A formal wage and salary administration program is the basic management tool for ensuring that employees are satisfied, that both internal and external equity are maintained, and that some degree of control is exercised over the spiraling cost of labor.
The subject of pay is an important one. It's important to employees because it gives them not only a source of economic support and job satisfaction, but also a way of comparing themselves to their co-workers and others performing similar jobs in other firms. It's important to the employer because wages and salaries are a significant factor in costs and in maintaining worker morale and motivation.
An effective wage and salary administration program will cover the activities described here.
Without accurate and up-to-date job descriptions it is almost impossible to set wages fairly. Job descriptions are based on a detailed “job analysis”--the process by which the essential functions, duties, responsibilities, and requirements of the job are determined. Here are five extremely brief job descriptions; they contain nowhere near the amount of information needed for wage and salary administration purposes, but serve as examples for the clerical/secretarial job family:
Clerk. Simple clerical work, sorting, filing, processing orders. May type labels and forms or add figures on a machine. Not a real typist.
Clerk-typist. Full typing skills required for reports, records, form letters. Does not transcribe correspondence.
Secretary B. This includes both entry-level positions and those assigned to a basic organizational unit or department. May serve a group of professionals or executives.
Secretary A. This is the intermediate level for those assigned ...