Discussion: Explain The Different Pay Policy Positions And The Consequences

Pay policy positionsOrganizational pay policy can take the shape of four major structures that include individual pay rates, pay ranges, pay spine or job families. These structures determine what each individual job or role receives in payment depending on its estimated measure or value. These structures ensure transparency in payment, which results in positive motivational outcomes. Individual pay rates are a form of payment structure that dictates a fixed salary for each organizational role. These rates can be paid hourly or annually. While this rigid system enables accuracy in estimating employee value and hiring viability, it denies room for employee payment progression. Through its requirement for progression by promotions, it risks dissatisfaction and demotivation among employees that hampers productivity (Martocchio, 2011). Comparatively, pay ranges provide room for increased salary through expression of value, therefore, enhancing employee motivation. Pay ranges vary between jobs and have a lower and upper limit that dictate entry level employees’ salaries and provide the potential for growth (Singer & Francisco, 2009). On the other hand, a pay spine is a simple and clear pay structure that covers all organizational wages, beginning at entry level wages to senior management and executives. Each job is allocated series