ABSTRACT

This chapter sets out the requisite pattern of payment levels to be attached to the different stratum boundaries, and to work bands within strata, in order to maintain what people will experience as a fair and just structure of differentials. It deals with compensation structure that needs to be tied to the stratified organization boundaries. The chapter describes a compensation system which pays for achieved level of work, and assumes that human beings really do enjoy working at levels and types of work consistent with their working-capacity, with equitable differential pay and with opportunity to grow. It focuses on a method of payment for level of work and effectiveness that makes everyone feel fairly treated, and helps to unshackle creative commitment and endeavor. Recognition of individual effectiveness requires that the differential pay structure should be formulated in terms of pay brackets for a role, through which incumbents can progress at a rate determined by their individual effectiveness.