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Tom Farmer explains how to develop a simple salary structure using a file with employee information including name, job title, grade, function, salary, evaluation score, and market value. The market analysis is already done, so all the necessary data is available. He emphasizes that the information is fictional and for illustration purposes only. It's important to match jobs to survey jobs, not individual people. The relationship between jobs and people is one-to-many. The market data should be used to set salaries accurately.
