Year of Award
Master of Business Administration (MBA)
College of Business & Professional Studies
skills, results, customer, management, job-based
The dominant theme of traditional compensation for management employees has been job-based compensation. The primary factor in pay, certainly within an organization, was the job held by the manager. The philosophy of job-based compensation emerged with industrialization and mass production. Job evaluation became the dominant method for assigning compensation to jobs.
Several concerns on job-based compensation have led to the development of non-traditional pay plans. The structure of jobs has changed due to new technologies; therefore job requirements and job skills have changed. The growing service sector demands different types of labor. Also, increased global competition for business in the United States and internationally is creating widespread economic restructuring.
The current buzz word for the non-traditional pay plan is “New Pay.” The compensation plan focuses on business strategies, values, and goals. Focus on productivity, quality of jobs, and employee and organizational relationships must also be emphasized, while keeping an eye on attracting, retaining, and motivating the right resources.
The following steps are required for a successful implementation of New Pay: project definition, involvement process, design, communications and training, and evaluation.
The author conducted a survey on AT&T’s condensation plan to see if corporate goals, teamwork, and pay satisfactions were being achieved. AT&T is in the process of implementing a new condensation plan. Conclusions of the survey indicate shortcomings in employee understanding and satisfaction of the condensation plan.
After reviewing this document, readers should be able to understand different types of pay plans. The reader should also be able to determine if a change in pay plan is needed for their company and how to implement a change that is in alignment with the reader’s company.
Open Access Thesis
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Bastin, Susan Elaine, "A Study of New Pay Compensation and its Implementation at AT&T" (1994). Theses, Dissertations, and Capstone Projects. 240.