Human Resource Management – Pay Ranges

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Usually, the organizations want some flexibility in setting pay for individual jobs. They want to be able to pay the most valuable employees the highest amount and to give rewards for performance. Flexibility also helps the organization balance conflicting information from market surveys and job evaluation. Therefore, pay structure usually includes a pay range for each job or pay grade. In other words, the organization establishes a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade or band.

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