Person focus to pay


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Person Focus to Pay

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Person focus to pay

  1. 1. Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt) Professor
  2. 2.  Pay-for-Knowledge ◦ Competency Based Pay ◦ Skill Based Pay
  3. 3.  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
  4. 4.  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
  5. 5.  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
  6. 6.  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
  7. 7.  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
  8. 8.  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
  9. 9.  Knowledge & Skills: Essential characteristics for the job ◦ Can be tested: Observable and Measurable Self concepts, traits, & motives Not 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
  10. 10.  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
  11. 11.  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
  12. 12.  How do you certify that Level Phase Title someone has these 4 Expert Visionary competencies How to tie to pay 3 Advanced Coach How to justify in a court of law 2 Resource Contributor 1 Proficient Associate
  13. 13.  Employee Advantages ◦ Skill Variety ◦ Task Variety ◦ Autonomy ◦ Feedback Employer Advantages ◦ Communicates Culture ◦ Product or Service qualities ◦ Leaner Staffing cross usage ◦ Flexibility
  14. 14.  Increases training, hourly labour & overhead costs can rise May not fit with other incentive programs
  15. 15.  Pay for Knowledge programs have the potential to help employers compete in global environment Must give employees the opportunity to learn