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Skill Based Pay

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In 1987 Edward E. Lawler and Gerald E. Ledford's article "Skill-Based Pay: A Concept That's Catching On" was published in Management Review. The authors stated, "It is reasonable to assume that skill-based pay will become more and more popular in coming years."

Lawler, Edward E., III, & Ledford, Gerald E., Jr. (1987). Skill-based pay: A concept that's catching on. Management Review, 76(2), 46-46. Retrieved May 30, 2013, from the TUI Online Library.

Drawing on the material in the background reading and your own additional rein which you:

Compare and contrast a skill-based pay structure with a traditional job-based pay structure.
Were the authors correct? Have skill-based pay structures gained in popularity in organizations since 1987? Discuss in detail, providing examples.
If this type of pay structure has not caught on, has another type of pay structure grown in prominence in the private sector during this time? What is commonly found as a pay structure in organizations today? Give actual employer examples (stating employers by name).

Note: In your paper, focus as much as possible on pay structures in the private (business) sector, but feel free to make comparisons to their use in the public sector, too, if you wish. (This is not a requirement, however.)

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A skill based pay structure is based on the skills, knowledge, and abilities that a person acquires relevant to his work and have been certified. These skills are rewarded with higher salaries irrespective of whether all the skills are required for the present job. In contrast, in a job based structure the pay of employees depends on the job to which they are assigned, regardless of the skills they have. The employee gets pay according to the pay range that is related to the job content. Skill based pay in contrast sets compensation levels ...

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Compensation Structure: Kudler Foods

Given Kudler's new strategy, your team needs to create a compensation structure for the following six positions.
Store Manager, Cashier, Stock Person, Speciality Department Worker, Department Manager and Bagger.
Each member of the team should pick one to two positions to analyze. Each team member must analyze all six positions.
For each position, the team members must do the following.
a) Assess the value of the position using a job-based approach. The job based approach will assess the value that the specific position brings to the organization.

b) Assess the value of the position using a person-based approach. The persn based approach will assess the cerain skill sets or competencies that a person will need in order to sccessfully hold the position. NOTE: For the person-based approach, you may use a skill-based analysis or a competency-based analysis. Also discuss why your team selected the approach used.

In order to cmlete this job position analysis, you will need to research what other companies have done when conducting similar analyses.
Evaluates bot approaches (job-based and person-based) and creates a compensation structure based on both approaches. In considering both approaches, what will the compensation structure look like for each position? Justify your recommendations with research.

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