Person-based Pay Structures

A job-based plan pays employees for the job to which they are assigned, regardless of the skills they possess.

• True

• False

Skill-based plans are generally not well accepted by employees because it is difficult to see the connection between the plan, the work, and the size of the paycheque.

• True

• False

The heart of the person-based plan is that employees get paid for the specific skills they use in their jobs, not for the relevant skills or competencies they possess.

• True

• False

Employees and managers are the sources of information for all the following EXCEPT:

• arranging skills into a hierarchy

• assessing the skills

• bundling skills into skill blocks

• certifying whether a person possesses the skills

Which of the following is true about competencies?

• They focus on average performance rather than optimum performance

• They discourage employees from assuming leadership roles

• They fail to provide a common basis for working together

• They create risks that need to be managed due to inferred proficiencies

If a job evaluation method consistently yields the same results under different evaluators it can be said that the method is:

• valid

• reliable

• systematic

• random

In a skill-based structure, managers' focus is on:

• linking employees to the job done

• training

• promotion

• placement to more responsible jobs