chap006 (1)
Transcript of chap006 (1)
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Person-BasedStructures
Chapter
6
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1. Discuss the differences and similaritiesbetween job-based structures, skill-based plans,and competency-based plans.
2. Identify the major decisions involved indeveloping skill-based plans and competency-based plans.
3. Discuss the advantages and disadvantages of employee involvement in the evaluation of work.
4. Understand the key aspects associated withthe administration of a job evaluation plan.5. Describe the key criteria to assess the
usefulness of the results of each of the
approaches to job evaluation.
Learning Objectives After discussing Chapter 6, students should be able to:
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Chapter Topics
Person-Based Structures: Skill PlansHow to: Skill Analysis Person-Based Structures: Competencies
How to: Competency Analysis One More Time: Internal AlignmentReflected in StructuresAdministering the PlanResults: How Useful?Bias in Internal Structures
The Perfect Structure
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Exhibit 6.1: Many Ways to Create InternalStructure
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Links pay to the depth or breadth of the skills,
abilities, and knowledge a person acquires thatis relevant to the work. Structures based onskill pay individuals for all the skills for whichthey have been certified regardless of whetherthe work they are doing requires all or just a
few of those particular skills.In contrast, a job-based plan pays employeesfor the job to which they are assigned,regardless of the skills they possess.
What is a Skill-based Structure?
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Types of Skill Plans
Specialist: Depth
Generalist/Multiskill-Based: Breadth
Exhibit 6.2: SkillLadder at Balzer
Tool Coating
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Purpose of the Skill-Based Structure
Supports strategy and objectives
Supports work flow
Fair to employees
Motivates behaviortoward organizationobjectives
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Internalalignment
Skill analysis Skill blocks Skillcertification
Skill-basedstructure
Exhibit 6.3: Determining theInternal Skill-Based Structure
Basic Decisions
What is the objective of the plan? What information should be collected? What methods should be used to determine
and certify skills? Who should be involved? How useful are the results for pay purposes?
Work relationshipswithin organization
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Systematic processto identify andcollect informationabout skills requiredto perform work inan organization.
What Is Skill Analysis?
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How To Skill Analysis
What information to collect?Exhibit 6.4: General Mills Skill -BasedStructure
Exhibit 6.5: FMCs Technician Skill -BasedStructure
Whom to involve?
Establish certification methods
Research on skill-based plans
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How Is SBP Different From a Job-Based Pay System?
Skills or skill units, rather than jobs arecompensable
Mastery of skill units is measured andcertified
Pay changes do not necessarily accompany job changes
Little emphasis placed on seniority in pay determination
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Disadvantages of Skill-Based Pay
Average pay of employees likely higherHigh labor costs, if productivity increasesdo not offset additional costs
SBP systems more complex
SBP systems require a major investment
in training
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So, Whats a Competency?
Learned skill Traits such as behaviors and motives
Demonstrable characteristics of a person,including knowledge, skills, and behaviors,that enable performance
Characteristics of an organization
Independent of a job or position
An employee can transportthem from one job to another
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Exhibit 6.6: Determining the InternalCompetency-Based Structure
Internalalignment
Corecompetencies
Competencysets
Behavioraldescriptors
Competency based structure
Basic Decisions
What is the objective of the plan? What information should be collected? What methods should be used to determine
and certify competencies? Who should be involved? How useful are the results for pay purposes?
Work relationshipswithin organization
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CORE COMPETENCY
COMPETENCY SETS
COMPETENCYINDICATORS
Taken from mission statement; for example,business awareness.
Grouping of factors that translate corecompetency into observable behavior; forexample, cost management, businessunderstanding.
Observable behaviors thatindicate the level of competencywithin a competency set. Forexample, identifiesopportunities for savings.
Terms in Competency Analysis
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Exhibit 6.7: TRWHuman ResourcesCompetencies
Exhibit 6.8: SampleBehavioralCompetency Description
Examples: Competency-Based Approaches
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Iceberg Model of Competency Levels
KnowledgeSkills
Self-ConceptsTraits
Motives
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Purpose of the Competency-Based Structure
Supports strategy and objectives
Exhibit 6.9: Frito-Lay Managerial Objectives
Supports work flow
Fair to employees
Motivates behaviortoward organizationobjectives
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How To Competency Analysis
ObjectiveWhat information to collect?
