your evaluation
plan must be cost-effective and sustainable.
The requirements of the proposal include:
1) An introduction to your proposal that will preview what

5. information will be presented and the overall goal of the
compensation strategy. Keep in mind that the audience for this
proposal is senior executive management at Techtron.
2) Develop a proposal for compensation bandwidths for each of
the four job classifications described above. In addition to the
compensation bandwidths, the proposal should include a
rationale for each bandwidth that is data driven and grounded in
current environmental factors. The proposal should also include
parameters and performance factors that would be used as a
basis for differentiating employee salaries within the same job
classification.
3) Develop a proposal for a benefits plan for each of the four
job classifications described above. In addition to the benefits
plan, the proposal should include a rationale for each benefit
plan that is data driven and grounded in current environmental
factors. The proposal should also include parameters and
performance factors that would be used as a basis for
differentiating employee salaries within the same job
classification Benefits may include a number of health
insurance options, tiered paid vacation, sick time or paid time
off, pension contributions, and other options. Health care plans
must be PPACA-compliant.
4) Develop a proposal for an employee evaluation process for
each of the four jobs describe above, as it relates to determining
compensation adjustment. The proposal must include a review
of motivational aspects, and provide support for the
compensation plan that is grounded in literature and theory. In
addition, your proposal should provide compensation guidelines
for those employees that do not meet minimum performance
expectations.
Although there is no prescribed minimum or maximum length
for this document, it would be difficult to believe that these
requirements could be met in less than 12-15 pages of text. The
proposal will be due on Tuesday of the 6th week of class; there
are no makeups, extensions, or reworks for this assignment. The

6. proposal should be submitted to the Compensation Proposal
assignment link.
The proposal will be evaluated as follows:
BUS 571 Compensation Proposal
Introduction
Pts. Possible
Exemplary
In addition to the satisfactory and accomplished criteria, the
student effectively transitions into the body of the proposal and
models introductions consistently found in professional
literature and/or executive reports.
50
Accomplished
In addition to addressing the three primary components of a
proposal introduction, the student captures the reader by
including a forecast that is compelling, clear, and convinces the
reader to read on.
40
Satisfactory
The student addresses all three of the three primary components
of a proposal introduction: a) context, b) scope of proposal, and
c) goal of the proposal.
30
Approaches Expectation
The student addresses one or two of the primary components of
an introduction: a) context, b) scope of proposal, and c) goal of
the proposal.
20
Below Expectation
The student does not address any of the three primary
components of an introduction: a) context, b) scope of the
proposal, and c) goal of the proposal
10

7. Did not complete requirements
0
Compensation Bandwidth
Exemplary
An innovative and realistic compensation bandwidth proposal is
developed for each of the four job categories. The proposal is
data driven and based upon multiple quality resources;
including the Bureau of Labor and Statistics, and national and
local compensation studies. Local, state and national
environmental compensation considerations are clearly
identified and addressed. A novel approach that considers
multiple implementation factors is utilized for differentiating
employee salaries within the job categories. (91 – 100)
100
Accomplished
A realistic and appropriate compensation bandwidth proposal is
developed for each of the four job categories. The proposal is
data driven and based upon multiple quality resource; including
the Bureau of Labor and Statistics, and national and local
compensation studies. Clear and logical parameters are
established for differentiating employee salaries within the job
categories. (80 – 90)
80
Satisfactory
A realistic and appropriate compensation bandwidth proposal is
developed for each of the four job categories. Parameters are
established for differentiating employee salaries within the job
categories. (60 – 79)
60
Approaches Satisfactory
A brief recommendation for compensation bandwidth is
provided, but lacks the depth and detail necessary to be
implemented. Minimal research which supports the proposal is

8. presented. Appropriate parameters for differentiating employee
salaries within the job categories is addressed but reveal
implementation flaws or are not fully developed. (40 – 59)
40
Below Expectation
A brief recommendation for compensation bandwidth is
provided but no valid research or data is provided as a rationale.
Parameters for differentiating employee salaries within the job
categories are ignored or rudimentary. (1 – 39)
20
Did not complete requirements
0
Benefits Plan
Exemplary
A comprehensive and innovative proposal for a benefits plan for
each of the four job classifications is presented. The proposal is
supported by data gathered from numerous sources,
environmental factors were identified and addressed, and the
plan was analyzed from multiple viewpoints. The proposal
includes parameters and performance factors that would be used
as a basis for differentiating employee benefits within the same
job classification. A novel approach that considers multiple
implementation factors is utilized for differentiating employee
benefits within the job categories. (91 – 100)
100
Accomplished
A detailed proposal for a benefits plan for each of the four job
classifications is presented. The proposal is supported by data
gathered from multiple sources and environmental factors were
identified and addressed. The proposal includes parameters and
performance factors that would be used as a basis for
differentiating employee benefits within the same job
classification. A rationale that considers multiple viewpoints for

