| Summary: | This is a case study which aims to describe the process of designing a compensation
system in a family business. More speficially, this study focuses on the design of the
compensation system to set clear job values and functions. The problem central in this
study is that many family businesses do not likely manage their human resources fairly
which causes unclarity on renumeration and therefore social jealousy in the company.
The new compensation system is, therefore, designed to address the issue of unclear job
description and job values to renumerate salary. This compensation system is taken from
the organizational structure and design based on the work flow map of the family
business. The map is then utilised to classify jobs in order to make job value and
compensation system clear required by the family business. The needs of the family
business were identified from interview, field note and documents of the family business.
The system employs a method of job evalution called �point factor�. This method is
claimed to recognize the contextual characters of a family business and is claimed to be
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