Policy For The Melting Pot Restaurant Essay


Explore policy for The Melting Pot Restaurant.



The current paper is deeply focused on developing Equitable Reward Structure as well as Base Pay Structures for The Melting Pot Restaurant. In order to address the developing equitable reward structure and base pay structure, the paper outlines the basic principles for evaluating the job. In addition, comparing and contrasting the job ranking method and point method for evaluating the job. The paper will determine equitable remuneration policy with the help of collected data from the market. The paper also presented relationship between market rates and mid-points. This paper discusses the process of translating the policy for base pay positioning. It also focuses on the market allowance working. Moreover, the pay grades and pay bands are effectively compared and contrasted. Progression policy is also discussed in this paper. The preference between team based incentives and individual incentives is explained through the paper. Team based incentives as well as individual incentives are also illustrated here. The paper has been able to address three cost effective employee benefits.

1. Four Basic Principles of Job Evaluation:

There are four basic principles which are highly influential for providing a clear understanding of the respective task (EL-Hajji, 2015). These principles are

Definition and Evaluation: The definition of the job must be clear to the employees so that they can effectively perceive the job description. In addition the definition must be properly identifiable and can be distinguished properly so that the employees don’t get confused.

Job understanding: It is the basic responsibilities of job evaluators which is deeply concerned with achieving the most crucial understanding in relation with the job. The job evaluators must have the methodological perception regarding every kind of task (Kutlu, Ekmek?io??lu & Kahraman, 2013).

Concern: It is evident that the evaluation of the job must be concerned with the job itself rather than focusing on the person. The most principle of the job evaluation is focusing on the associated person.

Assessment: The evaluation of the job is properly assessed in such a manner that can be highly accepted with the competent people. Moreover, the job evaluation is generally assessed by proper judgment as well as scientific aspects.

2. Comparison and Contrast between job ranking method and point method:

The simplest form for evaluating the job is the ranking method. The major function of the job is comparing between various jobs till every job has been properly ranked and evaluated. The ranking process is operated according to the order of ease that is highest to lowest or simplest to hardest. The major factors which are most influential in respect to judging the jobs are responsibilities, demands and duties. The ranking process is operated through a whole job rather than focusing on different factors which are compensable (Hendry, 2012).

On the other hand, point method is the most used process of evaluating the job. The major factors which are crucial for breaking down the jobs are effort, skill, knowledge, training, responsibility as well as hazards. This particular points rating method allocate the points on the basis of these factors. The major concern regarding the point allocation is importance in respect to job performance. The jobs which acquire similar pay grades are categorized into same place. In the context of categorization, the points are summed which is considered as index of relative significance (Foster, 2014). The point method is therefore evidently most profitable for the organizational success. The employees are focused on improving their skills and job performance which in turn enhances overall organizational performance.

3. Determining an equitable remuneration policy:

The collected market data regarding the salary of the similar restaurants has been used for developing the scatter-gram. The scatter gram will represent the salary range of the various employees in the contemporary restaurants. The scatter-gram will contain a ‘line of best fit’ which is also referred as central tendency of the salary scale.

Chart 1: Scatter-gram of the market data of salary

(Source: Created by the Author)

The line of best fit depicted in the scatter-gram shows the most centrally aligned salary amount via the chart. This way the scatter gram can depict that the major salary structure which is practiced in the market. The line of best fit indicates the most agreeable salary structure for The Melting Pot Restaurant (Purce, 2014). In this context the equitable remuneration policy is deeply impacted by the scatter gram as well as line of best fit. The company will be able to construct their most attainable structure of the salary. In other word it can be stated that the line if best fit reveals the salary trend of the markets which is most influential in respect to developing the reward structure as well as base pay structure of The Melting Pot Restaurant (Bennett & Ho, 2014).











Table 1: Median ranges for market data

(Source: Created by the Author)

















Table 2: Quartiles ranges for market data

(Source: Created by the Author)

Chart 1: Upper quartile, median and lower quartile range for market data

(Source: Created by the Author)

According to the developed scatter-gram it can be observed that the grade 1 employees of Pippa restaurant are remunerated within the range from $23500 to $32000. However, it is also displayed in the scatter-gram that the restaurant is mostly focused with concentrating the salary scale near $30000. At the same time, the grade 2 employees are remunerated with the salary range from $32000 to $39520. In addition, the salary structure of grade 2 employees are concentrated around 35000. Moreover, the grade 3 employees are paid within the range of $35000 to $50000. The scatter-gram also represents that maximum employees are remunerated below $40000. Furthermore, the salary structures of grade 4 employees are remunerated either below $50000 or below $60000. In addition to that, Pippa restaurant mainly hires the grade 5 employees with a single remuneration amount i.e. $80000.

4. Relationship between mid-points and market rates:

The mid points of the salary range are referred to the average point of the salary scale which represents the equality of the salary structure at the time of construction of the salary. The mid points also represent the central tendency of the entire salary structure at Pippa restaurant. This midpoint of the salary structure is considered as the average pay of the Pippa restaurant. At the same time the market rate entails the standard rates which are normally practiced in the restaurant market (Storey, 2014). The market rate is mainly tended to be concentrated towards the central point of the range. At the time of recruitment attracting the talents along with saving the employee cost mostly drives the salary structure towards the middle of the salary range. In this context, it is also noted that the market competition forces the companies to offer similar range of salaries to the employees. Therefore, it is evident that the market rate as well as mid point is deeply related. The midpoint can effectively indicate the market rate as well (Jiang et al., 2012).

