Answer to Question 1
Answer: job-point accrual
Answer to Question 2
Answer: Job-based pay compensates employees for jobs they currently perform, which include seniority pay, merit pay, and incentive pay. Human resource professionals establish a minimum and maximum acceptable amount of pay for each job. Under seniority plans, employees receive automatic increases over time based on the assumption that they further develop their capabilities, which translate into higher job performance. In the case of merit pay, managers evaluate employees based on how well they fulfilled their designated roles as specified by their job descriptions and periodic objectives. Managers then award a permanent merit addition to base pay, based on employee performance.
Person-focused pay compensates employees for developing the flexibility and skills to perform a number of jobs effectively. Moreover, these programs reward employees on their potential to make positive contributions to the workplace based on their successful acquisition of work-related skills or knowledge. Job-based pay plans reward employees for the work they have done as specified in their job descriptions or periodic goals (i.e., how well they have fulfilled their potential to make positive contributions in the workplace).
Finally, job-based pay programs apply to an organization-wide context because employees earn base pay rates for the jobs they perform. Person-focused pay plans apply in more limited contexts because not all jobs require complex skill or knowledge.
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How to choose the right payment plan with changing conditions (Question 1)
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