1. Which do you think is more important to the firm's success: its compensation system is internally-consistent OR that it is market-competitive? Why? Explain throughly adn do not use previous answers.
2. Most skill-based pay has been used in manufacturing, but it could certainly be used in an office environment, where greater flexibility is needed, or in a customer service center. Think about how you might apply skill based pay in one of these settings, or in another, non-manufacturing setting.
Alternatively, most competency-based pay systems have been used with higher level professional or managerial employees. What do you think of competencies? Do they have a sound basis and should we pay people for having them? Or does it just open up a company to bias and favoritism?