CH.6

Question 1

What is a skill-based pay structure?

Answer 1

Linking pay to the depth or breadth of skills, abilities and knowledge acquires that are relevant to the work.

Question 2

What is a job-based pay structure?

Answer 2

Pays employees for the job to which they are assigned, regardless of the skills they possess

Question 3

Types of skill-based plans?

Answer 3

Specialist: In depth, Generalist/multiskill-based: Breadth

Question 4

What is the purpose of skill based structure?

Answer 4

• support the strategy and objectives
• support workflow
• fair to employees
• MOTIVATE behaviour toward organizational objectives.

Question 5

What is a skill Analysis?

Answer 5

A systematic process to identify and collect info about skills required to perform work in an organization.

Question 6

What are the four steps of Skill Analysis

Answer 6

1. Collect information
2. decide on method to use to determine and certify skills
3. decide who should be involved
4. assess usefulness of results

Question 7

Basic decisions when determining the internal skill-based structure.

Answer 7

1. What is the objective plan?
2. what info should be collected?
3. what methods should be used to determine and certify skills?
4. who should be involved?
5. How useful are the results for pay purposes?

Question 8

Path to determining the internal skill-based structure

Answer 8

skill analysis–>Skill blocks–>skill certification–>skill-based structure.

Question 9

During skill analysis information is collected on?

Answer 9

1. foundation skills
2. core elective skills
3. optional elective skills

Question 10

steps to determining the internal competency based pay structure

Answer 10

core competencies–>competency sets–>behavioural descriptors–>competency-based pay structure

Question 11

What are competencies?

Answer 11

underlying, broadly applicable knowledge, skills and behaviours that form the foundation for successful work performance (exhibited by excellent performers more consistently than average performers).

Question 12

What is a competency set?

Answer 12

A grouping of factors that translate core competency into observable behaviour. example: cost management, business understanding.

Question 13

What are competency indicators?

Answer 13

observable behaviours that indicate the level of competency within a competency set. For example, “identifies opportunities for savings”

Question 14

What is competency analysis?

Answer 14

A systematic process to identify and collect information about the competencies required for successful work performance.

Question 15

What kind of info do you collect in a competency analysis?

Answer 15

1. personal characteristics
2. visionary competencies
3. organization-specific competencies

Question 16

Last step in competency analysis?

Answer 16

Establish Certification methods.

Question 17

What does a competency based job structure look like?

Answer 17

Level 4-Expert, Job title Visionary,champion,executive
level 3-advanced,Job title: coach; leader
level 2-resource,job title: contributor;professional
level 1-proficient,job title: Associate

Question 18

What are the main purposes of job and person-based pay procedures?

Answer 18

To design and manage an internal pay structure that helps achieves organizational objectives.
To be aligned with internal alignment policy
to support business operations.

Question 19

When managing the plan 2 things must happen, what are they?

Answer 19

1. details of plan should be described in a manual (online)

2. Must communicate the plan in order to gain employee acceptance.

Question 20

3 ways to avoid bias in pay structures.

Answer 20

1. Define compensable factors and scales to include content of jobs held predominantly by women.
2. ensure that factor weights are not consistently biased against jobs held predominantly by women. Are factors usually associated with these jobs always given less weight?
3. Apply the plan in as bias free a manner as feasible. Ensure that the job descriptions are bias free, exclude incumbent names from the job evaluation process, and train diverse evaluators.

Question 21

What are the values of the 3 contrasting approaches

Answer 21

job based: Compensable factors
skill-based: Skills
Competency based:Competencies

Question 22

How do each of the 3 approaches quantify value?

Answer 22

job based: Factor degree weights
skill based: Skill levels
CB:Competency levels

Question 23

mechanisms to translate pay in 3 approaches

Answer 23

jb: assign points that reflect criterion pay structure
sb: Certification and price skills in external market
cb: Certification and price competencies in external market