Which of the following elements establish an organization's pay structure?
A) pay ranges and pay differentials
B) cost control and equity
C) legal requirements and job descriptions
D) individual salaries of its employees
E) job structure and pay level

Question

Quizplus · Accepted Answer

Job structure (the hierarchy of jobs within an organization) and pay level (the amount that each job is paid) are the two key elements that establish an organization's pay structure. Pay ranges and pay differentials (A) are ways in which pay is differentiated across jobs, but they are not elements that establish the structure itself. Cost control and equity (B) are important considerations in designing a pay system, but they are not elements of the structure. Legal requirements and job descriptions (C) are important factors that organizations must consider when designing their pay structures, but they do not establish the structure itself. Individual salaries of employees (D) are determined based on the pay structure, but they do not establish the structure itself.

Which of the Following Elements Establish an Organization's Pay Structure