Compensation Organization

Control of payroll costs is a the responsibility of management. The General Manager is responsible to administer the wage, salary and bonus program. 2.2 Positions in the organization are developed to fulfill a function for the business. All corporate functions have an economic value attached to the function. 2.3 The Functional Organization Chart is used to help determine the position's economic value. There may be special circumstances relating to a position and it's economic value, but this is the exception to the rule - not the "norm". 2.4 A position is only worth so much money to the company. It makes no difference who fills the position or for how long. 2.5 Base pay is what the job is worth to the company; all other pay is based on a commission program, or an incentive, based on budgetary performance. 2.6 Special cases may be found in the organization but all pay is still based on performance of some kind.