MASTER OF BUSINESS ADMINISTRATION

SEMESTER 4

DHRM401

COMPENSATION AND BENEFITS

Unit 12 Pay Structures

Table of Contents

SL No	Topic		Fig No / Table / Graph	SAQ / Activity	Page No
1	Introduction		-	I	3
	1.1	Objectives	-	-	3
2	Designing Pay Structures		1	1, II	4 - 10
	2.1	Organisational commitments or promises in designing pay structures	-	-
	2.2	Major decisions in designing and setting competitive pay structures	-	-
3	Comparison in Evaluation of Different Types of Pay Structures		2, 3, 4, 5, 6,	2, III	11 -16
4	Designing Pay Ranges and Bands		7	3	17 - 19
	4.1	Pay ranges	-	-
	4.2	Pay bands	-	-
5	Significance of Factors Affecting Pay Levels		-	4	20 - 21
6	Economic Determinants of Pay		-	5	22- 23
7	Summary		-	-	24
8	Glossary		-	-	25
9	Terminal Questions		-	-	25
10	Answers		-	-	26 - 27
11	Case Study		-	-	27 - 29

1. INTRODUCTION

In the previous unit, you have studied about the concepts of performance management which is linked with the compensation of the employees. You also learnt that it included both internal as well as external equity. Pay for performance plans were also covered in the previous unit.

Due to the competitive scenario, organisations are now adopting and developing attractive pay structures and systems so as to improve the performance of the business. Many firms are now-a-days shifting from traditional worker/management demarcations and are harmonising their systems of pay. This has given rise to newer systems of pay towards less hierarchical shape, broader bands and a flatter system of organisation.

In this unit, you will know about designing the structure of pay ranges and pay bands, various types of pay structures, the economic determinants as well as factors affecting the pay levels.

1.1 Objectives:

After studying this unit, you should be able to:

❖ Discuss the concept of performance and pay based structures

❖ Explain the designing of pay structures

❖ Identify the comparison while evaluating various types of pay structures

❖ Describe the designing of pay ranges and pay bands

❖ Recognise the significance of factors affecting the pay levels

❖ Describe the economic determinants of pay

Performance Based Pay Programme in a Software Company

Interestingly, Indian companies are increasingly beginning to follow the US model of ‘payfor-performance’ programmes. At the entry level, 90-100% of the ‘cost-to-the-company’ comes as fixed component of the compensation. However, as one moves up the career ladder, a large proportion of the compensation gets linked to the achievement of performance objectives. Nevertheless, performance-linked pay structure is effective only when parameters and benchmarks to measure individual and team performance is clearly defined, communicated and accepted by managers and employees alike.

Software industry in India is one of the most growth-prone sectors. Compensation increases in the software industry following the technology route- upgrade or lose-with almost the same lifecycle. In a recent study, it was found that over 30% of those polled had received between 11% and 20% increases in compensation at their last performance appraisal. Another 20% received a 21-30% raise, while a whopping 14% had upped their compensation by more than 40%. Based on experience, it has been found that IT professionals were hopping jobs for 25% jump in compensation.

The software industry’s aggressive compensation increase policy is one of the ways of dealing effectively with employee attrition. Amidst stiff competition, it is essential for companies to keep cost under control. Compensation budget is a tool for forecasting and maintaining employee cost on account of compensation. For example, when a software company wanted to develop a performance-linked compensation system in the organisation for a specific category of personnel, it decided to keep 0.25% of actual sales towards additional expenditure for the next fiscal year. This amount will be equally distributed amongst the specified category of personnel who are eligible under the company’s ‘pay-for- performance’ scheme. In the event one or more employees are in this category, budgetary figures are not achieved, 5% of the shortfall will be adjusted against the corpus fund created for the purpose whereas 95% of the shortfall will be borne by the company. If, however, the budgetary figures are achieved, 5% excess over budgeted figures will be added to the corpus fund and then the balance will be equally distributed amongst the employees. These amounts are subject to income tax.

