Project report on Salary structure

University Of Central Punjab F 13

Human Resource & Management P age 1

Introduction The Human Resources are the most important assets of an organization. The success

or failure of an organization is largely dependent on the caliber of the people working

therein. Without positive and creative contributions from people, organizations

cannot make progress and prosper. In order to achieve the goals or the activities of

an organization, therefore, they need to recruit people with requisite skills,

qualifications and experience. After recruitment, organization has to pay them.

This report is on the pay structure of Crescent Steel & Allied Products Limited. This

is the manufacturing company. The report is on salary structure of 10 high level

managers, 10 middle level managers & 500 low level managers. In this, uniformed

pay structure & performance based pay structure is defined.

The steps are defined one by one &then implications of steps are written. To design a

pay structure, there must be a formal way to value the work inside the organization so

that pay is awarded fairly. The job evaluation process will help develop this internal

work hierarchy.

Different evaluation methods, pay strategies, and pay structures will be used for

different job families in the organization



Company Profile

Crescent Steel and Allied Products Limited is a conglomerate corporation listed on

all stock exchanges of Pakistan as ‘CSAP’. Starting operations with a pipe

manufacturing facility in March 1987, Crescent Steel now has diversified

businesses in four defined sectors – engineering, textiles, capital markets and power –

spread over six campuses.

The Company’s Steel segment manufactures large diameter spiral submerged arc

welded steel line pipes and a pipe coating facility capable of applying multi

and single layer, high density polyethylene internal and external coatings. Both units

are located at Noorabad. The Steel segment also operates an engineering unit,

capable of fabricating and erecting reliable machinery at par with international

standards. The unit is located in Faisalabad and caters primarily to the sugar,

cement, paper and dairy industries.

The Cotton segment comprises of two spinning units, CCP-I with 19,680 spindles and

CCP-II (currently not operational) with 25,344 spindles. The Cotton segment

operates under the title “Crescent Cotton Products, a division of Crescent Steel and

Allied Products Limited” and with the operational unit, has the capability of

producing 500 bags of high quality cotton carded yarn, in counts ranging from 6s to

30s.

The company operates two fully owned subsidiaries in the capital markets and power

sectors, CS Capital (Private) Limited and Shakarganj Energy (Private) Limited,

respectively.

CSAPL maintains high quality norms in all its products, consistently exceeding the

requirements of international standards in both steel line pipe and cotton yarn

product lines and will continue to remain at the cutting edge in terms of technology,

quality control and quality assurance.

CSAPL is an equal opportunity employer with a strong sense of social responsibility

and passionately supports education, healthcare and environmental causes.



VISION

To be the leaders in every business we do, by delivering sustainable value to all

stakeholders.

MISSION

To grow and enhance company value

Maintain cost and quality leadership in the internationally competitive

environment.

Promote best use of human talent in a safe environment, as an equal opportunity

employer.

To conduct business as a responsible corporate citizen and to seek and support

local communities with a focus on education, health and environment, and To

pursue new growth opportunities in engineering, energy and food sectors



Hierarchy Of Organization

Figure 1



Explanation:

CEO stands for Chief Executive Officer

5 departments of company

Accounting department

Finance department

Human Resource department

Sales Department

Production Department

Each department has Head of Department (HOD) & Line Manager. There are

50workerss in each department.

Work of each level of management

CEO

CEO is one of the most coveted, and least

understood, jobs in a company. Everyone believes

that CEOs can do whatever they want, are all-

powerful, and are magically competent. Of course,

nothing could be further from the truth. By its very

nature, the job description of a CEO means meeting

the needs of employees, customers, investors, communities, and the law. Some of a

CEO’s job can be delegated. However, several elements of the job must be done by the

CEO. Read on for the details of what makes a CEO.

Roles of Chief Executive Officer

Leader

Advises the Board

Advocates / promotes organization and stakeholder change related to organization

mission.

Supports motivation of employees in organization products/programs and

operations.

Visionary / Information Bearer

Ensures staff and Board have sufficient and up-to-date information.

Looks to the future for change opportunities.

Interfaces between Board and employees.

Interfaces between organization and community.

Decision Maker

Formulates policies and planning recommendations to the Board.

Decides or guides courses of action in operations by staff.

