National Institute of Technology 2009 M.B.A Finance Organizational Behavior - Question Paper

Skill based pay is receiving pay based upon acquired skills which have been competently demonstrated, and are consistently used at work. It is also referred to as “pay for skills” (PFS).
Skill-based pay refers to a pay system in which pay increases are linked to the number or depth of skills employee acquires and applies and it is a means developing broader and deeper skills among the workforce.
Advantages of Skill based pay:
Increased ability to focus personnel on issue areas and avoid idle time waiting for issues to be fixed by others
Flexibility in position coverage enabling work teams to cover for absent members for short periods of time
Faster adaptation to charges in technology and product mix due to greater skill base
Improved participation in issue solving and other participatory activities because of wider perspective on total work flow
Lower overall staffing levels caused by incorporation of specialized functions (e.g., maintenance, quality, supervision) into team skill requirements.
Increased self-managing abilities.
Higher minimum hiring qualifications since employees are needed to progress through a multi skilled job
Overall increases in total productivity
Organizations using skill-based pay report gains in flexibility and versatility along with enhanced employee motivation and team effectiveness.


Q.5: B) What can you do, as a manager, to increase the likelihood that your employees will exert a high level of efforts?
ANS:
Professional employees are various that an avg. employee. Their loyalty is towards their profession than to the company they work for. Money and promotions doesn’t excite them. This loyalty to the profession and less interest in typical organizational rewards makes motivating employees more challenging. Factors which will increase the likelihood of an employee willing to exert a higher level of efforts would be:
1. Job Challenge: This ranked very high as most of them like to tackle and solve issues. They prefer jobs that score high on the job characteristics model. They want jobs which would give variety, identify, significance, autonomy, and feedback. Most of the employees value support, recognition and opportunities to improve and expand. Hence providing them with a challenging job would give them the desired motivation.
2. On the job give for the autonomy and allow them to structure their own work which they would obtain productive.
3. Provide lateral movement which would help them to broaden their knowledge base and their experience.

Earning:   Approval pending.