Why do organizations use pay grades?
A)to group individual jobs having approximately the same job worth
B)to insure against pay differentials based on sex or race
C)to compare similar jobs across a variety of organizations
D)to develop a pay structure that is based on market rates

Question

Quizplus · Accepted Answer

Pay grades are used to group individual jobs that have approximately the same job worth, based on factors like the level of skill required, the amount of responsibility, and the working conditions. This makes it easier to develop a salary structure that is fair and consistent, and helps to minimize bias and inequality in compensation. The other options (B, C, and D) are also potential benefits of using pay grades, but they are not the primary reason why organizations use them.

Why Do Organizations Use Pay Grades