_ refers to the relative pay of jobs in an organization.
A. Pay level
B. Pay grade
C. Compa-ratio
D. Range spread
E. Job structure
The correct answer and explanation is :
Correct Answer:
E. Job structure
Explanation:
Job structure refers to the relative pay of jobs within an organization. It establishes the hierarchy and pay differences between jobs based on their value, complexity, responsibilities, and required qualifications. Organizations develop a job structure to ensure fair and consistent compensation across different roles while maintaining internal equity and external competitiveness.
Importance of Job Structure
- Internal Equity: A well-defined job structure ensures that employees performing similar or equally valuable jobs are compensated fairly, reducing disputes and dissatisfaction.
- External Competitiveness: Organizations align their job structures with industry standards to attract and retain top talent.
- Career Progression: Job structures provide employees with a clear understanding of career advancement opportunities within the organization.
- Compensation Strategy: By defining job relationships, organizations can create effective salary ranges and pay policies that align with their financial capabilities and business goals.
Comparison with Other Options
- A. Pay Level: Refers to the average pay of a specific job or a group of jobs in the market, not the relative pay differences within an organization.
- B. Pay Grade: Represents a group of jobs with similar pay ranges, but does not define the relative differences between all jobs in an organization.
- C. Compa-Ratio: Measures how an employee’s pay compares to the midpoint of the salary range but does not determine job relationships.
- D. Range Spread: Refers to the difference between the minimum and maximum salary for a pay grade, not the relative positioning of jobs.
Thus, Job Structure (Option E) is the most appropriate answer as it defines how jobs are ranked and compensated within an organization.