Source: G.V.S. Gurunadh, Vice President-HR, Bhrigus Software (India) Pvt. Ltd., Hyderabad

Activity I

As an HR Manager of XYZ Ltd. company, do you think that performance based pay structure should be added to the compensation of employees. Express your opinion in

terms of economic, moral, social, management and psychological perspectives

2. DESIGNING PAY STRUCTURES

2.1 Pay Based Structures

A pay/salary structure refers to the collection of salary grades, bands or levels, connection of related jobs within a series or hierarchy which helps the organisation in providing a framework for the implementation of various policies and reward strategies within the organisation. Various salary structures are connected with varying types of salary progression arrangements.

An organisation salary structure is thus a method of administering its salary philosophy. The two main categories of pay structures are – Internal Equity (which is structured in a grid and helps to make sure that each job is paid as per their task and job above and below the hierarchy levels) and Market Pricing (where organisation’s each job is connected with the prevailing price of the market). An effective pay package highlights an organisation’s reward strategy while maintaining both internal as well as external competitiveness.

Objectives of pay structure

Following are the objectives of the salary structure in the organisation with the help of which you will be able to know their importance in designing the pay structure:

• To balance the strategy of reward with the strategy of the business so as to encourage and motivate high performance level people.

• To bring clarity and order between organisation and its people in managing career progression as well as an increase in pay.

• To make transparency and ensure lawfulness and fairness while designing the pay structure.

After determining the internal equity relationship among various jobs and identifying the competitive pay practices in the marketplace, the next step of the business is to design the pay structures for their employees. The main aim of the organisation is to hire competitive talented employees and thus make proper utilisation of them so as to attain the competitive edge. The process of constructing and grading the ranges arises after determining the job specification which is basically designed for various job levels and depends on the job analysis. According to the description of the job or occupation in the firm, the grouping of ranges and grades is done.

2.2 Organisational Commitments Or Promises In Designing Pay

Structures

In order to maintain a balance between external equity and union pressures, it becomes very important for the organisations to analyse the various welfare and personal aspects with relation to organisational aspects. This enables them to offer the most acceptable pay structures to the employees for attracting, retaining and motivating them.

Source: Compensation Management,1st Edition, Er Soni Shyam Singh, Excel Books

Figure 12.1: Diagram of Organisational commitments or promises in compensation structures

The above figure 12.1 depicts the HRM policy and organisation’s mission in order to optimise the personnel with the help of three aspects:

1. Personal aspect: It lays emphasis on the consideration of working comfort, equity and fair value.

2. Welfare aspect: This comprises of environment, family welfare, facilities, work life and perks.

3. Organisational aspect: It focuses on the considerations related to motivation, training and development of the employees for the better performance.

2.3 Major Decisions In Designing And Setting Competitive Pay Structures

The major decisions in designing and setting the competitive pay structures include:

1. Specifying the competitive pay policy of the employer with the help of surveys which gives data for converting the pay policy into pay structures, pay levels and pay mix.

2. Defining the purpose of survey which is conducted because of the following reasons:

❖ to analyse pay related problems and establish pay structure

❖ to estimate labour price of services and product market competitors and to select the market competitors which are based on similar skills, same services and products as well as employees within the similar geographical area.

3. Selection of jobs in the survey with the help of two approaches:

❖ Low – high approach which identifies lowest and highest paid benchmark jobs for the relevant competencies in the relevant market and to use the salaries for these jobs as anchors basically for the skill based structures.

❖ Benchmark job approach includes the entire structure of the job which comprises of all the key functions and levels that can be matched with the descriptions of the benchmark jobs.

4. Designing the survey with the help of three categories of data which are required to evaluate the total compensation package with respect to the competitor’s practices.

