Title: COMPENSATION SYSTEM DESIGN AT CV XYZ

Authors: JANET CHRISTINE HARTONO

Item Type : Thesis (Thesis)

Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

CV XYZ is a coconut oil producing company where in practice, compensation for employees is still using a simple method, namely according to the decision of the Director and there is no clear benchmark in the provision of compensation. In addition, the workload of the Head of the Department is considered the same as the workload of employees below him, which ultimately the value of compensation received by the Head of the Department and his employees is the same, only differing in allowances. In fact, the workload of each position level is not entirely the same. This study aims to formulate a compensation system design that is aligned with the vision, mission, goals, and strategies of CV XYZ for each position level. The compensation system design includes basic salary, allowances, benefits, and bonuses that will be received by CV XYZ employees. The compensation system design begins with conducting interviews with key informants related to the vision, mission, goals, and strategies of CV XYZ, then continued with the preparation of the compensation system. The preparation of the compensation system will begin with job analysis, job evaluation using the Hay method to determine the weight at each position level, external surveys in the general industry and the coconut oil industry, compensation structure, and finally, the management compensation system where the compensation design will be equipped with benefits and bonuses. This research is an exploratory research using a qualitative approach based on a case study. The data types and sources used were company archive records and documentation, and interview reports. Key informants in this study were the General Manager, department heads, and employees in each division. The results of this study are a compensation system design that includes base salary, allowances, benefits, and bonuses for employees at each job level.

Keywords: Compensation Strategy, Point Factor Method, Hay Job evaluation method

Sources: http://repository.unair.ac.id/39037/