Management and Organizational Studies 3342A/B Chapter Notes - Chapter 6: Loose Coupling, Workflow, Costcutter

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3342A/B
• Professor: Gail Robertson

Document Summary

In today"s work culture, employees are told they must go beyond the tasks specified in their job descriptions. Pay systems that support continuous learning and improvement, flexibility, participation, and partnership are essential to achieving competitive advantage today. Personbased pay structures hold out that promise. Skillbased pay plans are usually applied to socalled bluecollar work and competencybased plans to socalled whitecollar work. The advantage of a skillbased pay structure is that people can be deployed in a way that better matches the flow of work, thus avoiding bottlenecks as well as idle hands. Structures based on skill pay individuals for all the skills for which they have been certified regardless of whether the work they are doing requires all or just a few of those particular skills. By contrast, a jobbased plan pays employees for the job to which they are assigned, regardless of the skills they possess. Skill plans can focus on breadth or depth.