If you are a Manager; How do you know that your employee job description and his results is equal to the salary he get?

Even if you are a manager, the job evaluation and salary decision / fixation for a particular job / role is decided by Human resources. HR does the benchmarking exercise in the industry prior fixing the salaries.

The manager only decide additional annual increments based on the performance of his employees.

It depends actually on two factors:

1.      Wither the business is small-medium business (3-50 employees) or large business.

2.      Wither you are the owner of the business or you are just a recruited manager!

so from my experience in small-medium companies which was managed by the owner

First of all, forget all about what others are offering, unless it is a rare profession. after all  it's your business, your money!

Second, you ask yourself what value this employee would add to the company. "its clearer if you can measure it in money"

Third, Can I get fresh graduate and train him to be what "I really need in my business"?

This method is tested on accountants, drivers, and technicians.

dear,

i would say, using the KPI system (KEY  PREFORMANCE INDICATOR) this wa you can easly calculate the preformance of your employe and if he slary + possition is in its right place.

I think this is relative to the industry and company policies. If manager is aware of salary bands an employee should fit into, it is easy to judge wheter employee is overpaid or under paid.

Company HR must focus on such descriminations to ensure healthy work atmoshpere. Manager can take up such issues whenever annual increase period comes up.

First I must determine a target and the expectation for each employee

then following performance by performance report.

Based on the New projects like cost reduction, six sigma etc and continous improvement, dedication, prefection and involvement 

the based salary will be common for the this kind of job in the market, but the employee's salary depends on results the employee can give, and the profits the manager/company can get from this these results. 

 also, when he do his best ito his job, I think it is enough to know that he deserves a good salary and something push him to work harder to do his best

1.I feel the manager is aware about his employee Key Performance Indicators (KPI's) set by company is matching with skills possessed by employee. Assess his need skill set required for projects on going.

2. You can take advise from ( Pay Scale or online surveys) to compare your employees salary is good or at par what he presently is receiving. There are plenty of companies doing this job for industry to help retain their employees. If yo need more specific details please do let me know. 

As i manage some employe , I ALWAYS do one thing measure any task finished on2 basis as below:-

1) Accuracy.

2) On time .

As if i can't meeet both then he / she can't be in my team , BUT still i MUST learn him / her how to reach up for the above2 concepts and if not i will advice my managers to re-alocate him / her to any section or another division.

I agree with Mr. Salim Allana's answer. This would probably be out of my professional "jurisdiction" area, unless I'm responsible for cutting (salary) cost measures, which will also be in close collaboration and consultation with HR. It's the HRM people's job to decide salaries.

2 ways

1- benchnmarck with same companies

2- to get a counsaltancy by a companies like KPMG or MERCER