Download Chapt. 12 – Team-Based Pay in a Knowledge-Based

Chapt. 12 – Team-Based Pay in a
Knowledge-Based World

Teams are defined by 7 characteristics:
– Shared leadership roles
– Individual & mutual accountability
– Specific team purpose that team delivers
– Collective work products
– Open-ended discussion and active problem-
solving
– Performance measured directly by assessing
collective work products
– Real work discussed, decided on, and
completed together
Team-Based Job Analysis

Focuses on a meeting of all team members
in which a complete description of team
work activities is completed
 Many times, each team member is assigned
“homework” of all tasks, activities, duties,
and assignments performed by the
individual
Skill-Based Pay

The base pay of an employee is determined by the
kinds and levels of skills acquired
 Different kinds and levels of skills are given
different sets of quantitative values, and then
related to different pay
 When the employee acquired and demonstrates
additional skill levels, the employee received the
additional assigned pay

Typically, in skill-based pay systems
employees can acquire additional job
knowledge faster and receive larger pay
increases
 Problem: organizations end up paying
employees at high skill mastery levels even
when employees are performing jobs
requiring lower skills
Pay For Knowledge Plans

While skill-based pay evolved in manufacturing
sector, pay for knowledge plans began for service
industries
 Pay is determined by the kinds and levels of
knowledge acquired by employee --- not the skills
mastered
 This plan is better for jobs where work of team
members is more general, and cannot be
specifically defined

Example:
– Public school teachers
 Bachelor’s level
 Master’s level
 Education Specialist’s level
 Doctorate level
Competency-Based Pay

Definition: page 375
– Competence is a combination of knowledge and
skills required to perform an assignment
successfully. Its attainment is evidenced by the
ability of an individual to gather data, process it
into useful information, assess it, and arrive at
an appropriate and usable decision in order to
initiate the actions necessary to accomplish that
assignment in an acceptable manner.

Competency-based pay systems utilized
primarily for management and professional
positions
 Compensable Factor Cube – Page 376
Market & Team-Based Pay

Problem: determining market values that are
comparable
 Broadbanding: used with team-based pay,
but usually only have minimal number of
pay rates (3-4)