All Theses, Dissertations, and Capstone Projects

Year of Award



Master of Business Administration (MBA)


College of Business & Professional Studies

Degree Program

Business Administration


Business Administration


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.

Document Type

Restricted Thesis


Available to Fontbonne users only. Please log in with your id + password.

Free My Thesis

If you are the author of this work and would like to make it openly accessible to all, please click the button above.



Rights Statement

In Copyright