SAVY INC. CONSULTING FIRM
FastCat Phase 1
__________________________________
Designing an Internal Structure
Ashley Belt
Vashti Langham
Stephanie Schroyer
Dan Yee
MNGT 433.101
Table of Contents
1
EXECUTIVE SUMMARY…………………………………………………………………………………………………………..3
INTRODUCTION……………………………………………………………………………………………………………………..4
RECOMMENDED INTERNAL STRUCTURE…………………………………………………………………………………..5
● COMPENSABLE FACTORS …………………………………………………………………………………………………….
● JOB EVALUATION CHARTS ………………………………………………………………………………………………….
● APPEALS PROCESS……………………………………………………………………………………………………..
RECOMMENDED IMPLEMENTATION PLAN…………………………………………………………………………
RATIONALE…………………………………………………………………………………………………………………………
Executive Summary
2
Savy Inc. Consultants recommends implementation of a job based system to serve the needs of
FastCats organizational objectives. This system will establish a hierarchal pay structure with
clearly defined positions and requirements which allows for an impartial perspective on
promotions and established career path goals. This job based system will include administrative,
marketing, technical, and engineering categories ranked on a universal criterion.
Introduction
FastCats is an organization offering healthcare support software for small and medium
size medical facilities. The focus of FastCats is on patient physician interface in ways that
improve patient care. Founded in 2001, Fast Cats software streamlines the information flow,
improves data reporting, and helps ensure accurate patient treatment. FastCats gained a
3
competitive edge by focusing on leveraging information technology to improve care at small and
medium-sized facilities, FastCat entered markets overlooked and underserved by the larger
companies. The organization employs over 200 people and has revenues of $36.5 million and net
income of $8.9 million. Today, FastCats has built a reputation for some of the best medical
software available on the market and has built a customer base of smaller providers. In order for
FastCats to remain competitive in its industry its internal structure must be aligned with its
business strategy. And it must develop efficient compensation systems. As a basis for continuing
growth Fastcats must innovate their product and service offerings. Therefore loosely hierarchical
structure will spur constant product innovation. FastCats believes that they need to deepen their
client base and launch several new products. In assisting with this goal Savy Inc. consulting firm
will generate employee motivation to increase innovation and overall increase shareholder
profitability.
Objective and Strategy Recommendations
Savy Inc.’s objective is to improve FastCats current compensation system by developing
a compensation system that employees perceive as equitable and to increase employee
motivation in order to enhance employee productivity. The new compensation plan should
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clearly communicate objectives at all levels and should be aligned with organizational goals. We
plan to achieve these objectives by in various ways:
● Improve efficiency- Promote employee engagement and teamwork and provide guidance
and training to new employees.
● Reduce costs- reduce employee turnover, more efficient use of operation and production
costs.
● Increase competitiveness- strategic compensation, promote within the company, rank
based on skill and performance.
● Clearly Outline Structured Pay Model- Align employee KSAs with a structured pay
model to adjust employees’ salary and compensation to their skills and aptitude
accordingly.
Job Based Plan
Included in the Internal structure should be top managers because if top managers are not
willing to seriously consider any changes suggested by job analysis, the process generally
unlikely to be accepted. Specifically the position senior fellow because this individual is
responsible for overseeing multiple departments.
Internal Job Structure
Engineering
Marketing
Technical
Administrative
Programmer Analyst
Marketing Svcs
Representative
Client Account
Leader
Administrative Aide
Project Leader
Marketing Support
Clinical Liaison
Administrative Ast II
5
Implementation
Consultant
Graphic Designer
Administrative
Leader
Senior fellow
Quality Assurance
Analyst
Training Assistant
Senior Quality
Assurance
Technician
Quality Assurance
Analyst A
Project Support
Assistant
Software Engineer
Software Solutions
Consultant
Travel Coordinator
Software Solutions
Consultant
Visionary
Champion
Software User
Interface Architect
Technician
User Interface
Designer
Compensable Factors
● Innovation: This factor measures the extent to which the job demands, resourcefulness,
creativity, ingenuity, and or inventiveness. This factor considers the degree of original
thinking required to organize or develop new or improved methods, ideas, strategies,
procedures or techniques. This factor is important to FastCats because it is in line with
their mission statement “to exceed our customers’ expectations of value, dependability,
and reliability by focusing on innovation and teamwork.”
