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Person-based-pay vs. job-based-pay

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According Dierdroff and Surface (2008), organizations or companies that adopt this method can encourage and promote a work environment that is more flexible. This is because the approach to Person-based-pay, organizations or companies to provide payment of wages or salary for someone to learn more skills and encourage them to improve. When workers can improve performance in a variety of tasks, the company will benefit from increased productivity. Employees will feel obliged to perform a variety of tasks. This is because they will be paid in accordance with the knowledge, the skills they possess. Positive impact to the organization if it can reduce the number of positions in the same or different. This is because they have highly skilled workers who can perform a variety of tasks. Environmental workers will be more flexible. Hareiki bureaucratic hurdles in the organization can be eliminated. Employees who pursue an increase in wages will be more motivated by achievement. The workers will not easily satisfied with the current wage rate. They will set a goal to learn any new knowledge and skills are required. They will be more focused professional development to pursue a more lucrative salary. The Company shall ensure that each employee who excelled rewarded accordingly.

Increased employee satisfaction will encourage increased commitment in discharging its duties and responsibilities. Employees will feel that they are always evaluated by the employer. This will encourage them to continuously improve performance. Jon-Based-Pay Job-Based-Pay is a compensation structure that has long been used by organizationi. Rates of wages have been fixed to a post in the organization. Of course there is a difference between a position in the organization. Positions established through job analysis to establish whether contained in the job description and job specification. In the job description will determine whether the details of the duties and responsibilities of the employee to do. While the job specification will describe whether the knowledge, skills and abilities required to perform certain duties or responsibilities of a job. In Job-Based-Pay, a clear distinction can be seen through hareiki or seniority among employees. More senior workers who are employed mainly in managerial level will enjoy a better salary or higher than workers who are employed at the lower levels.

This is because this position is distinguished by educational qualifications and work experience by an employee. In the public sector, the wage or salary is based on job-based-pay. Salary of a civil servant who served is determined by the scheme of service. Typically, organizations or companies that adopt this method as bound by financial factors. Budget of an organization or company will be more easily controlled because wage costs can be determined more accurately. Companies can control costs more effectively compensated. The cost of wages and salaries have been determined by the type of positions that exist within the organization or company. In the public service, for example, the government will present the annual budget that includes emoluments which consist of salaries and mandatory for public sector employees. Therefore, with this structure, organizations can control costs and avoid financial waste. Through Job-based-pay, workers will be protected from potential discrimination in the matter of payment of wages or salary. All posts have been set wage rates. Typically, employers prefer certain advantages, such as gender. Males are usually more benefits earn more than women even in the office and the field of the same task.

Hence, through this method allows the determination of wages, workers will be protected from the feeling of injustice in remuneration. Disadvantages. Job-Based-Pay There is no incentive for employees to do more to improve their performance. This is because, for most of them felt that the opportunity to increase revenue is very limited. This is because there are many positions have been filled. Usually the senior employees are more likely to get a job offer. With the salary was set by the existing position, employee does not feel the need to persevere in carrying out its duties. This is because, although they showed a good performance, it is useless if there is no opportunity to earn a better result there is no opportunity for career development. Person-Based-Pay Due to the compensation received by each individual is different, then the potential for conflict between the co-worker can happen. Employees who earn lower wages than workers who earn higher wages will feel inferior and less motivated. Workers will always make comparisons between their salaries and those of their competitors. Conclusion.

Although both forms of compensation system is being implemented by most of the organization or company, Person-Based-Pay is received from the employee and the employer. According Dulebohn Werling (2007), organizations that use compensation plans to achieve organizational outcomes, including higher workforce productivity, superior attitudes and behavior better membership.


Dierdorff, E.C. and Surface, E.A. (2008), If you pay for skills, will they learn Skill change and maintenance under a skill-based pay system, Journal of Management, Vol. 34, pp. 721-43. Murray, B. and Gerhart, B. (1998), An empirical analysis of a skill-based pay program and plant performance outcomes, Academy of Management Journal, Vol. 41, pp. 68-78. Milkovich, G.T. and Newman, J.M. (2008), Compensation, McGraw Hill-Irwin, New York, NY. Dulebohn, J.H. and Werling, S.E. (2007), Compensation research past, present, and future, Human Resource Management Review, Vol. 17, pp. 191-207. PAGE MERGEFORMAT 1 Person-Based-Pay Vs. Job-Based-Pay BSMH 5013 Human Resource Management Y

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