Introduction
This paper is about job structures and pay structures and as a compensation analyst with Wal-Mart, Inc., I am to review the assistant store manager job by designing two viable job structures that could be used for Wal-Mart, Inc. One of the job structures illustrates the use of the job-based approach, while the other illustrates the use of the skill or the competencies approach. For each job structure, major actions are taken in conducting the job analysis to develop that structure. For the job-based job structure, there is an outline and major actions taken to develop the pay policy. As a compensation analyst, I have evaluated the assistant store manager job position by investigating the responsibilities and the duties for an assistant store manager. The evaluation will also determine the assistant store manager’s salary levels and classifications and therefore develop policies and procedures for the department. This is important since the performance of the assistant store manager will be improved with good job structures and pay structures (Shimko, 1999).
Job Structure and Pay Structure
Job structure is the comparative pay for different jobs in an organization. Pay structure is the pay policy that results from the kind of job structure within that organization. A good pay structure helps organizations meet their goals. The behaviors and attitudes of employees in an organization are determined by pay. Organizations therefore need to plan great pay structure for their employees since pay has an impact on the behaviors of employees. Pay also attracts the best candidates to an organization. The job structure is determined by the pay level decisions of an organization. Pay level is the standard amount of pay an organization can compensate their employees for a particular job (Noe et al., 2009).
Job-based Approach
Job-based approach is a job structure that enables employees to be paid according to their job description. Job-based approach is a traditional model of compensation that is used in many organizations. In the job-based approach, people are grouped according to their jobs. Each position is weighted in accordance to the level of education and experience required for the job. Job-based approach is designed to help in controlling organizational costs. Job-based approach is a centralized type of compensation that has a high level of internal fairness (Shimko, 1999).
Pay structure for job-based approach is determined by legal requirements, market forces and organizational goals. The legal requirements enforce that the government should regulate the pay structure of an organization. To establish the pay structure for the assistant store manager, the organization should consider the government regulations. The government ensures equal opportunity for all. In designing the job structure and pay structure for the assistant store manager at Wal-Mart, the recruitment process should ensure equal opportunity for all races, gender or age. The pay should also be equal to any assistant store manager that will be recruited despite age, gender and race. Legal requirements also entail that the assistant store manager’s pay structure should be in accordance to the minimum wage that is established by the government laws (Noe et al., 2009).
Market forces will also influence the pay structure for the assistant store manager. There are two market forces that determine the design of the pay structure: product market and labor market. Since organizations compete in producing competing products in the market, Wal-Mart should ensure that the pay structure for the assistant store manager is below in order to produce quality products in the market. Organizations also compete for labor. Therefore Wal-Mart should also have a pay structure that will ensure that the best candidate will be attracted despite competition in the labor market. The costs for paying the assistant store manager should therefore guarantee profitability of Wal-Mart and yet attracting the best candidate for the position in a competitive labor market. Competition environment will determine the design of the pay structure within the organization (Noe et al., 2009).
Another factor to consider when determining the pay structure for the assistant store manager is the organizational goals. Organizational goals ensure recruitment of high quality employees, legal conformity and fair recruitment and pay structure. The design of the pay structure should be fair for the entire assistant store manager that will be recruited in the organization. This will help in motivating any assistant store manager that will be recruited (Noe et al., 2009).
Skill or Competencies Approach
Skill approach is a pay structures that set pay according to the skill levels of employees and their capabilities (Noe et al., 2009). Skill approach focuses on paying the person depending on the skills and abilities (Shimko, 1999). Competency Approach deals with fundamental personal traits that enable a person to deliver competitively in a particular job. A person’s ability to perform is affected by his or her skills and attitudes. The performance of the assistant store manager of Wal-Mart, Inc. can be improved when his or her pay structure is based on skills and the ability to do the job. Wal-Mart’s goals can also be achieved if the assistant store manager applies effectively acquired skills and competence. This application will ensure improvement in the performance of the assistant store manager (Zingheim & Schuster, 2009).
The assistant store manager’s commitment within the business is determined by his competency. A person’s ability to relate to customers and other employees is determined by the skills they acquire and apply in their job. A person can only perform a task if he or she has the skills and competencies to perform. In hiring the assistant store manager of Wal-Mart, Inc. therefore, the person should be able to have the necessary skills and competencies that will enable him or her to perform as an assistant store manager (Zingheim & Schuster, 2009). In designing the skill approach job structure, the job description for the assistant store manager should be determined. The pay structure should therefore be established from the assessment of the competencies of the assistant store manager (Shimko, 1999).
Conclusion
The job-based approach is the traditional job structure that is used in many organizations. This kind of approach offers stability and fairness in compensation (Shimko, 1999). In organizing the job structure and the pay structure, the organization should consider the legal requirements stated by the government, the organizational goals and the economic factors that are determined by the market forces for the job-based approach. For the skills and competencies approach, the organization should determine the pay structure according to the skills, abilities and the capabilities of the person (Noe et al., 2009). To enhance the performance of the assistant store manager of Wal-Mart, Inc., pay structure should be based on skills and the ability to do the job (Zingheim & Schuster, 2009). For an organization to function effectively the competency of the management should be scrutinized since this will determine the long term organizational goals (Lundqvist et al., 2008).
References
Lundqvist, K. O., Baker K. D., & Williams, S. A. (2008). An ontological approach to competency management. Web.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2009). Fundamentals of Human Resource Management (3rd Ed.). McGraw-Hill/Irwin
Shimko, D. W. (1999). Choosing a Pay Structure That Works for Your Practice. Web.
Zingheim, P. K., & Schuster, J. R. (2009). Competencies Replacing Jobs as the Compensation/HR Foundation, A WorldatWork Journal, Third Quarter, 18(3), 6-20.