Building a Pay Structure

The following is an analysis of the review of HealthRx 's unionized work compensation structure (CEO status also excluded). The way to do this follows the outline of "payment structure". The work evaluation points of HealthRx related benchmark work are displayed in the column labeled (X) in the attached Excel file. From case 2 to column completion rate.

Personnel managers can create an organization's remuneration system and collaborate with external remuneration consultants. There are several steps in designing the remuneration system: job analysis, job evaluation, salary survey analysis, formulation of payment policy, and formation of payment scheme. The following is a brief explanation of each step. For a more extensive discussion, please consult Milkovich & Newman (2008). Job analysis is the process of studying work within the organization. The result of this process is a job description that includes a job title, a summary of work tasks, a list of basic tasks and responsibilities, and a description of the work environment. It also includes the knowledge, skills and ability needed to fulfill the task.

The organization's compensation structure is a way of managing remuneration concepts that reflect decisions on compensation levels and work structure. The salary level is the average amount an organization pays for a particular job. A benchmark is a common program organization that compares how successful competitors are compared to external work with similar content. (Frederick, 2004) The work structure contains relative remuneration for various tasks, including various functions within the organization and various levels of responsibility. All of these decisions are based on organizational objectives, market forces and overall fairness. Compensation structure is an obvious proof of the organization's remuneration philosophy and strategy. (George, 2002) In the process of logical and effective communication, the organization's compensation system is a tool that employees can see and understand.

The organization decides to define the structure of the work, or the relative remuneration for various tasks within the organization. They determine relative rewards for different functions and different responsibilities for each function. Organizations must also determine the level of compensation paid for different duties or the level of average compensation. These decisions are based on organization goals, market data, legal requirements, and fairness principles. Labor structure and salary level jointly set salary structure policy