Topic 7

Question 1

Capability-based Pay

Answer 1

When a reward system explicitly attempts to vary rewards based upon capabilities of the employees. Types include Skill-based pay, Competency-based pay, and Seniority-based pay.

Question 2

Competencies

Answer 2

Configurations of knowledge, skills, and traits that enable employee performance.

Question 3

Eligibility

Answer 3

Generally speaking, the eligibility should be restricted to ensure that the number of employees certifying (and therefore being paid at the higher rate) is in line with current and future needs for that capability.

Question 4

Frequency Policies

Answer 4

Policies that regulate how many skills or competencies a given employee can certify on during a specific time period.

Question 5

Intensive Communication

Answer 5

There will be many questions initially, and if those questions are not answered clearly and quickly then the answers employees receive through informal channels may not be accurate. This is damaging both if the information is negative (poor participation) or positive (unrealistic expectations).

Question 6

Pilot Program

Answer 6

A small-scale preliminary experiment that allows the organization to better understand the design parameters, how the program is received, and the impact of the program on work outcomes.

Question 7

Reliable Measurement

Answer 7

An employee’s level of skill, competency, or experience can be assessed consistently across employees and raters.

Question 8

Strategic Measurement

Answer 8

The definition of criteria are all conceptually and empirically connected to employee, unit, and organizational outcomes.

Question 9

Sunset Clause

Answer 9

A law or regulation that ceases to have effect, after a specific date is reached.

Question 10

Transparent Measurement

Answer 10

The criteria and system should be easily understood and the processes for implementing the system should also be well documented and followed.