Manager

Oversees operations of organization.

Implements plans.



Manages human resources of organization.

Manages financial and physical resources.

Board Developer

Assists in the selection and evaluation of board members.

Makes recommendations, supports Board during orientation and self-evaluation.

Supports Board's evaluation of Chief Executive.

Responsibilities of Chief Executive Officer

There is no standardized list of the major functions and responsibilities carried out by

position of chief executive officer. The following list is one perspective and includes

the major functions typically addressed by job descriptions of chief executive officers.

Board Administration and Support,

Program, Product and Service Delivery,

Financial, Tax, Risk and Facilities Management.

Human Resource Management.

Community and Public Relations.

Fundraising (nonprofit-specific).

Departments & their managers

Accounting Department

An

accounting department provides accounting services and financial support to the

organization it belongs to. The department records accounts payable and receivable,

inventory, payroll, fixed assets and all other financial elements. The department's

accountants review the records of each department to determine the company's

financial position and any changes required to run the organization cost effectively.

, the Functions of virtually any accounting department should include the following:

Money out – making payments and keeping the bills paid

Money in – processing incoming payments

Payroll – make sure everyone gets paid (including the government)

Reporting – preparing financial reports, e.g. P&L, Balance sheets and budgets

Financial Controls – to avoid errors, fraud and theft

Head of Accounting Department

Head of accounting department is called Accounting Manager.

http://www.pcg-services.com/budgeting-business-kiss/



Purpose

The Accounting Manager is responsible for all areas relating to financial reporting.

This position will be responsible for developing and maintaining accounting principles,

Practices and procedures to ensure accurate and timely financial statements.

Responsibilities & Duties

Obtain and maintain a thorough understanding of the financial reporting and

general ledger structure.

Ensure an accurate and timely monthly, quarterly and year-end close.

Ensure the timely reporting of all monthly financial information.

Assist the Controller in the daily banking requirements.

Ensure the accurate and timely processing of positive pay transactions.

Ensure the monthly and quarterly Bank Compliance activities are performed in a

timely and accurate manner.

Supports budget and forecasting activities.

Collaborates with the other finance department managers to support overall

department goals and objectives.

Advises staff regarding the handling of non-routine reporting transactions.

Responds to inquiries from the Director of Finance, Controller, and other finance

and firm wide managers regarding financial results, special reporting requests

and the like.

Assist in development and implementation of new procedures and features to

enhance the workflow of the department.

Skills

Developing Budget.

Legal Compliance.

Tracking Budget Expenses.

SFAS Rules.

Accounting.

Managing Processes.

Reporting Research Results.

Motivating Others.

Attention to Detail.

Line manger

General duties include:

Assessing accuracy of accounting data.

Fielding questions directed at accounts payable and receivable.

Keeping track of records and processing transfers.

Prepare journal entries.

Log data into spreadsheets and communicate with outside financial institutions.

Workers

Use bookkeeping software, online spreadsheets, and databases.

Enter (post)-financial transactions into the appropriate computer software.



Receive and record cash, checks, and vouchers.

Put costs (debits) and income (credits) into the software, assigning each to an

appropriate account.

Produce reports, such as balance sheets (costs compared with income), income

statements, and totals by account.

Check for accuracy in figures, postings, and reports.

Reconcile or note and report any differences they find in the records.

Finance Department

The finance department of a business takes responsibility for organizing the financial

and accounting affairs including the preparation and presentation of appropriate

accounts, and the provision of financial information for managers. The main areas

covered by the financial department include:

• Book keeping procedures.

• Creating a balance sheet and profit and loss account.

• Providing management information.

• Management of wages.

• Rising of finance.

Head of department

Head of finance department is called Finance Manager.

A finance manager organizes and manages an organization's or an individual's

financial portfolio. They also prepare financial reports, oversee investments and help

with cash management.

Responsibilities and Duties

Oversee the overall corporate.

Budgeting preparation.

Management and monitoring processes.

Perform financial analysis.

Reporting and management activities.

Ensure that the financial reports are prepared and delivered on time.

Review financial data for accuracy, correctness and completeness.

Monitor and manage all expense within the allotted budget.

Establish key financial strategies to enhance business profitability.



