As compensation managers, why would we bother with various pay grades and pay ranges in an organization?
Compensation managers are responsible for the pay structure of
any company. They bother to pay grades and pay ranges. Pay grade
includes basic pay and grade pay which a company offers to the
employees based on their qualification and experiences. On the
other hand, the pay range or salary range indicates the payment for
a particular position at a certain level within the organization.
Salary range varies with the variation of posts. It also changes
along with the performances, experiences. The salary range must
have a minimum point, middle point and maximum point of the
scale.
Compensation managers determine which employees deserve what amount
of salary. The research, establish and maintain employee’s salary
structure. They collect data and information from analytics and
survey reports about the salary structure of rival organizations.
After that, they establish salary structures for different posts
within the organization.
Not only has the establishment of the salary structure, but
compensation managers also evolved competitive wage rates when
change is necessary. They oversee the distribution of pay to the
workers. It is essential to maintain the operating budget within
the organization’s budget, which is monitored by the compensation
manager. They also discuss with the operational managers about any
employee on their developmental aspects for promotions. A
compensation manager also performs the role of employee
retention.
As compensation managers, why would we bother with various pay grades and pay ranges in an...
Discuss the use of pay grades and pay ranges and their relationship to internal alignment and external competitiveness. Why are pay grades and pay ranges necessary
Company executives, along with HR managers/compensation committees, must decide if their organization will be a pay leader or follower. Strategically, companies should be certain they are able to operate and still make a profit. Think of a company that follows a lag policy and a company that follows a lead policy. Why do they believe it pays to pay differently? Can you think of any companies that follow performance driven and/or work/life balance policies? Explain your choices.Company executives, along with...
1. Does money motivate employees? Why or why not? 2. Why should compensation systems be equitable? How can an organization design an equitable compensation system? 3. Compare and contrast the four job evaluation methods. Give an example of an organization in which each of the four methods might provide an optimal strategic fit. 4. Discuss the pros and cons of employee pay being fixed versus variable and dependent on performance. How might such decisions impact recruiting, motivation, and retention? 5....
We are experiencing a shortage of many life-saving resources in healthcare. This ranges from staff, money, supplies and organs. The scarcity of these resources will be the topic of this paper. First discuss what the current sources of organs for transplantation are. Identify and discuss the 3 compensation proposals being considered. What is the opposition to this type of program? Do you feel this is ethical? Identify and discuss 3 other types of resources that we have trouble acquiring in...
We are experiencing a shortage of many life-saving resources in healthcare. This ranges from staff, money, supplies and organs. The scarcity of these resources will be the topic of this paper. First discuss what the current sources of organs for transplantation are. Identify and discuss the 3 compensation proposals being considered. What is the opposition to this type of program? Do you feel this is ethical? Identify and discuss 3 other types of resources that we have trouble acquiring in...
As a number of variable pay systems (e.g., pay-for-performance or pay-for-knowledge). You have been asked by the CEO of a large Edmonton-based engineering company to explore the use of variable pay for its professional employees (i.e., engineers, technologists, accountants, field managers, project managers). The company has about 3000 employees, mostly in the professional category. The organization already has a reputation for competitive pay practices, but it would like to ensure that it remains an "employer of choice" for its long...
Managers of Sunland Distributors are evaluating the compensation system for the company's sales personnel. Currently, the two salespeople have a combined salary of $54,600 per year and earn a 3% sales commission. The company is considering two alternatives to the current compensation system. The first alternative is to reduce total salaries to $22,300 and increase the sales commission to 5%. The second alternative is to eliminate the salaries and pay a 25% sales commission. Sales projections under each of the...
Managers of Oriole Distributors are evaluating the compensation system for the company's sales personnel. Currently, the two salespeople have a combined salary of $72,207 per year and earn a 3% sales commission. The company is considering two alternatives to the current compensation system. The first alternative is to reduce total salaries to $62,207 and increase the sales commission to 5% The second alternative is to eliminate the salaries and pay a 12% sales commission Sales projections under each of the...
Your organization is interested in adopting a pay for performance compensation program. You have been asked to chair the committee analyzing this concept as well as to prepare an outline of its positives and negatives and “best practices” recommendation. How would you approach this assignment? (minimum 300 words)
There is a positive relationship between reward and performance. Managers should find ways to motivate employees to enhance performance. Rewarding employees with incentives can increase their performance. Rewards other pay increases a sense of belonging among employees. Pay for performance increases productivity of the employees. PFP research focuses on organizational outcomes. Compensation influences retention and performance of employees. This article addresses few of the objectives mentioned in the assignment. First it is related to the reward system, second it is...