These are:

❖ providing information about the nature of the firm

❖ providing information about the total pay system

❖ specifying compensation data on each incumbent in the jobs understudy

5. Interpreting the survey results by analysing and assessing the outcomes as well as using statistics in order to construct the market line so as to check the accuracy of the job matches, the anomalies, age of data and the nature of the firms.

6. Balance the competitiveness with internal alignment which includes use of bands, ranges and flat rates which offer flexibility so as to deal with pressures from external markets and differences among firms.

3. COMPARISON IN EVALUATION OF DIFFERENT TYPES OF PAY

The pay structures in the organisations are quite diverse depending upon the technical knowledge and skills required, jobs, roles and external and internal pressure of compensation. The most important types of salary or pay structures are as follows:

1. Narrow graded pay structure: Narrow graded pay structure contains large number of bands which are arranged in a vertical progression as shown in figure 12.3 with less number of increments to each band or grade. It is thus mainly used by firms which have clerical and manual jobs. This pay structure comprises of more than 10 grades as shown in the figure.

Source:http://www.transtutors.com/university/images/964_narrow%20graded

%20structure.png

Figure 12.2: Narrow Graded Structure

Considering the above figure, you can judge that narrow graded pay structure has the following features:

❖ There is some requirement of pay progression.

❖ It is evaluated only in the bureaucratic and large firms which are having extended and well defined hierarchy.

❖ The culture is attached with significance to the status as indicated by grading.

2. Broad graded structures: This type of pay structure comprises of 6 – 9 grades instead of

10 or more grades as you have seen in the narrow graded pay structure. It represents the reality hierarchies in today’s “flatter” firms (in which the top management is in direct contact with the frontline salespeople, shop floor employees, and customers). It implies that sometimes firms may introduce such mechanisms which can be used to control the mechanisms in pay grades so that the employees may not go beyond its upper salary limit.

Source: http://www.shrm.org/Research/PublishingImages/0401_Burman_F3.jpg

Figure 12.3 : Broad Graded Structure

Considering the above figure 12.4, you can judge that the broad graded pay structure has the following features:

❖ It is evaluated only in the flatter firms.

❖ Here, the grading is rated on the scale of 6 – 9 instead of 10 or more which reflects a broader scaling for pay structure.

3. Broad banding: Broad grading or banding depicts a few bands with a range of rates. This causes a slight obstacle to the progression which is found within a band itself. By collapsing a salary structure into a wider and fewer bands of pay, a firm may give rise to a midpoint called control point of a traditional pay range. This is due to the reason that the broad band does not signify suitable compensation for a job but instead provides compensation to the whole class of work such as that of advanced professionals and managerial level.

Source:http://compforce.typepad.com/photos/uncategorized/2008/03/08/

broadbanding.gif

Figure 12.4 : Broad Banding Structure

Considering the above figure 12.5 you can judge that the broad banding pay structure has the following features:

❖ It requires more flexibility.

❖ It has wider and fewer bands.

❖ If strictly implemented, this may give rise to upward drift to the top of a band and also loss of pay relativities.

4. Job family pay structures: Here, the pay structure of each job family is determined by the occupations that are linked with the career oriented job families in the light of extrinsic factors, market rates and competition from other employers or organisations. Allocation of jobs with respect to a job family is based on the activities which are carried out on certain skills and competencies.

Considering the figure 12.5 you can judge that the job family pay structure contains the following features:

❖ Range of responsibility may differ from family to family.

❖ Each job family comprises of different grade structures.

❖ It provides opportunity for career planning.

It caters to different pay and career progression.

Source:http://www.scribd.com/doc/45649075/Grade-and-Pay-Structures

Figure 12.5 : Job Family Pay Structure

5. Pay spine pay structure: This type of pay structure is found in charities and agencies or public sectors who have adopted the approach of public sector to reward management. Thus, it is a traditional approach where contributions are unable to measure consistently and fairly.

Considering the figure 12.6 you can judge that the pay spine pay structure contains the following features:

❖ The increment of pay spine may lie between 2.5% - 3%.