Establish accurate forecasts regarding expenses and revenues and manage

regular reporting requirements.

Monitor competitor activity and stay updated about latest industry trends.

Line manager

Staff Supervision and Development.

Financial Services Delivery.

Skills

Critical Thinking.

Judgment and Decision Making.

Management of Financial Resources.

Coordination -- Adjusting actions in relation to others' actions.

Reading Comprehension.

Mathematics.

Active Listening.

Time Management.

Complex Problem Solving.

Operations Analysis.

Workers

Examine and verify accuracy of work and authorize routine payments, credits and

other transactions.

Establish work schedules, procedures, and co-ordinate activities with other work

units or departments.

Resolve work-related problems and prepare and submit progress and other reports

Requisition supplies and materials.

Ensure smooth operation of computer systems and equipment, arrange for

maintenance, and repair work.

HR Department

An efficiently run human resources department can provide your organization with

structure and the ability to meet business needs through managing your company's

most valuable resources -- its employees.

There are the following main functions:

Recruitment



Safety

Employee Relations

Compensation and Benefits

Compliance

Training and Development

Head of Department

Head of HR department is called HR manager.

HR Manager

Human resource (HR) managers are involved with recruitment,

training, career development, compensation and benefits, employee relations,

industrial relations, employment law, compliance, disciplinary and grievance issues,

redundancies etc. The job involves keeping up to date with areas such as employment

law, which change often.

Roles & Responsibilities

Administer compensation

Benefits and performance management systems

Safety and recreation programs.

Identify staff vacancies and recruit, interview and select applicants.

Allocate human resources, ensuring appropriate matches between personnel.

Provide current and prospective employees with information about policies, job

duties, working conditions, wages, and opportunities for promotion and employee

benefits.

Perform difficult staffing duties, including dealing with understaffing, refereeing

disputes, firing employees, and administering disciplinary procedures.

Advise managers on organizational policy matters such as equal employment

opportunity and sexual harassment, and recommend needed changes.

Skills

Spreadsheets

Accounting

Organizational development

Labor relations

Business administration

Administrative support

Scheduling

Human resource management

Recruiting

Employee relations

Line Manager

Employee Engagement

Performance Appraisal



Disciplining Employees

Performance-Related Pay

Workers of hr department

Workers

Consult with employers to identify needs and preferred qualifications

Interview applicants about their experience, education and skills

Contact references and perform background checks

Inform applicants about job details such as benefits and conditions

Hire or refer qualified candidates

Conduct new employee orientations

Process paperwork

Sales Department

The main function of a sales department is to effect sales. It is concerned with the

transfer of ownership or merchandize on terms satisfactory to both the buyer and

seller. This has to be done at the lowest possible cost. The basic objective is obviously

the achievement of profit through service. A sales department consists of persons

working together with a view to market the products manufactured by

the organization itself or products purchased for resale.

The result of the sales effort would naturally depend also on the effort of the other

operations and departments such as research, advertising traffic, finance and credit.

Head of department

The head of sales department is called sales manager. The roles and responsibilities

of a sales manager:

Meeting the sales targets

Targets are realistic and achievable.

Devises strategies

Map potential customers and generate leads for the organization.

brand promotion

Motivating team members

Team is delivering desired results.

Act as a pillar of support

A source of inspiration for his team members.

Maintaining and improving relationships with the client.



Line Manager

The role of a line sales manager can be exciting. However, it can also be challenging,

juggling a multitude of demands from overseeing the sales team, to developing your

people, to managing customer relationships.

Provide customer service

Direct and supervise employees

Monitor sales activities

Inventory stock and reorder

Instruct staff

Estimate consumer demand

Formulate pricing policies

Establish credit policies and operating procedures.

Assign employees to specific duties.

Keep records of purchases, sales, and requisitions

Enforce safety, health, and security rules.

Examine merchandise

Plan budgets

Plan and prepare work schedules

Review inventory and sales records

Examine products purchased

Establish and implement policies, goals, objectives, and procedures

Plan and coordinate advertising campaigns

Workers

Assist customers in finding what they are looking

Product features, demonstrating its use, or showing various models and colors

Special knowledge or skills are needed

Receive cash& check

Charge payments

Package purchases

Give change and receipts.

