compensation plans Essay

Submitted By shevonicha123
Words: 324
Pages: 2

When Human Resources are preparing compensation plans they first have to classify the job and determine the classifications for each position. The Human Resources department established a point method which is according to DeCenzo (2013), “The process that breaks down the jobs based on identifiable criteria and the degree to which these criteria exist on the job.” ("Chapter 10, Compensation Plans"). The categories can include education, job responsibility, and skill. Points assigned may differ because it’s based on the importance of the criteria to successful performance of the job. When comparing compensation plans for a store manager and clerk there are going to be different plans established because the store manager has more responsibility than the store clerk does, and it can require higher education requirements than the clerk’s position. This is important to determine so the right compensation plan can be created for each job category. The compensation plan for a store manager is going to be a higher percentage than a store clerk. When comparing the differences in the job the compensation plans could differ in different ways such as the store manager being paid on a salary base and the store clerk being paid hourly. This compensation plan for the manager can be a negative and a positive. The store manager would be paid regardless if she was there or not which is a positive, however the store manager can be required to work more than 40 hours a week and not be