The managerial function that involves devising an appropriate system of pay is termed?

The managerial function that involves devising an appropriate system of pay is known as planning. In this context, planning encompasses the process of establishing goals and determining the best course of action to achieve them, which includes financial aspects like compensation strategies. Effectively planning a pay system ensures that it aligns with organizational goals, budget constraints, and employee motivation.

Within planning, management considers various factors such as market pay rates, employee benefits, and incentive programs to create a competitive and equitable compensation structure. This strategic approach is essential for attracting and retaining talent, thereby influencing the overall success of the organization.

The focus here is on the proactive aspect of shaping such systems to meet future needs, rather than just responding to current circumstances, which is a critical element in sound managerial practices.