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Last few months have been very busy for you. In addition to the usual business pressure the performance and compensation decisions have taken up a significant part of your time. Now you are faced with grievances regarding compensation as given below (please refer Grievances regarding compensation). Some of these concern fundamental aspects of how organisations use total rewards. For each of these situations (please refer Grievances regarding compensation) please answer what do you think are the possible problem/s and solution/s. What actions will you take and why? What will you include in these actions? Please make relevant and necessary assumptions (and state your assumptions) as you answer this question. Please make reference to relevant Human Resource Management concepts.

Grievances regarding compensation

  • "Does job grade decide compensation or compensation decides job grade. Please also explain how does this work?"
  • "I just don't understand how this salary line works. Can you explain the logic how it works and why it changes every year?"
  • Rakesh has complained "I have been unfairly rewarded. Please explain what is the logic that while both our performance ratings are 3 (average) Ravi has got higher % increment on base salary." (Compa-ratio - Rakesh 90%, Ravi 50%)
  • Ashish, an Assistant Manager, has complained "My performance rating is 3 (average). Yet I have been given zero increment on base salary. What is my future in the company?" (Pay range for Assistant Manager grade - 80% to 120%, Ashish compa-ratio - 125%)

Reference no: EM132938431

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