Chapter Topics Criteria for pay structures Importance of job analysis Job analysis procedures Job analysis and globalization Judging job analysis Structures Based on Jobs, People, or Both Job-based structures: look at what people are doing and the expected outcomes Skill- and competency-based structures: look at the person EXHIBIT 4.3 Determining the Internal Job Structure Job Analysis Terminology Lets skip exhibit 4.3 and use the handout instead Occupation: a generalized job or job family, found in many industries or organizations, in which a common set of tasks are performed or are related in terms of similar objectives, methodologies, materials, products, worker actions or worker characteristics (e.g. Engineer, Teacher, Doctor) Job Family: a group of jobs having the same nature of work (e.g. engineer) within which are different levels of skill, effort, responsibility or working conditions. E.g. Sr. Engineer, Associate Engineer Job: the total collection of tasks, duties and responsibilities assigned to one or more individuals whose work has the same nature and level. There may be one or more than one person employed in the same job (e.g. HR assistant, you may have 6 HR assistants in the organization) Job Analysis Terminology Position: the duties and responsibilities of a single worker. There is only one position per person. (HR assistant in the Department of Surgery, position # 3342) Job Responsibility: a group of duties that describes the major purpose or reason for the existence of the job (reconcile accounts receivables) Job Duty : a group of tasks that constitutes one of the distinct and major activities involved in the work performed (e.g. calculate receivables) Task: one or more elements of the distinct activities that constitute logical and necessary steps in the performance of work by the worker (add up columns in spreadsheet) a task is created whenever human effort, physical or mental is extended to accomplish a specific purpose. Task Element: the smallest step into which it is practical to subdivide any work activity without analyzing separate motions, movements and the mental processes involved ( e.g. turn on computer) Question #1- Why Perform Job Analysis? Job analysis potentially aids every HR function. In compensation, job analysis has two critical uses: it establishes similarities and differences in the work contents of the jobs, and it helps establish an internally fair and aligned job structure. Question #2 Information To Be Collected Related to the job: Job Identification – includes job titles, departments, and the number of people who hold the job Job content – elemental tasks or units of work, with emphasis on the purpose of each task Related to the Incumbent Employee characteristics Internal relationships External relationships Question #3 How is the information Collected Interviews Focus Groups Questionnaires Observation Journals and Diaries Question #4 Who Collects and Who Provides? Who Collects? Human resource generalists and supervisors. Someone thoroughly familiar with the organization and its job. Who Provides? Jobholders and supervisors. Subordinates and employees in other jobs that interface with the job under study. Number of incumbents from which to collect data varies with the stability of the job and ease of collecting the information. What About Discrepancies? Collect more data and discuss discrepancies, asking for sign off on revised results. Disagreements can: clarify expectations, learn a better way to do a job, and document how the job is performed. Support of top management, and union officials, is critical. Question #5 How useful are the results Once the job information has been collected it needs to be summarized in a way that will be useful That summary is the job description. Outcomes of Job Analysis Job Description Content Job Identification Information Description of work performed Job dimension and accountabilities Job/Working conditions Job requirements More on Job Descriptions Use generic job descriptions to avoid starting from scratch or to cross-check externally. Descriptions of managerial/professional jobs are often more detailed. Verify the description with jobholders and supervisors to make sure it is accurate and complete, note needed clarifications. Writing Job Descriptions Adapt the information and use your own words to describe the work more accurately. Combine information from other NOC descriptions to better identify the job performed by your employees, especially if positions in your company have tasks that span more than one occupations. Professional/managerial job descriptions must capture the relationship between the job , the person performing it and the organizations objectives, how the job fits into the organization, the results expected and what the person performing it brings to the job Job-Based Structures Criteria A structure based on content ranks jobs based on skills required, complexity of tasks, problem solving, and/or responsibility. EXHIBIT 5.2 Determining an Internally Aligned Job Structure # 1 -Establish the Purpose A structure is aligned if it: supports organization strategy, supports work flow, is fair to employees, and motivates behavior toward organization objectives. Establishing a purpose helps ensure the evaluation is a useful systematic process. #2 Single versus Multiple Plans Many employers design different evaluation plans for different types of work. Firms may start with a sample of benchmark jobs. Characteristics include: Its contents are well known and relatively stable. The job is common across employers, not unique to one employer. A reasonable proportion of the work force is employed in this job. #3 Choice of Job Evaluation Methods Job Ranking Raters examine job description and arrange jobs according to their value to the company Types: Simple, Alternation & Paired Comparison Job Classification Classes or grades are defined to describe a group of jobs Point Method Numerical values (points) are assigned to specific job components; sum of values provides quantitative assessment of the job’s worth Simple Ranking Orders job descriptions from highest to lowest based on relative value. Advantages: Simple, fast, and easy to understand and explain to employees; least expensive, initially. Disadvantages: Ranking criteria becomes subjective as evaluators must be knowledgeable on every job. Results are difficult to defend and costly solutions may be required. Other Ranking Methods Alternation Ranking Orders job descriptions alternately at each extreme. Evaluators agree on which jobs are the most and least valuable, then the next, etc. Paired Comparison Uses a matrix to compare all possible pairs of jobs. When all comparisons are