Bahria University

Strategic Compensation Management

MBA Weekend-Spring Semester – 2009
Project: Comparison of Compensation Policies of two companies
Elective Subject MBA Weekends
Timings: 1200 Hours - 1500 Hours
Course Code:
Day: Sundays
Course Credit: 3 Credit Hours Course Instructor: Asad Hasan
Start Date: 26 July 2009
th
Project Submission Date: 6th September
Submission Format 2009
Printed Hard Copy
Total Marks 10
Group or Individual Individual
All: including Private, Public,
Type of Organizations1 Government, Corporation,
Proprietorship, Partnership, etc.
Last date for submitting
organizations name: (after this NA
date no priority will be assigned)
Similar pair of companies Not allowed
Exclusivity of both names in a Not necessary: means “A&B”, and
pair “B&C” are allowed.

Report Format
Executive Summary
Table of Contents

Report Structure (Examples Provided)

1. OBJECTIVE
a. Company A: To provide for a uniform, stable and reasonably competitive
compensation structure for all employees.
b. Company B:
c. Comment on a) and b).

2. GRADES & DESIGNATIONS

To rationalize the compensation policy, positions are classified into

grades. The grades and respective designations of Company A are as
below:

GRADE DESIGNATION
Executives M.D, C.O.O, President, Sr.
V.P, V.P
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1
You may use similar sector organizations for meaningful comparisons. Different sectors
may be used to explain how differentials arise due to sectoral exigencies.
 M-10 Sr. General Manager
M-9 General Manager
M-8 Dy. General Manager
M-7 Sr. Manager
M-6 Manager
M-5 Dy. Manager
M-4 Asst. Manager
M-3 Executive
M-2 Sr. Officer
M-1 Officer
GTE Graduate Trainee Engineer
Tr. Trainee Officers
Officers

3. BASIC SCALE

The basic scale would be as per the terms of employment and revisions
from time to time.
These scales for Company A are as shown in Table 2 below:

Grade Designation Basic Pay Structure

M-1 Officer 6,000-12,000

M-2 Sr. Officer 8,400-16,800

M-3 Executive 11,760-23,520

M-4 Asst. Manager 16,464-32,928

M-5 Dy. Manager 23,050-46,100

M-6 Manager 32,269-64,539

M-7 Sr. Manager 45,177-90,354

M-8 Dy. General Manager 63,248-126,496

M-9 General Manager 88,547-177,095

M-10 Sr. General Manager 123,966-247,933

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a. Comments on Basic Scales of the two organizations

 Minimum and Maximum
Ranges
Overlaps
Increments
b. Your views on how they may be improved.

4. ALLOWANCES

a. House Rent
b. Conveyance Allowance
c. Leave Fare Allowance
d. Utilities Allowance
e. Any Other Allowance

5. OTHER COMPANY PERQUISITES AND BENEFITS PROVIDED

a. Car Policy
b. Fuel Entitlements
c. Leaves
d. Medical Policy
Inpatient
OPD
e. OT
f. Others (Life Insurance)

6. Terminal Benefits

a. PF
b. Gratuity
c. Pension
d. Long Service Award

7. Comparisons

a. Monetized Salary Table

Take any one similar benchmark position from each company. Provide the
following information:
 Monetized monthly salary Table with separate salary elements on
one sheet.
 JD for both positions
 Alternate Titles

b. Ratios
Cash/Non-Cash
Annual Total Salary

8. CONCLUSIONS
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Provide the following conclusions

Which company in your opinion has a more structured salary
compensation approach? How in your opinion can either/both companies
improve their compensation policies or structures?

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