Short Answer 
The answer outlines a three-step process for analyzing salary structures within an organization. Step 1 involves examining the range of salaries to identify clusters and discrepancies, Step 2 assesses the minimum salary’s competitiveness and its adequacy for living standards, and Step 3 evaluates the maximum salary to understand its implications and relationship to average compensation.
Step 1: Analyze the Range of Salaries
Start by examining the range or spread of the salaries within the organization or industry. Identify whether salaries are clustered closely together or if there are significant discrepancies. Consider the following:
- How many employees fall within low salary brackets?
- Are there one or two individuals making exceptionally high salaries?
- What does this indicate about salary distribution?
Step 2: Determine the Minimum Salary
Next, assess the minimum salary offered. This is crucial for understanding entry-level positions or starting salaries. Factors to review include:
- Is the minimum salary competitive within the industry?
- What level of experience or education is required to earn this salary?
- Does it adequately support the living standards in the area?
Step 3: Evaluate the Maximum Salary
Finally, analyze the maximum salary within the organization. This helps to understand the top tier of compensation and its implications. Key considerations include:
- How much higher is the maximum salary compared to the average wage?
- Are lower salaries significantly below the mean, suggesting inequality?
- What factors justify the maximum salary level in relation to the industry standard?