Lecture Notes Elements of Compensation Policy
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
Psychological Contract
Compensation policy carries salient components of psychological contract between the employer and
the employee (Kwoni, 2001). The expectation that the employer will meet agreed payments on a timely
and regular basis forms part of psychological contract. Employees loose trust with the employer when
there are delayed and irregular payments. Transparence and accountability on compensation is an
expectation by the employee that the employer will not be engaged in acts which will result to
unauthorized deductions. Pay deductions are always to be suctioned in writing by the employee and a
refund is expected from the employer in situations of any unforeseen errors.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward and transaction rewards
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values as a guide to top management
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
Compensation policy
Compensation policy carries salient components of psychological contract between the employer and
the employee (Kwoni, 2001). The expectation that the employer will meet agreed payments on a timely
and regular basis forms part of psychological contract. Employees loose trust with the employer when
there are delayed and irregular payments. Transparence and accountability on compensation is an
expectation by the employee that the employer will not be engaged in acts which will result to
unauthorized deductions. Pay deductions are always to be suctioned in writing by the employee and a
refund is expected from the employer in situations of any unforeseen errors.
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
A compensation policy is composed of reward structure together with the values and philosophies
which serve to determine the policy (Armstrong 2007). Elements of compensation policy therefore
reflect the wholesomeness of the policy when viewed from the perspectives of: grade and pay structure;
total reward; philosophies and values upon which the compensation policy is grounded.
Grade and Pay Structure Grade structure reflects the hierarchies into which groups of jobs which share
similarities of skills, size, expected competencies and relative importance are place. An organization can
have a unitary grade for all positions in the organization or multiple grades for different career families
(Zacher et al, 2005).
Grade and pay structure facilities industrial harmony, equity, fairness and transparency because they are
largely open and communicated to the employees. Types of grade and pay structure are multi-grade or
broad grade which depict band size and the incremental rates within a grade. Multiple grades adopted
by the organization reflect the reward strategy which is tied to that of the whole organization (Anvari
et.al (2011).
The strategy is derived from the pay of competitors in the market to a particular category of employees.
The organization responds by emulating competitors to avoid poaching of its key employees by the
competitors. The strategic projects being undertaken by the organization may also require development
of pay grades different from the current in the organization. Setton et al (19990 posits that employees
are more motivated and increase commitment when they are a differentiated pay grades.
Total Reward
Total reward consists of transaction rewards and relational rewards. Zacher et al, (2005), defines
transactional rewards as financial rewards which form total remuneration. They include contingent pay,
basic pay, and employee benefits. Relational rewards are non-financial intrinsic rewards meant to
develop the employees’ performance. Relational rewards are long term in nature and serve to enhance
human capital in the organization.
Basic and contingent pay are negotiated between employer and employee or follow collective
bargaining agreement of the representing trade union (Zacher et al, 2005). Contingent pay is related to
performance, competence, contribution, skills, services, and incentive pay and recognition schemes
(Armstrong and Helen, 2007). Benefits are largely non-financial additional to basic and contingent pay
which reflects position status in the organization or special needs to a person or group of person.
Benefits includes; pension schemes, personal security, company cars and petrol, subsidized meals,
medical insurance, accident covers, death covers, health screening and career counseling. Benefits are
largely governed by the policy of the organization but should be clearly spelt out for purpose of ensuring
transparence and fairness in their administration.
Philosophy and Values
Philosophies and values that ground the compensation policy reflects the management vision and
strategy on reward management. Common philosophies and values embedded in the compensation
policy includes; strategic compensation, human capital investment, fairness, equity, transparence and
organization branding.
The philosophies and values act as a guide to top management of the organization when developing
compensation policy and reflect the organization attitude and beliefs about the employees (Meyar and
Becker, 2004). Philosophy of strategic compensation will result to multi-grades for different career
families while human capital investment will be characterized by long term compensation policies such
as training and career development (Pare, 2007).
Equity and transparence values leads to compensation policies of pay-for-performance, payfor-skills,
incentive pay, broad or narrow band grades. Organizational branding philosophy is carried out by
organizations strategizing to position as market leaders in remuneration. The organization will adopt a
compensation policy based on market surveys and negotiations with prospective employees (Armstrong,
2009).
