Verified Document

Pay Structure Reflects Four General Architectural Principles. Essay

Pay structure reflects four general architectural principles. The first is the minimum and maximum levels of pay within the organization, and to whom those levels go. The second is the general relationship between the levels of pay. In this, the organization must understand the different types of employees that it has, and what the relationship is between those types. The third factor is whether the pay structure should lead the market, meet the market or lag the market. This can be broken down by pay class as well, so that some positions lag the market while others lead the market, depending on the importance of the position to the company. The fourth architectural component of pay structure, which is the division of the total compensation dollar between base pay, merit pay and pay-for-performance programs (Henderson, 2006). A pay policy line is best described as a trend line that reflects the "middle pay value of jobs that have been evaluated" (Ibid, p.266). The trend line will reflect the above-mentioned factors of whether the structure leads or lags the industry, and the relationship between the different pay grades. The pay policy line need not have the same slope throughout, but could curve....

An example of this would be a company like Wal-Mart, where the lower levels of the organization are filled with tens of thousands of workers with a relatively flat pay structure. At higher levels, Wal-Mart employs some of the best talents in the field of logistics and supply chain management, and these talents are paid according to their talents, so the slope of the pay policy scale steepens at this point. This reflects that an organization might have more than one pay structure (i.e. For technical and non-technical staff). Alternately, if there is a smoother transition from lower level workers with some technical skills to workers with more advanced technical skills, there might be a curvilinear pay scale (a good example of this is a sports team, where players do the same job but those with higher skills see their salaries escalate at a faster rate than lower-skilled players).
The pay policy line is determined by a number of different factors. One of the most important factors is the market for different skill sets and where the company wants to position itself within that market. Another consideration is the degree of importance that the company places on base pay vs. merit pay.…

Sources used in this document:
References

Henderson, R. (2006). Compensation management in a knowledge-based world (10th ed). Chapter 11. Upper Saddle River: Prentice Hall.
Cite this Document:
Copy Bibliography Citation

Related Documents

History of Project Management at
Words: 6401 Length: 25 Document Type: Essay

Houses permitted the people to move from a nomadic existence to a settled and more organized way of life. The majority of the houses were square with other rooms built on. The palaces of the early Sumerian culture were the political, economic and religious focal points of the city; large-scale, lavishly decorated, and consisted of rooms used to house craftsmen and such. Archaeological finds have also revealed them to

Cultural and Construction History of
Words: 8066 Length: 17 Document Type: Essay

Thomas Aquinas led the move away from the Platonic and Augustinian and toward Aristotelianism and "developed a philosophy of mind by writing that the mind was at birth a tabula rasa ('blank slate') that was given the ability to think and recognize forms or ideas through a divine spark" (Haskins viii). By 1200 there were reasonably accurate Latin translations of the main works of Aristotle, Euclid, Ptolemy, Archimedes, and

Cultural and Construction History of
Words: 5800 Length: 20 Document Type: Essay

Charles Van Doren has concluded that the Copernican Revolution is actually the Galilean Revolution because of the scale of change introduced by Galileo's work. The technological innovation of the Renaissance era started with the invention of the printing press (the Renaissance). Even though the printing press, a mechanical device for printing multiple copies of a text on sheets of paper, was first invented in China, it was reinvented in the

Gothic Period Cultural and Construction
Words: 4930 Length: 17 Document Type: Essay

William of Occam formulated the principle of Occam's Razor, which held that the simplest theory that matched all the known facts was the correct one. At the University of Paris, Jean Buridan questioned the physics of Aristotle and presaged the modern scientific ideas of Isaac Newton and Galileo concerning gravity, inertia and momentum when he wrote: ...after leaving the arm of the thrower, the projectile would be moved by an impetus

Market Orientation of Medical Diagnostic Units Dissertation
Words: 21636 Length: 76 Document Type: Term Paper

Market Orientation of Medical Diagnostic Units Dissertation for Master of Health Administration i. Introduction ii. Objectives iii. Description iv Administrative Internship v. Scope and Approach vi. Growth vii. Methodology viii. Hypothesis ix. Survey Questionnaire x. Research Design xi. Observation and Data Presentation xii. Test provided xiii. Analysis of findings Marketability of Patient Satisfaction Importance of Employee Satisfaction xiv. Conclusions and Recommendations xv. Bibliography xvi. Notes xvii. Appendices Market Orientation of Medical Diagnostic Units

Collaborative Consumption and Architecture
Words: 8536 Length: 24 Document Type: Dissertation or Thesis complete

architects in the 21st century is the issue of sustainability. Not only is there no consensus opinion on how to approach the issue of sustainability in academic circles but there is also no formula of integrating sustainability into architectural curriculum (Wright, 2003). This deficiency underscores an even more stressing problem, however: as Edwards and Hyett (2010) note, "the techniques and technologies of green design are now generally understood --

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now