Acta Univ. Agric. Silvic. Mendelianae Brun. 2004, 52, 51-58

https://doi.org/10.11118/actaun200452030051
Published online 2015-06-17

Analysis and proposal of solution of company employees rewarding

Pavel Tomšík, Stanislava Bartošová

Ústav managementu, Mendelova zemědělská a lesnická univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika

The paper analyses the pay system in a particular enterprise in the Czech Republic and proposes a change in this system. The establishment of two scales based on pay classes per month is proposed: one scale that allows for overlaps of pay classes but does not allow for overruns into other categories, and another scale that allows for no overlaps at all.
The proposal of the modified pay system, which is brought forward in this paper, eliminates pay overruns into more distant classes. Only overlaps between adjacent tariff classes have been kept. The ranges of individual classes have been kept as well, but at a smaller magnitude. More specifically, the new ranges are from 15.7% to 26.3% or, in absolute terms, from 1 250 CZK to 3 500 CZK. The proposal enables managers to individualise pay, but eliminates possible speculations of ‘over-individualisation’, which could create a de-motivation effect.
Another possible solution is the creation of pay tariff scale that completely eliminates overlaps and overruns. Hence, the upper bound of one class is the lower bound of the adjacent class. Such a scale would still allow the scope for pay individualisation because the ranges of individual classes will be preserved, yet in a smaller form.

References

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