Consistency in compensation structures is important from a planning and equity perspective. Organizations typically seek to align their wage structures for ease in management as well as equity and overall compensation. The organization is exploring pay for performance approach to individual wage administration. The Vice President of HR has decided that if adopted, a range method would most align with the company’s compensation philosophy.
Considering this please address the following prompts in your discussion:
There are four primary ways that organizations align their wage structures. Select the one that most aligns with your organization then discuss how this alignment is applicable as demonstrated in your company’s compensation practices.
What are the key elements in designing a pay-for-performance system?
Discuss the benefits and challenges of managing employees through various salary rate ranges. How can the salary ranges help prevent internal and external equity issues?
Please be sure to validate your opinions and ideas with citations and references in APA format.
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