Hi Chaitrali,
The posts by Ajay and Bpugazhendhi gave you a very good foundation on which to build your Grade and Band structure.
As said earlier bands and grades depends on the size of the company and the way it operates. The levels of authority and management existing or envisaged by the company.
I for one would not bracket the CEO with other management staff in a grade. The CEO must have a grade of its own. The work of a CEO is very different form that of others so do not band the CEO with others, have an exclusive band for the CEO.
Companies that take top down view will start the top grades from "A" and those that take a bottom up view will start the lowest grade with "A", this is all a matter of organization views how and where you start a grade does not matter.
One must first list out the current levels of management, executive and non-executives and examine the work done by each, the roles and responsibilities of each position. Please look at grades by position.
A large organization with pan India presence will have a different grade structure from a smaller one city organization, here again an organization that is multinational will have a different grade structure.
I think the best way is to start from the bottom. Examine the levels of employees at different levels - non-executives, executives, senior executives, assistant managers, managers, senior managers, CTO, CFO, DGMs, GMs, AVP's, VP''s, COO once you have listed out the number of people in such positions you can then examine the grades you will require. If you find that that is only one person in a position or a few positions then it would be better to band such positions together. The Salary Band can be used to differentiate between positions.
When deciding on bands first examine the number of years the organization would keep a person in a grade. In some cases bands may overlap but not by too much.
Bands will show the lowest and highest compensation for that band. Although it is outdated you may show the minimum increment in a band. Viz. 35000 - 1500 - 60000.
You may establish bands based on basic salary or on CTC this again is based on how the management looks at compensation and how many components make up the CTC.
Please let me know if this helpful so that we can progress further on this chapter.
Regards
Ronald