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CMS 2 > A5 - Person-Based Pay Systems > Flashcards

A5 - Person-Based Pay Systems Flashcards

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1
Q
  • type of comp. plan that links pay to the depth or breadth of the skills, abilities and knowledge a person acquires that are relevant to the work
  • pay indiv. for all the skills for which they have been certified regardless of whether the work they are doing requires all or just a few of those particular skills
  • wage attaches to the person
A

skill based

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2
Q

underlying, broadly applicable knowledge, skills and behaviors that form the foundation for successful work perf. an any level or job in the org.

A

core compentencies

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3
Q

internal pay system that pays EEs for the highest level of skills/competencies that are achieved regardless of the work they perform

A

person-based

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4
Q

characteristic of someone who possesses a global perspective and takes the initiative in moving the org. in new directions

A

visionary

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5
Q

types of Person-Based Structures

A
  1. Skill
  2. Compentencies
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6
Q
  • a compensation practice whereby EEs are paid for the # of different jobs they can adequately perform or the amt of knowledge they possess
  • work often involves teams, multiskills, and flexibility
  • ADV - ppl can be deployed in a way that better matches the flow of work
A

skill-based structure

(pay-for-knowledge plans)

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7
Q

types of skill plans

A
  • depth (specialists)
  • breadth (generalists w/ knowledge in all phases of ops)
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8
Q

types of skill plans

Depth (specialist)

A
  • exp = specialists in corp. law, finance, or welding and hydraulic maint.
  • pay is based on knowledge of the indiv. doing the job rather than on job content or output
    • exp = teachers
  • basic responsibilities under this system don’t chg much and if they do, its over a long period of time
  • usually no guarantee that courses taken improve skills under this system
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9
Q

types of skill plans

Breadth (generalist/multiskill)

A
  • systems that link pay to the # of different jobs (breadth) an EE is certified to do, regardless of the specific job he or she is doing
  • EEs can be assigned to any job for which they are certified, based on the flow of work
  • responsibilities for workers under this plan can chg drastically over a short-period of time
  • usually designed to ensure that all the skills are clearly work-related
  • training improves skills that the company values
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10
Q

Purpose of Skill-Based Structure

A
  • supports the strat. and objs
  • supports work flow
  • is fair to EEs
  • motivates behavior toward org. objs.
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11
Q

The process for determining a skill-based struct.

A
  • Skill analysis
  • skill blocks
  • skill certif.
  • skill-based struct.

**to build the struct, a process is needed to describe, certify, and value the skills

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12
Q

basic units of knowledge EEs must master to perform the work, satisfy cust., and achieve business objs.

A

skill blocks

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13
Q

a systematic process to ID and collect info about the skills required to perform work in an org.

A

skill analysis

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14
Q

major skill analysis questions

A
  • What is the obj. of the plan?
  • What info s/b collected?
    • far less uniformity in use of terms in person-based plans than in job-based plans
  • What methods s/b used to determine and certify skills?
    • may use peer reviews, OTJ demos, or tests to certify that EEs possess skills and are able to apply them
  • Who s/b involved?
    • EE involvement is almost built into skill-based plans as a source of info on defining the skills, arranging them into hierarchy, bundling them into skill blocks, and certifying whether a person actually possesses the skills
  • How useful are the results for pay purpose?
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15
Q

Skills analysis

What info to collect?

A
  • far less uniformity in use of terms in person-based plans than in job-based plans
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16
Q
  • compensation approach that links pay to the depth and scope of competencies that are relevant to doing the work
  • typically used in managerial and prof. work where what is accomplished may be difficut to ID
  • alot of confusion caused by not really knowing what compentencies are
A

competency-based system

17
Q

basic knowledge and abilities EEs must acquire or demonstrate in a competency-based plan in order to successfully perform the work, satisfy cust., and achieve business objs.

A

competency

18
Q

The process for determining a competency-based struct.

A

**start by looking at the work perf’s in org.

**do not hone in on specific tasks

**try to abstract the underlying, broadly applicable knowledge, skills, and behaviors that form the foundation for success at any level or job in the org

  • core competencies
  • competency sets
  • behavioral descriptors
  • competency-based struct
19
Q
  • the underlying, broadly applicable knowledge, skills, and behaviors that form the foundation for success at any level or job in the org.
  • often linked to mission stmts that express an org’s philosophy, values, bus. strats., an dplans
A

core competencies

20
Q

this translates each core competency into action

A

competency sets

21
Q
  • observable behaviors that indicate the level of competency w/in each set
  • may be used for staffing and eval. as well as for pay purposes
  • anchor the degree of a competency required at each level of complexity of the work
  • make the competency more concrete
A

competency indicators

22
Q

early conceptions of competencies

how are competencies defined?