❖ It comprises of series of increment pay points which are extended from low to high paid jobs.

❖ It is standardised from top to bottom.

Increment may vary at different levels and may sometimes be wider towards the top.

Source:http://www.scribd.com/doc/45649075/Grade-and-Pay-Structures Figure 12.6 : A Pay Spine Pay Structure

4. DESIGNING PAY RANGES AND BANDS

Designing pay ranges and pay bands form an integral part of the pay structure. We will discuss each one in detail.

4.1 Pay Ranges

“Salary Range” or “Pay Scale” is regarded as one of the important components of the pay structure which determines the pay within the firm. It is the pay range which has been established in order to compensate to the employees for performing a particular task.

Pay range has a minimum pay rate, maximum par rate and a series of opportunities of mid range for the pay increase. The pay rate is thus determined by the pay rates of the market which are established through the studies of market pay of those people who are doing the same task in the same organisation and in similar region of the country. The pay ranges and the pay rates are set up by the employers and thus demonstrate the interrelationships between the jobs utilised by them.

Thus, pay range design involves constructing a symmetrical range around that point of control which finds itself in the middle of the range and is known as midpoint. The pay range may extend 40% - 60% in width from minimum to maximum with a broader range used for top managerial positions. Therefore, the formula which helps to build pay ranges is:

For a 40% range, minimum = control point x .835, maximum = control point x 1.165

For a 45% range, minimum = control point x .815, maximum = control point x 1.185

For a 50% range, minimum = control point x .8, maximum = control point x 1.2

For a 55% range, minimum = control point x .785, maximum = control point x 1.215

For a 60% range, minimum = control point x .77, maximum = control point x 1.23

Hence, pay ranges, which use the above formula for 50% range width, offer you a defined pay opportunity for a job that centres on a “going market rate”. It also gives room for still developing, new and inexperienced people towards the minimum range which is as much as less than the market rate. It also offers a room for persons who are highly experienced and high achievers so as to earn up to twenty percent over the rate of the market.

4.2 Pay Bands

A pay band refers to the salaried firms which define the degree of remuneration which are offered to the jobs. In a firm which has distinct and definite jobs, pay bands are used to differentiate the compensation level given to certain ranges of job. The compensation structure which is organised in a pay band manner allows control at the level of management of a firm while providing some kind of discretion for the managers in order to reward the good performance and thus keeping within a logical and realistic structure of the pay budget.

Pay band is similar as pay grade. Pay band represents the broader way to determine the salary grade. In band, an employee is graded as per his job description and his/her salary is interlinked to his/her grade or band.

The following table 12.1 elaborates the differences between pay range and pay band.

Table 12.1: Contrast between Pay Range and Pay Band

Pay Ranges Support	Pay Bands Support
1. Flexibility within controls.	1. Flexibility within guidelines.
2. Relative stable firm design	2. Global firms
3. Career Progression or titles via recognition	3. Lateral Progression and Cross functional experience
4. Around 150 % range spreads	4. Around 100 – 400 % range spreads
5. Allow Managers “ Freedom with guidelines”	5. Allow Managers “ Freedom to manage Pay”

Overlap

It is the degree of overlap between any one pay grade and the adjacent grade. Overlap allows people in a lower pay grade to be paid the same as or more than those at a higher grade. The rationale for such a phenomenon is that a person at a lower pay grade whose performance is very good is worth more to the organization than a new person at the higher pay grade who is not yet performing effectively. This reasoning seems to work: seldom are there complaints about overlap. As with the number of grades, overlap can be either a determining variable or the determined variable. Overlap will work well where there are many wide pay grades. A conscious decision to keep overlap to some maximum (such as 50 percent) will reduce one of the other two variables.

