Competence-based pay systems represent a fundamental change in the attitude of management regarding how work should be organized and how employees should be paid for their work efforts.

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Competence-based pay systems are designed to reward employees based on their knowledge, skills, and abilities. This approach reflects a shift away from traditional pay systems that focus on seniority or job title, and instead emphasizes employee performance and development. Therefore, it represents a fundamental change in the attitude of management regarding how work should be organized and how employees should be compensated.

Competence-Based Pay Systems Represent a Fundamental Change in the Attitude