Building Pay StructuresChapter 8 reviews how and why pay structures are created.It is typical for industry to use pay grades and pay ranges in this process.There are multiple questions in this discussion.Assume that you are Compensation Manager for a mid-size manufacturing firm.The firm has recently hired several professional engineers.Your assignment (as the Compensation Manager) is to write a presentation (in paragraph/letter format) that will explain the compensation structure of the firm.Understand that your audience has no knowledge of compensation terms or compensation theory. Write your presentation accordingly.In your written presentation include -The definition and explanation of pay grades – be sure that your explanations will be understood by your audienceThe definition and explanation of pay ranges – be sure that your explanations will be understood by your audience.Assuming that the mid-point for Engineer I has been set at $40,000, calculate and explain in your presentation the minimum and the maximum pay range for the Engineer I position. The company has determined the range spread should be set at 30%.Your organization has established four pay grades for professional engineers. All of the new engineers have been slotted into the lowest level or Engineer I. Explain how pay levels increase from Engineer I to Engineer IV. You can make assumptions about the pay differences between the four grades.Explain how employees in the Engineer I pay grade may progress into the higher pay grades for engineers.Research and list at least three outside sources.Your submission should be between 300 and 400 words.