A conventional narrow graded pay structure consists of a sequence of job grades into which jobs of broadly equivalent value are slotted. A pay range is attached to each grade.

1. Narrow Graded structure
Compensation Management

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Narrow Graded structure
• A conventional narrow
graded pay structure
consists of a sequence of job
grades into which jobs of
broadly equivalent value are
slotted. A pay range is
attached to each grade.

4. Narrow Graded structure
• Jobs are allocated to grades
on the basis of an
assessment of their relative
internal value. Grades may
be defined in terms of a
points bracket, if a point
factor job evaluation scheme
is used.

5. Narrow Graded structure
• Alternatively, they may be
defined verbally if a job
classification system is used
or by reference to the
benchmark jobs slotted into
the grade.

6. Narrow Graded structure
• A pay range is attached to
each grade. It indicates the
minimum and maximum
rates payable for any job in
the grade and the scope for
the pay of job holders to
progress while they are in
that grade.

7. Narrow Graded structure
• Narrow graded pay
structures are based on the
belief that individuals should
progress through ranges by
reference to their
performance, skill,
competence or time in the
job.

8. Narrow Graded structure
• The advantages of narrow
graded structures are that
they clearly indicate pay
relativities, provide a
framework for managing
relativities and for ensuring
that jobs of equal value are
paid equally, allow better
control over the fixing of
rates of pay and pay
progression and are easy to
explain to employees.

9. A Narrow Multi Graded structure