The document discusses various aspects of developing a pay structure for an organization, including developing pay levels, job structure, and the pay structure itself. It covers equity theory and fairness, using market pay surveys to determine rate ranges and key/non-key jobs, developing job structure through job evaluation and point-factor systems, setting pay grades to group similar jobs, potential conflicts between market surveys and job evaluations, monitoring compensation costs, challenges of globalization on pay structures, importance of participation and communication in the process, and current challenges like executive pay differences.

1. Pay Structure
Decisions
HR Management
Bilingual Class 2017
Reza Novita Sari 1711011054
Fina Silvia Sari 1711011058
Dosen : Dr. Nova Mardiana, S.E., M.M

2. Our Profile
Reza Novita Sari
Fina Silvia Sari

3. 01
02
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08
Pay Structure
Equity Theory And Fairness
Developing Pay Levels
Developing Job Structure
Developing Pay Structure
Conflicts
Monitoring Compensation Cost
Globalization, Geogrphic Region, And Pay Structure
LI
ST09
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11
The Importance Of Process
Current Challenges
Government Regulation Of Employee Compensation

4. D E V E L O P I N G J O B
S TR UCTURE
D E V E L O P I N G PAY
STRUCTURE
Main topics
D E V E L O P I N G PAY
L E V E L S

5. 0
1
№
The average pay,
including wages,
salaries, and bonuses,
of jobs in an
organization
PAY L E V E L
0
2
№
The relative pay of jobs
in an organization.
J O B S T R U C T U R E
PAY STRUCTURE

6. Equity
Theory and
Fairness
1. Employee social comparison
2. External Equity
Focus on what employees in other
organizations are paid for doing the same
3. general job.
4. Internal Equity
Focus on what employee within the
same organization, but in different jobs, are
paid.

7. Market
Pressures
• Product Market
Competition
• Labor Market
Competition
Employess
as
Resources
Deciding
What To
Pay
Market
Pay Survey § Rate Ranges
§ Key Jobs and
Nonkey Jobs

8. Developing Job
Structure
Job Evaluation
An administrative procedure
used to measure internal job
worth
The point-factor system
1. Priori Weights
2. How important the factors
are

9. Developing Pay
Structure
Market
Survey
Data
Pay
Policies
Line
Pay Grades
Jobs of similar worth or
content grouped
together for pay
administration
purposes.

10. Conflicts
Between
Market Pay
Surveys and
Job
Evaluation
Emphasi
zing
External
VS
Internal
There is
no one
right
solution.

11. 0
1
№
An index of the
corespondence
between actual and
intended pay
C O M PA - R AT I O
0
2
№
Grade compa-ratio =
Actual average pay for
grade / Pay midpoint for
grade
F O R M U L A
C O M PA - R AT I O
MONITORING COMPENSATION COST

12. Globalization,
Geographic
Region, and Pay
Structure

13. 0
1
№
Recommending and
Signing pay programs,
help communicates the
program.
PA R T I C I PAT I O N
0
2
№
Managers have to explain
why and how the pay
structure is designed as it
is and judge whether the
employee concern about
the structure
C O M M U N I C AT I O N
THE IMPORTANCE OF PROCESS

14. Current
Challenges
Responses To the Problems
Delayering and Banding
Paying the Person
Problems with Job-Based Pay Sturcture
defining pay structures in terms of job and
their associated responsibilities
Executive Pay
Differential between to executive pay
and average employees creating
distrust
Compete with another
companies in other
countries
Factors that need to consider :
Unstable labor cost
Skill levels
Productivity
Nonlabor Consideration

15. EQUAL EMPLOYEE
OPPORTUNITY
Gender
Races
GOVERNMENTS REGULATION OF
EMPLOYEE COMPENSATION
MINIMUM WAGE,
OVERTIME, AND
PREVAILING WAGE
1. Minimum wage at $7.25 per
hour
2. Paid 1,5 times if work beyond
40 hours
3. Davis Bacon covers
construction contractors
receiving federal money

16. C O N C L U S I O N
Pay structure is a strategy in management on how to
give employee an appropriate wages but not costing too
many budget. So the company can achieve effectiveness
in production and empower society

17. Thank You