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HRM3705 SU8

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2021/2022 Written for academic year
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University Of South Africa (Unisa)
Course
HRM3705 - Compensation Management (HRM3705)
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STUDY UNIT 8

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COMPENSATION MANAGEMENT
HRM3705


Study unit 8
Building pay structures that recognise
employee contributions




Prepared by Magda Bezuidenhout,

, Learning outcomes of study unit 8

Once you have completed study unit8, you should be able to:

• Discuss the steps in constructing a pay structure
• Explain the difference between Broad banding and two-tier pay structures
• Discuss merit pay system structures
• Design a merit grid guideline for a company
• Define and determine the pay policy line
• Critically discuss Broad banding
• Design a basic pay structure
• C t t between
Contrast b t red
d circle
i l andd green circle
i l pay and
d id
identify
tif when
h ththese
situations may
• Calculate pay ranges, and midpoint values for a specific pay grade




Prepared by Magda Bezuidenhout,

, Definitions




Prepared by Magda Bezuidenhout

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