The Organisation Chart identifies the positions of every employee in a company from CEO to clerical assistant and determines the hierarchical structure of the organisation. Studies show that
people in the workplace appreciate the organisation chart as an acknowledgement of their individual status and position in the firm and also a tool for aspirational objectives. The work involved is to determine individual positions and grades based on salary, longevity and current status within the firms structure. We will classify individual jobs in relevant Grades and will set out the criteria for each position. Jobs are classified into existing grade/ category structure or hierarchy. Each level in the grade/category structure has a description and associated job titles. To ensure equity in job grading and wage rates, a common set of job
grading standards and instructions are used.
A company’s salary structure is the method of administering its salary philosophy. The two leading types of pay structures are the internal equity method, which uses a tightly constructed grid or matrix to ensure that each job is compensated according to the jobs above and below it in a hierarchy. Then there is market
pricing, where each job in an organization is tied to the prevailing market rate. The main problem when reviewing salaries within an organisation is to not mix the two types of salary philosophy’s and
maintain continuity throughout the process. In our experience salary reviews and grading issues are initially difficult to understand by people but are the backbone of any HR policy and are soon accepted by all employees.
A job description provides a list of the general tasks, functions and responsibilities of a specific position within an organisation. It will include to whom the position reports and who reports to them,
specifications such as the qualifications needed by the person in the job, salary range for the position, and any requirement for particular skill sets. It is the basis of recruitment advertising and employment and should be the first document in a potential employees file and attached to the personnel request form. It
includes information that can be used in the organisation chart and the pay structure. It determines the job role and can be the basis of any interview assessment process.