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Compensation case study person based structure climb the legal ladder

Figure 15 -2 shows the range for reasoning. Apply little understanding to carry out the simplest of jobs. Never deals with variable situations encountered on the job. Apply commonsense understanding to carry out simple one- or two-step instructions. Deal with standardized situations with occasional or no variables in or from these situations encountered on the job.

Apply commonsense understanding to carry out detailed but uninvolved written or oral instructions. Deal with problems involving a few concrete compensation case study person based structure climb the legal ladder in or from standardized situations Level 3: Apply commonsense understanding to carry out instructions furnished in written, oral, or diagrammatic form.

Deal with problems involving several concrete variables in or from standardized situations. Apply principles of rational systems to solve practical problems and deal with a variety of concrete variables in situations where only limited standardization exists. Interpret a variety of instructions furnished in written, oral, diagrammatic, or schedule form. Apply principles of logical or scientific thinking to define problems, collect data, establish facts, and draw valid conclusions.

Interpret an extensive variety of technical instructions in mathematical or diagrammatic form. Deal with several abstract and concrete variables. Apply principles of logical or scientific thinking to a wide range of intellectual and practical problems.

Deal with non-verbal symbolism formulas, scientific equations, graphs, musical notes, etc. Deal with a variety of abstract and concrete variables.

Apprehend the most abstruse classes of concepts. Degrees of Reasoning Developing a custom program for your organization is more complex but can produce a much better result. Designing competencies from scratch will take time and the efforts of many managers in the organization.

Determine the unit to which the pay system in to be applied. This may be a few workers or the whole organization. Gather a group of people, managers and workers, who are familiar with the work to be done. The group examines the work to determine what competencies are required to accomplish the work. These may entail looking at: Job descriptions Organizational materials Work flow analysis Distinguish which competencies "make a difference," that is which ones are related to successful or superior results.

Developing Measures If a company is going to pay for a particular competency then they must have a measure of that competency. They need to know if the employees have a specific competency and the degree to which they have it, so that accurate decisions about how much to pay the individual for that competency can be made. Further, the proposed measure must in fact measure that competency, not an easy task in all cases.

Case Analysis Presentation(climb the legal ladder) - Essay Example

In general, measures are not the competency; they are indicators that the person has the competency. Thus, the value of using a particular competency is partially a function of how well the competency can be measured.

Measures can fall into a number of categories: A major indicator of a person's competency is the education and training they have. This may be before being employed, in which case the pay upon hire should reflect the level of education and appropriate training. Degrees and compensation case study person based structure climb the legal ladder are major indicators of the level of competency.

Organizations need to direct education and training taken after hire. The type and level of education and training the organization desires the employee to have, as well as the reward for attaining that level of competence, needs to be made explicit. Often one's experience is called the best education and training needed. Organizations usually reward experience, either consciously or unconsciously. Pay systems in which the employee receives a standard increase each year, independent of cost-of-living increases, is rewarding experience even if it isn't realized as such, and just like competencies, experience can be of two types: Breadth of experience is attaining competence in a variety of tasks.

These may be closely related tasks permitting the person to perform a compensation case study person based structure climb the legal ladder part of the total task or they may be new tasks that provide the person with a new skill set. Organizations can plan employee attainment of new skills by establishing planned programs and then connecting these to rewards in the form of increased pay.

The value to the organization of this approach is that employees with a variety of skills can be moved more readily into new tasks as the organization changes. Depth of experience is attained by being able to perform more complex tasks within the person's current occupational area. This is typical of the experience attained by engineers as they are assigned more complex design work as they attain more experience. However, as those experienced in selection know, there is the problem of distinguishing 10 years of experience from one year of experience 10 times over.

Education, training and experience are rough measures of competence. To improve on the accuracy of measuring these competencies or for measuring other more personal characteristics of employees, the organization may resort to testing. There are tests for almost any psychological concept imaginable, so if the organization wishes to use a psychological concept as its basis for paying a group of employees, then there is undoubtedly a ready-made test available.

On the other hand, if what the organization needs is specific information on the KSA of a particular job, it may be necessary to build a test specific to the situation. The methods for doing all of this are available in any book on employee selection, as this is what is done in the selection process.

Another way to measure competency is to record behaviors. After all, if one is competent in something it should show up in how a person behaves. This is measuring competency by observing the person in action. This necessitates determining what behaviors represent the competency concept for which the organization wishes to pay. Measuring behaviors has been done mainly for purposes of performance appraisal. Developing these types of systems requires a great deal of work as they are specific to a job or a solitary part of the organization.

They also take up the time of the supervisor who must observe the employees on the job sufficiently to make accurate decisions about their behaviors. A question that comes up in all performance appraisals is who should collect this data that is so necessary in making performance decisions.

The trend is toward 360 degree appraisals. These appraisals ask all persons who have significant interactions with the employee to complete an evaluation.

A final category of measures would be the person's accomplishments. These would be measures of how well their past behavior has led to positive results. Essentially this is an output measure.

As such, pay for accomplishments is usually a part of a variable pay plan.

Chapter 15: Competency-Based Pay

The requirement here is that the reward and the accomplishment are spelled out in advance and the connection between the two is made clear. For all of these measures there needs to be an accompanying rating scale. This is so that distinctions can be made between employees to the degree that they exhibit the desired competency; from these distinctions differences in pay can be developed. Most of the above have either obvious scales, such as experience, or the measure has, as an integral part of its development, a set of scales such as BARS.

Accomplishments are an exception, suggesting that appropriate rewards for this measure may be in the form of an incentive such as a bonus. Competency Assessment It may seem obvious but these measures should in fact measure the competency that the organization wishes to reward.

  • Another way to measure competency is to record behaviors;
  • There is a great deal of freedom as to how work is done by the professional;
  • On the vertical axis is years of experience and on the horizontal axis are course units taken beyond the basic college degree required to be a teacher, plus the requirements to be certified;
  • This improves the utilization of employees;
  • Competencies are the knowledge, skills and abilities that employees bring to the job.

In addition, the competency should make a positive effect upon the operations of the organization. Making these distinctions is a process of testing the validity of the competency.

In addition, it is also a requirement to validate these competencies for legal purposes. So assessment of competencies needs to answer two questions: Does the way the competency is measured accurately measure the competency? Does the competency make a difference? That is, does the competency lead to improved organizational outcomes? There are a number of ways to measure validity, from fairly simple and obvious to very complex, technical and theoretical.

Face validity simply means the validity at face value. It is common sense that the competency is useful to the organization. To some degree experience working in the company falls in this category. It takes a period of time to understand and know how the organization works and once learned performing is easier and more efficient.

This type of validity compares the scores on the competency measure against a criterion measure. For instance, a test of extroversion compared to the sales record of the sales persons. There are two types of criterion-related validity: The difference in these two has to do with the timing of the collection of the competency measure. In predictive validity the competency measure is collected before the criterion measure and the comparison made after the criterion measure is collected.

In concurrent validity the two measures are collected and compared at the same time. This latter is probably more appropriate for competency pay purposes. In content validity two measures mirror one another. One is a sample of the other.

For instance, in a skill-based pay system people may move up to a new level by showing on a test, based upon a job sample, that they are capable of performing the task. This type of validity looks very much like the process by which the organization might develop competency constructs that are personal characteristics.

The job is examined and a set of competencies identified [extroversion for sales persons? Then the performance on the job is compared to the construct. These are brief outlines of very complex methodologies.

They are used to determine whether the competencies the organization has chosen to pay for are "worth it" in terms of superior organizational performance.