Innovation
Degree
Description of
Characteristics
6
1
No assistance in product
innovations. Focus is only on
day to day task
2
Rarely assist in product
innovations
3
Occasionally assist in product
innovation.
4
Actively participate in
product/ service innovation
on a daily basis. This could
possibly lead to success at
introducing a new innovative
product or service to the
market or management
● Collaboration: The action of working with someone to produce something that will
achieve shared goals. Collaboration also creates new possibilities and opportunities
which wouldn’t otherwise exist. This factor is important to FastCat because close
collaboration between departments will be required to complete the task of product
development.
Collaboration
Degree
Description of
Characteristics
1
Independent work habits that
lacks communication
throughout the organization.
7
2
Rarely participates in group
setting. Only if demanded
3
Actively engages with other
individuals to collaborate
ideas
4
Consistently involved with
effective work team to
enhance company profits
● Knowledge: This factor measures the knowledge needed in order to perform assigned
duties or to function at the appropriate professional level. Knowledge is generally
acquired through a formal education. This factor is important to FastCats because
attracting the best talent / most qualified candidates using education as a filter will reduce
turnover.
Knowledge
Degree
Description of
Characteristics
1
High School
Diploma/Associate Degree
2
Bachelor’s Degree
3
Master’s Degree
4
PhD
8
● Experience: The process of personally observing, encountering and undergoing actions
and tasks that will be exactly or closely related to job tasks completed at FastCat. This is
important to FastCat because hiring the most experienced individuals will decrease
training time and costs, as well as increase potential success and revenues.
Experience
Degree
Description of
Characteristics
1
0-1 years of experience
2
2-4 years of experience
3
5-7 years of experience
4
8+ years of experience
● Technical aptitude: This factor measures the readiness or quickness in learning. Its
important to FastCat that there associates are able to learn quickly and apply these things
to their specific job. Technical Aptitude helps with efficiency as well as effectiveness of
the organization. FastCats employees must have this ability as it helps for innovation.
Technical Aptitude
Degree
Description of
Characteristics
9
1
No technical aptitude at all.
Slow in learning and
uninterested
2
Minimal Technical
knowledge, but possess a
readiness to learn
3
Amble technical knowledge
and ability to train others
4
Expert Technical abilities,
able to make suggestions to
management and launch new
product innovations
Job Evaluation Charts
Administrative Aide
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
2
22%
44
Collaboration
3
22%
66
Knowledge
1
18%
18
Experience
1
19%
19
Technical Aptitude
2
19%
38
185
Administrative
Assistant II
Compensable Factors
Degree (1-4)
Weight
Total
10
Innovation
2
22%
44
Collaboration
1
22%
22
Knowledge
1
18%
18
Experience
1
19%
19
Technical Aptitude
2
19%
38
141
Administrative Leader
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
4
22%
88
Collaboration
4
22%
88
Knowledge
1
18%
18
Experience
2
19%
38
Technical Aptitude
4
19%
76
308
Client Account Leader
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
2
22%
44
Collaboration
4
22%
88
Knowledge
3
18%
54
Experience
4
19%
76
Technical Aptitude
3
19%
57
11
319
Clinical Liaison
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
1
22%
22
Collaboration
4
22%
88
Knowledge
1
18%
18
Experience
3
19%
57
Technical Aptitude
2
19%
38
223
Graphics Designer
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
4
22%
88
Collaboration
4
22%
88
Knowledge
1
18%
18
Experience
2
19%
38
Technical Aptitude
2
19%
38
270
Implementation
Consultant
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
1
22%
22
12
Collaboration
4
22%
88
Knowledge
2
18%
36
Experience
2
19%
38
Technical Aptitude
1
19%
19
203
Marketing Services
Representative
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
2
22%
44
Collaboration
3
22%
66
Knowledge
2
18%
36
Experience
2
19%
38
Technical Aptitude
2
19%
38
222
Marketing Support
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
2
22%
44
Collaboration
3
22%
66
