Deliverable II: Compensation Structure Proposal
BUSI 440-D02
Deliverable II: Compensation Structure Proposal BUSI 440-D02
Compensation Management
Group 3: Manufacturing Industry
Liberty University
Abstract
Manufacturing is one of the top industries that is responsible for the fabrication and production of a
variety of products. Along with providing goods to consumers it is also responsible for numerous employment
opportunities. There are many categories in the manufacturing sector but with any product, the first step is a
plan for the item that is being produced. To be able to plan for products the organization must select the
appropriate job positions that will ensure that the organization will meet production cost and deadlines. It is
important to detail job descriptions and requirements as well as develop appropriate compensation packages for
each of those positions. The Bible tells us in Proverbs 19:21, “Many are the plans in the mind of a man, but it is
the purpose of the Lord that will stand" (English Standard Version, 2001).
Deliverable II: Compensation Structure Proposal for RockTenn Packaging Company
Founded in 1973, RockTenn Packaging Company became a leader as a paper and packaging company
in the United States. The company provides corrugated packaging as well as custom food packaging for some
of the most popular companies. RockTenn provides employment to roughly 30,000 employees in over 200
facilities with each facility limiting their product production to specific vendors. This allows for better quality
control and more personal relationships with that organization to provide the best packaging for their products.
With a long list of clients some of the most common household names partnered with RockTenn include:
Chick-fil-A, Dunkin Donuts, and Coca-Cola.
, RockTenn is dedicated to producing quality packaging products to its clients but realizes without the
dedication from employees the production would not be as successful. It is important to revisit the purpose of
each role in the company to make sure benefits and the compensation is competitive within the market. The
job analysis will provide key information to specific titles within the organization. It will be based on the
following positions: Production Manager, Quality Control Inspector I, Machine Operator I and Electrician I.
Job Analysis
The group conducted a job analysis on a range of positions within the manufacturing industry. The
analysis performed highlighted the duties of a variety of positions including positions in a managerial role, an
inspector, an operator, and electrical maintenance. While all have very different contributions to the success
of the organization they all play a key role into the plant running smoothly and safely. Human Resource
departments will use a job analysis for several different reasons. “For example, identifying the skills and
experience required to
perform the work clarifies hiring and promotion standards and identifies training needs" (Gerhart& Newman,
2020 p.110). Not only is important to analyze specific duties and compensation for each role it is also important
to view the qualifications employees have for positions within the company.
RockTenn Packaging Company operates within the manufacturing industry specifically in the
corrugated and custom food packaging division that is located in areas highly populated with a variety of
competition within that manufacturing sector. A good job analysis collects sufficient information to
adequately identify, define and describe a job (Gerhart & Newman,
2020 p.113). Positions, qualifications, and compensation vary depending on the requirements of the job, the
type of industry, the company itself and also the location of the facility.
Internal Alignment
Internal alignment is described as "the comparisons among jobs or skill levels inside a single
organization" (Gerhart & Newman, 2020 p.23). In the manufacturing industry, internal alignment is important
, because production of products is based on an organization working as a team. Not only is it important to
analyze specific duties and compensation for each role it is also important to view the qualifications employees
have for positions within the company. Often companies have talented employees that are not utilizing their
skills and education because they are not given an opportunity. “As a company continues to grow and expand,
misalignment inevitably creeps in” (Khadem & Khadem, 2020, para 5). New employees are brought in while in
fact there may be employees within the company that have the skills that can fill the role.
The key to a successful manufacturing company is consistency. If a company has constant issues
within its organization then production will be lower, and revenue will suffer. Every organization should
have a mission that is more than just about making a profit. The mission should provide “some service or
product that adds to human prosperity and gives
everyone meaning to their jobs, a reason to strive for excellence” (Khadem & Khadem, 2020, para
14).
External Alignment
The alignment within an organization is important for that particular business to run smoothly but
consideration must be made to a competitor’s alignment as well. External alignment or competitiveness
refers simply "to pay comparison with competitors" (Gerhart & Newman, 2020 p.23). This is where the
Human Resource Department must move from a “traditional operational role towards a more strategic
role” (Kuipers & Giurge, 2017, para 2). According to Walt and Gattorna, the alignment structure should
have four dominant logics in the alignment structure: development, production, administration, and
integration (2017).
