Free «Pay Model» Essay Sample

This is a frame work used in examination of the current and most available pay systems. The model can be composed of three building blocks or elements. The compensation objectives- the pay system is designed to meet certain objectives such as ethics, efficiency, compliancy to the law, and fairness. The policies that form the compensation system- the policy issue addresses management and administration of the pay system, internal alignment, and external competitiveness. The last element is the technique making the compensation system (Justus, 2008).

Framework for Analyzing Employment Relationship

This helps in examination of the structures needed for the provision of personal employment. Its helps address the issue of violation of labor laws, protection of workers’ rights, compliance to the regulation and laws as well as promoting appropriate working conditions.

Egalitarian vs Hierarchical Approaches Pay Structures

Hierarchical pay structure is one that is composed of large pay differences between every pay levels and contains many pay levels. In addition, the pay structure is built of economic forces. Egalitarian structure results to improved performance in most organizations as long the workers work as a team.



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Demand and Supply Side Theories

These are economic forces that affect the market hence results to differences in the pay structure most when dealing with a hierarchical structure. Demand is high when the supply of the labor force is low leading to high pay level/grades.

Designing Pay Levels, Mix and Pay Structures

These are the determinants of the pay measures. A pay level is also called a pay grade. Pay mix is a group of individuals who belong to a certain pay level while pay structure are designs showing certain pay grades and the amount of pay.

Motivation Theories

These are theories designed to increase the moral of the workers hence able to retain more employees and increase production. Motivational theories include activation, attribution, drive, control, cognitive evaluation among others (Justus, 2008).

Common Errors in the Appraisal Process

These errors include central tendency errors, contrast errors, false attrition errors, halo effect, leniency errors, perceived meaning and recency errors.

Advantages and Disadvantages Flexible Benefits Plans


It raises the employees per- capita income organizations are able to monitor payment of premiums; it helps reduce insurance premiums, increase the attraction rate of employers and investors.


Despite the fact that the plan is able to offer several benefits, but it cannot miss downfalls such as the plan has an annual enrollment plan hence changes can take place during this period.

Compensation of Special Groups

This is a group of individuals holding higher office positions hence the management faces the problem of paying members of this group. The group is composed of CEOs’, Managers’ and Directors’ of organizations. 

Global Compensation Practices- these are strategies and tools as well techniques that are used and allowed internationally to rewards and compensation structures (Justus, 2008). They offer guidance to administration of pay levels and mix in accordance to international standards.


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