The First-Time Manager

By Loren B. Belker; Gary S. Topchik | Go to book overview

24
Salary Administration

It should be obvious that job descriptions, performance appraisals, and salary administration all fit together in one overall plan. They are designed to provide accurate descriptions of what people do, give fair evaluations of their performance, and pay them a salary that is reasonable for their efforts. All these factors must bear a proper relationship to one another and make a contribution to the organization’s overall goals.

If you have a job evaluation program, you probably also have salary ranges for each position in the organization. As a manager, you work within that scale.

It makes sense to have a minimum and a maximum salary for each position. You can’t allow a situation to develop in which an individual could stay on the same job for years and receive a salary out of all proportion to what the task is worth. It’s important to make certain that long-term employees are aware of this situation, especially as they get close to the salary “lid” on the job. For most well-qualified people this is not a problem, because they’ll usually be promoted to another job with a larger salary range. However, in your managerial career, you will encounter long-term employees who remain in the same jobs. Perhaps they don’t want to be promoted. Perhaps they are at their level of competence and cannot handle the next position up the ladder.

These people need to know that there is a limit to what the job is worth to the organization. You have to tell these individu-

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