PAY PLANS

In this lesson we shall discuss about establishing pay plans. After going through this lesson you will be able to:
(i) Understand basic of compensation and factors determining pay rate.
(ii) Discuss current trends in compensation and job evaluation and its methods.
(iii) Analyse pricing job and computerised job evaluation.
Job evaluation is the systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within the organisation. Job evaluation helps to establish internal equity between various jobs. Compensation administration intends to develop the lowest-cost pay structure that will not only attract, inspire and motivate capable employees but also be perceived as fair by these employees.

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