Job-Based or Person-Based

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Exhibit 6.1 (Many Ways to Create Internal Structure) in your text compares and contrasts a person-based salary structure with a job-based salary structure. One is set in a strategy that rewards required skills and the other on the job being performed.

In this assignment, you will analyze two jobs as your examples.

  1. Analyze your current job, or a job with which you are familiar (for example, another job within your organization or perhaps the job of a family member or friend).
  2. For the second part of the assignment, identify a job with the structure you did not use in your first example. For example, if the first job you identified has a job-based salary structure, then you will use the person-based salary structure for the second part of your assignment. You can use a job with which you are familiar, or conduct research about different jobs using sources like the Capella library.

Complete the following for each job:

  • Identify the position using a descriptive job title.
  • Define the pay structure.
  • Explain a rationale about why this pay structure is appropriate for the position.
  • Discuss the advantages and disadvantages of this type of pay structure.

Be sure to include citations for information obtained from at least two outside resources. Explain how each reference supports the advantages and disadvantages of the selected pay structure. Use a format similar to the example below:

Job Title: (For example, elementary school teacher.)

Pay Structure(For example, person-based structure.)

Rationale: In this section, explain why you believe this is the appropriate structure for this type of job.

Advantages and Disadvantages: In this section, explain the advantages and disadvantages of the person-based structure from both the perspective of the employee and the organization.

Textbook

Milkovich, G. T., Newman, J. M., & Gerhart, B. (2013). Compensation (11th ed.). New York, NY: McGraw-Hill/Irwin.

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