GRADUATION THESIS Major: International Business Administration ESTABLISHING A PAY STRUCTURE TO IMPROVE EMPLOYEE ENGAGEMENT AT KIM QUY LIMITED LIABILITY COMPANY Table of Contents ACKNOWLEDGEMENT ................................................................................................i ABSTRACT.....................................................................................................................ii LIST OF ABBREVIATION .......................................................................................... iii LIST OF TABLE AND FIGURE ...................................................................................iv CHAPTER 1: INTRODUCTION ....................................................................................1 1.1. Research background:............................................................................................1 1.2. Research objectives ...............................................................................................2 1.3. Research questions.................................................................................................3 1.4. Scope of research...................................................................................................3 1.5. Structure of the thesis: ...........................................................................................4 CHAPTER 2: LITERATURE REVIEW .........................................................................5 2.1. Overview................................................................................................................5 2.2. Definitions of a pay structure ................................................................................5 2.3. The role of pay structure........................................................................................7 2.3.1. Improving employee engagement and attracting talents.................................7 2.3.2. Motivating and boosting individual and group performance..........................7 2.4. Factors affecting pay structure...............................................................................8 2.4.1. Legal requirements..........................................................................................9 2.4.2. Market forces.................................................................................................10 2.4.3. Organizational goal .......................................................................................10 2.5. Types of pay.........................................................................................................12 2.5.1. Pay for individual performance.....................................................................12 2.5.2. Pay for group performance............................................................................15 2.5.3. Pay for organizational performance ..............................................................16 2.6. Establishing a pay structure .................................................................................20 2.6.1. Building up a Job structure............................................................................21 2.6.2. Determining Pay-level...................................................................................25 2.7. Requirements of a good pay structure .................................................................29 CHAPTER 3: METHODOLOGY .................................................................................31 3.1. Research methodology.........................................................................................31 3.2. Selecting sample ..................................................................................................32 3.3. Instrumentation ....................................................................................................32 3.3.1. Survey and questionnaire ..............................................................................32 3.3.2. Observation