Chapt. 12 – Team-Based Pay in a Knowledge-Based World

1. Chapt. 12 – Team-Based Pay in a Knowledge-Based World • Teams are defined by 7 characteristics: • Shared leadership roles • Individual & mutual accountability • Specific team purpose that team delivers • Collective work products • Open-ended discussion and active problem-solving

2. Performance measured directly by assessing collective work products • Real work discussed, decided on, and completed together

3. Team-Based Job Analysis • Focuses on a meeting of all team members in which a complete description of team work activities is completed • Many times, each team member is assigned “homework” of all tasks, activities, duties, and assignments performed by the individual

4. Skill-Based Pay • The base pay of an employee is determined by the kinds and levels of skills acquired • Different kinds and levels of skills are given different sets of quantitative values, and then related to different pay • When the employee acquired and demonstrates additional skill levels, the employee received the additional assigned pay

5. Typically, in skill-based pay systems employees can acquire additional job knowledge faster and receive larger pay increases • Problem: organizations end up paying employees at high skill mastery levels even when employees are performing jobs requiring lower skills

6. Pay For Knowledge Plans • While skill-based pay evolved in manufacturing sector, pay for knowledge plans began for service industries • Pay is determined by the kinds and levels of knowledge acquired by employee --- not the skills mastered • This plan is better for jobs where work of team members is more general, and cannot be specifically defined

7. Example: • Public school teachers • Bachelor’s level • Master’s level • Education Specialist’s level • Doctorate level

8. Competency-Based Pay • Definition: page 375 • Competence is a combination of knowledge and skills required to perform an assignment successfully. Its attainment is evidenced by the ability of an individual to gather data, process it into useful information, assess it, and arrive at an appropriate and usable decision in order to initiate the actions necessary to accomplish that assignment in an acceptable manner.

9. Competency-based pay systems utilized primarily for management and professional positions • Compensable Factor Cube – Page 376

10. Market & Team-Based Pay • Problem: determining market values that are comparable • Broadbanding: used with team-based pay, but usually only have minimal number of pay rates (3-4)