CH 6: Person-Based Pay Structures

Skill-Based Plans

Link pay to the depth or breadth of the skills, abilities, and knowledge a person acquires that is relevant to the work.

all

skill based plans pay individuals for all the relevant skills for which employees have been certified regardless of whether the work they are doing requires ___ or just a few of those particular skill - the wage attaches to the person.

assigned

In contrast, a job-based plan pays employees for the job to which they are ____, regardless of the skills they possess.

flexibility

An advantage to skill based plans is higher _______ as multi-skilled employees can be better matched to the workflow.

2

there are ___ types of skill based plans: specialist and generalist

specialist

(depth) Pay is based on knowledge of the person doing the job, rather than on job content or output.

vary

specialist Basic responsibilities do not ____ on a day-to-day basis.

generalist

___ or multiskilled based (breadth) involve pay increasing by acquiring new knowledge

certification

generalist involves Higher pay from ____of new skills.

change

Responsibilities with generalist can _____ over a short time

strategy

Purpose of a Skill-Based Structure: Supports organization's _____

workflow

Purpose of a Skill-Based Structure: Supports ____: A main advantage is matching people to changing _______

Fair

Purpose of a Skill-Based Structure: ___ to employees: Skill-based plans may give workers more control over their work life but favoritism and bias may be a problem.

Motivates

Purpose of a Skill-Based Structure: ______ behaviours toward organization objectives

teams

Purpose of a Skill-Based Structure: Suited for continuous-flow technologies where employees work in ____.

Skill Analysis

A systematic process to identify and collect information about skills required to perform work in an organization

What information to collect? Defining the skills, Arranging them into a hierarchy, Bundling them into skill blocks

What information to collect? ____ the skills, Arranging them into a hierarchy, Bundling them into skill blocks

hierarchy

What information to collect? Defining the skills, Arranging them into a _____, Bundling them into skill blocks

Bundling

What information to collect? Defining the skills, Arranging them into a hierarchy, ______ them into skill blocks

Peer

Establish methods to determine and certify skills: ___ review, on-the-job demonstrations, or tests. Scheduled fixed review points and recertification

demonstrations

Establish methods to determine and certify skills: Peer review, on-the-job _______, or tests. Scheduled fixed review points and recertification

tests

Establish methods to determine and certify skills: Peer review, on-the-job demonstrations, or ___. Scheduled fixed review points and recertification

points

Establish methods to determine and certify skills: Peer review, on-the-job demonstrations, or tests. Scheduled fixed review ______ and recertification

recertification

Establish methods to determine and certify skills: Peer review, on-the-job demonstrations, or tests. Scheduled fixed review points and _______

managers

Whom to involve with skills analysis? Employees and ________

obsolete

with skill analysis: Need to monitor removal of certification when a skill is deemed _________

also

Purpose of a Competency-Based Structure: _____ Supports organization's strategy

tacit

Purpose of a Competency-Based Structure: Supports workflow: Competencies may require more ____ knowledge

empower

Purpose of a Competency-Based Structure: Fair to employees: (Advocates say they can _____ employees. Critics worry about basing pay on personal characteristics. Justifying pay differences may create risks that need managed)

objectives

Purpose of a Competency-Based Structure: also Motivates behaviours toward achieving organization _____

underlying

Competencies are _____, broadly applicable knowledge, skills, and behaviours that form the foundation for successful work performance (exhibited by excellent performers more consistently than average performers)

mission

Core competencies are often linked to the _____ statement.

action

Competency sets translate each core competency into ____.

behaviors

Competency indicators are the observable _______ that indicate competency.

Competency Analysis

A systematic process to identify and collect information about the competencies required for successful work performance.

unique

Core competencies are not ____ for each company.

applies

What differs is how each company ____ their competencies.

beliefs

Competencies derive from leadership's ____ about the organization and its strategic intent.

understand

Not all employees ____ the connection.

possession

If people are paid based on competencies, there must be a way to certify their ____ of that competency.

objective

There seems to be no ____ way of certifying competency.

wide

Competency-based structures have relatively few levels and ____ differentials for increased flexibility.

Determining

the main areas of competency analysis are 1) _____ what information to collect, 2) developing a certification process

process

the main areas of competency analysis are 1) Determining what information to collect, 2) developing a certification ____

success

The purpose of job- and person-based procedures is to design and manage a pay structure that aids _____.

aligned

Managers must ensure the structure remains ____ by reassessing work/skills/competencies as necessary.

blurs

In practice, when evaluating higher-value, nonroutine work, the distinction between job- and person-based approaches ____.

Fairness

Essential criteria: ____ in the plan's administration.

information

Essential criteria: Availability of sufficient ____ to apply the plan.

involvement

Essential criteria: Adequate communication and employee _____ are critical for acceptance.

reliable

A _____ evaluation is one where different evaluators produce the same results.

familiar

Improve reliability by using evaluators ____ with the work and trained in job evaluation. ( Some organizations use group consensus.)

Validity

________ refers to the degree the evaluation assesses relative job worth.

pay

validity needs to be broadened to include the impact on ___ decisions.

appeals

Methods to assess and improve employee acceptability: formal ____ process, employee attitude surveys

attitude

Methods to assess and improve employee acceptability: formal appeals process, employee ____ surveys

gender

Job evaluation may be susceptible to ___ bias.

women

Recommendations to ensure bias-free evaluation plans: Define the compensable factors and scales to include the content of jobs held predominantly by ____.

weight

Recommendations to ensure bias-free evaluation plans: Ensure that factor weights are not consistently biased against jobs held predominantly by women. Are factors usually associated with these jobs always given less ____?

situation

The best approach to pay structures depends on the ______.

ambiguity

Provide sufficient ____ to afford flexibility.

determine

Internally aligned pay structures can be designed to Help _____ pay for the wide variety of work and ensure that pay influences attitudes and behaviors and directs toward objectives.

contingency

Contrasting Approaches (job-based, person-based: skill and competency); The best approach is a _______ one - different contexts will require different pay structures

identical

Skill-based pay plans and competency-based pay plans are conceptually _____, but skills are very specific and competencies are more general.

What

The major skills analysis decisions are: (1) ____ is the objective of the plan? (2) What information should be collected? (3) What methods should be used to determine and certify skills? (4) Who should be involved?

collected

The major skills analysis decisions are: (1) What is the objective of the plan? (2) What information should be ____? (3) What methods should be used to determine and certify skills? (4) Who should be involved?

methods

The major skills analysis decisions are: (1) What is the objective of the plan? (2) What information should be collected? (3) What ____ should be used to determine and certify skills? (4) Who should be involved?

Who

The major skills analysis decisions are: (1) What is the objective of the plan? (2) What information should be collected? (3) What methods should be used to determine and certify skills? (4) ____ should be involved?

broadly

Competencies are underlying, ____ applicable knowledge, skills, and behaviours.

acceptance

Employee ____ is crucial for person-based plans.

involvement

Employee ____, having a formal appeals process, and conducting employee attitude surveys are ways to enhance employee acceptance.

existing

Possible sources of bias in internal pay structures are bias in the job evaluation of traditionally female-dominated jobs and bias in current wages that may be perpetuated when job evaluation plans are structured to mirror ____ pay rates.