Executive SummaryThe report gives a brief discussion over compensation management and pay plan which is a most basic unit for any organisation. This report also provides a brief overview of the salary portion of compensation. The objective of job analysis is to obtain information about a job and summarize it in a manner that sets it apart from other jobs within the organization. Typically, such information is obtained through an interview with the supervisor and/or job incumbent and/or by completing a questionnaire. The focus is on reporting relationships within the organizational structure as well as on the principal responsibilities.
Therefore, it is important to obtain information on the responsibility for specified tasks. 1.0Typically, the amount of salary an individual receives is a function of the value of the individual's responsibilities to the organisation and how well the individual is meeting the responsibilities. The value of the individual's responsibilities is typically determined by job analysis, job evaluation, salary surveys and the resulting salary structure adjustments. (Arthur, 2004, p. 670-88) Individual pay actions result from promotion and how well the individual performs the assigned tasks.
In this case I’d have not given Angelo the pay raise because he has not performed as he has performed in the past. Promotional increase guidelines are just as important as merit increase policy. Few companies structure their pay programs to properly compensate the promoted individual. 1.1 Reasons for Denying Pay IncreasesSome professionals object to granting an upgrade increase for the following reasons: • There was no change in the job, only in the “organisational context; ”• The incumbent did nothing to earn the upgrade; • The incumbent did not have to compete to be considered for the job.
Some organisations post new or vacant jobs internally and allow employees to apply for (“bid on”) and receive consideration to fill them; • A higher salary grade is a sufficient reward because it improves an employee’s eligibility for merit increases; and• Employees whose skills have been in high labor-market demand do not experience a pay reduction when their skills are no longer in demand. Too often a promotion is rewarded with a flat percentage increase (e. g., 10%) even though the same logic that applies to merit increases also applies to promotional adjustments.
(Arthur, 2004, p. 670-88) For an individual receiving a significant increase in responsibilities, a 10% increase may still be far short of the new job's pay minimum. Conversely, it may be a modest organisational change, and therefore 10% would be overly generous (e. g., pay is already well within the middle one-third of the new job's pay grade). (Arthur, 2004, p. 670-88) Remember that position in grade is the company's best assessment of the individual's worth in relation to the marketplace and other individuals within the company.
To test the quality of the adjustment, one could ask, "What would I offer this individual to accept this job if he or she came from another company? " Under such an examination, most internal promotional pay actions pale by comparison. A well-thought-out promotional pay policy is essential to retaining internal equity, not to mention its value during a period of federal pay controls when promotional increases are usually easier to accomplish than merit adjustments. (Drago, 2005, p. 507-32)