Problems with Overlap

Some overlap is desirable, but there are problems. The main one comes about in promotions. A person high up in a rate range who is promoted may start in the new rate range higher than the job rate of the new grade. But not to give the promoted person a pay raise is hardly to have promoted him or her. Organizations generally set some policy that any promotion be accompanied by some specified minimum increase, such as one step in the new rate range or a specified percentage. The designers of career paths in some organizations reduce this problem by placing the next job in the sequence more than one pay grade above the present one.

SIGNIFICANCE OF FACTORS AFFECTING PAY LEVELS

If you are an employer of any business and employ workers then setting their pay is regarded as one of the important task which you must face keeping in mind the factors that affect the pay levels. Thus, the significance of factors that affects the pay levels and the pay rates within an organisation are listed below:

1. The ability of the firm to pay: The firms which have higher profits or earn good in sales tend to pay higher wages as compared to those firms which are running at loss due to low sales and higher cost of production. At the time of prosperity, firms have the ability to pay higher wages whereas at times of depression, the firm may cut down wages due to non availability of funds.

2. Demand and supply of labour: The demand and supply of labour or market conditions of labour operating at local, national and regional levels determine the wage level and structure of the firm. If the demand for the worker’s skill is low, the wage rate will also be low whereas on the other hand where there is a high demand for worker’s expertise, the wage rate will be relatively high.

3. Prevailing market rates: This is known as “going wage rate” or “comparable wage” where the compensation policy of the firm tends to conform to the rate of the wage payable by the community and industry. Some firms compensate on the higher side of the market so as to attain goodwill or to ensure an adequate labour supply. On the other hand, other firms compensate low wages due to lower hiring needs and requirements.

4. Cost of living: Cost of living is based on the criteria of minimum equity pay which calls for the adjustment of pay based on rise or fall in the acceptable cost of living index. Where there is an increase in cost of living, the trade union and workers demand adjusted pay to offset the erosion of the real wages.

5. Availability of skill levels in the market: Due to automation and technological development which affect the skills at a rapid pace, you may find shortage of resources in the industries. Therefore, the level of wages of the skilled employees is changing constantly and thus in order to suit the needs of the market, the firm has to keep its level high.

6 ECONOMIC DETERMINANTS OF PAY

There are various forces which are considered as pay determinants. As many decisions which are related to the pay are made by making comparison with the labour markets, so many determinants appear to be economic. Thus, both the force of the economic variables and meaning are interpreted by the decision makers of the firm. The economic determinants of pay are classified into the following:

1. Ability of the organisation to pay: The firm’s ability to pay is determined by the external forces of the market which reflects the overall financial position of the firm whether they can afford to pay to their employees as per the market rate or not. Higher earning profitable organisations may tend to pay higher wages depending upon whether profitability is based on management ability, product market, size, technical efficiency and so on.

2. Productivity: Productivity is regarded as a prime determinant of the firm’s ability to pay. If production increases in the same percentage as the pay cost then the cost of the labour per unit remains stable and unchanged. But on the other hand, if there is inequity between increase in production and percentage of increase in productivity then the cost of labour per unit also increases.

3. Employer’s willingness to pay: Along with the employer’s ability to pay, employer’s willingness to pay is regarded as one of the important determinants of pay. Many firms use and obtain information regarding the compensation structure which are paid by the other employers. Thus, before offering pay to them, an employer has to keep in mind the following points which are as follows:

❖ Comparable wages represent the manner in which many firms attain the goal of compensation by being competitive.

❖ Cost of living is stressed on by the trade union and employees as a consideration of wage level which is increasing at a rapid pace.

❖ Demand for labour arises due to changing scenario of the economy which creates lack of employees with the related skills and competencies.

4. Employee Acceptance: In determining the wage levels, the consideration taken by the employers in pay determination must meet the test of current as well as potential employees as accepted by them. Thus, the contract of employment and the effort bargain will be incomplete if there is unwillingness of the employees to accept the wages offered to them.

7 SUMMARY

Let us recapitulate the important concepts discussed in this unit:

• An organisation salary structure is a method of administering its salary philosophy.