While there are several manufacturing companies offering similar products, RockTenn has been a
respected company by employees in this industry. Compensation has maintained in a competitive range with
an above average benefits package. Employees are offered a variety of medical, dental and vision benefits to
fit their personal situation. Also, vacation, holiday, sick and paid time off days that will grow depending on
BUSI 440-D02
Deliverable II: Compensation Structure Proposal BUSI 440-D02
Compensation Management
Group 3: Manufacturing Industry
Liberty University
Abstract
Manufacturing is one of the top industries that is responsible for the fabrication and production of a
variety of products. Along with providing goods to consumers it is also responsible for numerous employment
opportunities. There are many categories in the manufacturing sector but with any product, the first step is a
plan for the item that is being produced. To be able to plan for products the organization must select the
appropriate job positions that will ensure that the organization will meet production cost and deadlines. It is
important to detail job descriptions and requirements as well as develop appropriate compensation packages for
each of those positions. The Bible tells us in Proverbs 19:21, “Many are the plans in the mind of a man, but it is
the purpose of the Lord that will stand" (English Standard Version, 2001).
Deliverable II: Compensation Structure Proposal for RockTenn Packaging Company
Founded in 1973, RockTenn Packaging Company became a leader as a paper and packaging company
in the United States. The company provides corrugated packaging as well as custom food packaging for some
of the most popular companies. RockTenn provides employment to roughly 30,000 employees in over 200
facilities with each facility limiting their product production to specific vendors. This allows for better quality
control and more personal relationships with that organization to provide the best packaging for their products.
With a long list of clients some of the most common household names partnered with RockTenn include:
Chick-fil-A, Dunkin Donuts, and Coca-Cola.
, RockTenn is dedicated to producing quality packaging products to its clients but realizes without the
dedication from employees the production would not be as successful. It is important to revisit the purpose of
each role in the company to make sure benefits and the compensation is competitive within the market. The
job analysis will provide key information to specific titles within the organization. It will be based on the
following positions: Production Manager, Quality Control Inspector I, Machine Operator I and Electrician I.
Job Analysis
The group conducted a job analysis on a range of positions within the manufacturing industry. The
analysis performed highlighted the duties of a variety of positions including positions in a managerial role, an
inspector, an operator, and electrical maintenance. While all have very different contributions to the success
of the organization they all play a key role into the plant running smoothly and safely. Human Resource
departments will use a job analysis for several different reasons. “For example, identifying the skills and
experience required to
perform the work clarifies hiring and promotion standards and identifies training needs" (Gerhart& Newman,
2020 p.110). Not only is important to analyze specific duties and compensation for each role it is also important
to view the qualifications employees have for positions within the company.
RockTenn Packaging Company operates within the manufacturing industry specifically in the
corrugated and custom food packaging division that is located in areas highly populated with a variety of
competition within that manufacturing sector. A good job analysis collects sufficient information to
adequately identify, define and describe a job (Gerhart & Newman,
2020 p.113). Positions, qualifications, and compensation vary depending on the requirements of the job, the
type of industry, the company itself and also the location of the facility.
Internal Alignment
Internal alignment is described as "the comparisons among jobs or skill levels inside a single
organization" (Gerhart & Newman, 2020 p.23). In the manufacturing industry, internal alignment is important
, because production of products is based on an organization working as a team. Not only is it important to
analyze specific duties and compensation for each role it is also important to view the qualifications employees
have for positions within the company. Often companies have talented employees that are not utilizing their
skills and education because they are not given an opportunity. “As a company continues to grow and expand,
misalignment inevitably creeps in” (Khadem & Khadem, 2020, para 5). New employees are brought in while in
fact there may be employees within the company that have the skills that can fill the role.
The key to a successful manufacturing company is consistency. If a company has constant issues
within its organization then production will be lower, and revenue will suffer. Every organization should
have a mission that is more than just about making a profit. The mission should provide “some service or
product that adds to human prosperity and gives
everyone meaning to their jobs, a reason to strive for excellence” (Khadem & Khadem, 2020, para
14).
External Alignment
The alignment within an organization is important for that particular business to run smoothly but
consideration must be made to a competitor’s alignment as well. External alignment or competitiveness
refers simply "to pay comparison with competitors" (Gerhart & Newman, 2020 p.23). This is where the
Human Resource Department must move from a “traditional operational role towards a more strategic
role” (Kuipers & Giurge, 2017, para 2). According to Walt and Gattorna, the alignment structure should
have four dominant logics in the alignment structure: development, production, administration, and
integration (2017).
While there are several manufacturing companies offering similar products, RockTenn has been a
respected company by employees in this industry. Compensation has maintained in a competitive range with
an above average benefits package. Employees are offered a variety of medical, dental and vision benefits to
fit their personal situation. Also, vacation, holiday, sick and paid time off days that will grow depending on