A
  1. Skills - demo. of expertise
  2. Knowledge - accumulated info
  3. Self-Concepts - attitudes, values, self-image
  4. Traits - general disposition to behave in a certain way
  5. Motives - recurrent throughts that drive behaviors
23
Q

Purpose of Competency-Based Struct.

A
  • Org. Strat - direct link to org. strat (main appeal)
    • describes from the beginning which competencies will spell success for the company
    • ID’s compensable factors as part of job eval.
  • Work Flow - ensures all the critcial needs of org. are met
    • ensure that all critical needs of the org. are met
    • more loosely apply to work requiring more tacit knowledge such as in managerial and prof. work
  • Fair To EEs - empowers EEs to take charge of their own development
    • focuses on optimum perf. that helps EEs maintain their marketability
  • Motiviate Behavior Toward Org Objs. - provides guidelines for behavior and keep ppl focused
    • provide common basis for comm. and working together
24
Q

“How To”: Competency Analysis

Basic decisions in creating a competency-based structure

A
  • What is the obj. of the plan?
    • most important decision
    • if not, vagueness and subj. continue to make competencies a risky foundation for a pay system
  • What info to collect?
    • personal characteristics, visionary, org.-specific
    • not necessarily unique to a company
  • Methods used to determine and certify competencies?
  • Who is involved?
    • exec. leadership’s beliefs about the org. and its strat. intent
  • How useful for pay purposes?
25
Q

The “Great 8” competencies

captures an efficent way the themes around competency frameworks available

A
  • leading and deciding
  • supporting and cooperating
  • interacting and presenting
  • analyzing and interpreting
  • creating and conceptualizing
  • organizing and executing
  • adapting and coping
  • enterprising and performing
26
Q

Reliability of Job Eval. Techniques

A
  • Consistency of the results
    • a reliable eval. would be one where different evals. produce the same results
  • important b/c several different ppl usually eval. jobs
  • results should not depend on which person did the eval
  • can be improved by using evals who are familiar w/ the work and trained in the job eval process
  • group consensus is another practice to attempt to incr. reliability
27
Q

Validity of Job Eval. Techniques

A
  • the degree to which the eval. assesses what it is supposed to - the relative worth of jobs to the org.
  • measure in 2 ways:
    1. the *degree of agreement b/w rankings that resulted from the job eval. w/ an agreed-upon* *ranking of benchmarks* used as the criterion
    2. by “hit rates” - the degree to which the job eval. plan matches (hits) an agreed-upon pay struct. for benchmark jobs
  • s/b broadened to include impact on pay decisoins
  • studies of the degree to which different job eval. plans produce the same results start w/ the assumption that if different approaches produce the same results, then those results must be “correct”, that is, valid
28
Q

the ability of a job eval. plan to replicate a predetermined, agreed-upon job stuct.

A

hit rate

29
Q

**Acceptibility **of Job Eval. Techniques

A
  • several methods are used to assess and improve EE acceptability
    • formal appeals process - EEs that believe that their jobs are eval’d incorrectly s/b able to request reanalysis and/or skills reeval.
    • EE attitude surveys - assess perceptions of how useful eval. is as a mgmt tool
30
Q

recommendations to ensure that job evals. are bias-free

A

* define the compensable factors and scales to include the content of jobs held predominantly by women

  • ensure that factor weights are not consistently biased against jobs held predominantly by women
  • apply the plan in an bias-free a manner as feasible
  • ensure that the job descripts. are bias-free

**also apply to skill-based and competency-based plans

31
Q

job-based VS person-based (skill/competency based) approaches

to internal pay systems

A
  • Job-Based
    • pay incr’s are gained by promos. to jobs with more responsibility
    • Mgrs focus on placing the right ppl in the right job
    • controls costs by paying only as much as the work perf’d is worht, regardless of any greater skills the EE may possess
  • Person-Based (skill/competency)
    • pay incr’s are gained through acquiring more valued skills/competencies
    • mgrs must assign the right work to the right ppl, to those w/ the right skills and competencies
    • pay EEs for the highest level of skill/competency they have achieved regardless of the work they performed
      • maxs flexibilty but also encourages all EEs to become certifed at top rates
      • org may experience higher labor costs - offset may be higher productivity
    • another disadv - can become complex and burdensome
    • Q’s on it’s compliance w/ EPA

CMS 2 (13 decks)

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