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Week 3 Discussion 3-1

Describe and explain the concepts pertaining to person focused pay systems. Include in your discussion advantages and disadvantages and reasons to adopt this system.

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Person-Focused-Pay programs is a system that rewards employees for obtaining additional skill, knowledge, and job related competencies. The two basic person-focused pay programs are pay-for-knowledge and skill-based pay. Pay-for-knowledge programs is incentive pay to employees in managerial, service and professional jobs by fully learning specific curricula (Martocchio p.101). Skill-based pay is generally for the jobs requiring physical labor and employees can receive this pay for mastering skill levels. All these additional skills are based upon the precept that people will receive additional pay incentives for further educating themselves on their job not necessarily the productivity in their position. An example of a Pay-for-knowledge program is currently at the company I work for offer a

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