Management and Organizational Studies 3342A/B Chapter 3: CHAPTER RECAP

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Organizations design their pay structure around jobs and job levels; thus in many organizations, an employees pay depends on both the nature of the job and the job level. Structures vary between organizations: number of levels. There is a hierarchical nature to any pay structure. Pay structures typically reflect the nature of workflow in the organization, some are more hierarchical, with multiple levels and some with few levels: differentials. Job based structure: looks at work content - tasks, behaviour, responsibilities. Person based structure: shifts the focus to the employee: the skills, knowledge or competencies the employee possesses and whether or not they are used on the particular job the employee is doing. The various factors are better shown as a web, with all factors connected and interacting. In canada, human rights legislation forbids pay systems that discriminate on the basis of gender, race, religion, sexual orientation, national origin, and many other grounds.

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