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8/31/2021 1 Unit 3 JOB BASED STRUCTURE Instructor Associate Prof Dr Pham Thi Bich Ngoc National Economics University Outlines • Job analysis • Job evaluation Content, value and external market link •[.]
8/31/2021 Unit 3: JOB-BASED STRUCTURE Instructor: Associate Prof Dr Pham Thi Bich Ngoc National Economics University Outlines • Job analysis • Job evaluation: Content, value and external market link • Job evaluation methods • Pay structure JOB ANALYSIS 8/31/2021 STRUCTURES BASED ON JOBS, PEOPLE, OR BOTH • Job-based approach: Most common Determining the Internal Job Structure Job Analysis • A systematic process for gathering, documenting, and analyzing information in order to describe jobs • Identifies and defines job content • Job duties that employees must perform • Worker requirements (compensable factors) are needed to perform the job • Job context or working conditions, like: • Social context • Physical environment Steps in the Job Analysis Process • Determine a job analysis program • Select and train analysts • Job analyst orientation • Conduct the study: data collection methods and sources of data • Summarize the results: writing job descriptions 8/31/2021 Determine a job analysis program DECIDE BETWEEN USING AN ESTABLISHED SYSTEM OR DEVELOPING ITS OWN TYPICAL METHODS INCLUDE QUESTIONNAIRES, INTERVIEWS, OBSERVATION, AND PARTICIPATION Select and train analysts Job analysts must be able to collect job-related information through various methods, relate to a wide variety of employees, analyze the information and write clearly and succinctly Ideally, a task force of representatives from throughout the company conducts the analysis, while HR staff members coordinate it Training should be provided on the basic assumptions of the model and the procedures Direct job analysts orientation • Before starting job analysis techniques the analyst must analyze the context in which employees perform their work • Analysts should obtain and review internal information 8/31/2021 Conduct the study: Data collection methods and sources of data • Analysts should carefully choose the method of data collection and the sources of data • The most common methods of data collection are questionnaires and observation • Most common sources of data are job incumbents, supervisors, and the job analysts • A reliable job analysis method yields consistent results under similar conditions • A valid job analysis method accurately assesses each job’s duties 10 Conduct the study: Data collection methods and sources of data • Collected information 11 Summarize the results: writing job descriptions • Should summarize the job’s purpose and list its tasks, duties, responsibilities, as well as the KSA’s necessary to perform the job at a minimum level • Should contain: • Job title to indicate the job designation • Job summary with two to four concise, descriptive statements • Job duties to describe the major work activities and supervisory responsibilities • Worker specification to list the education, skills, abilities, knowledge, and other qualifications needed to perform the job 12 8/31/2021 JUDGING JOB ANALYSIS • Reliability: is a measure of the consistency of results among various analysts, various methods, various sources of data, or over time • Validity: examines the convergence of results among sources of data and methods • Acceptability • Updated information • Usefulness refers to the practicality of the information collected 13 Job evaluation 14 JOB EVALUATION DEFINED Job evaluation is a systematic process for defining the relative worth or size of jobs within an organization in order to establish internal relativities and provide the basis for designing an equitable grade and pay structure, grading jobs in the structure and managing relativities 15 8/31/2021 JOB EVALUATION DEFINED The evaluation is based on a combination of job content, skills required, value to the organization Organizational culture External market 16 AIMS OF JOB EVALUATION • Establish the relative value or size of jobs, ie internal relativities; • Produce the information required to design and maintain equitable and defensible grade and pay structures; • Provide as objective as possible a basis for grading jobs within a grade structure, thus enabling consistent decisions to be made about job grading; • Ensure that the organization meets ethical and legal equal pay for work of equal value obligations 17 FEATURES OF JOB EVALUATION • Systematic • Judgemental • Concerned with the job not the person • Concerned with internal relativities 18 8/31/2021 DEFINING JOB EVALUATION: CONTENT, VALUE, AND EXTERNAL MARKET LINKS • Content and Value • Internal alignment based on content orders jobs on the basis of the skills required for the jobs and the duties and responsibilities associated with the jobs • A structure based on job value orders jobs on the basis of the relative contribution of the skills, duties, and responsibilities of each job to the organization’s goals • Linking Content with the External Market • Job evaluation as a process for linking job content and internal value with external market rates • Aspects of job content (e.g., skills required and customer contacts) take on value based on their relationship to market wages • Aspect not related to the external labor market may be excluded in the job evaluation 19 DEFINING JOB EVALUATION: CONTENT, VALUE, AND EXTERNAL MARKET LINKS • Measure for measure” versus “Much about nothing” • Job evaluation may be judged according to technical standards if participants agree that skills, effort, responsibilities, and working conditions are important, then work is evaluated based on these factors 20 Job evaluation • Market-based evaluations • Use market data to determine differences in job worth • Allow companies to assign pay rates that are neither too low nor too high relative to the market • Compensation professionals use compensation surveys to determine the prevailing pay rates in the relevant job markets 21 8/31/2021 Job evaluation • Job-content evaluations • Emphasize the company’s internal value system to establish a hierarchy of internal job worth based on each job’s role in the