Question

describe one organization's pay structure in detail. You are to chose your current employer, a previous employer, an employer in which you have an interest with readily available information on the internet, or IUPUI. In your description, include advantages and disadvantages to the pay structure.

describe one organization's pay structure in detail. You are to chose your current employer, a previous employer, an employer in which you have an interest with readily available information on the internet, or IUPUI. In your description, include advantages and disadvantages to the pay structure. write 375 words

Answer 1

The pay structure in the organization I currently work in has been framed and outlined after taking into consideration the nature of the business and processes. Bring a major retail outlet in the town, Acme incorporation is one of the key distributors of clothes and accessories in the city and distributes products through operating both online as well as offline.

The employer follows a Broad-banding pay structure wherein certain pay grades are set for each area of business depending on the nature and requirements of the job. It is the individual focused pay structure with the main benefit of paying individuals as per their capabilities, skills, experience, and performance outputs through grouping together the comparable jobs into specific pay grades. Pay grade vary as per the departments or based on the positions such as non-managerial job roles, managerial job roles, executive job roles and lower level jobs. Pay grades feature a minimum and maximum pay limits for each position with increments pay increases on increase in performance or good reputation.

The major advantage of this pay structure is that performance outputs of candidates is direct linked with the pay ranges set for them to accomplish. This way employees always stay motivated to push their limits and utilise their full potential to achieve higher targets to qualify for high pay grades thus building healthy competition in the business environment. Another benefit of this system is that the best performer doesn't feel that he or she is being paid equivalent to average performer, thus does not limit his potential and continue achieving higher targets to achieve more incremental pay. It leads to effective communication and fosters positive relationship in the organization as the employees feel that they are being paid fairly for the extra efforts being put. It best suits the performer evaluation driven organization where achieving certain standards is important. Employers van easily judge the pay structure for each employee as per the performance results without any scope of discrimination or qualitative judgement which involves bias.

The major disadvantage of this pay structure is that the pay grades need not to stay rigid but should be necessarily flexible and changed with the changes in industry standards, environment otherwise the pay structure might become stagnant or ineffective to retain employees. The pay structure might breed conflict of interest as each department will engage in increasing performance to qualify for higher pay grades without taking into consideration the interests of other departments therefore affecting unity and team work.

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