Name: Mashumi Sankhe

Division: HR – C
Roll No : 19MBACSR049
Program : CSR

Case Study 1
United National Bank

Introduction:
• United National Bank has decided to open a bank in town “X”
as they have no bank in that town. This bank is 40 kms away at
a exclusive resort from city “Y”.
• The bank is anxious to work on the structure of salary for the
clerical staff they expect to recruit.
• In the “Y” city, people receive a salary of ₹ 3000 a month.
• Pay scales have been fixed on a par with other city.
• Other comparable concerns show that salary for qualified
clerical personnel is ₹ 3500 a month.
• In town X, higher salary is attributed to substantial higher cost
of living ,the limited number of people seeking employment
and the fact that there are no banks.
• In town Y , traditionally paid lesser salaries than other
establishments, on the ground that banks offer better working
conditions and higher dignity .
Facts:
• In the “Y” city, people receive a salary of ₹ 3000 a month.
• Other comparable concerns show that salary for qualified
clerical personnel is ₹ 3500 a month.
• Pay scales have been fixed on a par with other city.

Questions:
1. Answer:
The structure of salary for the clerical staff in United National Bank is:
I. Basic Pay
II. Special Allowance
 III. Dearness Allowance
IV. Transport Allowance
V. HRA
VI. Medical Allowance
VII. Total ( Without HRA)
VIII. Gross HRA

2. Answer:

A pay scale (also known as a salary structure) is a system that determines how much an
employee is to be paid as a wage or salary, based on one or more factors such as the employee's
level, rank or status within the employer's organization, the length of time that the employee has
been employed, and the difficulty of the specific work performed.

Pay scale in two different locations can be justified through the pay scale model:

Pay scale Model:

POLICIES TECHNIQUES OBJECTIVES

Alignment Work Analysis----Description---- EFFICIENCY
Performance
Evaluation/Certification --- Internal Structure
Competitiveness Market Definitions----Survey ---- Quality
Customer & Stockholder Cost
Policy Lines --- Pay Structure
Contribution Seniority Based----Performance Based----
FAIRNESS
Merit Guidelines --- Incentive Program
Management Cost---- Communication----
Change --- Evaluation
COMPLIANCE