PERSON FOCUSED PAY CASE 

By: Nabil Hassan

Course: Fundamentals of compensation
ID: 19-40720-1

Answer:
5.6) Person- focused pay system is actually when you recognize individuals rather than teams
and you compensate them based on their knowledge or new skills acquired rather than
compensating them in their current job performance.
Advantages of a person focused pay system at Delta are as follows:
1) Employees acquire new skills and knowledge via training and by this their efficiency
increases and they can be more productive to the organization.
2) Better customer service as employees becomes more efficient and can handle multiple step in
the computer making and also get trained to handle the higher level steps in computer making,
by which the production time reduces and customers get their computers faster.
3) Proper allocation of resources which means one employee wont remain idle if his skillset step
is not available, he/she can move on to handle other step . So this means there will be no wastage
of human resources.

Answer:
5.7) Disadvantages are as follows:
1)There are training costs involved which means training has to be given to employees to acquire
knowledge and skills ,which is a cost to company.
2) There would be a decrease in productivity as employees would be engaged in training.
3) It would be difficult to analyze who has retained how much from the training. As this is
subjective matter, where one can may have learnt very good and one may have learnt average
and hence assigning monetary value to both of their skills would be difficult.
Answer:
5.8) The approach that I would recommend Susan to take in designing a person focused system
is Skill based Approach. Where different skills would be rewarded differently. For example
lower level skills would be less compensated and high level skills would be more compensated
and their basic pay will be same but variable pay would be according to the skills they have
learned about.