User:Danielle.ayala13/sandbox

Article Evaluation

To start off this article does not have a whole bunch of research on it. There is only one paragraph and a couple of sources that they used on the bottom, but none of it was cited in the text. The sources that they used were all websites like a human resource management website which is useful because there are actual numbers of pay ranges on the website for different job fields as well. They used examples but I think they were more hypothetical more than actually using the website they had referenced. I think it would be better if they actually use the ranges that were shown on the website so that people can see the actual numbers. The websites are a good tool to use because it shows that it was last updated 11/25/07 which is when the new pay bands were affected. The language was a little weird when it talked about how the pay bands gives all the control to the managers but leaves discretion with reasonable compensation and rewards for good performance. I do not think that has anything to do with the making up of pay ranges. But it has to do with performance evaluations and how you can get a higher pay instead of how pay ranges are made up and what they are used for. The last source that is on the page is a website that tells about their missions and values of the different pays and why they do it. The language makes more sense then just managers having control over pay. Otherwise, I think this article has a good base of where we can start. There is not much on there so that leaves us room to add a lot more of our findings. It gave a good overall understanding of what a pay bands are so we can further our research.

Annotated Bibliography

Bergel, Gary I. "Choosing the Right Pay Delivery System to Fit Banding." Compensation and benefits review 26.4 (1994): 34. ProQuest. Web. 20 Oct. 2016.

This article is talking about different structures of skill-based pay, merit cash, and career development pay. I think it is useful because it tells about other structures and which ones better fit companies. With all these structures, broad banding is used which is like the traditional structure. The broad banding and traditional structure are opposites of what pay bands are and shows why companies are evolving to pay bands. Therefore, these structures are used when the pay band range meet their maximum pay or are getting minimum pay.

Cayer, N. Joseph. "Classification in the Federal Service: New Looks at Alternative Approaches." Public Administration Review 52.2 (1992): 217-20. Web. 20 Oct. 2016.

The congressional budget office and national academy of public administration are studying reform from traditional classification pay system the passage of the classification act of 1949 brought. In the study of pay banding, the national academy of public administration showed the banding between other occupations and banding within those positions. Pay banding shows that there is a range and performance can get you closer to the maximum rather than having to move up to a manger position to get a pay raise. Although, managers aren’t really incorporated in the decision making of pay banding. This information is useful because this shows what the tradional pay structure is like and why companies use pay banding to motivate productivity in their work.

LeBlanc, Peter V. "Pay-Banding can Help Align Pay with New Organizational Structures." National Productivity Review 11.3 (1992): 317. ProQuest. Web. 20 Oct. 2016.

Pay structures are used to motivate people with productivity with their work and motivates people to climb the hierarchy. The traditional structure sets people at who controls the budgets, who has a say so, that puts people at levels higher than the other making workers to be in competition with each other. Banded pay gives ranges within their job to fluctuate instead of looking for a promotion to get better pay. This structure is used to have employees to be team based and not going up a vertical scale. There are disadvantages to the banding structure like people looking for better pay bands in other fields or being unhappy when they meet the maximum pay of a pay range. But, having a banding structure is the best new way from the traditional structure.

Rainey, Hal G. "Reform trends at the federal level with implications for the states: The pursuit of flexibility and the human capital movement." Civil service reform in the states: Personnel policy and politics at the subnational level (2006): 33-58.

Civil service protections look into compensation because it is what influences productivity and motivation in the workforce. After all, pay is a concern because then people become more individualistic and are more concerned about moving up just to get a pay raise. Pay banding and other structures are used to get away from the managerial aspect. When survey, they found out that pay banding works on all employees feeling like they are accountable for a task and not relent on anyone above them for direction. This is useful because it shows how pay banding brings team work and efficiency in their work when they work together.

Risher, Howard. "Are Public Employers Ready For A “New Pay” Program?." Public Personnel Management 28.3 (1999): 323-343. Business Abstracts with Full Text (H.W. Wilson). Web. 20 Oct. 2016.

