The document discusses pay structures and compensation management. It defines a pay structure as attaching pay ranges or scales to grades within an organization's grade structure. Pay structures are characterized by the number of grades and the span or width of the pay ranges for each grade. The span is measured as the percentage difference between the lowest and highest pay points within a grade's range. Pay structures define different pay levels for jobs based on internal job value, external market rates, and negotiated rates.

1. Pay 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. Pay structure
• A grade structure
becomes a pay structure
when pay ranges,
brackets or scales are
attached to each grade,
band or level.

4. Pay structure
• Pay structures are defined
by the number of grades
they contain and especially
in narrow or broad graded
structures, the span or
width of the pay ranges
attached to each grade.

5. Pay structure
• Span is the scope the grade
provides for pay progression
and is usually measured as
the difference between the
lowest point in the range
and the highest point in the
range as a percentage of the
lowest point. Thus a range of
20,000 to 30,000 would have
a span of 50 per cent.

6. Pay structure
• Pay structure define the
different levels of pay for
jobs or groups of jobs by
reference to their relative
internal value as determined
by job evaluation, to
external relativities as
established by market rate
surveys and to negotiated
rates for jobs.

7. Incidence of grade and Pay structure