company strategy • Compensation professionals must judge the adequacy of pay differentials by comparing market rates with in-house rates • Must balance external market considerations with internal consistency objectives 22 Assumptions Underlying Different Views of Job Evaluation Aspect of Job Evaluation Assumption ▪ Assessment of job content • Content has intrinsic value outside external market ▪ Assessment of relative value • Stakeholders can reach consensus on value ▪ External market link ▪ Measurement ▪ Negotiation • Value cannot be determined without external market • Honing instruments will provide objective measures • Negotiating brings rationality to a social/political process; establishes rules of the game and invites participation 23 Determining an Internally Aligned Job Structure 24 8/31/2021 “How-To”: Major Decisions • Establish the purpose • Supports organization strategy • Supports workflow • Is fair to employees • Motivates behavior toward organization objectives 25 “How-To”: Major Decisions • Single versus multiple plans • Different evaluation plans are used when the work content is too diverse to be evaluated by one plan 26 “How-To”: Major Decisions • To be sure that all relevant aspects of work are included in the evaluation, an organization may start with a sample of benchmark jobs • Contents are well-known and relatively stable over time • Job is not unique to one employer • A reasonable proportion of the work force is employed in this job 27 8/31/2021 Benchmark Jobs 28 Benchmark Jobs • A benchmark job has the following characteristics: • Its contents are well known and relatively stable over time • The job is common across a number of different employers It is not unique to a particular employer • A reasonable proportion of the work force is employed in this job 29 “How-To”: Major Decisions • Diversity in the work can be thought of in terms of: • Depth (vertically) • Breadth (horizontally) • Number of job evaluation plans used hinges on: • How detailed an evaluation is required to make pay decisions • How much it will cost • Choose among job evaluation methods 30 10 8/31/2021 Characteristics and factors/aspects of the Hay Guide Chart • Know-how is the sum of every kind of knowledge, skill and experience required for standard acceptable job performance • Activity: Performance or supervision of work which is specific as to objective and content with appropriate awareness of related activities • Heterogeneous: Operational or conceptual integration of functions which are diverse in nature and in objective in an important management area, or central co-ordination of a strategic function 49 Step 2: Determine Compensable Factors (cont.) • How many factors? • “Illusion of validity” - Belief that factors capture divergent aspects of a job and both are important • “Small numbers” - If even one job has a certain characteristic, it is used in the entire work domain 50 Step 3: Scale the Factors • Scales reflecting different degrees within each factor are constructed • Most scales consist of four to eight degrees • Also include undefined degrees such as plus and minus around a scale number • Major issue: Interval scaling 51 17 8/31/2021 Step 3: Scale the Factors • Criteria for scaling factors: • Ensure number of degrees is necessary to distinguish among jobs • Use understandable terminology • Anchor degree definitions with benchmark-job titles and/or work behaviors • Make it apparent how degree applies to job 52 Step 4: Weight the Factors According to Importance • Different weights reflect differences in importance attached to each factor by the employer • Determination of factor weights • Advisory committee allocates 100 percent of the value among factors 53 Step 4: Weight the Factors According to Importance (cont.) • Select criterion pay structure • Committee members recommend the criterion pay structure • Statistical modeling techniques are used to determine the weight for each factor • Statistical approach is termed policy capturing to differentiate it from the committee a priori judgment approach • Weights also influence pay structure 54 18 8/31/2021 Job Evaluation Form 55 Step 5: Communicate the Plan and Train Users • A manual is developed • Describes job evaluation method • Defines compensable factors • Provides information to distinguish varying degrees of each factor • Users require training and background information on the plan • Appeals process may be included • Communication is required to build employee acceptance 56 Step 6: Apply to Non-benchmark Jobs • Final step involves applying plan to remaining jobs • Plan becomes a tool for managers and HR specialists • Trained evaluators will evaluate new jobs or reevaluate jobs whose work content has changed 57 19 8/31/2021 Step 7: Develop Online Software Support • Online job evaluation is widely used in larger organizations • Becomes part of a Total Compensation Service Center for managers and HR generalists to use 58 Who Should be Involved? • Compensation professionals are primarily responsible for most job evaluations for most jobs • Design process matters • Attending to the fairness of the design process and approach chosen is likely to achieve employee and management commitment, trust, and acceptance of results 59 Who Should be Involved? • Compensation professionals are primarily responsible for most job evaluations for most jobs • Appeals/review procedures • Inevitable that some jobs are incorrectly evaluated • Requires review procedures for handling such cases and helping to ensure procedural fairness • Procedures should be judged for their susceptibility to political influences 60 20 ...8 /31 /2021 STRUCTURES BASED ON JOBS, PEOPLE, OR BOTH • Job- based approach: Most common Determining the Internal Job Structure Job Analysis • A systematic process... alignment based on content orders jobs on the basis of the skills required for the jobs and the duties and responsibilities associated with the jobs • A structure based on job value orders jobs on... relative to the market • Compensation professionals use compensation surveys to determine the prevailing pay rates in the relevant job markets 21 8 /31 /2021 Job evaluation • Job- content evaluations