FREE ESSAY ON MUSIC OF NEW MILLENIUM

MUSIC OF NEW MILLENIUM

Competencies are one of several factors, including performance results in determining
annual pay adjustments.
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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.
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Competency Based Systems
Skills 
Knowledge
Attitude 
Motives 
Traits
Necessary for Top Performance but not Sufficient to Guarantee it 
Personal Attributes and Behaviors that Predict Longer-Term Success
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Aligning Work Value and Pay
Knowledge Skills Abilities
Competencies
Results
Base Salary
Incentive Pay
Merit Pay
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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.
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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.
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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 
Bibliography
Drucker, 1997