Usually done through the collection

Usually done through the collection of market compensation data. In other words, the university gathers information on how much other universities pay to instructors, senior instructors, and so forth. In the case of business schools, this is done annually by the Association to Advance Collegiate Schools of Business (AACSB). Other organizations can design their own surveys or rely on organizations that do this on a regular basis (e.g. http:// www.salary.com, http:// www.haypaynet.com). Then, this information is used to adjust the monetary value given to each point so that the resulting pay ranges for the various types of jobs are comparable to those of the organization’s competitors.