Are the Ccua Department’s Current Pay Practices Concerning Data Processor Iis and Computer Analyst Is Externally Equitable (I.E., Competitive)? Explain Your Answer.

Q1: Are the CCUA department’s current pay practices concerning data processor IIs and computer analyst Is externally equitable (i.e., competitive)? Explain your answer.

We believe that the answer to the question is emphatic no. The CCUA department’s current pay practices as currently constituted relating to data processor IIs and computer analyst I is not externally equitable. When your pay practices are similar to the practices of other organizations competing for the same talent, then your program is said to be competitive or externally equitable (Bernardin and Russell). Based on this definition of external equity, it is obvious that the pay practices of CCUA department’s current pay practices is not competitive in relation to its close competitors as shown on the survey data (Exhibit 10.1.3) and the chart below.

Again as shown on Exhibit 10.1.3, the average weighted salary comparable to the computer analyst I and Data processor II positions are $35,156 and $27,500 respectively. These figures do not compare favorably to CCUA salary for similar positions which are $31,500 for computer analyst I and $24,960 for Data processor IIs. Both salaries are below the industry average as shown on the graph. The above analysis clearly shows that both the Data processor II and computer analyst I positions at CCUA departments are underpaid in relation to available salary data from Decision Sciences database. Even though it is not clear from the information presented in the case as to which companies the former employees went to, it is safe to assume that they may seek jobs in similar manufacturing companies or industry. Either way, the salaries at CCUA department do not compare well. For example, the average weighted salaries for manufacturing consumer and manufacturing industrial are $33,750 and $40,714 respectively.

We believe that since the overwhelming reason why employees left CCUA was low pay, it is incumbent on CCUA department management to change the...