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Person Focus to Pay
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Person Focus to PayDr. G C Mohanta, BE, MSc(Engg), MBA,
PhD(Mgt)Professor
Al-Qurmoshi Institute of Business Management Hyderabad
Person Versus Job Based PayFredrick Taylor in Scientific Management
focused on the basic elements of the jobLead to job focused way of organizing workCriticisms of job based structure
Reduces flexibility“Not my job” syndromeLittle reason to acquire information & skills outside
of narrow jobDoesn’t help people understand what other people
do
Person Focus to PayPay-for-Knowledge
Skill Based PayCompetency Based Pay
Skill Based PayPay is tied to skills, abilities & knowledge
that an individual possesses- Manufacturing jobs- Flexibility to re-assign people to where work is
neededDepth: 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
BreadthIncreased pay for more knowledgePay increases come with certification of
new skill◦ e.g., Microsoft Certification; SHRM Certification◦ Skill certification can also come from internal
assessmentEmployees can be assigned to new jobs, based
upon certificationPay increases with the more certifications heldFor example: 75.00 base pay + 10.00/hr for
skill in each machine
Why Skill Based Pay? 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
Skill Based Pay Employees accept skill based pay
Where Certification procedures are viewed as fair
It is easy to communicateWhether Productivity is increased?
Mixed results61% of those implementing SBP, were using it 7 years laterDepends on strategy more compatible with innovation, not
low costUsefulness varies based upon setting
CompetenciesWhat are competencies?
Skill /expertise that can be learned & developedKnowledge (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
CompetenciesKnowledge & Skills: Essential characteristics
for the jobCan be tested: Observable and Measurable
Self concepts, traits, & motivesNot Directly Measurable must be inferred from
actionsSelf concept (identifies with the team)Trait (flexibility)Motive (drive to produce results)
Much more parameters subjectively assessed
Core CompetenciesDerived from mission statement:
values & attitudesJetBlue embraces five values that
represent the company and create its unique culture:Safety, Caring, Integrity, Fun and
Passion
Competency EffectivenessOrganization Strategy◦ Competencies are likely to fit with
organization’s strategyWork 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
Key is the Assessment
How do you certify that someone has these competencies
How to tie to payHow to justify in a
court of law
Level Phase Title
4 Expert Visionary
3 Advanced Coach
2 Resource Contributor
1 Proficient Associate
Pay for KnowledgeEmployee Advantages
Skill VarietyTask VarietyAutonomyFeedback
Employer AdvantagesCommunicates CultureProduct or Service qualitiesLeaner Staffing cross usageFlexibility
Pay for Knowledge programsPay for Knowledge programs have the
potential to help employers compete in global environment
It gives employees the opportunity to learn