An examination of the pay policy line in New Jersey libraries.

Purpose - Over time, management theory has shaped the structure of libraries. No matter the current view of management by matrix, when it comes to library organizations, there is always going to be a hierarchical structure. The object then is for transparency to be in place, and a recognized sense of fairness and equality. This study aims to address this issue. Design/methodology/approach - The paper reviews the concepts of the literature on management and organization theory, and details the literature on valuing human capital and its recent application to knowledge management work. It then discusses how the literature and its deployment over the years have resulted in the formation of pay policies, and shows the application of Fay Hensen's predictive validity testing to the pay policy line in the field of libraries through the study of the New Jersey Library Association's Guidelines for Minimum Recommended Starting Salaries for Library Staff from the years 2007 and 2008. Findings - By measuring for internal job values at libraries through one or more of the measures discussed here, one can arrive at an analysis of the pay policy of the institution. Using trendline analysis, the paper was able to calculate just what the value, worth or salary of the positions should be in order to have a predictive, orderly, hierarchical representation of salaries within the library organization structure. Originality/value - By measuring for internal consistency in job values at libraries, one can be assured that there are fair demarcations among Positions, and yield consistent expectations which are transparent to employees, who will then know what must be done to advance within the organization. A consistent organizational structure, with clearly delineated jobs and equal compensation lets a library know where it stands and where it needs to go from there. By periodically creating a pay policy line study for the organization, human resources personnel can make executives aware of how they may or may not have strayed from balance in fairness and transparent compensation. [ABSTRACT FROM AUTHOR]