Answer to Question #314315 in Management for NDhar

Question

Krishiv has to develop a fair and reasonable salary structure for a new position at his organization while ensuring equal pay for equal work in an advertising agency. What process should he follow and what are the limitations of that process?

Answer 1

A salary structure provides a system of how the management of a business determine how much to pay employee and set a range of pay from minimum to maximum. Developing a suitable salary structure ensuring equality within an advertising agency involves gathering critical information based on previous parameters such as performance and throughput. The second step involves analysis of the market to set a lucrative but competitive pay structure. Lastly, the manager implements the structure and analyses it to ensure equality and continued improvement. However, this process attracts higher operational costs for the firm as rigorous evaluation is necessary.