completed, the job judged “more valuable” becomes the highest ranked job, and so on. Classification A series of classes covers the range of jobs. Job descriptions are compared to class descriptions to determine class level. Greater specificity of the class definition improves the reliability of the evaluation. It also limits the number of jobs easily classified. Jobs within each class are considered equal and will be paid equally. Classification/Grading This method required the development of description of job grades or classes. Individual job descriptions are then matched against grade descriptions. Its rational is that any number of jobs can be sorted out and classified into a number of pre-determined classes, grades or groups, on the basis of some common denominator present in each of the jobs. Common Denominators/Factors Experience Skill required Initiative Level of Responsibility Difficulty of work Effort Supervision given/received Judgement/Decision Making Education Job Conditions Special Requirements Developing Grades Method 1 Using the same denominators/factors at all levels but requiring and increasing degree of each factor at each higher level in the grade structure Method 2 Using only a few denominators/factors at the lowest levels and adding factors at each higher level. Developing Grade Descriptions Example Grade 1 - Unskilled Lowest level jobs consisting of simple routine work. Job knowledge is limited requiring no decision of consequence. Work is performed under close supervision and according to straight forward verbal or written instructions. Responsibility level is low and errors can be easily corrected, with little consequence. Required less than Grade 10 education. Position does not require initiative to develop own tasks or develop additional tasks, not self directed. Grade Descriptions Job Worth Hierarchy Is the order of jobs as reflected by their place in the classes/levels/grades The basis for pay programs is the hierarchy of jobs. The greater the worth of a job, the higher the pay, grade and range. Job Worth Hierarchy Outcomes of Job Analysis Job Description Content Job Identification Information Description of work performed Job dimension and accountabilities Job/Working conditions Job requirements More on Job Descriptions Use generic job descriptions to avoid starting from scratch or to cross-check externally. Descriptions of managerial/professional jobs are often more detailed. Verify the description with jobholders and supervisors to make sure it is accurate and complete, note needed clarifications. Writing Job Descriptions Adapt the information and use your own words to describe the work more accurately. Combine information from other NOC descriptions to better identify the job performed by your employees, especially if positions in your company have tasks that span more than one occupations. Professional/managerial job descriptions must capture the relationship between the job , the person performing it and the organizations objectives, how the job fits into the organization, the results expected and what the person performing it brings to the job Point Method This method allows the assignment of a numeric score to each job in an organization, through the identification of factors that are valued by the organization. This procedure results in a relative ordering of jobs based on the number of points that each job “scores”. Steps in Designing a Point Plan Steps in Designing a Point Plan Step 1: Conduct Job Analysis. A representative sample of benchmark jobs is drawn for analysis. Step 2: Determine Compensable Factors. Compensable Factors Compensable factors should be: based on the work performed, and based on the strategy and values of the organization, acceptable to the stakeholders affected by the resulting pay structure. Universal Compensable Factors Skill Effort Responsibility Working Conditions Number of Compensable Factors Overlapping factor definitions provide the “illusion of validity”. The belief that factors capture divergent aspects of a job. Another challenge is called “small numbers”. If even one job has a certain characteristic, it is used in the entire work domain. Step 3: Scale the Factors Most factor scales are 4 to 8 degrees. Suggested criteria for scaling factors: ensure the number of degrees is necessary to distinguish among jobs,it must suit the size of the organization use understandable terminology, anchor degree definitions with benchmark job titles and/or work behaviors, and make it apparent how the degree applies to the job. Step 4: Weight the Factors Weight the factors according to their importance to the organization: Weights are often determined through an advisory committee. Statistical modeling techniques determine the weight for each factor. Communicate, Train & Apply Step 5: Communicate the plan and train users. Prepare a manual and train users. An appeals process may be included. Employee acceptance is crucial. Step 6: Apply to remaining jobs. Who Should Be Involved? Design should involve all managers and employees with a stake in the results. A common approach is to use committees, task forces, or teams that include : Employees from key operating functions Union representatives Compensation professionals Consultants The Final Result: Job Structure The final result of the job evaluation process is a hierarchy of work, or a job structure Although the point method allows an organization to develop one job evaluation plan for all jobs in the organization, most times it is difficult to identify one set of compensable factors that is applicable for all jobs. Hence, organizations commonly have multiple structures, derived from different approaches, and applicable to different functional groups or units. Balancing Chaos and Control Complex procedures and bureaucracy can cause users to lose sight of the objectives. Allow flexibility to adapt to changing condition. Flexibility without guidelines increases chaos. Balanced guidelines ensure employees are treated fairly. EXHIBIT 5.5 Comparison of Job Evaluation Methods Summary Job evaluation is the process of systematically determining the relative worth of jobs to create a job structure for the organization, based on either job content, job value or both. Methods include ranking, classification and the point plan. The point plan is the most common method which allows comparisons of jobs in different functions by identifying compensable factors, scaling and weighting these factors. Job evaluation is often designed by committees with representation from employees, managers, and unions. It should also include an appeal process. Organizations commonly have more than one structure, applicable to different groups or units.
