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Person-Based Structures

Chapter. 6. Person-Based Structures. Exhibit 6.1: Many Ways to Create Internal Structure. What is a Skill-based Structure?.

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Person-Based Structures

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  1. Chapter 6 Person-Based Structures

  2. Exhibit 6.1: Many Ways to Create Internal Structure

  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.

  4. Purpose of the Skill-Based Structure • Supports strategy and objectives • Supports work flow • Fair to employees • Motivates behavior toward organization objectives

  5. Internal alignment Skill certification Skill-based structure Skill analysis Skill blocks Exhibit 6.3: Determining theInternal 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?

  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

  7. How Is SBP Different From aJob-Based Pay System? • 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

  8. 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

  9. Competency – based structure Internal alignment Core competencies Competency sets Behavioral descriptors Exhibit 6.6: Determining the InternalCompetency-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?

  10. 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.”

  11. Exhibit 6.7: TRW Human Resources Competencies Exhibit 6.8: Sample Behavioral Competency Description Examples: Competency-Based Approaches

  12. “How To” – Competency Analysis • What information to collect? • Examples • Exhibit 6.10: 3M Leadership Competencies • Exhibit 6.11: Behavioral Anchors for Global- Perspective 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

  13. 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 Exhibit 6.12: The Top Twenty Competencies

  14. Administering the plan • Manual • Communication to foster employee acceptance • Appeals process

  15. Results: How Useful? Reliability of job evaluation techniques Criteria to Evaluate Usefulnessof Pay Structures Validity Acceptability

  16. Recommendations to Ensure JobEvaluation Plans Are Bias Free • 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

  17. Exhibit 6.16: Contrasting Approaches (1 of 2)

  18. Exhibit 6.16: Contrasting Approaches (2 of 2)

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