An ideal pay structure balances the perspectives of both employers and employees. For employers, pay should motivate employees, develop loyalty, be competitive in the market, and reward performance, while also being cost-effective. For employees, pay should cover basic needs and allow for savings, be fair compensation for their efforts and contributions, and be something they can feel proud of. Ultimately, an ideal pay structure considers factors important to both sides, but employers may not always be able to afford the ideal due to financial constraints.
An ideal pay structure balances the perspectives of both employers and employees. For employers, pay should motivate employees, develop loyalty, be competitive in the market, and reward performance, while also being cost-effective. For employees, pay should cover basic needs and allow for savings, be fair compensation for their efforts and contributions, and be something they can feel proud of. Ultimately, an ideal pay structure considers factors important to both sides, but employers may not always be able to afford the ideal due to financial constraints.
An ideal pay structure balances the perspectives of both employers and employees. For employers, pay should motivate employees, develop loyalty, be competitive in the market, and reward performance, while also being cost-effective. For employees, pay should cover basic needs and allow for savings, be fair compensation for their efforts and contributions, and be something they can feel proud of. Ultimately, an ideal pay structure considers factors important to both sides, but employers may not always be able to afford the ideal due to financial constraints.
Summer 2016: MBA 509E: Human Resource Management Home Work: 07 October 2016 Question: Explain how to arrive at an ideal pay-structure for a certain position in a business company. (Marks: 25)
Structure
Text (Marks level B+)
Para-1: Introduction: Describe here an ideal pay structure
Although there are many theories of employee motivation, it is
commonly said that pay is the greatest motivator. It is difficult to suggest what would make an ideal pay structure for a certain position. However, it is reasonable to say that an ideal pay structure is a balance between employers and employees' perspective.
Para-2: WHY pay?
Explain from employer's point of view
Students Text
There is no definite structure that can be considered as
"the ideal" salary structure for an organization in any industry anywhere in the world. But, there are four (4) basic compensation principles that organizations must consider in the design and adoption of a good Salary or Pay Structure. These are: Internal Equity, External Competitiveness, Affordability, and Sustainability. The first two (2) relate with employee and market matters while the next two (2) relates to organizational financial capability/ resources. Choices and decisions must balance the two sides if the organization wants to avoid operational problems. Normally it is not explained why an employer should pay an An organization's compensation practices can have faremployee. There are a number of factors that must be considered reaching effects on its competitive advantage. To develop by an employer while fixing pay for a certain position. There is a competitive advantage in a global economy, the no denying that an employer should pay because he is buying compensation program of the organization must support time of an employee. But he must also consider that the pay to totally the strategic plans and actions of the organization. be offered should be good enough to motivate the employee, By setting the right compensation package, organizations develop loyalty to the company, be commensurate with market will have that competitive advantage and employers will standard and, also, a reward for performance. On the other hand, be attracted, retained and motivated to work in such a pay to be offered ought to be cost-effective. workplace.
ID: 1610515
Structure Para-3: WHY pay? Explain from employee's point of view
Para-4: Conclusion: Add a comment.
Text (Marks level B+)
Students Text
The employee's perspective is different. First of all, an employee
needs money to fulfill family's basic needs and to survive. He also needs money which will ensure a decent living and some saving for post-retirement life. An employee also expects a fair pay. He also expects that pay offered should reflect recognition of his effort and quality. Also, an employee expects a pay commensurate with his contribution to company's value-chain. An employee would be very happy if he is offered a pay which he can feel proud of. As already said, an ideal pay structure will x considerations as explained above. The problem arises because an employer may not be able to afford an ideal pay as such. Yet an employee should be aware of above factors that are important to consider while fixing a pay structure for a certain position.
Salary is perhaps the main criteria of accepting or
declining a job offer. So it is important that the employees should get a competitive salary. Pay structure should be aligning with internal consistency and at the same time it is at par with the industry standards. Employee benefits typically refers to retirement plans, health life insurance, life insurance, disability insurance, vacation, employee stock ownership plans, etc. Salary structures are an important component of effective compensation programs and help ensure that pay levels for groups of jobs are competitive externally and equitable internally. A well-designed salary structure allows management to reward performance and skills development while controlling overall base salary.
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