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hii. we are setting up salary structure in our company. my question is , does a particular designation have a set salary structure fr eg: if we have VP operations and VP technicals should they have same salary brackets.
(basic may be same but other components may be varied) or do they vary with market benchmark?
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Hi
Salary Structure & Grade structure are different.
What you can plan is you can fix the grade structure. You can plan grades as you require & plan to limit all the positions/designations with in the limited grades.
For each grade you can plan some wage bracket & try to limit them with in the bracket. For particular grade the difference in salary might vary based on the organisational needs & bench marking
Salary structure is how you are you splitting the fixed wages into various compunents
Thank you Jeevarathnam, Can you elaborate on grade structures please
Designing grade structure for any industry/organsiation requires time. It varies form industry to industry & size of the organisation too. With out having any knowledge on the size & type of the organisation and the hierarchy its very difficult to set the Grades & with out having the idea of the salaries its difficult to fix the Pay bands for the grades.
Hi Sangir;

Thanks for ur query in citeHR reg. Grading of employees & fixing of pay for them.

CATEGORISING / GRADING of every Employee’s Designations in an Organisation (Mfg. Cos. like Steel, Cement, Sugar, Power, Chemical, Mines etc.,) from Kalassi / Peon to GM/Director (i.e., Un-skilled to Top Management) is an important task of HR Dept. tobe done in such a way that; every employees Qualifications, experiences, salaries are taken into account to avoid complaints of anomaly; later.

Also, it needs tobe done carefully and properly that the HR Dept. staff who have to prepare Annual Increments, Promotions, Fitment, Benefits etc., are able to understand the Categorisation so as to programme it in Computer while making such Increment, Promotion Orders with Salary, Grades for hundreds of employees at a stretch .

The Salaries are tobe fixed for each Grade/Category/Level in such a way that employees in each Grade has a particular Salary range/Band in a descending order say; from GM down to the Un-skilled employees. Such Categorisation helps HR Dept. to group all employees from Un-SK to Top Mngmnt. and it is required for HR, MIS Reports & for filing various Returns. It will also help Interview Panel Members to fix a particular Candidate’s Designation in a Grade matching to his salary & post for the new candidate considering his Qlfn. & exp. vis-à-vis existing employees in the particular Dept. to which the new employee is going to join / recruited; to reduce heart-burning and anomaly problems among existing employees; later.

Salary fixation for each employee (based on Qlfcn, exp. & job knowledge) is one aspect whereas fixing his Grade/Category depending upon his Designation is another. The 2nd one i.e., Categorising/ grading/ grouping say hundreds of employees into various grades is important to say how many Engrs./Officers, Managers, Mechanics are there at a particular time. State Laws require Filing of Returns to District Industries Centre where Company has to state how many people of the Particular State are given jobs;- Category wise, say Skilled, Supervisor etc., In Karnataka, every Company has to file KANNADIGAS Report to provide statistics of Kannadigas employed in Manpower Returns - Quarterly.

I have attempted to Categorise all employee’s Designations as under (from Un-SK to Top Management in XL format) so that every employees Designations in a Labour Intesive Units like Steel Plants; are covered in Ascending Order; starting with

Un-Skilled,

Semi-Skilled &

Skilled . . (Skilled - 4 Levels like Jr.Optr, Asst.Optr, Optr & Sr.Optr.)

Supervisory (4 Levels - Jr.Supervisr, Asst.Supervsr, Supervisr & Sr.Supervisor)

Officers/Engineers (4 Levels – Jr.Offcr/Jr.Engr, Asst.Ofcr/Engr, Ofcr/Engr, Sr.O/Sr.Engr.)

Managers (7 levels – Jr.Manager, Asst.Mgr, Dy.Mgr, Manager, Sr.Manager, AGM & DGM)

TOP MANAGEMENT (5 Levels – GM, SR.GM, CGM, AVP, VP, CEO, PRESIDENT, DIRECTOR, E.D. & M.D.)

However, the Categorisation, Levels & Designations could be changed as per the Organisations needs & nature of Industries. The position is different in Software & other type of Companies compared to Steel, Cement etc., as stated above.

As Salaries will vary depending upon Qlfcn, Exp. location, type of industry etc., the same can be grouped to fit into appropriate grades. I request respectable Cite HR Senior Members to peruse the above and provide us (in a Statement Form) the types of Categorization / Grading of all Designations available for the benefit of HR Managers who need such List not only for their works but also, for convincing Senior Management whenever Salary, Designations are to be reviewed / re-fixed. Even though there may not be fixed norms for revision or change, it will be helpful if Seniors provide some Formats / Guidelines which will be showing Categorization / Grading of all designations for better presentation as there is a saying; something is better than nothing. This will help many HR Professionals just like Standard quotations / specifications, Comparative statements with rates for products like Car, bike etc.

I request Cite HR Sr. Members to give more information on this important aspect of HR to help HR Managers for categorizing the employees for various HR & MIS Reports and also for Recruitment teams.

Yours sincerely,

• C.Neyimkhan, HR Consultant, Ex:AGM (HR&A), HOSPET, Karnataka, S.India.

• Mobile - 9535470460 EMail:


Thank you Neyimkhan
Yes i too would request other HR professionals to throw light on the subject as to what is the Standard form of grading, is there any std format followed by plastics and pharmaceutical companies ,is there any standard range of salary followed, as to how are salaries linked to these positions:
1. Are the levels created to set a feasible range to accommodate " same position of different departments" say for eg : a VP of Marketing is much highly paid as compared to that operations. are we creating levels to accomodate this difference???
2. do we have overlapping in these positions ?? say a senior officer has higher salary than that of jr manager. this chart shows jr manager to be the next level to senior officer
thank you in advance
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