Knowledge
2
18%
36
Experience
1
19%
19
Technical Aptitude
2
19%
38
203
13
Programmer Analyst
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
2
22%
44
Collaboration
2
22%
44
Knowledge
2
18%
36
Experience
1
19%
19
Technical Aptitude
1
19%
19
162
Project Leader
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
3
22%
66
Collaboration
4
22%
88
Knowledge
2
18%
36
Experience
2
19%
38
Technical Aptitude
4
19%
76
304
Project Support
Assistant
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
1
22%
22
Collaboration
4
22%
88
Knowledge
1
18%
18
14
Experience
2
19%
38
Technical Aptitude
1
19%
19
185
Quality Assurance
Analyst
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
4
22%
88
Collaboration
3
22%
66
Knowledge
1
18%
18
Experience
2
19%
38
Technical Aptitude
4
19%
76
286
Quality Assurance
Analyst A
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
4
22%
88
Collaboration
4
22%
88
Knowledge
1
18%
18
Experience
2
19%
38
Technical Aptitude
3
19%
57
289
15
Senior Fellow
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
4
22%
88
Collaboration
4
22%
88
Knowledge
4
18%
72
Experience
4
19%
76
Technical Aptitude
4
19%
76
400
Senior Quality
Assurance Technician
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
2
22%
44
Collaboration
4
22%
88
Knowledge
1
18%
18
Experience
3
19%
57
Technical Aptitude
3
19%
57
264
Software Engineer
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
3
22%
66
Collaboration
3
22%
66
Knowledge
2
18%
36
16
Experience
4
19%
76
Technical Aptitude
3
19%
57
301
Software Solutions
Consultant
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
4
22%
88
Collaboration
4
22%
88
Knowledge
2
18%
36
Experience
3
19%
57
Technical Aptitude
4
19%
76
345
Software User
Interface Architect
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
4
22%
88
Collaboration
4
22%
88
Knowledge
2
18%
36
Experience
2
19%
38
Technical Aptitude
4
19%
76
326
Technician
17
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
1
22%
22
Collaboration
3
22%
66
Knowledge
1
18%
18
Experience
1
19%
19
Technical Aptitude
2
19%
38
163
Training Assistant
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
2
22%
44
Collaboration
4
22%
88
Knowledge
2
18%
36
Experience
2
19%
38
Technical Aptitude
3
19%
57
263
Travel Coordinator
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
1
22%
22
Collaboration
3
22%
66
Knowledge
1
18%
18
Experience
2
19%
38
Technical Aptitude
2
19%
38
18
182
User Interface
Designer
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
3
22%
66
Collaboration
3
22%
66
Knowledge
2
18%
36
Experience
1
19%
19
Technical Aptitude
3
19%
57
244
Visionary Champion
Compensable Factors
Degree (1-4)
Weight
Total
Innovation
4
22%
88
Collaboration
4
22%
88
Knowledge
2
18%
36
Experience
3
19%
57
Technical Aptitude
4
19%
76
345
Implementation Plan
In order for the new structure to be accepted and understood, it must be carefully
explained to everyone throughout the organization. The employee manual will be distributed to
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explain how the compensation system will pinpoint the appropriate compensation for each
position.
For the plan to be successful, it must be publicized in a way that is welcomed by the
employees. Since FastCat is a smaller organization, the most practical type of communication
would be for project leaders and the administrators to personally inform the plans down the
hierarchy in their respective departments. This is meant to ensure the job structures have been
clearly defined in a personal manner.
Since the responsibilities and needs of the positions are subject to change from external
forces, it is important for line managers and their superiors to understand how to implement this
job analysis process. They also need to take different strengths of their employees for the future
into consideration by changing weights that are deemed best fit. It is important to ensure that the
plan is flexible enough to handle any changes that occur internally and externally. If
management were to encounter these situations, it is necessary they understand the internal
structure and how to implement changes to it. Even though the internal structure is flexible to
withstand changes, it is important to avoid frequent adjustments because it could decrease
employee retention due to an inconsistent structure.
