Question.2411 - Read the case titled ‘Designing a professional pay structure at Woburn University’ and answer the questions given below the case (minimum half a page answer for each question (500 words) using insights & ideas from the textbook, relevant classroom discussions and your own views). Designing a professional pay structure at Woburn University Woburn University is located in the English Midlands and has over 25,000 students and around 4,000 staff. There are approximately 75 professors in the institution and there are plans under the current three-year strategic plan to expand this number to 150. Background Until 2008 the professorial pay structure at Woburn University comprised a standard single-grade pay scale, with no set definitions on where an individual should be assimilated onto the grade or how they would progress. In 2008 it was decided in consultation with a representative group of key stakeholders that a more structured system was needed. The main drivers were a desire to link professorial activity to the university’s strategy and also to introduce a more transparent system which linked contribution to pay progression. A new three-banded pay and grading system was therefore introduced in 2009 which comprised two sets of eight drivers – one set applied to ‘research’ and the other ‘teaching and learning’. Depending on the focus of activity, a professor would be reviewed against one set of drivers for the purposes of assimilation into the new system. Descriptors for each driver set out the expected activity level for the three bands within the system. For example, drivers under the ‘research’ heading included a professor’s publication record and contribution to securing research funding. Professors were then assessed against the relevant set of drivers and received a score for each driver of 0, 1, 2 or 4. Certain key drivers attracted a weighted score, and by factoring this in, total scores were arrived at which correlated to one of the three pay bands. Assimilation to the new system progressed relatively smoothly and appeared to have successfully delivered on the project aims.The current professorial structure The professorial salary grade comprises three pay bands, as shown in Figure 1. Pay progression mechanisms for each band reflect a combination of factors, including market realities, individual development and contribution. Pay progression within the normal zones of all three bands is automatic and applied annually in August. Bands 2 and 3 havecontribution zones which can be accessed through a successful recommendation or self- nomination for contribution increments. At present, 50% of professors are located withinband 1 and 25% each in bands 2 and 3.Figure 1 Professorial pay bands (1 August 2011)In all bands of the professorial grade, pay progression is subject to professors demonstrating normal (good) performance and participating in an annual Performance, Development and Career Review (PDCR). Professors must be in post for a minimum of six months to be eligible for progression. A successful recommendation for a contribution award will result in either accelerated progression within a band, access to the contribution zone in bands 2 or 3 or movement to an upper band. Once a professor has accessed the contribution zones in bands 2 or 3, there are no automatic annual increments but pay is consolidated and cannot move down within the band. A professor may be recommended or can self-nominate to move between bands, if it can be evidenced that their contribution meets the requisite driver descriptors for the relevant upper band. The professorial pay structure (band minima, maxima and incremental points), shown in Figure 1, is reviewed on an annual basis. General pay uplift awards are determined following negotiation at the university’s Heads Information, Negotiation and Consultation Forum. The review takes account of:1. any change in the cost of living 2. the economic circumstances of the university 3. experiences in the recruitment and retention of professors 4. any available market pay data. The need for review A feature of the new professorial pay and review system was that there would be a review after two years, and so, in 2012, the first review was undertaken, again using the same drivers and weighted scoring mechanism that had been used for the assimilation in 2009. It soon became apparent that the scoring system was unstable, with swings in the results when compared with the previous review – there were cases of professors who had previously received high scores now receiving low scores and vice versa. It was therefore decided that a review of the mechanism had to be conducted with the aim of putting a more rigorous methodology in place, including a less volatile scoring method. The main problem was that the system did not consider the fluctuations and timescales which affect a professor’s work output. For example, a professor spending five years to write a book would score highly in the year the book was published but hardly at all in the other four years. Maximum of three pages, A4 format, font Calibri 11, single spaced, all margins 1 inch. Important notes • It is the responsibility of the team leader to make sure that deliverables are of quality, and are submitted on the due date. • Your work needs to be authentic, using your own words, adding value, and creative. • Use proper citation of your work. • You will be asked to upload soft copies of your reports to Turnitin. • Turnitin uploads of your report will be allowed as per the submission schedule provided by your instructor. • For late reports please refer to late submission policy provided in the course syllabus.Questions:1. Is the existing narrow grade structure (with consolidated increments) right for these staff? What are the changes would you recommend to the grading structure? (50 Marks; Word Limit – 500 words) 2. How can external market value be reflected in the current grading structure? Explain what challenges the organization might face to allow such flexibility to be introduced in the pay structure? (50 Marks; Word Limit – 500 words)

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