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Music Of New Millenium Essay, Research Paper

Competencies are one of several factors, including performance results in determining annual pay adjustments.


What Is Competency-Based Pay?

? Valuing the how (high impact behaviors) of performance as well as the what (results).

? Reinforcing high impact behaviors through pay delivery.

? Critical to success, but a bad place to start; a good place to continue.


Competency Based Systems






Necessary for Top Performance but not Sufficient to Guarantee it

Personal Attributes and Behaviors that Predict Longer-Term Success


Aligning Work Value and Pay

Knowledge Skills Abilities



Base Salary

Incentive Pay

Merit Pay


What Does it Measure?

? Job measurement is designed to calibrate organization roles. One compared to another.

? Focus is on the job, not the person in the job. The person is very important to us, but how the person is performing in the job comes later.

? The most critical feature of a job is what are its outputs. What are we asking the job to do for the organization.


Compensation Basics

? Compensation system design is not just about how much you pay but the relative relationship between roles and pay.

? When it comes to compensation, individuals are rarely objective about the impact of their own role or performance in that role.

? People, by nature, like to keep track of their career progress. Titles are important. Organization status is important. Pay is important. It is how we keep track.

? There is never enough money to go around. Compensation management is about balancing the allocation of a very scarce resource for the organization. It is difficult and controversial in every organization.


List of Competencies for Finance/Industry Model: Personal Attributes A. Insight and Judgment B. Integrity and Ethics C. Continuous Personal Improvement D. Commitment and Performance Stability E. Interpersonal Orientation F. Project Management Skills G. Innovative/Creative Thinking H. Presenting/Speaking I. Business Writing J. Professional Demeanor Leadership Qualities A. Strategic Thinking and Planning B. Facilitating C. Negotiating and Persuading D. Teamwork E. Coaching and Empowerment F. Problem Solving G. Decision Making H. Cross-Functional Perspective Broad Business Perspective A. The Organization and Industry Knowledge B. Internal and External Consulting C. Business Relationships/Partnerships D. Current and Emerging Management Practices E. Best Practices F. Risk Management G. Mergers, Acquisitions and Strategic Alliances H. Management Accounting I. Organizational Systems and Processes Functional Expertise A. Financial Analysis B. Treasury Management C. Cost Management D. Human Resources E. Taxation F. Information Technology G. Control Environment H. Financial and Statutory Reporting and Accounting Principles I. Internal Audit J. Budgeting, Forecasting and Business Planning


Drucker, 1997

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