Techniques like job ranking, grading, and paired comparison are widely practiced and are not considered as objective measures. Need for the objectivity in fixing pay structures is required at all levels because it is connected with job evaluation and ultimately the compensation strategy is also linked with it. Therefore, subjective measures can result in a job being either overpaid or underpaid.
In order to achieve the internal consistency and market competitiveness, all employees working in an organization should think that they are being paid according to their job worth (Kleiman, 2011). Few of the jobs contribute to a larger extent in achieving organizational goals and objectives and those holding such jobs deserve to be paid more.
In addition to this, in terms of achieving market competitiveness, the organizations must conduct a detailed survey regarding how much their competitors are paying to their employees for a particular job. Internal competitiveness can be achieved only when employees feel that they are being paid fair in relation to their other counterparts working in other organizations (Martocchio, 2011). Innovative Job Designs.
Durai, Praveen (2011). Human Resource Management. India: Pearson Education.
Kleiman, L (2011). Employee Compensation. Retrieve February 18th 2012. Available at:
Martocchio, J.J. (2011). Strategic Compensation. (6th ed). Upper Saddle River, NJ: Prentice
Torrington, H., Hall, L. and Taylor, S. (2007). Human Resource Management, Harlow: FT
White, G. and Druker, J. (2009). Reward Management. 2nd Ed. Routledge.
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