Counting money

Separating charge slips, coupons, and exchange vouchers

Making deposits at a cash office

Handle returns and exchanges of merchandise,

Perform gift wrapping services

Help stock shelves or racks

Mark price tags, take inventory, and prepare displays.



Production Department

The production department is responsible for converting inputs into outputs through

the stages of production processes. The Production Manager is responsible for

making sure that raw materials are provided and made into finished goods effectively.

He or she must make sure that work is carried out smoothly, and must supervise

procedures for making work more efficient and more enjoyable.

There are five production sub-functions

Production and planning.

Purchasing department

The stores department

The design and technical support department

The works department.

Head of department

Head of this department is called Production Manager.

Forecasting the requirements of the production in order to achieve the production

target. Making most efficient utilization of the available sources for production.

Minimizing ‘throughput time’ and ‘work in process inventory’. Deals with reducing

material handling cost.

Line Manager

Order appropriate materials.

Ensure products are created on time.

Test machines for disrepair and malfunctions.

Set and meet production goals.

Purchase and calibrate machines.

Correct problems on production line.

Maximize the production process to lower costs.

Oversee one or more areas or an entire plant.

Work with outside suppliers to increase quality of raw materials.

Keep abreast of new technology that can be used in the production process.

Approve expenditures for supplies and materials.

Ensure compliance with workplace safety programs.



Workers

working as part of a team, Production Workers complete one or more tasks that are

part of product creation, finishing, inspecting, or shipping. They must meet quotas

and must report time and the amount of work done, as well as any problems or

discrepancies, to their supervisor; more commonly, they enter their output and

problems on a computer terminal. Productions workers may rise to supervisory

positions or to specialty positions in their department or within the company.

Production Workers need a high level of manual dexterity and basic literacy and

math skills. Because the work they do affects others, they must be team players who

communicate well with others. The speed and accuracy of the work they do affects

product cost and profitability, so their work is very important.

Pay Structure A pay structure is a collection of pay rates or pay ranges. Pay structures, also known

as salary structures, set out the different levels of pay for jobs, or groups of jobs, by

reference to:

Their relative internal value, as established by job evaluation

External relativities, via market rate surveys

Where appropriate, negotiated rates for the job

Purpose

Pay structures are used to help organizations:

Maintain pay levels that are competitive with the external labor market,

Maintain internal pay relationships among jobs,

Recognize and reward differences in level of responsibility, skill, and performance

Manage pay expenditures.

Organizations need

Establish a logically-designed framework within which equitable, fair and

consistent reward policies can be implemented

Determine levels of pay for jobs and people

Basis for the effective management of relativities

Help monitor and control the implementation of pay practices

Communicate the pay opportunities available to employees.

Elements of a pay structure

A pay structure is defined by several elements, including:

Coverage – the occupations, positions, or persons included the number of pay ranges

or grades, the differences between pay ranges, and range width – the difference

between the range minimum and maximum.

Types of pay structure, or salary structure

Graded structures – a sequence of overlapping job grades into which jobs of

broadly equivalent size are allocated. Each grade has a range, the maximum of

which is usually 20 to 50% above the minimum.



Broadband – similar to conventional graded structures, but with far fewer and far

wider bands. The maximum of the band can be 100% or more above the

minimum.

Job Family Structures – Each job family has a different graded structure. Jobs

are allocated to a job family based on activities carried out; skills and

competencies e.g. Information Technology is a perfect example of a job family for

which there is usually a separate grade structure.

Step structure: Several steps to designing a pay structure: job analysis; job

evaluation; pay survey analysis; pay policy development: and pay structure

formation.

Selected Structure

Steps structure is selected by our group.

Professionals might create the pay structure for their organization, or they might

work with an external compensation consultant. There are several steps to designing

a pay structure: job analysis; job evaluation; pay survey analysis; pay policy

development and pay structure formation.

Each step is briefly explained below.

Step 1: Job Analysis

Job analysis is the process of studying jobs in an organization. The outcome of this

process is a job description that includes the job title, a summary of the job tasks, a

list of the essential tasks and responsibilities, and a description of the work context.

Also included are the knowledge, skills and abilities needed to perform the job.

