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Does Pay Structure Matter?

April 26, 2017pay structure

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Does Pay Structure Matter?

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A Comparison of a Flat and Hierarchical Pay Structure By Michelle Brown, Ph.D. Pages 64-70 A strategic approach to compensation requires organizations to make choices over a broad range of pay issues, including pay structure. One dimension of choice is between flat and hierarchical structure. This article provides a short discussion of the theory of flat and hierarchical structures, and then tests these propositions in an organization that has a flat rate structure in one division and a hierarchical structure in a second division. Full text.