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Summary Deliverable 2 Compensation Structure Proposal Section 4 BUSI 440-D02 Deliverable II: Compensation Structure Proposal Section IV BUSI 440-D02 Compensation Management Group 3: Manufacturing Industry Liberty University Deliverable II: Compensation Stru

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Deliverable 2 Compensation Structure Proposal Section 4 BUSI 440-D02 Deliverable II: Compensation Structure Proposal Section IV BUSI 440-D02 Compensation Management Group 3: Manufacturing Industry Liberty University Deliverable II: Compensation Structure Proposal Section IV There are various...

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deliverable 2 compensation structure proposal section 4 busi 440 d02 deliverable ii compensation structure proposal section iv busi 440 d02 compensation management group 3 manufacturing industry

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BUSI 440-D02

Deliverable II: Compensation Structure Proposal Section IV
BUSI 440-D02 Compensation Management

Group 3: Manufacturing Industry

Liberty University

Deliverable II: Compensation Structure Proposal Section IV

There are various types of compensation plans that organizations can utilize. However, for

RockTenn, the appropriate compensation plan is a job-based structure. Not only does the

manufacturing industry benefit from this plan, but most organizations also find this structure

preferable. According to Gerhart and Newman (2020), a job-based plan relies on the work- content

tasks, behaviors, and responsibilities. Gerhart and Newman (2020) asserted that a

person-based structure shifts the focus to the employee: the skills, knowledge, or competencies the

employee possesses, regardless of relevancy to the particular job. Instead of allowing pay grades or

individual education, experience, or skills to determine pay ranges, the job-based structure will use

internal and external alignment to determine the proper pay range.

Reducing Issues

Job-based pay structures pose many benefits. According to the Society of Human

Resources Management (SHRM) (2018), equitable compensation plans encourage employee

engagement and high performance. Focusing on job content allows organizations to have higher

levels of the right people in the right jobs. It also eliminates multiple pay scales in various pay

grades and makes it easier for organizations to communicate with transparency to staff about

compensation. Job-based pay structures also reduce ethical and legal issues such as gender and

racial gaps. According to Castellano and Rocca (2020), lack of non-equitable-proofed pay

systems, lack of transparency in pay, and pay structures are all factors that contribute to the gender

gap. Pay grades fit employee KSAOs. However, direct supervisors are the ones who

, determine if employees are qualified to be promoted into the next pay grade. It is not necessarily

based on current performance but based on the individuals’ background (whether relevant for the

current job or not). This structure has created gender gaps in pay systems as well as a lack of

transparency in pay. Gerhart and Newman (2020) asserted that the ethnic and racial gaps between

women and men are attributable to the following factors: differences in work/occupational

attainment, education levels, work-related experience, and work-life challenges. Typically, job-

based pay structures are available for employees to see on a company intranet site. By offering job-

based compensation plans instead of person-based plans, it can eliminate racial and gender

disparities and promote transparency. The majority of the current workforce are Millennials and

Generation X. Now that Generation Z is beginning to enter the workforce, transparency is expected

by generations after Baby Boomers. However, it is needed to maintain consistency and equity.

Many websites make it easy for aspiring job candidates and current staff to see reviews on

companies from the employee perspective. If individuals perceive discrepancies in their

compensation, it can cause an employee to pursue legal action.

Biblical Integration

There is an expectancy for person-based structures to withhold bias. However, it is

impossible to ask a person to never fall short when making compensation judgments based solely

on characteristics. “For all have sinned and fall short of the glory of God” (Romans 3:23, English

Standard Version Bible, 2001). Job-based structures remove the bias away from person criteria and

focus solely on the job criteria. The compensation ranges are measured against the market for

competitiveness and internally aligned with the organization to determine job relevance. During the

interview process, management is looking for individuals to match the job criteria instead of

looking for individuals who meet the interviewer’s personal or expected criteria.

Indirect and Direct Benefits Offered

RockTenn’s job analysis benchmarked the following positions: Production Manager,

Quality Control Inspector I, Machine Operator I, and Electrician I. The direct compensation for

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Summary Deliverable 2 Compensation Structure Proposal Section 4 BUSI 440-D02 Deliverable II: Compensation Structure Proposal Section IV BUSI 440-D02 Compensation Management Group 3: Manufacturing Industry Liberty University Deliverable II: Compensation Stru

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