Pay for Performance

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Job Evaluation
INTERNAL STRUCTURE
Person Based
Job Based
Skills
Competencies
Job analysis
Job descriptions
Skill
Analysis
Core
Competencies
Determine what
to value
Job Evaluation
Classes/Comp
factors
Skills blocks
Competency sets
Assess value
Factor degrees
& weighting
Certification
Process
Behavioral
Descriptors
Translate into
structure
Job-Based
structure
PURPOSE
Collect, summarize
Work information
Person-based
structure
p. 1
Person based vs Job based
 Structures based on knowledge
pay individuals for all the Competencies, Knowledge,
Skills & Abilities (KSA) for which they have been certified,
regardless of whether the work they are doing requires
all or just a few of those particular skills or competencies.
 In contrast, a Job-Based plan
pays employees for the job to which they are assigned,
regardless of the skills or competencies they possess.
p. 2
Person based vs Job based
 Knowledge, Skills, Abilities (KSA) and Competencies,
rather than jobs are compensable
 Mastery of KSA and Competencies are measured and
certified
 Pay changes do not necessarily accompany job
changes, since a different job does not necessarily
mean more or different KSA and Competencies
 Little emphasis is placed on seniority in pay
determination
p. 3
Person Based
 Today employees are told they must go
beyond the tasks specified in their job
description
 Person based systems claimed to be essential
for achieving competitive advantage.
p. 4
Person based
 Skill plan can focus on :
• Depth
– Specialist in corporate law, finance, welding and
hydraulic maintenance, etc.
• Breath
– Generalist in operational phases, incl. marketing,
manufacturing, finance, HR, etc.
p. 5
Knowledge-Skills-Abilities : Examples
 Knowledge
•
Administration and Management: knowledge of business and
management principles involved in strategic planning & resource
allocation.
•
Reservation System: knowledge of reservation system software,
transaction handling and exceptions treatment.
 Skills
•
Speaking — Talking to others to convey information effectively.
•
Time Management — Managing one's own time and the time of others.
•
Languages — Speaks fluently Chinese and Japanese
 Abilities
•
Typing Manual Proficiency — The ability to quickly move your hand, your
hand together with your arm, or your two hands to grasp, manipulate, or
assemble objects.
•
Number Facility — The ability to add, subtract, multiply, or divide quickly
and correctly.
p. 6
Whom to involve
 Employee involvement is almost built into
skill-based plans
 Employees and managers are the source of
information on:
– Defining the KSAs
– Arranging them into a hierarchy
– Bundling them into skill blocks
– Certify actual skills
p. 7
Technician Skill-based structure
 Basic requirements
– Quality course
– Shop floor control
– Material handling
Etc…
 Skills:
– Panel fabrication
– Shell Fabrication
– End casting welding
– Finishing pain
Etc…
10
15
15
20
pts
pts
pts
pts
 Optional Electives
– Maintenance
– Logistics
– Computer dBase
– Administration
Etc…
p. 8
Technician Skill-based structure
Euro
Optional
electives
17.00 -
14.50 -
Optional
electives
13.00 Optional
elective
10.00 -
40
Core
electives
140
Core
electives
240
Core
electives
365
Core
electives
Basic
Basic
Basic
Basic
requirements requirements requirements requirements
Entry
Tech 1
Tech 2
Tech 3
Tech 4
p. 9
What is a Competency
 What is a Competency?
• Personal attributes that contribute to and predict superior
performance and success within a particular job, function and/or
organization.
• Personal attributes :
–
–
–
–
–
–
motives
traits
self-image
Social role
Knowledge
Skills
• Distinctive to an organization
• Independent of a job or position
• An employee can transport them from one job to another
p. 10
What is a Competency
 Competencies are what superior performers:
• Possess as underlying attributes
• Demonstrate in more situations
• Apply with better results
p. 11
Types of Attributes
 Motives
Recurrent thoughts that drive behaviors
 Traits
A general disposition to behave in a certain way
 Social Role
The image one projects to others (“outer-self”)
 Self Image
A person’s sense of identity
 Technical Skills
Behavioral demonstration of expertise
 Knowledge
Information that a person has in a particular area
p. 12
Competencies
Performance
Social Role
Motives
Power - Affiliation
Achievement
Rarely changes in
lifetime
Personality
Energy
Traits
Difficult if not possible to
influence
Leadership
or followup role
Could be
influenced
Professional
Knowledge
Creativity
IQ
Could be
influenced
Self Image
Image perception
Technical Skills
p. 13
Degree of Competency
 The more complex and the wider the scope of work,
the more important the competencies.
Importance
Competencies
Task Mastery
Job Complexity
p. 14
Some Basic Assumptions about Competencies
 In every job, some people perform more effectively than others. These people
also approach their job differently from typical workers.
 These differences in approach relate directly to specific attributes or
competencies of the outstanding performers that are often absent in typical
performers.
 Cultural differences can effect the way in which people solve problems,
respond to authority figures, learn skills, deal with conflict, etc. However, the
attributes of superior performers cut across these cultural differences.