• Now a day’s many organisations are paying their employees according to their performances in order to strengthen and increase the linkage between rewards and performance outcomes in a way which makes good reward and economic sense to those who help firms excel.

• After determining the internal equity relationship among various jobs and identifying the competitive pay practices in the marketplace, the next step of the business is to design the pay structures for their employees.

• The pay structures in the organisations are quite diverse depending upon the technical knowledge and skills required, jobs, roles and external and internal pressure of compensation.

• “Salary Range” or “Pay Scale” is regarded as one of the important component of the pay structure which determines the pay within the firm whereas pay band refers to the salaried firms which define the degree of remuneration which are offered to the jobs.

• The significance of factors that affect the pay levels and the pay rates within the organisation - the ability of the firm to pay, demand and supply of labour, cost of living, the living wage etc.

• There are various economic determinants of pay.

. GLOSSARY

Broad Banding: Broad grading or banding depicts a few bands with a range of rates and thus having a slight obstacle to the progression which is found within a band itself.

Pay Band: It is used in salaried firms to define the degree of remuneration which are offered to the jobs.

Pay Structure: A pay/salary structure refers to the collection of salary grades, bands or levels, connection of related jobs within a series or hierarchy which helps the organisation in providing a framework for the implementation of various policies and reward strategies within the organisation.

Salary Grade: It is a horizontal grouping of various kinds of jobs which are considered substantially equal for the purpose of pay.

Survey: A survey is a systematic procedure of making and collecting judgements about the remuneration which is offered to the employees.

9. TERMINAL QUESTIONS

1. “Performance based Pay Structure is regarded as a far better deal not only for employees but also for employers.” Explain.

2. Highlight the major decisions in designing and setting the competitive pay structures.

3. Distinguish between narrow and broad graded pay structure.

4. What is the significance of the factors that affect the pay levels of the employees?

5. Elucidate some of the economic determinants of pay.

10. ANSWERS

Self Assessment Answers

1. 1:c; 2:a; 3:d; 4:b

2. True

3. (d) Privacy

4. (d) Identifying overlap between different grades of pay

5. False

6. Organisational

7. Broad grading or banding

8. True

9. (b) Joint Family Pay Structures

10. 1: d ; 2: e ; 3:b ;4: a ; 5: c

11. False

12. (b) Global firms

13. Salary Range or Pay Scale

14. True

15. Cost of living

16. (c) Non – ability of the firm to pay

17. True

18. Comparable wages

19. (c) Unwillingness of the employer to pay

Terminal Questions

1. Performance related pay allows the firms to base pay on the achievement of improvements in the overall performance of both corporate and employees. For more details refer to section 2.1.

2. The major decision in designing and setting the competitive pay structures includes various elements. For more details refer to section 3.3.

3. Narrow graded pay structure contains large number of bands which are arranged in a vertical progression whereas broad graded pay structure represents the reality hierarchies in today’s “flatter” firms. For more details refer to section 4.

4. The significance of factors that affects the pay levels and the pay rates within the organisation are the ability of the firm to pay, demand and supply of labour, cost of living, the living wage etc. For more details refer to section 6.

5. Both the force of the economic variables and meaning are interpreted by the decision makers of the firm. For more details refer to section 7.

11. CASE STUDY

Salary Structure of Bank Employees vs. Govt. Employees

There is a myth in the minds of the public that bank employees are highly paid. Whenever they participate in strike, there used to be a huge hue and cry from them. A myth has slowly gained ground that bank employees are paid inordinately high wages. A closer scrutiny would suggest that bank employees are, in fact, poorly paid, and not part of a high-wage island. In a perfect market, every factor of production gets its due share. The disparity exists not just in upper and managerial class, but also across categories of the labour class. The latter exists because “relativity” has not been maintained. There are two forms of relativity that need to be considered – internal relativity, which looks into whether the salary levels within the organisation correspond to the organisational hierarchy; and external relativity, which deals with the relationship between the wages paid and the market wages.

