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HR370AV Chapter 8

Horizontales
Assign different pay rates for jobs of unequal worth
A Form of incentive compensation on a percentage of the selling price of a product or service
Below-minimum pay range rates
Represent the vertical dimension and includes midpoint,minimum, and maximum pay rates
Verticales
Subsistence pay component awarded as an advance which is charged against commissions that dales professionals are expected to earn
When companies pay certain employees greater than maximum rates for their pay ranges
Group jobs for pay policy application
Suggests that an e,ployee must regard his r her own ratio of merit similar to the ratio for other comparably performing people in the company