Reward management deals with the formulation and the implementation of strategies and policies in the organization for the employees to keep a check on the contribution to the organization by them is recognized by the value they are been given by the organization by financial or non-financial means. It is about designing, implementation and the maintenance of the reward programs and practices that look upon the improvement of the organizational team and individual.
Pay structure can easily be defined as the levels of payments made to different jobs and group of jobs by the relative internal value which is determined by the evaluation of the job, as established in the market survey in exceptions negotiated rates for jobs which provides a scope for the pay progression according to the performance service competence and contribution. Narrow graded structure A narrow graded structue in the Figure 1 we can see it has a no of boxes that is a sequence of grades in the job i. e 10 or more brackets which are stated as a job profiles or the required matching jobs which are set under the same category.
In this structure progression is usually linked to the performance. Figure 1 Narrow Graded
Need essay sample on "Reward management"? We will write a custom essay sample specifically for you for only $ 13.90/page
It is inappropriate in an organisation which is delayered .There are too many grades which would be creating a constant pressure for upgrading which would at last lead to an unjustified upgrading. Broad Banded structure Broad banded strucutres compress the maulti graded strucutres into four or five bands which is shown in the figure 2. The strucuture was much more flexible then the conventional strucutres and the bands were not more than five and the limitations were also minimised. They depended on the competence and the responsibilites as a wider aspect.
As per my study and analysis for the success of broad banded pay structure in an organization requires that the top managements have a very clear goals who would be understanding the pros and cons of a commitment, with all managers in the HRM and compensation are well trained and qualified to handle the issues in the organization relating to payments. Before considering to move to a Broad Banded pay structure the company should always consider that the broad banded structure that the managers in the organization are well aware of and can even interpret the market payments data and schemes goin on.
The control points in the structure are never precise for an individual jobs. Broad banded structure increases the potential of the employees in the organization to float on the upper level of the band. Finally as with these structures the organization should carefully study the advantages and disadvantages of the broad banded structure and ensure that it fits into the organization with its culture and the goals the company has set for its self.