HUMAN RESOURCE MANAGEMENT PRACTICE - Fichier PDF

Grade and pay structures ❚ 699Table 46.1Summary analysis of different grade and pay structuresType of Features Advantages Disadvantages When appropriatestructureNarrow- A sequence of job Clearly indicate Create hierarchical In a large bureaugradedgrades –10 or more pay relativities rigidity cratic organizationNarrow pay ranges Facilitate control Prone to grade drift with well definedeg 20 per cent – Easy to understand Inappropriate in a hierarchies40 per cent de-layered When close andProgression organization rigid control isusually linked toperformancerequiredWhen some but nottoo much scope forpay progressionrelated toperformance orcontribution iswantedBroad- A sequence of As for narrow Too much scope Desirable to definegraded between 6 and 9 graded structures for pay progression and differentiategrades but in addition: Control grades moreFairly broad pay the broader grades mechanisms can accurately as an aidranges eg 40 to can be defined be provided but to better precision50% more clearly they can be when grading jobsProgression linked better control can difficult to manage Grade driftto contribution and be exercised over May be costly problems existmay be controlled grade drift More scope wantedby thresholds orto rewardzonescontributionBroad- A series of, often 5 More flexible Create unrealistic In de-layered,banded or 6 ‘broad’ bands Reward lateral expectations of process-based,Wide pay bands – development and scope for pay rises flexibletypically between growth in Seem to restrict organizations50 and 80% competence scope for Where moreProgression linked Fit new style promotion flexibility in payto contribution and organizations Difficult to determination iscompetence understand wantedEqual payproblemsWhere the focus ison continuousimprovementandlateraldevelopmentcontinued