Assessment of Pay scale Determination Practices at St. Mary’s University

Abstract

The purpose of the study was to examine how the pay scale of St. Mary’s University (SMU) has been determined or established and to analyze whether the pay scale may serve as a motivational tool. Qualitative and quantitative research approaches and descriptive research design was pursued. Stratified and convenient sampling techniques were employed in administering the questionnaires. Out of 220 senior (serve 5 years and beyond in the University) staff members residing in Addis Ababa, 74 were stratified and 94 copies of questionnaire were distributed for alleviating of disqualified questionnaire and non-responses. Therefore, the response rate of the questionnaire was 69%. Validity and reliability tests were conducted and results (average Cronbach’s alpha coefficient of 0.790) proven to be both reliable and valid. Data were subjected to simple descriptive statistics and analysis was made using SPSS 20 for quantitative data and interpretational and reflective for qualitative data. The study will contribute to and expand the frontiers of knowledge in the field of study; enrich the literature and forward directions to the management of the University to identify the areas of pay scale weaknesses and improve pay policy so as to acquire and retain best minds that will enable the University to achieve its goals. The study is limited to the phenomenon of only one institution on the thematic area, hence, practices of other similar institutions does not compared & included that the research could not start with the general research gap in the thematic area. Results of the study shows that pay scale practices of SMU is resulting on intuitive decisions of the top management regardless of proper job evaluation and grading (JEG) processes and lacking commensuration with internal alignment and external market pressures. The researcher concluded that emphasis should be given to periodically review of the pay policy and pay scale up on meeting standardized principles and procedures. Furthermore, pay in-equity and unfairness is also becoming severe. Therefore, the University ought to effort promoting equal pay for work of equal volume and shall seek to provide salaries that attract, retain and motivate competent employees.