Prior to 1979, Group ‘A’ Officers of Central Government were earning less than bank officers. In 1979, the Pillai Committee was constituted to study the salary structures of bank officers and Group ‘A’ Officers of the Central Government and bring equity among various banks. The Pillai Committee recommendations were implemented in banks with effect from July 1, 1979, and the pay scale of the lowest rung of officers in banks were equated with pay scales of the lowest rung of Group ‘A’ Officers of Central Government at R700. The parity which was established by implementing the Pillai Committee Recommendations was distorted by subsequent Pay Commission revisions. In the Sixth Pay Commission, the wages of Group ‘A’ Officers zoomed past the bank officers’ wages. External relativity was given a quiet burial. It

is quite appropriate to compare the salary of bank officers with Group ‘A’ Officers of the Central Government to ascertain whether bank officers constitute a high-wage island. The basic pay according to the Fifth Pay Commission for Group ‘A’ Officers was R8,000 and the corresponding pay for bank officers was R7,100. But in the Sixth Pay Commission the basic pay for Group ‘A’ Officers of the Central Government went up to R21,000 (basic pay R15,600 + grade pay R5,400) whereas the pre-revised basic pay of bank officers was only R10,000. Between the Fifth and the Sixth Pay Commissions, the basic pay of Group ‘A’ Government officers went up by

162.5 per cent. The gross salary of government officers was R31,312, whereas the bank officer’s salary was only R16,110. It can be seen that a bank officer draws a gross salary which is just 51.45 per cent of the gross salary of Group ‘A’ officers at the lowest rung. Even house rent allowance was paid at 30 per cent of basic pay for government officers, whereas bank officers were getting a maximum of 8.5 per cent in metros. The pre-revised salary of the bank clerk was R6,600 as compared with the Central Government clerk’s salary of R11,000.Many State Governments have adopted the Sixth Pay Commission Recommendations.

The business hours for the customers used to be four hours a day and working hours for the staff was seven hours with a 30-minute lunch break. To provide best customer service, the business hours have been increased to six hours, within the stipulated working hours of seven hours a day. After business hours, the bank staff need three to four hours to complete back- office work at the branch level, because of which the working hours for officers are practically extended to about 11 hours a day without any monetary compensation or increase in salary structure, whereas new generation private sector banks duly compensate the extended working hours in their salary packages.

Questions:

1. Given these facts, can bank officers and employees be described as belonging to an island of high wages?

2. Differentiate between the pay structures of Bank employees and Government employees?

Source: http://cboaapunit.blogspot.in/2009/09/salary-structure-of-bank- employees-vs.html References:

• B. D. Singh (2007). Compensation and Reward Management. Excel Books Pvt. Ltd.

• Mousumi S. Bhattacharya Nilanjan Sengupta (2009). Compensation Management. Excel Books Pvt Ltd.

• Er Soni Shyam Singh (2008). Compensation Management. Excel Books Pvt. Ltd.

E-References:

• http://www.cipd.co.uk/hr-resources/factsheets/pay-structures.aspx retrieved on 26 July 2012, Time 05:10 PM

• http://www.imercer.com/Uploads/common/pdfs/10-CHB_Sample.pdf retrieved on 27 July 2012, Time 10:25 AM

• http://www.authorstream.com/Presentation/dangetich-316355-pay- structureentertainment-ppt-powerpoint/ retrieved on 27 July 2012, Time 02:30 PM

• http://my.safaribooksonline.com/book/-/9780749452421/49-grade-and- paystructures retrieved on 27 July 2012, Time 04:05 PM

• http://www.eridlc.com/onlinetextbook/index.cfm?fuseaction=textbook. chpt07 retrieved on 30 July 2012, Time 12:24 PM

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MBA semester IV compensation and benefits ---- pay structures ---notes