Scheme to classify competenciesPersonal characteristicsVisionary Organization specific
Examples
Exhibit 6.10: 3M Leadership CompetenciesExhibit 6.11: Behavioral Anchors for Global-Perspective Competency Exhibit 6.12: The Top Twenty Competencies
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How To Competency Analysis (cont.)
Whom to involve?Competencies are derived from executiveleaderships beliefs about strategic intent
Exhibit 6.13: Product DevelopmentCompetency for Marketing Department at a
Toy Company
Establish certification methods
Resulting structureExhibit 6.14: Toy Companys StructureBased on Competencies
Research on competencies
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Exhibit 6.12: The Top Twenty Competencies
Achievement orientation Concern of quality Initiative Interpersonal
understanding Customer service
orientation
Influence and impact
Organization awareness Networking Directiveness Teamwork & cooperation
Developing others Team leadership Technical expertise
Information seeking Analytical thinking Conceptual thinking Self-control Self-confidence Business orientation Flexibility
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Purpose of job- or person-based planInternal pay structure to help achieveorganizational objectives
Aligned with internal alignment policy Supports business operations
Administering the planManualCommunication to foster employeeacceptanceAppeals process
One More Time: Internal AlignmentReflected in Structures
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Reliability of jobevaluationtechniques
Validity
Acceptability
Criteria toEvaluateUsefulness
of Pay
Structures
Results: How Useful?
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Results: How Useful?
Reliability Different evaluators produce same results
Validity
Degree to which evaluationachieves desired results
Acceptability Formal appeals processEmployee attitude surveysAudits
Exhibit 6.15: Illustrations of Audit Indexes
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Bias in Internal Structures
Gender biasGender of an individual jobholder does not influenceevaluation of a job
Job evaluators does not affect results
Compensable factors related to job content contactwith others and judgment does reflect bias
Compensable factors related to employeerequirements education and experience does not
reflect biasWages criteria bias
Job evaluation results may be biased if jobs heldpredominantly by women are incorrectly underpaid
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Recommendations to Ensure JobEvaluation Plans Are Bias Free
Define compensable factors and scales toinclude content of jobs held predominantly by womenEnsure factor weights are not consistently
biased against jobs held predominantly by womenApply plan in as bias free a manner asfeasible
Ensure job descriptions are bias freeExclude incumbent names from job evaluationprocess
Train diverse evaluators
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Job-Based Skill-Based Competency-Based
What is valued Compensable factors Skill blocks Competencies
Quantify the value Factor degree weights Skill levels Competency levels
Mechanisms totranslate into pay
Assign points that reflectcriterion pay structure
Certification and priceskills in external market
Certification and pricecompetencies in external
marketPay structure Based on job
performed/marketBased on skills certified/market
Based on competencydeveloped / market
Pay increases Promotion Skill acquisition Competencydevelopment
Managers focus Link employees to workPromotion andplacementCost control via pay for job and budget increase
Utilize skills efficientlyProvide trainingControl costs via training,certification, and workassignments
Be sure competenciesadd valueProvide competency developing opportunitiesControl costs viacertification, and work
assignments
Exhibit 6.16: Contrasting Approaches(1 of 2)
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Exhibit 6.16: Contrasting Approaches (2 of 2)
Job-Based Skill-Based Competency-Based
Employee focus Seek promotions toearn more pay
Seek skills Seek competencies
Procedures Job analysis
Job evaluation
Skill analysis
Skill certification
Competency analysis
Competencycertification
Advantages Clear expectationsSense of progressPay based on value of work performed
Continuous learningFlexibilityReduced work force
Continuous learningFlexibilityLateral movement
Limitations Potential bureaucracyPotential inflexibility
Potential bureaucracyRequires cost controls
Potential bureaucracyRequires cost controls