Lesson Overview

Pay structures provide opportunities for organizations to compare and contrast job titles in a manner that allows for a systematic distribution of wages based on a variety of compensable factors. Those employed in the same title and pay grade will receive comparable salaries or wages. “Pay for performance” is a term that conditions the amount of compensation not solely on time worked, nor longevity in a job, nor one’s pay grade, but the quantity and quality of output created while at work.

Lesson Objectives

Upon successful completion of this lesson, you should be able to

• identify wage alternatives that reward individual and/or team performance;
• identify wage adjustments based on firm performance;
• analyze the manner in which pay for performance plans affect organizational outcomes; and
• explain the manner in which a pay for performance plan can support an organization’s strategic objectives.

Lesson Readings & Activities

By the end of this lesson, make sure you have completed the readings and activities found in the Lesson 10 Course Schedule.