Manual
The internal structure will be developed with the administrative staff to familiarize them
with the plan. Since the internal structure is a job based approach, it will involve five
compensable factors that will be scored into four degrees; 4 being the highest, 1 being the lowest.
Each position will be scored a point value for each of the factors that include innovation,
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collaboration, knowledge, experience, and technical aptitude. After each position has been
evaluated a point value to each of their factors, a weighted value will be applied to each of them
summing up to 100% total. The assigned weights multiplied by the point value for each factor
would give us an overall score of how valuable the position is, 400 being the highest score
possible. The weights for the job factors will be consistent when ranking all positions in the
company to maintain equality. The jobs will be categorized into either four departments;
administrative, engineering, marketing, and technical. The jobs will be ranked based on the
hierarchical scale corresponding with what their total score was. Their pay will be calculated
based on where their position ranks within their job category.
In the case of jobs being added or removed in the future, it will be the administrative
staff’s duties to assign the compensable factors and weigh them to obtain the value of the job.
The job structure is solid enough so that when events like this occur, the administrative staff can
promptly appraise the value of the job and where it ranks.
Appeal Process
If an employee believes that they are being unfairly compensated in the hierarchal
system, they are advised to contact the administrative assistant prior to the administrative leader.
The administrative assistant should be responsive to any requests within one business day and
schedule a meeting in the next three days to discuss any issues. If the employee and
administrative assistant fail to reach an agreement, the administrative leader should be contacted
to meet with said employee. These meetings should be personable and administered within a
week of the employee appeal notification. These meetings are established to clarify to the
employee their position ranking and why their salary level is appropriate.
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A secondary evaluation will be administered if the employee still believes their job
ranking was inaccurately evaluated after being clearly defined by the administrative leader. This
secondary evaluation will conclude in the span of a week, following the first meeting with the
administrative leader. It is in the employee’s best interest that they analyze their job description
and suggest any adjustments they find suitable to administration. The administrative assistant
and administrative leader will conduct the re-evaluation. If the compensation is aligned with the
job description, then no further action should be taken. If the pay level is inaccurate with the job
description, then all the job positions within the same category will be administered a secondary
evaluation and will be reassessed based on points.
It is required that all parties involved in the appeal process, sign an agreement stating the
meetings are confidential. These contracts prevent any outside employees from knowing who has
requested meetings regarding their salary. This prevents any higher paid employees from feeling
threatened from other employees who believe they are paid too low in comparison.
Rationale
We recommend that FastCat implement a job point evaluation system to determine the
appropriate compensation for each job. By using this point system, FastCat can clearly define
which skills and qualifications are most important by placing a point value to them. This system
makes it easier to identify who the most essential employees are and if they are being
compensated fairly.
We advised FastCat to evaluate employees based on five compensable factors that
include knowledge, collaboration skills, technical aptitudeness, experience, and innovation. We
chose these factors because they are essential qualifications to help FastCat in it’s future success.
They will need to hire highly educated people with expertise and experience in the market who
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are also technologically savvy to avoid any technical errors that disrupt their objectives.
Creativity is another essential factor we value because it is in line with their mission statement
“to exceed our customers’ expectations of value, dependability, and reliability by focusing on
innovation and teamwork.” Collaboration is an important factor to FastCat because participation
across different departments improve the quality of product development.
Embracing this type of compensation model, establishes the most effective way to lower
operation costs and reduce employee turnover. Implementing a hierarchical system and a
legitimate pay structure establishes a fair salary and fair compensation appropriate for all
employees.
Summary
Savy Inc. will use an internal alignment pay system for FastCat and form a pay structure
based on criterions that are essential to FastCat’s success. Encouraging employees to move up
within the company is vital to the company’s success. The hierarchical system within the
company gives employees the opportunity and motivation to advance in their career fields and
reduce employee turnover. The pay structure reflects jobs ranked in their category by skills,
experience, and knowledge for each employee. These categories include administrative,
engineering, marketing, and technical jobs.
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