Abstract
Few of the functions of personnel administration, apart from collective bar bargaining, pose as much difficulty for municipal managers as the design, implementation, and maintenance of a compensation plan for city employees. The manager responsible for such activities must reconcile external wage pressures from a variety of labor markets with internal demands for equity in relative wage structures while operating within a system bound by civil service or merit system rules. In addition, final decisions concerning the pay program often rest with elected officials of the community. The purpose of this paper is to explore some of the problems a municipality faces in establishing a comprehensive pay plan. The difficulties encountered by one community in devising and implementing a pay plan will be used to illustrate problems other municipalities might easily experience. While some of the problems are common to most organizations establishing pay plans, others appear relatively unique to municipal administration.
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