Guidelines
Definition
Guidelines determine how compensation adjustments are calculated. Guidelines are values of a range for compensation. Ranges can be a percentage, an amount, or a unit.
Use
Compensation adjustments are decided by the manager. Compensation Management allows you to set guidelines for compensation calculations, or set limits for the manager’s recommendations.
Structure
SAP R/3 System contains the following types of guidelines:
Fixed Guidelines
Compensation adjustments are calculated using a fixed percentage, fixed amount, or a fixed number.
Matrix
Compensation adjustments are calculated using matrices, or one or more criteria. Matrix guidelines are one dimensional, two dimensional, or three dimensional.
A one-dimensional matrix calculates the compensation adjustment based on length of service. A three-dimensional matrix calculates compensation adjustments based on length of service, performance, and pay grade
User-defined
These allow you to distribute compensation adjustments based on company policies that are not covered by fixed and matrix guidelines.
Integration
Guidelines provide calculating methods for the compensation administration process and can be applied during this process.