5. Relationship between well payment and base pay positioning:

The base pay positioning refers to a certain amount of fixed money which is paid to the employees in order to ensure that they carry out their responsibility with an effective sincerity. Now, the decision of paying the experienced and efficient employees with a grater base salary structure will certainly uplift the motivation level of the employees (DeCenzo, Robbins & Verhulst, 2015). This scenario will eventually increase their inclination towards completing the task with an enhanced sincerity. The Melting Pot Restaurant will position the pay ranges near around the market rate so that the employees will be attracted towards the restaurant and the organization will not be affected economically (Renwick, Redman & Maguire, 2013).

6. Concept of market allowance:

The market allowance refers to the process by which the organization can remunerate the employees higher in comparison with the prescribed level. The market allowance is also quite effective for enabling The Melting Pot Restaurant to compete in this contemporary market. In this particular competitive market The Melting Pot Restaurants has perceived the importance of the marketing allowance as effective basis of attracting as well as retaining the talented employees. There are two different kinds of allowance which are most commonly practiced in this world (Alfes et al., 2013). These allowances are attraction allowances as well as retention allowances.

  • Attraction Allowance:

The attraction allowance is known by the additional payment which is used for attracting the key talent for the organization. The attraction allowance is highly effective for emphasizing on the uncompetitive remuneration in order to influencing the talented employees to join the organization.

  • Retention Allowance:

The retention allowance is referred to the additional payment which is used for retaining the employees. The employee turnover is greatly critical for the business achievement as well as aims and objectives of the organization. The retention allowance is considered as the most important factor in the case of emphasized uncompetitive remuneration for influencing the talented employees not to leave the organization (Mello, 2014).

7. Comparing and contrasting the pay grades and pay bands:

The pay grade is referred to the amount of remuneration which is paid to the employees in order to compensate the employees (Buller & McEvoy, 2012). The major factors in the context of defining the pay grade are performed responsibilities of the job, exercised authority of the job along with total time taken for performing the job. On the other hand, pay band refers to the range of the compensated amount to the employees. Whilst the pay band is defined by the range of job category the pay grade is considered as the basic pay for individual employees (Hoque, 2013).

8. Explanation of progression policy:

The progression policy of The Melting Pot Restaurant is aimed to construct the process of payment as well as reviewing the salaries of staff (Nickson, 2013). There are several different routes which is able to outline the progression of the salary. In addition, it also formulates employees’ responsibilities in order to achieve the forecasted success of restaurant. The progression rules are also responsible for guiding the duties of the employees under the rules of rewarding system.

9a. Characteristics of team based incentives and individual incentives:

The team based incentives refer to the reward remuneration payment system based on the performance of the entire team (Riley, 2014). The major characteristics of team based incentives are

  • Team based incentives are applied at team level on the basis of team size.
  • The team based incentives is highly useful for recognizing the contribution of employees within the team
  • The team based incentives is considered as the means extrinsic motivation.

The individual incentives refer to the reward remuneration payment system based on the performance of individual. The major characteristics of the individual incentives system are

  • Individual incentives are applied in the case of individual employees.
  • Individual incentives can be used for recognizing the efforts of individual employees
  • The individual incentives are considered as the basis of intrinsic motivation.

9b. Justification of team based incentives:

The team based incentives is highly beneficial for several crucial activities in the context of achieving the success for the organization. It is observed that the team based incentives are highly effective for encouraging the team members so that the employees can work together in an effective fashion (Jiang et al., 2012). In addition to that, the team based incentives can be proved to be most crucial for the cooperation as well as collaboration between the team members. The teams which are highly collaborated can be most effective for using the skills as well as abilities in an effective fashion.

Team based incentives is also quite popular for enhancing the efforts of the team members aiming not to hinder the performance of the team members so that the overall team can gain the incentives. The motivation is also quite impacts the workplace environment of the entire organization. The organization is also benefitted by the reduced employee turnover rate due to the attractive total team based incentives scale (Ulrich, 2013). Considering these most crucial advantages The Melting Pot Restaurant has selected the team based incentives as their primary incentives method. The team based incentives will be quite helpful for The Melting Pot Restaurant in the context of achieving their goals with a increased team performance as well as reduced employee turnover rate.

10. Three cost effective benefit for the employees:

The total remuneration policy for The Melting Pot Restaurant has considered three major benefits for the employees which will not be directly paid by the employees. In addition it will be cost effective for the employers. These cost effective benefits for the employees are

Health Maintenance Program: The employers will be able to generate the wellness program for maintaining the health condition of the employees. The employees will be deeply satisfied with the organizational support in the context of their health maintenance.

Work/Life Balance Program: The organization can help the employees with a support to maintain their work/life balance program in a significant way. There are lots of cost effective processes which are crucial for programming the work/life balance. These processes are paid time off program, telecommunication arrangements as well as flexible schedule (Kehoe & Wright, 2013).

Short Vacation Tour: The restaurant can also offer a short vacation tour to the employees every year. This way the employees will be motivated as well as encouraged to contribute to the success of the companies. This process is highly cost effective as the restaurant will provide a part of payment of the tour program (Mondy & Martocchio, 2016).


The above described paper has been highly focused to construct the total remuneration policy for The Melting Pot Restaurant. It has mainly focused on various aspects of the Equitable Reward Structure as well as Base Pay Structure. There are various crucial activities which are influential for the development of the entire total remuneration policy. The paper has addressed market allowances, pay grades, incentives selection as well as cost effective benefits for the restaurant.

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