 In short, the most effective do not “do more” of the same thing, they do
different things.
p. 15
The Competency Model
Concentrate on
attributes of top
performers in job
analysis
Attributes
of Top
Performers
Attributes
of Average
Performers
Shared
Attributes
p. 16
Some Examples of Competencies
 Achievement Orientation
 Initiative
 Planning & Organizing
 Customer Orientation
 Analytical Thinking
 Self-Control
 Self-Confidence
 Technical Expertise
 Tenacity
 Organizational Awareness
 Interpersonal Sensitivity
 Teamwork
 Use of Influence Strategies
 Developing Others
 Directing Others
 Leadership
 Relation Building
 Flexibility
p. 17
An Example of a Competency
Customer Service Orientation
DEFINITION
Demonstrates concern for meeting internal and external customers' needs in a manner
that provides satisfaction for the customer within the resources that can be made
available.
BEHAVIORAL INDICATORS:
– Asks questions to identify customer's needs or expectations.
– Checks understanding by stating what he/she understands are the customer's
needs or expectations and asks the speaker to verify or clarify.
– Demonstrates close concentration on the message being verbalized.
– Stays calm in the face of a customer's anger or lack of control.
– Keeps own emotions from interfering with responding effectively to customer's
needs.
– Takes a variety of actions to meet a customer's needs, as required until need is
met.
– Responds quickly to a problem when it comes up.
– Asks questions of customers to assess satisfaction with service being provided.
p. 18
An Example of a Competency
Attention to Detail
DEFINITION
Thoroughness in accomplishing a task through concern for all the areas involved, no
matter how small.
BEHAVIORAL INDICATORS:
– Provides accurate, consistent numbers on all paperwork.
– Provides information on a timely basis to others who need to act on it.
– Provides information in a useable form. to others who need to act on it.
– Maintains a checklist, schedule, calendar, etc., to ensure that small details are
not overlooked.
– Double-checks the accuracy of information and work product.
– Carefully monitors the details and quality of own and others' work.
– Expresses concern that things be done right, thoroughly, or precisely.
p. 19
Competency Models
Individual competencies can be grouped together to
form “Competency Models” for specific jobs, roles,
functions, or organizations.
Responsibilities
Competency Model
Behaviors needed to perform these responsibilities
p. 20
Competency Models
Example : SUPERVISOR
Responsibilities
Competency Model
 Planning Daily/Weekly Tasks
 Team Leadership
 Cost Control
 Conceptual Thinking
 Quality
 Initiative
 Mgmt development
 Organizational Awareness
 Results
 Achievement Orientation
 Meeting Schedules
 Self Confidence
 Performance Management
 Planning & Organizing
 Developing Team Members
 Developing Others
Behaviors needed to perform these responsibilities
p. 21
Competencies Most Predictive of Success
Part of the Job
Executive
Manager
Individual
Contributor
Not Required
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p. 22
Competencies Difficult to Train or Develop
 Achievement Drive
 Interpersonal Awareness
 Concern with Personal Impact
 Tenacity
Context/Environment
has an impact
on some of the
listed Competencies
 Flexibility
 Analytical/Conceptual Thinking
 Self Confidence
p. 23
COMPENSATION
How should jobs
be valued?
JOB DESIGN
How should jobs
be structured?
PERFORMANCE
MANAGEMENT
How should performance
be evaluated?
COMPETENCIES
SUCCESSION PLANNING
What are the succession
requirements of our jobs?
SELECTION
How should qualified
employees
be identified?
TRAINING &
DEVELOPMENT
What are the development
requirements of our jobs?
p. 24
How to Identify Competencies
Strategic
Requirements
Job Task
Requirements
Organization
Culture
Job
Competencies
p. 25
Contrasting Approaches
Job based
Skill based
Competency based
Pay structure
Promotion
Skills acquisition
Competency development
Advantages
Clear expectation
Continuous learning
Continuous learning
Sense of progress
Flexibility
Flexibility
Pay based on value
Reduced work force
Lateral movement
Potential bureaucracy
Potential bureaucracy
Potential bureaucracy
Potential inflexibility
Requires costs controls
Requires costs controls
of work performed
Limitations
p. 26
Job Evaluation : Wrap-up
Job-Based
Knowledge-Base
What is valued
Job features and compensable factors
Skill and competencies block
Quantify the value
Factor degree weights
Skill and competencies level
Mechanisms to
translate into pay
Assign points that reflect criterion pay
Certify skills and competencies and
structure
price competencies and skills in external
market
Pay structure
Based on job performed/market
Based on skills and competencies
certified/ market. There is little emphasis
on seniority in pay determination.
Pay increases
Promotion
Skill acquisition and competency
development. Pay changes do not
necessarily accompany job changes
Manager’s focus
Link employees to work
Utilize skills efficiently and make sure
Promotion and placement
competencies add value
Cost control via pay for job and budget
Provide training and competency –
increase
developing opportunities.
Control costs via training, certification,
and work assignments
p. 27
What System for which Organization
Mature
1 - 300 empl.
Start-up
Mature
Market
Salary Surveys
Structure & & Job Slotting
Organisation
Classical
Job Description
Evaluation
Start-up
300 - 1000 empl.
Job Description
Mixed
& Competency
Evaluation Assessment
>1000 empl.
Individual
Competencies Competency
Evaluation Assessment
p. 28
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