9. differentiating employee benefits is included. (80 – 90)
80
Satisfactory
A feasible benefits plan for each of the four job classifications
is presented. Sufficient data is provided as a rationale for the
benefits plan and parameters for differentiating employee
benefits within the same job classification is provided. (60 –
79)
60
Approaches Expectation
A brief recommendation for a benefits plan is provided, but
lacks the depth and detail necessary to be implemented.
Minimal research which supports the proposal is presented.
Appropriate parameters for differentiating employee benefits
within the job categories is addressed but reveal implementation
flaws or are not fully developed. (40 – 59)
40
Below Expectation
A brief recommendation for a benefits plan is provided but no
valid research or data is provided as a rationale. Parameters for
differentiating employee benefits within the job categories are
ignored or rudimentary. (1 – 39)
20
Did not complete requirement
0
Evaluation and Performance Guidelines
Exemplary
A detailed proposal for an employee evaluation process, as it
relates to determining compensation adjustment, is presented
for each of the four jobs categories. The proposal includes a
comprehensive review of motivational aspects. The proposal
clearly utilizes best practices and is grounded in literature and
theory. In addition, a novel approach that considers multiple

10. implementation factors is utilized for establishing compensation
guidelines for those employees that do not meet minimum
performance expectations.
100
Accomplished
A detailed proposal for an employee evaluation process, as it
relates to determining compensation adjustment, is presented
for each of the four jobs categories. The proposal includes a
comprehensive review of motivational aspects. The proposal
clearly utilizes best practices and is grounded in literature and
theory. In addition, the proposal provides compensation
guidelines that incorporate multiple lenses and viewpoint, to
address those employees that do not meet minimum performance
expectations.
80
Satisfactory
A proposal for an employee evaluation process, as it relates to
determining compensation adjustment, is presented for each of
the four jobs categories. The proposal includes a review of
motivational aspects, and provides support for the compensation
plan that is grounded in literature and theory. In addition, the
proposal provides compensation guidelines for those employees
that do not meet minimum performance expectations.
60
Approaches Expectation
A brief recommendation for an employee evaluation process, as
it relates to determining compensation adjustment, is provided
but lacks the depth and detail necessary to be implemented.
Minimal research which supports the proposal is presented.
Guidelines for addressing those employees that do not meet
minimum performance expectations is provided, but reveal
implementation flaws or are not fully developed.
40
Below Expectation
A brief recommendation for an employee evaluation process, as

11. it relates to determining compensation adjustment, is provided
but no valid research or data is provided as a rationale.
Guidelines for addressing those employees that do not meet
minimum performance expectations are absent or rudimentary.
20
Did not complete requirements
0
Style, Format & Mechanics
Exemplary
The paper consistently models the language and conventions
used in scholarly literature or professional reports. The
proposal would meet the guidelines for submission to a senior
executive/management team.
50
Accomplished
Paper follows normal conventions of spelling, grammar, and
APA format throughout. Transitions and organizational
structures such as subheading are effectively used which help
the reader move from one point to another. The reader has
little difficulty referring back to cited sources.
40
Satisfactory
Paper is in correct APA format, grammatical conventions are
primarily correct, and appropriate scholarly references are
utilized. The paper flows logically and is comprehendible.
30
Approaches Expectation
APA format is attempted but incorrectly used. Writing does not
flow smoothly from point to point. There are insufficient or
inappropriate citations. Spelling, grammar and punctuation
errors are present.
20
Below Expectation

12. Paper contains numerous errors in spelling, grammar, and/or
sentence structure, which make following the logic of the paper
extremely difficult. Fails to demonstrate thoroughness and
competence in documentation. Overall style and format make
reading and comprehension problematic.
10
TOTAL
400