Which element establishes an organization's pay structure?
A) pay ranges and pay differentials
B) cost control and equity
C) legal requirements and job descriptions
D) individual salaries of its employees
E) job structure and pay level

Question

Quizplus · Accepted Answer

Job structure and pay level are the two main elements that establish an organization's pay structure. Job structure refers to the relative worth of different jobs within an organization and pay level refers to the amount of pay offered for each job. Together, these elements help organizations determine the appropriate pay ranges and pay differentials for their employees. Legal requirements and job descriptions are important considerations in developing a pay structure, but they do not establish it. Similarly, individual salaries of employees are determined within the context of the organization's pay structure, rather than establishing it. Cost control and equity are important goals of a pay structure, but they do not establish it.

Which Element Establishes an Organization's Pay Structure