Analyzing a pay structure
In this assignment, you are asked to compare the salary structure of a regional orchestra andexplain the difference in salary between performers. Each position and rate of pay appear on page50 of your textbook.
As you review the pay structure, ask yourself; doesn’t every person put inroughly the same amount of time for the same type of work? Why doesn’t “years of service” ornumber of “performances attended” explain the difference in pay?All organizations of every size have these kind of compensation issues.
More companies arereporting the salaries of individual employees to prove they are meeting pay equity and othertargets. This makes decisions about internal consistency highly contentious.
As a Human Resources professional, you can’t just claim that the market demand sets individual rates.Source: Salary Compensation—5th Canadian Edition (2017), page 50.
QuestionsUsing concise business language, answer the following questions:
1. Describe the orchestra’s pay structure in terms of levels, differentials, and job-based orperson-based compensation.
2. Discuss what factors may explain the pay structure. Consider the following issues:Why does a member of Violin section receive more than the oboist and trombonist?
How does the relative supply or demand for violinists compare with trombonists?Why might the principal trumpet earn more than the principal cellist or clarinetist but lessthan principal viola and flute players?
3. How well do equity and tournament models apply?
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