PAY GRADE RATIONALE
The Rational Way to design the PAY PLAN    PAY SCALE
JOB / POSITION  CLASSIFICATION TREATISE
The Objective Way to set: JOB PAY   WAGE and SALARY

1. Create a Job/Position Within an Organization.
2. Quantify the IQ, Knowledge, Abilities, & Skills needed to Perform the Tasks of the Job/Position
3. Assign the Job/Position to a Pay-Grade.

1.0.   Assign the tasks to the Job/Position.
               The people in three jobs/positions are involved in assigning the tasks of a new position: (1) The owners, or owners´ surrogates, (2) the Industrial Engineers, and (3) the Industrial Psychologists. The contributions these three people make to defining the tasks of the new position varies with the education of the owners, and with each new position.
 
2.0. The Industrial/Personnel Psychologist will analyze the tasks that have been assigned to a particular job, and the characteristics of the person needed to perform the tasks will be quantified.
 
        2.1. The IQ range will be assigned based on the brain power needed to perform the tasks of the job/position.
 
        2.2. The Knowledge needed.  
                 2.2.1.  The hours of instruction needed to acquire the knowledge that is used to perform the tasks that are assigned to this job/position.
 
                 2.2.2.  The hours of study needed to acquire the knowledge that is used to perform the tasks that are assigned to this job/position.
 
        2.3. The Abilities needed.
 
                 2.3.1.  Objective tests will be used to identify each ability needed. The cutoff scores on the various Abilities Tests will be determined.
 
        2.4. The Skills needed.
 
                 2.4.1.  The hours of instruction needed to acquire the skills that are used to perform the tasks that are assigned to this job/position.
 
                 2.4.2.  The hours of practice needed to acquire the skills that are used to perform the tasks that are assigned to this job/position.
 
                 2.4.3.  Job-Sample Tests will be used when available.
 
        2.5. The Responsibilities of the Job/Position.
                 Every worker is responsible for performing the tasks assigned to that job/position.
 
3.0.  Set the Pay Grade for the job/position.

        3.1. The IQ and training needed to perform the tasks of this job will be compared with the IQ and training needed to perform to the tasks of other jobs in this organization.
 
                 3.1.1.  The job/position will be assigned to the pay grade to which jobs/positions are assigned that require similar IQ and training.
 
                 3.1.2.  The location of the job/position on the pyramid-organization chart is not considered.
 
        3.2. The tasks of this job will be compared to the tasks of similar jobs in the relevant job market. Tasks are used because many organizations are not yet using scales of IQ and training.
 
        3.3. The pay will be adjusted only if not any of the qualified applicants will accept employment because of compensation.
 

Contemplate on how the pay of these individuals will be affected:

* The president of the college and the Ph.D. professor of Nuclear Physics.
* The organization's Business-major CEO and the organization's Ph.D. Chemist.
* The Head of a State Health Department and a Department-Physician who is providing medical treatment.

"Wage / Salary Pay Grade" is a Treatise by  Harris Dyes
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