Upload
al-qurmoshi-institute-of-business-management-hyderabad
View
2.603
Download
0
Embed Size (px)
DESCRIPTION
Person Focus to Pay
Citation preview
Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt)
Professor
Pay-for-Knowledge◦ Competency Based Pay◦ Skill Based Pay
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◦ Doesn’t help people understand what other
people do
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
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
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
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
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
Knowledge & Skills: Essential characteristics for the job◦ Can be tested: Observable and Measurable
Self concepts, traits, & motivesNot 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
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
Organization Strategy◦ Competencies are likely to fit with organization’s
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 organization’s objectives
How do you certify that someone has these competencies
How to tie to pay How to justify in a
court of law
Level Phase Title
4 Expert Visionary
3 Advanced Coach
2 Resource Contributor
1 Proficient Associate
Employee Advantages◦ Skill Variety◦ Task Variety◦ Autonomy◦ Feedback
Employer Advantages◦ Communicates Culture◦ Product or Service qualities◦ Leaner Staffing cross usage◦ Flexibility
Increases training, hourly labour & overhead costs can rise
May not fit with other incentive programs
Pay for Knowledge programs have the potential to help employers compete in global environment
Must give employees the opportunity to learn