Pay Rate

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Pages 2
NAME | YEAR | STEP RANGE (SHOULD) | STEP RANGE(IS) | CURRENT PAY | STEP RANGE(SHOULD) | WITHIN PAY STEP RANGE? | Charles Hamilton | 7 | 3 | 4 | 30,218 | 27,714-29,808 | overpaid | Mary Richardson | 11 | 5 | 4 | 32,250 | 32,400-36,000 | underpaid | Jerry Smith | 3 | 1 | 3 | 31,250 | 27,246-28,530 | overpaid | Theresa Jones | 6 | 3 | 3 | 31,600 | 30,032-32,292 | yes | Alicia Wadsworth | 6 | 3 | 3 | 38,950 | 36,577-39,330 | yes | Connie Johnston | 8 | 3 | 4 | 40,380 | 36,577-39,330 | overpaid | Velda Prescott | 2 | 1 | 1 | 33,250 | 33,184-34,748 | yes | Gloria Lopez | 4 | 2 | 2 | 40,050 | 39,357-41,428 | yes | Rosemary Jensen | 8 | 3 | 3 | 44,520 | 41,428-44,546 | yes |

(1) Which of the employees current salaries fall outside their appropriate (i.e., respective) pay range?
Charles, Jerry, and Connie were all overpaid and Mary was underpaid.

(2) Based on their current salaries, which employee is over-/underpaid, and paid within the appropriate pay step range?
Charles, Jerry, and Connie were all overpaid and Mary was underpaid. Theresa, Alicia, Velda, Gloria, and Rosemary were all paid within the appropriate pay step range.

(3) What action would you take with regard to the pay of some individuals (note: if done correctly, you will have correctly paid, underpaid, and overpaid employees)?
(a) What action(s) would you take with regard to the overpaid employees, and why? I would probably give them more responsibilities to make up for the money that is overpaid because it’s not the employees’ fault that their pay rates are wrong, so to reduce their pay rate that they are already used to might decrease their motivation for wanting to work to the potential that they have been doing so.

(b) What action(s) would you take with regard to the underpaid employees, and why? I would give them the...

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