The traditional structure of people managing others to become more efficient worked better with industrial America but has now evolved. Now, people work for themselves and focus on what they can get for their knowledge. This article has a list of the problems within the traditional structure explaining why people have moved to a different structure. The banding structure is used to organize different levels work. Managers, senior managers, or front line employees are all part of different band ranges. Broad banding was used to go up with market price which takes away from competition and weighs down company budgets.

Definition

A pay band is sometimes used to define the range (band) of compensation given for certain roles. The range is based on factors like location (high vs low cost of living locations), experience, or seniority.

• Pay bands (sometimes also used as a broader term that encompasses several pay levels, ranges or grades) is a part of an organized salary compensation plan, program or system. In an organization that has defined jobs, pay bands are used to distinguish the level of compensation given to certain ranges of jobs. For example, entry level positions at a landscaping company might include truck drivers and laborers. Those jobs and those of similar levels of responsibility might all be included in a named or numbered pay band that prescribed a range of pay, (e.g. Band 1 = $10 - $17 per hour). The next level/classification of a group of similar jobs would include increased responsibility, and thus a higher pay band (e.g. Band 2 = $13 - $21 per hour).

Organizing pay structures in a pay band manner allows for overall control at the management level of an organization, while still giving some discretion for supervisors to reward good performance, and keeping within a reasonable compensation budget structure.

History

The history of Pay Bands dates back to the beginning of employment and compensation. The amount of compensation for one's work is a question that many have tried to answer but have come short. The Classification Act of 1923 mandated that pay was based on performance not qualifications, a practice that made sense when the workforce was largely clerical. However, by the 1950's managers were complaining that the system was problematic for reasons of no competition, frustration and non responsive. In April 2000, the United States General Accounting Office authorized Section 9509 which authorized the general workforce classification and pay. In detail, the term "broad-banded pay system" was clearly defined as any system for grouping positions for pay, job evaluation, and other purposes that is different from the system established under chapters 51 and 53 of title 5 as a result of combining grades and related ranges of pay into one or more occupational series.

Other Types of Pay Structures

Traditional structure

Organizations are looking for a pay system for rewarding with compensation and also working well within that organization. In the traditional structure there is a difference between employee and manager with an example of pay according to their position. To get a high pay, there needs to be movement up the hierarchical ladder. Moving up the ladder to a manager position will change the pay range is a traditional pay structure but, "this system fosters competition rather than collaboration."

Broadbanding structure (Danielle)

Broad banding uses the General Schedule that places families of occupations together. for example, Office sServices, General Support, Analysis, Law Enforcement, Sciences, Health, etc. Movement to a different level is based on full-performance, expertise, or years of working in this position. This structure is used to classify work requirements rather than positions to get a higher pay.

Pay for Performance (Byanka)

• The process of changing an employee's pay bands (Elizabeth)
  • Duffin, C. (2005). Prepare to perform: a job evaluation panel could decide which Agenda for Change pay band you are in, so it is important to get the preparation right. Nursing Standard, (30), 16.
  • There are two ways an employees pay band can be changed. If the job description correlates with the national profile for said job then their transition will go relatively smoothly. However, for more complex or newer jobs that do not have a national profile, their process becomes increasingly difficult. In some cases employees are required to fill out large amounts of paperwork and go to a formal job evaluation panel to discuss their positions responsibilities. This also means that once an employee goes through the process and gets placed in a new pay band, others in similar positions will likely be grouped together in the same pay band.

Occupational Band Ranges

• Cayer, N. Joseph. “Classification in the Federal Service: New Looks at Alternative Approaches.” Public Administration Review 52.2 (1992): 217-20. Web. 20 Oct. 2016.

