components of a total rewards system

Duplox Copier Case:  Phase/Part I

This assignment relates to the following Course Learning Outcomes:

Discuss the components of a total rewards system and their connection to an organization’s strategy

Explain the theories regarding employee behavior and motivation and be able to categorize them.

Identify the problems that can be caused by an ineffective total rewards system

Analyze internal and external factors and how they influence the design of an organization’s rewards strategy and how they are intertwined


With the Duplox Case, your approach is to act as a consultant who has been hired to analyze your client firm, identify the sources of the problems the firm is facing, recommend any necessary organizational changes, formulate a new compensation strategy, and design and implement a compensation system that will maximize your client’s success. Due to the magnitude of this task, you will complete this project in several phases. At the end of each phase, you will submit a report to your client.

In Phase/Part I, you will be challenged to use and apply concepts from Chapters 1 – 6 & 12.  Your submission will need to address and use the following sections:

Section A: Identification of Current Organizational Problems (15 marks)

In this section, you need to identify the underlying strategic and structural factors (including the reward and compensation system) that are causing the problems that your client is experiencing.  Use the key concepts from Chapters 1 -3.  This section is foundational for other sections and phases of the case study. 

Section B:  Strategic & Structural Recommendations (15 marks)

Describe the proposed strategic and structural solutions that flow from your analysis in the previous section.  Be specific in explaining what you would do and why.  For example, if you think a different managerial strategy is required, exactly what are you suggesting, and how would you implement it?  If you think some jobs need resign, which jobs should be changed and exactly how should they be changed?  If you think teams are needed, who would be the team members and what would be their responsibilities? 

Section C:  Reward and Compensation Strategy (20 Marks)

Next develop your reward and compensation strategy by following the first four steps in Figure 6.1 (page 194 of the textbook).  You need to define the type of employee behaviours that your client firm needs, define the role that compensation will play in producing those behaviours, determine the compensation mix, and determine the compensation level.  

If different behaviours are required from different job families, then you need to repeat this process for each job family.  The outcome of all this should be summarized for each job family in a compensation strategy template, which is provided.  All jobs listed on the same compensation strategy template will have the same mix of compensation elements ad the same compensation level relative to the market (i.e. lag the market by a %, lead the market by a %, or match).  Note, however, that this does not mean that all jobs on the template will receive the same dollar amount of pay; it just means they are all subject to the same compensation strategyFigure 6.2 (page 227 of textbook) provides an example of a filled in compensation strategy template.  You should carefully read the example that surrounds figure 6.2.

You will need at least two compensation strategy templates – one for jobs that you are putting under a pay-for-knowledge (PKS) system and at least one for the jobs you will be putting under a job evaluation (JE) system (you will not be putting any jobs under market pricing).  In fact, it is likely you will need three or four templates for your job evaluation jobs.  Every job listed in the “partial listing of job descriptions” (separate document) must appear on a compensation strategy template (except any jobs you may eliminate by job redesign).  For any new jobs that you create, you must prepare a job description and that job must appear on a compensation strategy template.  

In creating job families, the first thing to decide is which jobs will be included under the pay-for knowledge system (material in Chapter 4 will be useful in making this decision).  The remaining jobs will fall under JE, and you need to consider how many distinct groupings of behaviours (job families) you should have.  Please realize – you DO NOT have to include top management – the CEO and the two Vice Presidents- in a job family. Those three jobs will not be included in your compensation system.  

Bear in mind that creating a high number of job families creates a very complex compensation structure but that too few job families may result in an inappropriate compensation strategy for some jobs.  In this case, fewer than 3 job evaluation families is likely too few, while more than 5 job evaluation families are too many

To successfully complete this section, you will need to use the concepts found in Chapters 4-6.  The quality of this section (and the mark you receive for it) depends on how well you demonstrate the application of these concepts.  Incidentally, don’t forget to include the behavioural objectives you are setting for the compensation system (see Table 6.2 on page 200 of the textbook). 

Organization of your report/format/writing/clarity (10 Marks)

Instructions for Submission 

Remember your submission is that of a consultant to a client.  The language and layout of your submission should be professional and well organized.  Please ensure that you include a cover page with your name(s), the title of the assignment and the due date.  You must use a professional font and use 1.5 or 2.0 line spacing (helps in reading submissions).  

In organizing your submission, it should include the following sections:


This section should provide an introduction and overview of the report’s objectives and some of the background on how/why consultant services were obtained.   

Section A:  

As explained in the overview section.

Section B:

As explained in the overview section

Section C:

As explained in the overview section


In this section, briefly summarize the significant findings of your report. Identify those further steps will follow in the development of a compensation strategy and system (this segues to other parts that you will complete for the case)


Should you create new/revised job descriptions they should be included as an appendix.  As well, you may include the compensation strategy templates as an appendix and use Section C to explain and rationalize your decisions.