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Job Design Kudler Foods

Paper received a B+
Running head:   COMPENSATION STRUCTURE AND JOB DESIGN RESEARCH

Compensation Structure and Job Design Research
MBAHR 592
University of Phoenix

Compensation Structure and Job Design Research
Since 1993 Kudler Fine Foods, headed by Kathy Kudler, has worked to be a quality grocery store where a one-stop shopping experience for preparing gourmet meals can be found. Kudler now operates three stores in California with locations in La Jolla, Encinitas, and Del Mar. The organization’s new operational goal centers on associates becoming frontline customer service agents. With this new goal in mind Kudler needs to revamp the current compensation structure. Evaluation of the six main store positions to determine the relative work and how each aligns with organizational strategy is needed to establish an equitable pay structure. Two common approaches to compensation are job-based and people-based structure. The pros and cons of each approach will be analyzed to determine which best meets the operational goals of the company. Should the company choose a person-based compensation structure then the option between skill-based or competency-based must be decided. While both skill and competency will be considered, a skill-based approach is currently favored by the team should the person-based approach be chosen.
Store Manager
Lee Iacocca explains success in business this way, “Start with good people, lay out the rules, communicate with your employees, motivate them and reward them. If you do all those things effectively, you can't miss” (The American Success Institute, n.d.). Store managers should be experts in the work they do and thus be compensated for that work. Store managers may argue that their pay is too low in comparison to the work they do and in comparison to other employees.  
To develop and implement a pay structure properly for a store manager, two approaches can be used, job-based and person-based. The job-based approach identifies...