Skill-Based Pay … Has It Caught On?

In 1987 Edward E. Lawler and Gerald E. Ledford?s article ?Skill-Based Pay: A Concept That?s Catching On? was published in Management Review. The authors stated, ?It is reasonable to assume that skill-based pay will become more and more popular in coming years.”

Lawler, Edward E., III, & Ledford, Gerald E., Jr. (1987). Skill-based pay: A concept that’s catching on. Management Review, 76(2), 46-46. Retrieved May 30, 2013, from the TUI Online Library.

Drawing on the material in the background reading and your own additional research, prepare a 4- to 5-page paper (not including the cover and reference pages) in which you:

? Compare and contrast a skill-based pay structure with a traditional job-based pay structure.

? Were the authors correct? Have skill-based pay structures gained in popularity in organizations since 1987? Discuss in detail, providing examples.

? If this type of pay structure has not caught on, has another type of pay structure grown in prominence in the private sector during this time? What is commonly found as a pay structure in organizations today? Give actual employer examples (stating employers by name).

Note: In your paper, focus as much as possible on pay structures in the private (business) sector.

Bring in at least 5 library sources to help strengthen and support your discussion.