TRADITIONAL COMPENSATION SYSTEM  PAYMENT BASED ON TASKS  ASSUMES STABILITY OF EMPLOYMENT  REWARDS INDIVIDUAL CONTRIBUTIONS  PRIMARILY WAGES, SALARIES, BENEFITS, SOME BONUSES  RIGID, RESISTANT TO CHANGE

EQUITY ISSUES  INDIVIDUAL EQUITY  COMPARE MY OUTCOME/INPUT RATIO WITH SOME OTHER’S OUTCOME/INPUT RATIO  INTERNAL EQUITY WITHIN  RELATIVE WORTH OF JOB WITHIN ORG  JOB EVALUATIONS  EXTERNAL EQUITY  MARKET FORCES  SUPPLY/DEMAND  CONDUCT SALARY SURVEYS

TRADITIONAL COMPENSATION: PAYING JOBS (A)  JOB ANALYSIS  JOB DESCRIPTIONS JOB RELATED INFORMATION ONLY  JOB SPECIFICATIONS PERSON RELATED INFORMATION ONLY KSAs, EDUCATION, EXPERIENCE, CERTIFICATIONS  JOB EVALUATION IDENTIFIES THE RELATIVE WORTH OF THE JOB TO THE ORGANIZATION NOT PERFORMANCE APPRAISAL

TRADITIONAL COMPENSATION: PAYING JOBS (B)  PAYING JOBS  JOB EVALUATION FOR PAY RANGE (HOURLY, WEEKLY, MONTHLY, YEARLY)  INDIVIDUAL SALARY DETERMINATION SENIORITY COST OF LIVING ADJUSTMENTS MERIT/PERFORMANCE BONUSES (ALL TYPES) SOME GROUP PLANS SECRECY/MANAGERIAL DISCRETION  RELATIVELY STATIC MODEL

TRADITIONAL COMPENSATION: PAYING JOBS (C)  JOB EVALUATION  ASSUMES “PAY JOBS,” NOT “PAY PEOPLE”  SYSTEMATIC METHOD OF COMPARING JOBS  CREATES PAY RANGE FOR JOB, NOT PERSON  TIE TO JOB DESCRIPTION  LEGAL, PRACTICAL SUPPORT  MAY BREAK JOB INTO COMPONENTS, OR JOB FACTORS SKILL, EFFORT, RESPONSIBILITY, WORKING CONDITIONS (from EPA (1963)/FLSA (1938)  EXTERNAL SALARY SURVEYS  IDENTIFY MARKET RATES  SUPPLY AND DEMAND FOR SKILLS

JOB EVALUATION SYSTEMS TYPE OF COMPARISON PART OF JOB JOB vs. JOB JOB vs. STANDARD WHOLE JOB RANKING (p. 247) CLASSIFI- CATION (p. 250) SPECIFIC JOB FACTORS FACTOR COMPAR- ISON (p. 255) POINT FACTOR (p. 263)

JOB EVALUATION SYSTEMS  COMPARES WHICH PART OF JOB  WHOLE JOB RANKING CLASSIFICATION  SPECIFIC JOB FACTORS FACTOR COMPARISON POINT FACTOR  TYPE OF COMPARISON MADE  JOB vs. JOB RANKING FACTOR COMPARISON  JOB vs. STANDARDS CLASSIFICATION POINT FACTOR