Salary Differences in Managerial Roles: Why Do HR and Accounts Pay Differently?

Is there a common salary scale for Assistant Managers, Managers, Senior Managers, etc., in different departments such as Accounts and HR? In other words, I noticed that an Assistant Manager in HR earns 12k, while an Accounts Assistant Manager receives 18k.

It is difficult to have the same salary slab in a professional organization where there are direct and indirect functions. Generally, it depends on how one influences the product and business, decision-making skills, functional responsibility, etc.

You can find that in many organizations, there is a common salary structure for a particular position, but that's not the right approach.

There is nothing like a fixed slab for managers, assistant managers, or executives. It differs based purely on experience and the last pay received from the company. Therefore, it doesn't necessarily mean that a person holding the same designation, such as Assistant Manager in different departments, should have the same salary too.

I hope your doubt is clarified.

Regards,
Sai

Apart from certain government agencies and PSUs, the salary structure in the private sector is generally market-driven, based on negotiation, or may have some sort of pay bands or pay grades in a few cases. The example you have cited is fairly common. To answer you precisely: there is no common salary slab between departments/functional areas, and even within departments.

What it means is that there is no parity among departments and even within a particular department. For example, in the Finance & Accounts department, two executives in the same rank/designation, such as Assistant Managers, may be drawing different salaries. Such differences are more obvious when you study the salaries in Marketing or Operations departments, which are considered very vital for the organization.

Compensation and Benefits Management

Compensation and Benefits Management, an offshoot of HRM, is a very specialized and broad subject. I hope I have been able to answer your query to a satisfactory extent or whet your appetite for more information.

Warm regards.