Question

What is “Pay grades”? How is “Pay grades” different from “Pay ranges”? Respond to the following statement: “Pay grades limit a company’s ability to achieve competitive advantage.” Do you agree or disagree? Provide a rationale for your position.

Answer 1

PAY GRADE

• Pay grades are a framework intended to distribute a fixed band of compensation that could be given to worker of specific level, assignment or position. While pay run figures out what pay rates range can be given to representative inside an evaluation framework.
• Pay go hence will extend from least degree of pay for evaluation to most significant pay that can be extended for an evaluation level in employment opportunity.

Discussion

• I concur with the explanation that pay grades limit an organization's capacity to accomplish upper hand as the representative would be sure of what pay he would get by being in a calling and won't walk an additional mile or show responsibility and difficult work as he would in any case get certain degree of pay grade simply in the wake of having rank and level which will in the end come to him with time. Or maybe if the compensation isn't restricted inside compensation evaluations or extents the worker may perform investing additional energy and duty guaranteeing that organization is advancing and that he might be given significant compensation for performing magnificent employment.