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Question #4. In an essay
a) Describe the classic grades-and-steps position management system (old system) that traditionally emphasized seniority. Examples (Public Sectors)?
(b) Describe the more recently grade & range position management system (new system) that is supposed to emphasize performance based on merit. Examples(Public Sectors)?
(c) Discuss the strengths and weaknesses of each type of system.
2 pages single space
Question #4. In an essay
a) Describe the classic grades-and-steps position management system that traditionally emphasized seniority.
(b) Describe the more recently grade & range position management system that is supposed to emphasize performance based on merit.
(c) Discuss the strengths and weaknesses of each type of system.
(a)
Describe the classic grades-and-steps position management system that traditionally emphasized seniority (old system)
·
Definition
: positions are classified/organized into different categories “grades” each containing a series of steps that employees move through chronologically in order for employees to achieve raises and promotions.
Pay grades/steps are often used by government agencies to establish how much they will pay workers in a given profession. These pay grades/steps are often based on experience, education, and or years with the organization. Pay grades are usually expressed in terms of a range of salaries, starting with the lowest level of pay and progressing to the highest level of pay, which is made by those with the highest credentials and experience levels in their field. Companies and government agencies typically use a formal process to determine where jobs fit into each grade of the pay scale.
·
Seniority
: Nothing but the length of time an employee has served in a specific job role or with the particular company. Seniority is generally used for years served in the organization. Grades and steps are generally linked to government positions.
Seniority: A selection principle that uses time in the hiring organization as a primary or exclusive factor for promotion. Philosophically, seniority-based selection asserts that those already employed in the agency:
(1) have been through the merit process once,
(2) have been screened in probationary periods and evaluation processes, and
(3) have superior organizational insight and loyalty because of their history of employment.
· Can be a “rank-in-person” personnel system:
· Define: A personnel system that tends to put more emphasis on the employee development by way of movement through ranks and “closed” systems.
· Employees are paid based on the rank regardless of the assignment involved.
· Up or Out system
· Example: Highly unionized organizations, para-military (police/fire departments), academia
(b) Describe the more recently grade & range position management system that is supposed to emphasize performance based on merit. (new system)
·
Definition
: A more recent system that was started in the 1990s, that is more of a broadbanding system which is a strategy for salary structures that consolidate a large number of pay grades into a few “broad bands”. This systems emphasize technical qualifications using processes that analyze job competencies and require open application procedures.
·
Merit
: Emphasize technical qualifications using processes that analyze job competencies and require “open” application procedures. Based on qualifications to analyze job competencies – the organization can look at education, experience, performance evaluations, written tests and licensure.
· Can be a “rank-in-job” personnel system:
· Define: The salary and rank of an individual are determined by the job that the individual holds.
· Individuals have to move to better jobs either by re-classification or promotion in order to have higher status or substantial salary increase.
· Example: California State University Administrative Staff
(c) Discuss the strengths and weaknesses of each type of system.
|
grades-and-steps Position Mgmt: Strengths |
grades-and-steps Position
Mgmt: Weaknesses |
|
· Job Security · confirms what the company values from their employees · Predictability · Training Benefits · Increased Loyalty, recognizes high performing employees and so aids in employee retention, allowing employees to be paid for what they are worth. |
· May reward people based on longevity instead of merit · Concerns about favoritism · No law creating a seniority system based on agreement with employees and trade unions · Not a measure of job performance · Company may end up paying more for an under producing employee |
|
Grade, Range Position Mgmt: Strengths |
Grade, Range Position
Mgmt: Weaknesses |
|
· More procedural flexibility, more rigorous employee accountability and technical simplification. you can pay slightly more or less for an employee based on his level of education, experience or performance. This gives companies an opportunity to offer a little more money to get an employee with a stronger background. In the same way, it allows them to potentially save on labor costs when hiring employees with limited backgrounds. · An “open” system · Competitive examinations · Communicate organization’s objectives · Aids in employee retention · Lets employees know where they stand. |
· selection can be technical that great potential candidates do not apply, diversity of experience is inhibited, there is emphasis on tangible skills, and it takes time to process · Decreased morale: The biggest hindrance to adopting an open salary policy, according to the creative executives we surveyed, was the idea that pay transparency would decrease staff morale. In fact, many thought this risk outweighed any benefits such a policy would bring, as employees may be upset if they find they are underpaid compared to their colleagues. · No set definition to what appropriate award happens to be · Subjective · Standards are set or created by “someone” in a certain place or time · Ignores core issues · There are no steps and no guarantees of pay increases if funding is not provided by the legislative body. · selection can be technical that great potential candidates do not apply, diversity of experience is inhibited, there is emphasis on tangible skills, and it takes time to process |
***Can have both systems in one organization. For example, Cal State University SB has a classic grades/rank-in-person system applied to faculty and university police department, but a grade,range system/rank-in-job system for administrative staff.
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