What is a pay structure chapter 6 person based

9. What is a pay structure?
Chapter 6 Person-Based Structures
1. Skill-based pay—depth (specialist) or breadth (generalist) of skills
2. What are advantages and disadvantages of skill-based pay?
3. Issues of certification—how to certify learning, what if a skill becomes obsolete
4. Are skill-based plans well-accepted, and why?
5. Are more skills better?
6. What is a competency?
7. What are differentiating competencies?
8. Usefulness of job evaluation techniques—reliability, validity, acceptability
Chapter 7 Defining Competitiveness
1. External competitiveness
2. Pay level
3. Pay forms or mix
4. Objectives—control costs and attract and retain employees
5. Supply side and demand side theories and their implications (see exhibit 7.6 and
7.9)
6. Product market factors and ability to pay—product demand, degree of competition
7. Organization factors affecting pay—industry, size, preferences, strategy
8. Pay policy alternatives—match, lead, lag, employer of choice, shared choice, etc.
9. Pay level may not gain a competitive advantage but the wrong level may lead to a
disadvantage
Chapter 8 Designing Pay Levels, Mix and Structures
1. Why conduct a salary survey?
2. Who are relevant market competitors?

7. Analysis—central tendency (means, etc.) and variation (quartiles, etc.)
8. Update data to reflect time lag
9. Market line and pay policy line
10. What are grades or ranges for? Why use them?
11. Broadbanding
12. Reconciling differences between market rates and job evaluation rankings
Chapter 9-10 Pay-for Performance
1. Motivation theories—how do they suggest pay should be managed (see Exhibit
9.4)?
a. Content-focused (Maslow’s need hierarchy, Herzberg’s 2-factor theory)
b. Process-focused (Expectancy theory, equity theory)
c. Desired behavior-focused (goal-setting theory, reinforcement theory)
2. Does compensation motivate behavior—do people join firms, stay or leave,
develop skills, perform better?
3. Different types of pay-for-performance—advantages and disadvantages
• Individual—Merit, lump-sum, individual spot awards, individual
incentive plans (e.g., piece-rate, etc.)
• Team—free rider issue, gainsharing, profit-sharing, success-sharing,
risk-sharing, balanced scorecard
• Organization—Stock options, ESOPs, performance plans, broad-based
option plans
Chapter 11 Performance Appraisal
1. Types of performance appraisal formats—ranking, rating scales, BARS, essay,
MBO
2. Advantages and disadvantages of different types of raters—supervisors, peers, self,
customers, subordinates, computers
3. Rater training—error training, frame of reference, etc.
4. Rating errors—halo, central tendency, etc.
5. How to make sure performance appraisals are legally defensible—written
instructions, clear criteria, job analysis, training, etc.
6. Pay increases with low motivational value—general increase, across-the-board,
seniority increase
7. Designing merit guidelines—differentials, no increase for poor performers, etc.