Teachers

• School Leadership Today (Title): Freedom in Teacher Performance Pay Recommended. Dec. 1, 2012
  • According to the School Leadership Today article, "Freedom in Teacher Performance Pay", teachers in America are one of the most underpaid and segregated fields. The editorial suggests that "It is vital that teachers can be paid more without having to leave the classroom. This will be particularly important to schools in the most disadvantaged areas as it will empower them to attract and recruit the best teachers." Often times teachers that want to be paid more are pushed into primary and secondary administration, opposed to being chairs of departments like advanced educational opportunities like colleges. This causes teachers to be in rotation and can lead to many shortages of quality teachers actually in the classroom. The academic journal suggests that we should rely on a different payband policy to keep teachers in the classroom to ensure quality of education while paying via performance of the teachers as well. It is important to note, that paying for performance does not entail: how many students pas the standardized tests, move to the next grade; but rather a secondary tool of employee evaluation.

Bankers

• Armistead,L. (2011, February 01). Tyrie calls for FSA to reveal bank pay bands. Daily Telegraph (London), 3-3.1
  • The Chairman of the Treasury Select Committee wants the Financial Services Authority to reveal the salary of bankers in Britain. This move is designed to break the deadlock on city remuneration. Andrew Tyrie is the chariman of the Parliamentary Committee, demands Sir David Walker's idea of bankers who receive over 1 million euro annually should have their wages reveal to the public. Bankers fear this will affect competitiveness within their industry. Andrew Tyrie assures that his plan can answer any question about competitiveness.

Nurses

• Harrison, S. (2005). Community matron roles defined: workload smaller than anticipated and confusion still surrounds how the new positions will fit into pay bands. Nursing Standard, (22), 7
  • When a new type of nurse was introduced in 2005 called a "Matron" nurse, the Royal College of Nurses, Community Practitioners and Health Visitors' Association (CPHVA) both agreed on what their pay band should be. However, current nurses who were still stuck on an older pay band felt that this was neglecting their right to a raise and left them on the back burner. Despite district nurses concerns, the CPHVA continued with their plans on placing matron nurses on a higher pay band due to their large range of skills and complex responsibilities.
• Parish, Colin. "The Nursing Standard" (2005): Vol 19 No. 39. Web. 27 Oct. 201
  • Parish says in his portion of the Nursing Journal that "We will be looking for something that is a significant inducement to new recruits, one that will ensure qualified staff stay in the professions." Parish goes on to show that many of the nurses coming out of school choose to go into departments that are well compensated. This leaves portions of the nursing departments in hospitals all around the country with a shortage of employees in specialty departments like learning disability. These places that nurses are understaffed are a real problem Parish, one that needs to be fixed to ensure the quality of work in their area of concern. One of the ways to ensure the recruitment of nurses in fields that are understaffed is to raise the compensation of the job to be more competitive with the other subfields of nursing.
• Staines, R (2005), June 08). Learning Disabilit Pay Bands Assesed. Nursing Standard, 8-8
  • NHS managers who receive very high salaries may have been manipulating their job evaluations to receive these high wages. NHS was asked by unions to re-evaluate the salaries of many top execs. RCN's Head of employment relations, Josie Owen, acknowledges that a "group of staff in the NHS has overplayed certain factors to get higher grades."

Worker Views

A big corporation like Northern Telecom, General Electric, and Data General have adopted pay bands to promote teaming and lateral development to take away from hierarchical movement within the workplace. The issues employees have with pay bands is that it restricts promotions in the organizations leading them to look at opportunities out of their organization to move up to another pay range. Also, since pay bands motivates employees to move laterally, some question the purpose of another position that is still going to be with the same pay band. LeBlanc, Peter V. "Pay-Banding can Help Align Pay with New Organizational Structures." National Productivity Review 11.3 (1992): 317. ProQuest. Web. 20 Oct. 2016

• Organizational Justice Theory- model that incorporates social psychological theories and psychological contract paradigms to explain fairness judgements.
• • Williamson, K., & Williams, K. J. (2011). Organisational justice, trust and perceptions of fairness in the implementation of agenda for change. Radiography, 1761-66. doi:10.1016/j.radi.2010.08.004