A description of a person based pay structures which are simply payments systems

The challenges for global payments are not simply those resulting from volume increases. ACHs are typically used for low-value, non-urgent transactions while RTGS systems are typically used for high-value, urgent transactions. Boxall, John Purcell, Patrick M. Spin-off schemes called "Speedball" and "People in Profit" prompted a number of violent incidents and calls were made by politicians to tighten existing legislation.

When employees receive raises, their raises stay within the range of their individual pay grade, until they receive a promotion that may result in a higher pay grade.

Because you will be using the plan on many occasions, it becomes less complicated for you to complete. It reinforces hierarchy and bureaucracy. Thorndike Indiana University,says that if high performance is followed by some reward, that desired behavior will likely occur in the future.

Of course, these factors can create morale issues, the exact thing we want to avoid when compensating employees. Pay Decision Considerations Besides the motivational aspect of creating a pay structure, there are some other considerations. For example, a salesperson may receive a certain base pay but earn more if he or she meets the sales quota.

When the company started with fewer than fifteen employees, a management fit model was used. Forward-thinking owners may project growing business needs and calculate additional salaries based on projected business success and expansion.

Without creating any goods or services, the only revenue streams for the scheme are recruiting more members or soliciting more money from current members. Boxall, John Purcell, Patrick M. Each employee will receive the plan, sign it and be reviewed formally at the end of the rating period based on the duties outlined.

Consider an extreme example of the reinforcement theory in the world of finance. This type of system provides employees with a pay basis but then links the attainment of certain goals or achievements directly to their pay.

Skill Based Pay Structures Versus Job Based Pay Structures

For example, everyone working in customer service, or all administrative assistants regardless of departmentare paid within the same general band. This is effectively determined by the employer through simply using the certificates of the employer and the price competencies that do exist in the external market.

For example, people may reduce their own inputs and not work as hard. Bonus plans can consist of monetary compensation, but also other forms such as time off or gift certificates. These recognize that recruiting a large number of others into a scheme can be difficult, so a seemingly simpler model is used.

It does not reward employees directly for their knowledge, abilities and individual strengths.

Pyramid scheme

In this model, each manager makes a decision about who should be paid what when that person is hired. Some salespeople, who perform equally well, are paid much lower than some sales staff whom you consider to be nonperformers. This therefore means that the division of work at the work place do not necessarily equate to the labor costs that would be incurred.

The equity theory is concerned with the relational satisfaction employees get from pay and inputs they provide to the organization. These are usually rough estimates, however.

Payment system

A weak payment system may severely drag on the stability and developmental capacity of a national economy; its failures can result in inefficient use of financial resources, inequitable risk-sharing among agents, actual losses for participants, and loss of confidence in the financial system and in the very use of money [5] The technical efficiency of payment system is important for a development of economy.

On the other hand, the employer is bound to have very strong and positive relations with the labor union in the region since the employs are satisfied around their place of employment.

It reinforces hierarchy and bureaucracy.Oct 17,  · Person Based Pay Structures Like a job based structure, developing a person based pay structure also requires an understanding of the tasks and responsibilities of jobs in a business.

Similarly the development of the structure requires job analysis and job descriptions. Introduction Person-based pay structures are simply payment systems whereby the employee is rewarded based on the person that he is at work and not the job that he does.

In short therefore, the salaries or the wages that are paid to the employee is determined to getting the best aspect of a. The pay policy that is typically established through a sequence that starts with the analysis of the work done and the people needed to do it is called a (an): A.

What Is a Salary System?

performance-based increase. B. incentive plan. C.

Pay structures and pay progression

employee stock option.1/5(1). (one of the responses to job based pay structure problems has been to move away from linking pay to jobs and toward building structures based on individual characteristics such as skill or knowledge.

Competency-based pay is similar but usually refers to a plan that. Compensation systems always become in part ends, not simply means.

By emphasizing particular ends, reward systems condition the behavior and thinking of those people who participate in. Bases for traditional pay system & modern pay system and establishing pay plans Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.

Person Based Vs. Job Based Evaluation

If you continue browsing the site, you agree to the use of cookies on this website.

A description of a person based pay structures which are simply payments systems
Rated 0/5 based on 95 review