CHAPTER-2-JOB-VALUES-AND-COMPENSATION-DECISIONS.pptx

Importance of Job Values And Compensation

1. CHAPTER 2 JOB VALUES AND COMPENSATION DECISIONS

2. JOB ANALYSIS plays a crucial role in the many facets of human resource management. is defined as the systematic process of obtaining relevant information on a specific job. To get this information, job analysis consists of a series of activities conducted by job analysis.

3. Nature of Job Analysis Organizations need to establish a fair compensation structure. Job analysis supports this need by looking at the similarities and differences in the work contents of each job. Jobs with the same job content will have the same pay, Unless the job is performed in different locations.

4. Dimensions of Job Analysis Information to be collected Level of Analysis Source of Information Methods of collecting information

5. Information to be Collected This information includes the knowledge, skills, and abilities, qualifications, personality traits, scope of the job, tool and methods used, work conditions, and the contribution of the job organizational goals.

6. CONRIBUTION TO ORGANIZATIONAL GOALS

7. Level of Analysis When job analysis is conducted, the term job should be explained in the proper context because what is being analyzed has different levels.

8. Levels of Job Analysis

9. Source of Information Job analysis usually obtain information from the job incumbents themselves. PRIMARY SOURCES: JOB HOLDERS, SUPERVISORS SECONDARY SOURCES: POLICIES AND MANUALS, PERFORMANCE APPRAISALS, OLD JOB DESCRIPTIONS, ELECTRONIC PUBLICATION

10. Methods of Collecting Information Observation Interview Survey questionnaire

11. Job Analysis Process The conventional way of conducting a job analysis consists of six steps. It starts from the preliminary gathering of information and ends with the checking of the job description for the job analyzed. Create an Initial Job Information Visit the Work Area Conduct Interview Visit the Work Area for the Second Time Collate acquired Job Information Validate for Job Description Done

12. Job Description the main objective of the job description is to summarize the duties and responsibilities of the job the “what, how, and why of the Job description are essentially in job description

13. Example of Job Description

14. Job Evaluation as the process of determining the relative worth of various jobs for the purpose of creating a hierarchy of jobs which in turn becomes the basis for the development of the pay structures in the organization It has two principles Equal pay for equal work More pay for more important work

15. Nature of Job Evaluation Job evaluation could have started with the US Civil Service Commission in 1871 or with Frederick Taylor in 1881 but this did not matter anymore. Employer associations and the spread of unionism brought great strides in the installation of job evaluation in organization. National war labor board supported the use of job evaluation to propagate wage equality. through the civil rights movement job evaluation has put into law the Equal pay act of 1963.

16. Job Evaluation Process

17. 1. Job Analysis provides information on the skills duties and responsibilities, educational background, tools and equipment used for work conditions and so on. 2. Compensable Factors are the characteristics of the job which the organization considers as contributors to the achievement of organizational objectives.

18. 3. Job Evaluation Methods Types of Evaluation Methods 3.1 Point Factor – assigning points, weighting assignments, categorizing the jobs. 3.2 Factor Comparison – used to value jobs based on monetary equivalents using factors. 3.3 Job Ranking – jobs are ranked in the order of their importance from the simplest to the hardest or from the highest to the lowest. 3.4 Job Classification – uses grades or levels for each job.

19. Example of Factor Comparison Method

20. Advantages and Disadvantages of Factor Comparison Method

21. 4. Establishing the Job Structure It is to select people who should be part of setting up the job hierarchy.

22. Market Rate Analysis refers to the process of obtaining the current salaries of employers for different jobs which are used by the organization to established a more competitive and attractive pay structure.

23. Dimensions of a Wage Surveys Job Matching – obtaining precise matches between jobs in the organization and jobs elsewhere. Sample Frame – the data collected should contain a sample of organizations that fully represent the pay rates needed by the organization. Timing – The information obtained should be updated.

24. Sources of Wage Surveys Online Data National and Local Surveys Management or Consultants' Databases Recruitment Firms

25. Data Collection and Analysis