Question

 One of the key decisions employers must make is the level of compensation provided to employees. Compensation is a significant cost and employees are one of the most important assets of the organization. It is important that the organization makes and executes good strategic choices. To facilitate this process, many organizations think systematically about its job structures for compensation and pay leveys for different jobs

 

An organization's job structure consists of relative pay for different functions and different levels of responsibility. It defines, for example, the difference in pay between entry-level and management jobs, as well as different entry level jobs in different departments, such as in production or accounting Pay level is the average amount that an organization pays for a particular job and includes wages, salaries, and bonuses. Job structure and pay levels together form the pay structure, a policy that helps the organization achieve goals related to employee motivation, cost control, and the ability to attract and retain talented employees

 

This activity is important because it will help you distinguish between the various factors that impact an organization's pay structure. The goal of this activity is to classify decisions based on the factors used to establish a pay structure.

 

HR professionals develop pay structures for their organations based on such factors as legal requirements, company goals, and market forces Drag each item into the appropriate column on the chart Each column should contain four items.

Answer 1

a.Equal pay for equal work
b.Federal minimum wage laws
c.Child labor laws
d.Overtime pay

2.Organizational goals

a.Equitable pay rates
b.Company cost centers
c.Retention of high quality talented staff
d.Compliance with government regulations

3.Market forces

a.Trends in labor markets
b.Marketability of company’s products