Asked by Jasmine Mendoza on May 03, 2024

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List three limitations of using a job-based pay structure.

Job-based Pay Structure

A compensation system where wages are determined by the specific job or task an employee is assigned to, rather than their individual performance or seniority.

  • Explain the framework of job positions, compensation amounts, and the organization of pay, while comprehending how they interact with each other.
  • Differentiate among various forms of remuneration including per-hour pay, piece-rate payment, and annual salary, while comprehending their uses and constraints.
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Zybrea KnightMay 04, 2024
Final Answer :
Some of the limitations of job-based pay are as follows:
1. The precise definition of a job's responsibilities can contribute to an attitude that some activities "are not in my job description," at the expense of flexibility, innovation, quality, and customer service.
2. The job structure's focus on higher pay for higher status can work against an effort at empowerment.
3. Changes to job descriptions involve significant investments of time and money, therefore becoming a barrier to change.
4. The structure may reward undesired behaviors, particularly in a rapidly changing environment where a new set of knowledge, skills, and abilities is required.
5. The structure discourages lateral employee movement and encourages promotion-seeking behavior.