Step 2: Job Evaluation

Job evaluation for Management & Professional Staff is based on Occupational

Guidelines established to identify the nature and scope of the position’s tasks and

responsibilities. All jobs are evaluated against these guidelines.

The first step in job evaluation is writing the position description – a position

description outlines the specific duties, responsibilities and qualification requirements

for a particular position.

Once a position description has been written, positions are evaluated qualitatively

based on a number of criteria into occupational families and levels:

Complexity – appraises the number and variety of tasks or functions, and the

number of procedures, policies and practices that govern those functions

Accountability – appraises the position’s freedom to organize, plan, execute and

control tasks, as well as the probability of errors and the consequence of errors

not being detected (excluding human errors)

Judgment / decisions – appraises the nature of decisions and judgments – whether

quoting documented facts, interpreting information or providing advice

Supervision given – appraises the number and classification level of employees for

which a position is responsible, and the type of supervision provided by the

position; levels of supervision can range from no responsibility for others’ work;

to training / assigning / reviewing others’ work for accuracy and quality; to



recommending candidates for appointment and training, and establishing overall

standards of performance / evaluating performance

Contacts – appraises the level of tact, frequency and complexity of contacts and

relationships with others

Job requirements – appraises minimum education, skill requirements and training

that are necessary to do the job.

Step 3: Pay Policy Identification

Pay policy identification is the process of determining whether the organization wants

to lead, lag or meet the market in compensation. The pay policy or strategy will likely

influence employee attraction and retention. Pay policies can vary across job families

(i.e., groups of similar jobs) and job levels if the top management feels that different

strategies can be effective in different areas of the organization.

Step 4: Budget of payroll

Create a budget for payroll. Evaluate company profits, sustainable cash flow and

expenses to determine how much you are able to spend on payroll. Decide how you

will allocate payroll. For example, if you can spend an additional Rs.60, 000 a year

on payroll and you need to fill two positions, determine the compensation for each

position.

Step 5: Average salaries

Research average salaries. Keep your salary structure competitive to entice

applicants. Read local job ads to see what other corporations are paying for similar

positions and duties.

Step 6: Pay Grade System

Devise a pay grade system. Pay grade is a structure that establishes compensation for

each position. After determining how much you will pay for a position, establish a pay

grade for these positions based on an applicant's experience, education and

progression in their career. For example, if your budget allows Rs.30, 000 for an

administrative assistant, you can develop a pay structure that pays an entry level

assistant Rs.18, 000, a mid-level assistant Rs.25, 000 and an executive-level assistant

Rs.30, 000.



Implementation of salary structure on the hierarchy of

organization

CEO

Step 1: Job analysis

Roles & Responsibilities of CEO:

Discussed in start of report

Physical Demands/Working Conditions:

This is a high-stress position based on full responsibility for ABC operations. Handles

detailed, complex concepts and problems, balances multiple tasks simultaneously, and

makes rapid decisions regarding administrative issues.

Plans and implements programs. Establishes strong and appropriate relationships

with Board, committees, volunteers, staff, donors and clients. Develops smooth and

constructive relationships with executive colleagues, outside agencies, organizations

and individuals.

Plans and meets deadlines. Maintains a flexible work schedule to meet the demands of

executive management. Hours may be long and irregular.

Conveys a professional and positive image and attitude regarding ABC and the not-

for-profit and for-profit sectors. Demonstrates commitment to continued professional

growth and development.

Qualifications:

A Bachelor’s Degree is required with a minimum of 3 years experience in a senior

management position. As chief executive officer, this individual demonstrates critical

competencies in four broad categories:

Commitment to results

Business savvy

Leading change

Motivating.

Required Education and Experience:

1. Bachelor’s degree.

2. 8-10 years of related industry experience.

3. Contracts and negotiation experience.

Preferred Education and Experience:

1. Master’s degree.

2. 10-15 years of related industry experience.

Additional Eligibility Qualifications:

None required for this position.

Step 2: Job Evaluation

We evaluate the CEO Job by following six ways:



Own the Vision

I use the word vision, but this area includes the entire corporate strategy. Has the

CEO signed off on and communicated a clear vision, mission, corporate values and

strategy to all stakeholders, both internal and external? Is it an effective strategy that

leverages the unique strengths of the organization to establish a clear competitive

advantage? Do employees come to work excited by the mission of the company? Do

customers and shareholders know what to expect from the company?

