Determinants of pay schemes for executives at medium level managerial positions

Abstract

Changing realities of economic activities of Polish companies lead to the search for rules and procedures concerning pay, which become a motivator rewarding the efficient contribution that employees make to an organization. The fact is, that these are the managers, who work at all levels of management, are the most important factors in achieving success in a company. This article focuses on the pay schemes provided for medium level managers. Their performance is specific, so designing pay schemes for that group of employees needs separate consideration. It should be mentioned however, that the concept for designing the pay scheme for medium level managers is based on a classification of that personnel carried out from the point of view of the following two criteria: type of managerial work being performed (the position of a functional manager and a divisional manager) and the level of management (the head on an organization and the head of a division of an organizaton).