Difference between job based pay structure and person based pay structure

Dissension can be an unwanted byproduct. She can focus on the attributes that are part of her evaluation process, with the understanding that if she does well in these areas, she will be rewarded accordingly.

References 2 American Academy of Family Physicians: Below are the academic rather than market place explanations. This can result in a pervasive cultural attitude that the better you perform, the bigger the reward.

So the question here I suppose is which of these methodologies is best? Choosing the type of performance appraisal depends on the needs of your company. If one worker perceives herself as more valuable than another but discovers that the other employee received a larger pay increase, she may draw the conclusion that she is being treated unfairly.

In other words the salary for a job is determined by its responsibilities, and sometimes its work conditions. It does not encourage development of a flexible organizational structure in terms of flatter structure; T-shaped employees and job rotation.

First you must perform a job analysis, separating all duties into large categories, such as essential functions and communication. Person-based evaluations, on the other hand, are specific to each employee. As always, please share your thoughts below.

It reinforces hierarchy and bureaucracy.

As soon as the evaluation period is over, you should administer the appraisal report and let the employee know that you will help in any areas that are less than satisfactory. I view the employer and employee as generally at odds concerning extrinsic reward — employees almost always want more and employers almost always want to pay as little as possible for talent.

The difference is that it compensates the job incumbent person in terms of his knowledge, competencies and skills. This is a standard type of evaluation you can use for all employees filling the same position. The hierarchical organizational structure that it is based on has fundamental weakness.

Job-Based Evalution Job-based employee performance evaluations focus on the duties of the position and the tasks required to perform them successfully. A study made by Murray and Gerhart found that in a person based pay structure, although hourly wages increased, however product quality scrap percentageproductivity labour hours per part improved and overall labor costs decreased The Oxford Handbook of Human Resource Management By Peter F.

Pros & Cons of Competency Based Pay Plans

Boxall, John Purcell, Patrick M. Incentive to Achieve Competency-based pay plans may also result in increased incentive for the worker to become a high achiever.

Skill Based Pay Structures Versus Job Based Pay Structures

Performance evaluations can be based on the job duties or on the skill set required of the person occupying the position.Job-based employee performance evaluations focus on the duties of the position and the tasks required to perform them successfully.

This is a standard type of evaluation you can use for all employees filling the same position. Today I want to talk about "skill based" pay structures versus "job based" pay structures.

First things first: 1. A senior executive at the company I work for once lent me this book to. Competency-based pay plans reward employees according to how well they perform.

on a predetermined pay grade or salary structure. A competency-based pay plan features several pros and cons. Financial status and rewards in most organizations are based on the types of jobs people do.

This approach is based on the assumption that job worth can be determined and that the person doing the job is worth only as much as the job itself is worth. Job based Vs Skill-Based Structure Types of Skill Based Plans • Skill based pay plans can focus on – Depth based • Specialist, Scientists, Doctors • Presumption is that more knowledgeable person will do a.

Person Based Vs. Job Based Evaluation

Oct 17,  · Person Based Pay Structures Like a job based structure, developing a person based pay structure also requires an understanding of the tasks and responsibilities of jobs in a business.

Similarly the development of the structure requires job analysis and job descriptions.

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Difference between job based pay structure and person based pay structure
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