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Person-Based Structures

Chapter. 6. Person-Based Structures. Learning Objectives After discussing Chapter 6, students should be able to:. Discuss the differences and similarities between job-based structures, skill-based plans, and competency-based plans.

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Person-Based Structures

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  1. Chapter 6 Person-Based Structures

  2. Learning ObjectivesAfter discussing Chapter 6, students should be able to: • Discuss the differences and similarities between job-based structures, skill-based plans, and competency-based plans. • Identify the major decisions involved in developing skill-based plans and competency-based plans. • Discuss the advantages and disadvantages of employee involvement in the evaluation of work. • Understand the key aspects associated with the administration of a job evaluation plan. • Describe the key criteria to assess the usefulness of the results of each of the approaches to job evaluation.

  3. Exhibit 6.1: Many Ways to Create Internal Structure

  4. 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.

  5. Types of Skill Plans • Specialist: Depth • Generalist/Multi-skill-Based: Breadth • Exhibit 6.2: Skill Ladder at Balzer Tool Coating

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

  7. 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?

  8. What Is Skill Analysis? Systematic process to identify and collect information about skills required to perform work in an organization.

  9. “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

  10. 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

  11. 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

  12. So, What’s a Competency? • Learned skill • Traits such as behaviors and motives • Demonstrable characteristics of a person, including knowledge, skills, and behaviors, that enable performance • Characteristics of an organization • Independent of a job or position • An employee can transportthem from one job to another

  13. 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?

  14. 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.”

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

  16. Iceberg Model of Competency Levels Knowledge Skills Self-Concepts Traits Motives

  17. Purpose of the Competency-Based Structure • Supports strategy and objectives • Exhibit 6.9: Frito-Lay Managerial Objectives • Supports work flow • Fair to employees • Motivates behavior toward organization objectives

  18. “How To” – Competency Analysis • Objective • What information to collect? • Scheme to classify competencies • Personal characteristics • Visionary • Organization specific • Examples • Exhibit 6.10: 3M Leadership Competencies • Exhibit 6.11: Behavioral Anchors for Global- Perspective Competency • Exhibit 6.12: The Top Twenty Competencies

  19. “How To” – Competency Analysis (cont.) • Whom to involve? • Competencies are derived from executive leadership’s beliefs about strategic intent • Exhibit 6.13: Product Development Competency for Marketing Department at a Toy Company • Establish certification methods • Resulting structure • Exhibit 6.14: Toy Company’s Structure Based on Competencies • Research on competencies

  20. 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

  21. One More Time: Internal Alignment Reflected in Structures • Purpose of job- or person-based plan • Internal pay structure to help achieve organizational objectives • Aligned with internal alignment policy • Supports business operations • Administering the plan • Manual • Communication to foster employee acceptance • Appeals process

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

  23. Results: How Useful? • Reliability • Different evaluators produce same results • Validity • Degree to which evaluationachieves desired results • Acceptability • Formal appeals process • Employee attitude surveys • Audits • Exhibit 6.15: Illustrations of Audit Indexes

  24. Bias in Internal Structures • Gender bias • Gender of an individual jobholder does not influence evaluation of a job • Job evaluator’s does not affect results • Compensable factors related to job content – contact with others and judgment – does reflect bias • Compensable factors related to employee requirements – education and experience – does not reflect bias • Wages criteria bias • Job evaluation results may be biased if jobs held predominantly by women are incorrectly underpaid

  25. 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 • Ensure job descriptions are bias free • Exclude incumbent names from job evaluation process • Train diverse evaluators

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

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

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