Download Potential Effects of a Skill

6-1
Chapter
6
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Person-Based
Structures
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Exhibit 6.1: Many Ways to Create Internal
Structure
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6-2
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6-3
What is a Skill-based Structure?
Links pay to the depth or breadth of the skills,
abilities, and knowledge a person acquires that
is relevant to the work. Structures based on
skill pay individuals for all the skills for which
they have been certified regardless of whether
the work they are doing requires all or just a
few of those particular skills.
In contrast, a job-based plan pays employees
for the job to which they are assigned,
regardless of the skills they possess.
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6-4
Purpose of the Skill-Based Structure
Supports
strategy and objectives
Supports
work flow
Fair
to employees
Motivates
behavior toward
organization objectives
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6-5
Exhibit 6.3: Determining the
Internal Skill-Based Structure
Internal
alignment
Skill analysis
Skill blocks
Skill
certification
Skill-based
structure
Work relationships
within organization
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?
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6-6
“How To” – Skill Analysis
What
information to collect?
 Exhibit
6.4: General Mills’ Skill-Based
Structure
 Exhibit
6.5: FMC’s Technician Skill-Based
Structure
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?
6-7
Skills
or skill units, rather than jobs are
compensable
Mastery
of skill units is measured and
certified
Pay
changes do not necessarily
accompany job changes
Little
emphasis placed on seniority in pay
determination
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6-9
Disadvantages of Skill-Based Pay
Average
pay of employees likely higher
High
labor costs, if productivity increases
do not offset additional costs
SBP
systems more complex
SBP
systems require a major investment
in training
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Exhibit 6.6: Determining the Internal
6-10
Competency-Based Structure
Internal
alignment
Core
competencies
Competency
sets
Behavioral
descriptors
Competency –
based structure
Work relationships
within organization
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?
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6-11
Terms in Competency Analysis
CORE COMPETENCY
Taken from mission statement; for example,
“business awareness.”
COMPETENCY SETS
Grouping of factors that translate core
competency into observable behavior; for
example, cost management, business
understanding.
COMPETENCY
INDICATORS
Observable behaviors that
indicate the level of competency
within a competency set. For
example, “identifies
opportunities for savings.”
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6-12
Examples: Competency-Based Approaches
Exhibit
6.7: TRW
Human Resources
Competencies
McGraw-Hill/Irwin
Exhibit
6.8: Sample
Behavioral
Competency
Description
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6-13
“How To” – Competency Analysis
What
information to collect?
 Examples
Exhibit
6.10: 3M Leadership Competencies
Exhibit 6.11: Behavioral Anchors for GlobalPerspective Competency
Exhibit 6.12: The Top Twenty Competencies
Exhibit 6.13: Product Development
Competency for Marketing Department at a Toy
Company
Resulting
structure
 Exhibit
6.14: Toy Company’s Structure
Based on Competencies
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6-14
Exhibit 6.12: The Top Twenty Competencies
• Achievement orientation • Developing others
• Concern of quality
• Team leadership
• Initiative
• Technical expertise
• Interpersonal
• Information seeking
understanding
• Analytical thinking
• Customer service
orientation
• Conceptual thinking
• Influence and impact
• Self-control
• Organization awareness
• Self-confidence
• Networking
• Business orientation
• Directiveness
• Teamwork & cooperation • Flexibility
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6-15
Administering the plan
 Manual
 Communication
to foster employee
acceptance
 Appeals process
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6-16
Results: How Useful?
Reliability of job
evaluation
techniques
Criteria to
Evaluate
Usefulness
of Pay
Structures
Validity
Acceptability
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Recommendations to Ensure Job
Evaluation Plans Are Bias Free
6-17
Define
compensable factors and scales
to include content of jobs held
predominantly by women
Ensure factor weights are not
consistently biased against jobs held
predominantly by women
Apply plan in as bias-free a manner as
feasible
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Exhibit 6.16: Contrasting Approaches
(1 of 2)
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 to
translate into pay
Assign points that reflect
criterion pay structure
Certification and price
skills in external market
Certification and price
competencies in external
market
Pay structure
Based on job
performed/market
Based on skills certified/
market
Based on competency
developed / market
Pay increases
Promotion
Skill acquisition
Competency
development
Managers’ focus
Link employees to work
Promotion and
placement
Cost control via pay for
job and budget increase
Utilize skills efficiently
Provide training
Control costs via training,
certification, and work
assignments
Be sure competencies
add value
Provide competency –
developing opportunities
Control costs via
certification, and work
assignments
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6-18
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6-19
Exhibit 6.16: Contrasting Approaches (2 of 2)
Job-Based
Skill-Based
Competency-Based
Employee focus
Seek promotions to
earn more pay
Seek skills
Seek competencies
Procedures
Job analysis
Job evaluation
Skill analysis
Skill certification
Competency analysis
Competency
certification
Advantages
Clear expectations
Sense of progress
Pay based on value of
work performed
Continuous learning
Flexibility
Reduced work force
Continuous learning
Flexibility
Lateral movement
Limitations
Potential bureaucracy
Potential inflexibility
Potential bureaucracy
Requires cost controls
Potential bureaucracy
Requires cost controls
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