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
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
