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Tom Farmer explains how to develop a simple salary structure using employee information like name, job title, grade, function, salary, evaluation score, and market value. Market analysis is completed, and the necessary data is available in a file. Each person is assigned to a job, but multiple people can share the same job title. The focus is on matching jobs to survey jobs, not people. A one-to-many relationship exists between jobs and people. The market data is obtained from surveys.