Question

Job based structure and person based structure compare and contrast.Clearly articulate the SWOT analysis (strengths, weaknesses, opportunities, and threats) inherent in your chosen system(s)?

Answer 1

The fundamental similarity between person based and job based structure is that both are compensation structures used by companies to compensate the employees, for the service provided by them.

The differences between person based and job based compensation structures are as follows:

· Job based compensation structure is based on the job level of the employee. Person based compensation structure is all about basing the compensation and benefits of the employee, based on his skills and capabilities

· Compensation of employees at a job level is same in Job based compensation structure. This may not be the case in Person based structure

Between job based and person based structure, most companies will prefer job based compensation structure. SWOT of job based compensation structure:

· Strengths: There is synergy and transparency in the compensation system as the compensation is based on job levels and is fixed

· Weaknesses: The motivation level as well as performance of employees may be low as most of the compensation is fixed

· Opportunities: Employees want to be associated with the company as they are able to trace their career path in a better way in job based structure

· Threats: Various companies are opting for flatter structure. Job based compensation structure will not be applicable in flatter companies