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Skill Based Pay

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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In accordance with BraimMass standards this is not a paper but only guidance.

Step 1
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 ...

Solution Summary

This solution explains skill based pay structure. The sources used are also included in the solution.

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