__ refers to the relative pay of jobs in an organization.
A. Pay level
B. Pay grade
C. Compa-ratio
D. Range spread
E. Job structure
The correct answer and explanation is :
The correct answer is: E. Job structure
Explanation (300 words):
Job structure refers to the relative pay of jobs within an organization. It outlines how different roles are compensated in relation to each other based on factors like responsibility, skills required, effort, working conditions, and the overall value a job provides to the organization. This structure is typically developed through a job evaluation process, which ranks or classifies jobs based on their content and importance.
A well-designed job structure ensures internal equity, meaning employees perceive fairness in pay compared to others within the same organization. For example, a senior engineer with more responsibilities and skills will typically have a higher pay rate than a junior technician, reflecting the organization’s value system and the relative contribution of each role.
Here’s how job structure compares to the other options:
- A. Pay level refers to the average pay of jobs within an organization compared to similar jobs in the market. It is about external competitiveness rather than internal equity.
- B. Pay grade refers to a grouping of jobs that have the same pay range. It is a part of the pay structure but does not define the relative value between jobs.
- C. Compa-ratio (short for comparative ratio) is the ratio of an employee’s actual salary to the midpoint of their pay range. It’s a tool used to manage individual pay within a pay grade, not job-to-job comparison.
- D. Range spread refers to the difference between the minimum and maximum pay in a pay range. It defines flexibility within a pay grade, not between different jobs.
Thus, job structure best captures the idea of relative pay of jobs within an organization, promoting clarity, fairness, and consistency in compensation strategy.