Provide the Proper Human Resources

How many times have we heard CEOs say “Our people are our most important

resource”? If that is the case, then has the CEO built a company whose people are

clearly better than the competition? It is easy for the CEO to say we have great

people, but if they are not as good as the competition at acquiring talent, then the

company is at a competitive disadvantage every day in the market. While all the

members of the team are important, the board and CEO should pay special attention

to the executive team and provide clear succession planning. In the human resources

area, the board should consider two key questions: Is the CEO getting the right

people? Then, is the CEO making sure they are developed to perform to their fullest

potential?

Provide the Proper Capital and Other Resources

No business can continue to function without the proper financial resources. Those

resources can come from external funding sources or from the internal operations of

the company. The CEO must constantly anticipate the needs of the organization and

not allow a shortage of resources to cause the company to miss opportunities.

Additionally, the CEO is the one person in the company in the position to bring in

external expertise. Has the CEO attracted the right board members and surrounded

himself with external advisors and service providers that can provide real value to the

company?

Build the Culture

I define culture simply as how things are done in an organization. High-performance

cultures don’t just appear, as they require a CEO who understands what motivates

people throughout the organization. Too many CEOs allow the culture to develop

organically and then are surprised when people develop attitudes that aren’t aligned

with the company’s vision, mission and goals. Is the CEO setting the standards for the

company or is each employee left to his or her own standards? Are the company’s

stated values applied consistently across the company? Is the culture driving a high

level of performance consistently across the organization, or is performance highly

variable based upon the particular group?

Make Decisions Well

Decisions are the fuel on which every organization runs. The quality and speed with

which decisions are made determine the productivity of the organization. The CEO is

responsible for not only the decisions he makes but also any decisions his

management team makes. Building an organization that consistently makes thoughtful

http://theamericanceo.com/2013/06/04/the-5-responsibilities-of-a-ceo-own-the-vision/

http://theamericanceo.com/2013/03/07/judging-talent-exceptionalism/

http://www.forbes.com/sites/joeltrammell/2013/06/18/the-resource-allocation-dilemma-faced-by-ceos-every-single-day/

http://theamericanceo.com/2013/06/25/5-responsibilities-of-a-ceo-build-the-culture/

http://theamericanceo.com/2013/07/02/5-responsibilities-of-a-ceo-make-good-decisions/



choices in a timely manner is one of toughest but most valuable things a CEO can

accomplish. Does the organization run like a well-oiled machine or are there constant

stops and starts as decisions are either: 1) not made or 2) have to be sent to the top

for review?

Deliver Performance

At the end of the day as we all know, CEOs are responsible for delivering

performance. The challenge with evaluating performance directly is that it often takes

years to see how things play out. Instead of just waiting to see what happens, the CEO

must work with his management team to understand the key metrics in each area that

will lead to superior performance. I worked with new executives and directors to

agree on the three to five metrics that would drive performance in their area. Is there

a clear system of goals and metrics that tie to the vision, mission, values and strategy

of the company? Does the CEO know what makes the business work, and can he

identify problem areas before they significantly affect performance?

Step 3: Pay Policy Identification

The job of CEO is executive level job. It relates to high level of management.

Therefore, the pay is also high as compare to other employees.


365 days in a year

Less 104-weekend days

Less 14-vacation days

Less 10 days sick leave

Less 8 holiday/personal days

Equals 229 work days, or 1,832 hours actually worked in a year

Direct Payroll Categories Annual direct Payroll Costs

Wages 30,00,000

Medical Insurance 720,000

Dental Insurance 120,000

Retirement Benefits 120,000

Worker’s comp Plan 600,000

Employer Medical taxes 435,000

Employer Federal Unemployment 186,000

Total 5,181,000


Average salaries in competitor companies for CEO is Rs.150, 000 --- Rs.200, 000


According to the required qualification, skills, experience etc Company decides the

pay grade.

http://theamericanceo.com/2013/07/09/5-responsibilities-of-a-ceo-deliver-performance/



Details Starting level

assistance

Mid level

assistance

High Level

Assistance

Qualification

Of MBA Yes Yes Yes

All Listed

Skills Yes Yes Yes

Experience 2

– 3 years No experience 1 year

experience

3 years

experience

Pay/Salary Rs.150,000 Rs.170,000 Rs.2 00,000

Pay structure for Head Of Departments of Organization

Step 1: Job Analysis

Details Step 1: Job Analysis

Department HOD Skills

Roles &

Responsibi

lities

Experience Work

Environment

Qualificati

on-ion

Accounting Accounting

Manager

Discussed

Before

Discussed

Before 2 years

40 hours per

week

Master’s

Degree in

accounting

Finance Finance

Manager

Discussed

Before

Discussed

Before 5 years

Full time work

long hours.

