There are different types of pay which an organization offers to its employees according to the nature of job and the agreement signed between the employer and employee.The pay structure varies from piece rates to monthly salary according to the job to be performed.If the job is identical and management thought that it can provide better according to the number of units produced by each employee they go for piece rate ad when job is on service sectors and required service according to hours they goes for hourly rate.The difference in different pay structure is on the nature of the job to be performed and the output to be produced.
Generally increases given to employees in each year depend upon the performance,cost of living so that they can earn enough to live their life and when promotion is given to employees salary also increased so that there should be par of salary across a rank.There is also contract between employer and employee on increase of pay and how much increases should be given in each period.
An employee will be motivated when the salary increases will based on merit and performance of the employee.In this case they strife to achieve more output due to linkage of salary increase with the performance.
