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List three limitations of using a job-based pay structure.
On May 04, 2024
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.