Master’s

Degree in

Finance

Human

Resource

HR

Manager

Discussed

Before Discussed 4 years

54 hours per

week

Master’s

degree in

HR

managemen

t

Production Production

Manager

Discussed

Before Discussed 3 year

Work Long

hours

Master’s

degree

Sales Sales

Manager

Discussed


10 hours per

working day

Master’s

degree in

marketing



Step 2:

Step 3: Pay policy identification

The head of department is very challenging job. All the head of departments relate to

each other.

Job of all head of departments has equal responsibilities approximately. Therefore,

their pay is also same.


The payroll budget for all departments is same because the company has one payroll

budget.

365 days in a year







Wages 30,00,000







Total 5,181,000

Details Components of Job Evaluation

HOD Complexity Accountability Judgment/

Decisions

Super-

vision

Given

Contacts Job

Require-

ment

Accounting

Manager

Medium Low Medium Low Low High

Finance

Manager

Medium Low Medium Low Low High

HR

Manager

Medium High High High High High

Production

Manager

High Medium High High Medium Medium

Sales

Manager

High Medium Medium High High Medium




Average salaries in competitor companies for Head of departments is Rs.50, 000 ---

Rs.150, 000


According to the following components, Company decides the pay grade of each

HOD. If required component is achieved, partial achieved or not achieved then pay is

given according to that criteria but pay is between Rs.50, 000 --- Rs.150, 000.

Pay is become higher according to the achievement of components

Salary is based on how much requirements are achieved & at which level.

Details

HOD Starting Level Mid Level High Level

Accounting

Manager Rs. 30,000 Rs. 60,000 Rs. 1,00,000

Finance

Manager Rs. 50,000 Rs. 100,000 Rs. 1,50,000

HR

Manager Rs. 50,000 Rs. 100,000 Rs. 1,50,000

Production

Manager Rs. 30,000 Rs. 60,000 Rs. 1,00,000

Sales

Manager Rs. 50,000 Rs. 100,000 Rs. 1,50,000

Details Components

HOD Required

Qualification

Required

Skills

Required

Experience Training

Accounting

Manager Achieved Partial achieved Partial achieved

For 2 months

required

Finance

Manager Achieved Achieved Achieved

for 1 month

required

HR Manager Achieved Achieved Achieved Not needed

Production

Manager Achieved Partial Achieved Partial achieved

For 1 month

required

Sales

Manager Achieved Achieved Achieved Not needed



Pay structure for Line Managers of Organization

Step 1

Step 2:

Details Components of Job Evaluation

Department

Line

Manager

Of

Department

Comp

-lexity

Account

-ability

Judgme

nt/

Decisio

ns

Super-

vision

Given

Contact

Job

Require-

ment

Accounting Line

Manager

Mediu

m Low Medium Low Low High

Finance Line

Manager Mediu

m Low Medium Low Low High

Human

Resource Line

Manager Mediu

m High High High High High

Production Line

Manager High Medium High High Medium Medium

Sales Line

Manager High Medium Medium High High Medium


Depart-

ment

Line

Manager Of

Department

Skills

Roles &

Responsi

bilities

Experienc

e

Work

Environmen

t

Qualificati

on

Accounting Line

Manager

Discussed

Before

Discussed

Before 1 years

60 hours per

week

Bachelor’s

Degree

Finance Line

Manager

Discussed

Before

Discussed

Before 5 years

60 hours per

week

Bachelor’s

Degree

Human

Resource Line

Manager

Discussed

Before Discussed 4 years

60 hours per

week

Bachelor’s

degree

Production Line

Manager

Discussed


Work Long

hours

Bachelor’s

degree

Sales Line

Manager

Discussed


12 hours per

working day

Bachelor’s

degree




The Line Manager is challenging job. All the Line Managers relate to each other.

