why does the process used in the design of the internal pay structure matter? Distinguish between the processes used to design and administer a person based and a job based approach.
Answers
The perception of pay structure matters highly because if pay structure is not structured properly, then the employees who are working for the organisation would have no faith in the pay equity structure of that organisation and hence this would affect the internal structure of the organisation.
Further to this, this would pose negative means of impact on the employees towards their managers and other decision makers on their style of working.
On the other hand, if the overall structure is based on person, then everything will depend upon the skills of the persons who are working and the line would draw in a complete different pattern.
The work flow would work well and the organisational strategy would be well maintained in a such a case as against the job based approach.