Saturday, October 5, 2019

Module 4 Case Assignment Example | Topics and Well Written Essays - 1000 words

Module 4 Case - Assignment Example At the same time, skill-based pay structure has gained considerable popularity over the last decades, especially since 1987. However, most of the organizations are currently using market- based pay structure. Module 4 Case Assignment Pay is regarded as one of the key elements affecting management-employee relationship at the workplace. The level and distribution of pay along with benefits is believed to impose considerable impact on the efficiency of any organization and also on the morale as well as on the productivity of the workplace. It is thus, crucial for organizations to use appropriate pay systems that provide worth for money and compensate workers fairly for the work that they perform. In general, pay systems are the methods of paying people for their contribution that they make towards the organizations. It is essential that an ideal pay system is clear and simple to be followed, so that workers are satisfied with the pay system adopted by the organizations and are motivate d to perform their respective tasks with utmost dedication and commitment. With this concern, this paper intends to compare and contrast the two pay system namely skill-based pay structure and traditional job-based structure. Furthermore, this paper attempts to identify the most popular pay structure, which is currently being followed in today’s organizations (Acas, 2012). ... ills required to perform certain organizational tasks are identified and tests are developed to determine whether an individual has learned the skills involved in performing a particular task. On the contrary, in traditional job-based pay structure, pay is generally based on a job, wherein employees are eligible to receive compensation, even if they are not skilled in performing any task. However, skill-based pay structure does not necessarily exclude the idea of paying for individual performance, instead it involves evaluating individual performance for assessing employees’ skills towards particular tasks for which they are paid. Nonetheless, under skill-based pay structure, pay is determined by the mix and the depth of the skills that possess by an individual rather than a particular job assignment. At the same time, organizations applying skill-based pay structure are often encountered with difficulties, when they try to price skills in the marketplace as compared to tradit ional job-based pay structure. Moreover, under traditional job-based pay structure, employees’ pay changes with the alteration in the job, while in skill-based pay structure, employees’ pay does not alter regardless the change in the job position. At the same time, employees under job-based pay structure may frequently perceive inequalities in the pay system due to the way the jobs are defined and rated for pay purposes. On the other hand, once employees become accustomed with skill-based pay structure, most of the employees prefer it over traditional job-based pay structure. The element of seniority act as a crucial determinant in traditional job-based pay structure, while in skill-based pay structure, skills rather than seniority is considered to be the prime factor of determining the pay

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