Person focus to pay

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    05-Dec-2014

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Person Focus to Pay

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  • 1. Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt) Professor
  • 2. Pay-for-Knowledge Competency Based Pay Skill Based Pay
  • 3. Fredrick Taylor in Scientific Management focused on the basic elements of the job Lead to job focused way of organizing work Criticisms of job based structure Reduces flexibility Not my job Little reason to acquire information & skills outside of narrow job Doesnt help people understand what other people do
  • 4. Pay is tied to skills, abilities & knowledge that a worker possesses Manufacturing jobs Flexibility to reassign people to where work is needed Depth: pay for having a deep level of knowledge within a job e.g. teachers pay increases with amount of education: bachelors, masters, doctorate degree Breadth: Pay for generalist knowledge
  • 5. Increased pay for more knowledge Pay increases come with certification of new skill (e.g., Microsoft certification; SHRM Certification) Skill certification can come from internal assessment Employees then can be assigned to new jobs based upon certification Pay increases with the more certifications held For example: 7.50 base pay + 1.00/hr for each machine
  • 6. Ensures workers have needed skills Assumes good tests Supports the organizational work flow Workers trained & ready to move to assignments as needed Fairness Depends on how training conducted Who pays for training Means two people doing same task at different pays Motivation Motivation is to get training, not necessarily to perform task well
  • 7. Employees accept skill based pay Certification procedures must be viewed as fair Easy to communicate Productivity Mixed results 61% of those implementing SBP were using it 7 years later Depends on strategy more compatible with innovation not low cost Usefulness varies based upon setting
  • 8. What are competencies? Skill /expertise that can be learned & developed Knowledge (accumulated information) Self concept (attitudes, values, self image) Traits (general disposition to behave in a certain way) Motives (thoughts that drive behavior) Competencies - characteristics of the person: personality, attitudes, knowledge, skills & behaviours
  • 9. Knowledge & Skills: Essential characteristics for the job Can be tested: Observable and Measurable Self concepts, traits, & motives Not Directly Measurable must be inferred from actions Self concept (identifies with the team) Trait (flexibility) Motive (drive to produce results) Much more parameters subjectively assessed
  • 10. Derived from mission statement: values & attitudes JetBlue embraces five values that represent the company and create its unique culture: Safety, Caring, Integrity, Fun and Passion
  • 11. Organization Strategy Competencies are likely to fit with organizations strategy Work Flow Competencies are designed to convey values and enhance work flow Effectiveness likely to depend upon culture Fair to Employees Empower employees to take charge of own development Subjective Motivation towards organizations objectives
  • 12. How do you certify that Level Phase Title someone has these 4 Expert Visionary competencies How to tie to pay 3 Advanced Coach How to justify in a court of law 2 Resource Contributor 1 Proficient Associate
  • 13. Employee Advantages Skill Variety Task Variety Autonomy Feedback Employer Advantages Communicates Culture Product or Service qualities Leaner Staffing cross usage Flexibility
  • 14. Increases training, hourly labour & overhead costs can rise May not fit with other incentive programs
  • 15. Pay for Knowledge programs have the potential to help employers compete in global environment Must give employees the opportunity to learn

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