Job of all Line Managers has equal responsibilities approximately. Therefore, their pay

is also same.



budget.

365 days in a year







Wages 30,00,000






Employer Federal

Unemployment 186,000

Total 5,181,000


Average salaries in competitor companies for Line Managers is Rs.20, 000 -- Rs.70,

000


According to the following components, Company decides the pay grade of each Line

Manager. If required component is achieved, partial achieved or not achieved then

pay is given according to that criteria but pay is between Rs.20, 000 -- Rs.70, 000.

Pay is become higher according to the achievement of components.



Details Components

Department

Line

Manager Of

Department

Required

Qualification

Required

Skills

Required

Experience Training

Accounting Line

Manager Achieved

Partial

achieved

Partial

achieved

For 3 months

required

Finance Line

Manager Achieved Achieved Achieved

For 2 month

required

Human

Resource Line


Production Line

Manager Achieved

Partial

Achieved

Partial

achieved

For 2 month

required

Sales Line


Details

Department Head Of

Department Starting Level Mid Level High Level

Accounting Line

Manager Rs. 20,000 Rs. 40,000 Rs. 60,000

Finance Line

Manager Rs. 30,000 Rs. 50,000 Rs. 70,000

Human

Resource

Line

Manager Rs. 30,000 Rs. 50,000 Rs. 70,000

Production Line

Manager Rs. 20,000 Rs. 40,000 Rs. 60,000

Sales Line

Manager Rs. 30,000 Rs. 50,000 Rs. 70,000



Pay structure for Workers of Organization

Step 1:


Department Workers Of

Department Skills

Roles &

Responsibilities Experience

Work

Environment Qualification

Accounting Workers Discussed

Before

Discussed

Before

Not

Required

60 hours per

week

Bachelor’s

Degree or

I.com

Finance Workers Discussed

Before

Discussed

Before

Not

Required

60 hours per

week

Bachelor’s

Degree or

I.com

Human

Resource Workers

Discussed

Before Discussed

Not

Required

60 hours per

week

Bachelor’s

degree

Production Workers Discussed

Before Discussed

Not

Required 24 hours Intermediate

Sales Workers Discussed

Before Discussed

Not

Required 24 hours Intermediate


Workers are the part of low-level management. All the Line workers relate to each

other. Job of all workers has equal responsibilities approximately. Therefore, their

pay is also same.



budget.

365 days in a year









Wages 30,00,000







Total 5,181,000


Wages are given to workers according to the number of hours they worked.


According to the following components, Company decides the wages of each worker.

If required component is achieved, partial achieved or not achieved then wages is

given according to that criteria but wages is between Rs.500 -- Rs.900.

Wages is become higher according to the achievement of components.

Details Components


Department

Required

Qualification

Required

Skills

Required

Experience Training

Accounting Workers Achieved Partial

achieved

Partial

achieved

For 4

months

required

Finance Workers Achieved achieved Achieved For 3 month

required

Human

Resource Workers Achieved Achieved Achieved Not needed

Production Workers Achieved Partial

Achieved

Partial

achieved

For 3 month

required

Sales Workers Achieved Achieved Achieved Not needed



Details


Department Starting Level Mid Level High Level

Accounting Workers Rs. 300 × working

hours

Rs. 500× working

hours

Rs. 700× working

hours

Finance Workers Rs. 500× working

hours

Rs. 700× working

hours

Rs. 900× working

hours

Human

Resource Workers

Rs. 500× working

hours

Rs. 700× working

hours

Rs. 900× working

hours

Production Workers Rs. 300× working

hours

Rs. 500× working

hours

Rs. 700× working

hours

Sales Workers Rs. 500 Rs. 700× working

hours

Rs. 900× working

hours

Learning By preparing this report, we learn to prepare salary structure at different

management and working levels. Accurate salary structure is vital for smooth

operations of an organization and through preparing this report we are now able to

prepare salary structure which will helpful for better performance in organization.

Bibliography http://www.crescent.com.pk/

http://www.crescent.com.pk/

Project report on Salary structure

Business

Transcript of Project report on Salary structure