HRM-JOB ANALYSIS - Job Evaluation - Jan-Jun'11

8/7/2019 HRM-JOB ANALYSIS - Job Evaluation - Jan-Jun'11

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JOB ANALYSIS



WORK FLOW IN ORGANIZATIONS

• Through work flow design, managers analyze

the tasks needed to produce a product or service.

• With this information, they assign these tasks to

specific jobs and positions.• A job is a set of related duties. A position is the

set of duties performed by one person.

• A school has many teaching positions; the

person filling each of those position isperforming the job of a teacher.



Definition

• Job Analysis is a process to identify

and determine in detail the particular

job duties and requirements for a given

job.

• It is the study of each and every

component of a job.



Purpose of Job Analysis

• Determining Training Needs

•Recruitment & Selection

• Compensation

• Performance Appraisal



What Should be Analyzed?• Fundamental Purpose of the Job

• Work elements in the Job• General importance of each job element

• Approximate time spent on each task or specific area of responsibility

• Scope of the job and its impact on the operation

• Inherent authority (formal & informal latitude)

• Working Relationships

• Specific methods, equipment or techniques that are required for the job

• Job Climate (Objectives & Work environment)• Job Conditions (Physical effort, hazards, discomfort, chasing of

deadlines, travel requirement, creativity, innovation etc.



What aspects of a Job are analyzed?

• Duties and Tasks

• Environment

• Tools and Equipment

• Relationships

• Requirements



Methods of Job Analysis• Superior interviews

• Expert panels• Staff Analysts• Individual Line Manager • Direct Observations• Structured/Job Questionnaires• Position Analysis Questionnaire (PAQ)• A Structured JA checklist that includes 194 items or job elements

used to rate a job.

– Information Input

– Mental Process

– Work Output

– Relationships with other workers – Job context and work satisfaction

– Other characteristics



Applications of Job Analysis

• Job Description

• Job Specification

• Job Evaluation

• Job Design Job Enrichment Model

Job Characteristics Model



Job Description

• It is a written statement of duties and

responsibilities that are to be performed by the

job incumbent.

• It contains Job title, job identification section, job

duties section.

• Should Employees see their Job Descriptions?



Job Title: ....................................... Company Job Code: .......................................

Division/Department ....................................... Reports to: .......................................

Salary Grade/Band: .......................................

SUMMARYThis section provides an overall summary of the job.

PRIMARY RESPONSIBILITIESThis section provides the primary functions of the job. The responsibilities are usually in order of importance and/or timespent. This list may also be used to define "essential functions" for the purposes of the Americans with Disabilities Act.Therefore, duties listed here should be considered "essential". If an applicant cannot perform most if not all of the essentialfunctions, the applicant will not be considered for the position.

DDITIONAL RESPONSIBILITIESThis section provides additional functions of the job. The responsibilities are usually desired but not required. These dutiesare not "essential functions"; therefore, even if an applicant can not perform these duties, the applicants will still beconsidered for the position.

KNOWLEDGE AND SKILL REQUIREMENTSThis section provides specific knowledge and skill requirements such as sales techniques, facilitation skills, generallyaccepted accounting principles, and physical requirements. The number of years experience and/or education requirementsare also listed here.

WORKING CONDITIONSThis section contains information on working conditions out of the ordinary such as extensive travel, high noise levels, andfrequent lifting of over X pounds.



Job Specification

• It is a written statement of qualifications andskills an individual must possess in order to

perform the duties and responsibilities contained

in the job description.

• It covers skills required to perform the job and

physical demands the job places upon the

employee performing it.



Job Evaluation



Job Evaluation

• Process of determining the worth of one job inrelation to another without regard to personalities. Itanalyses and assesses the content of jobs, to placethem in some standard rank order.

• End Result:

Fair and logical remuneration system Systematic and reliable data for working out wage and

salary scales. ↓ wage grievances and dissatisfaction ↑ output and morale



Job Evaluation – Steps

• Examination of Job (Job assessment)

• Preparation of Job description

• Preparation of Job analysis• Comparison with other jobs

• Arrangement of jobs in a progression

• Relating the progression of jobs to amoney scale (Pricing Job Value)



Job Evaluation – Types & LimitationsTypes:

• Ranking• Classification• Points Rating• Factor Comparison

• Hay guide chart-profile methodLimitations:• Minimum Wages Act (1948),• Capacity to pay,

• Inter-industry wage variation,• Inter-regional wage variation,• Collective bargaining agreement etc.





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Classification Method

• Define number of classes or grades to describe group of jobs

• Compare job description with

class description

• Class description that most

closely agrees with jobdescription determines jobclassification



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Factor Comparison Method

• Five universal job factors - Mentalrequirements, skills, physicalrequirements, responsibilities, andworking conditions

• Raters need not keep entire job in mindas they evaluate; instead, they makedecisions on separate aspects or factorsof job



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Point Method

• Numerical values assigned tospecific job components

• Sum of values gives quantitativeassessment of job’s relative

worth• Job factors selected according tonature of specific group of jobs

P d f E bli hi P i



© 2008 by Prentice Hall9-20

Procedure for Establishing PointMethod of Job Evaluation

Select Job Cluster

Identify Compensable Factors

Determine Degrees and Define EachCompensable Factors

Determine Factor WeightsDetermine Factor Point Values

Validate Point System



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A Point Method Example

1. Select Job Cluster - Assume we aregoing to develop point system for theadministrative job cluster

2. Identify Compensable Factors - Assumecompensable factors identified areeducation, job knowledge, contacts,

complexity of duties, and initiative



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A Point Method Example (Cont.)

3. Determine Degrees and Define EachCompensable Factors - In administrative

job cluster, Education, Job Knowledge,

and Initiative have been determined tohave five degrees; Contacts has four;and Complexity of Duties has three



© 2008 by Prentice Hall9-23

A Point Method Example (Cont.)FACTOR: CONTACTS

Level (Degrees) Points

IVUsual purposes of contacts are to discuss problems and possible 90solutions, to secure cooperation or coordination of efforts, and to get

agreement and action; more than ordinary tact and persuasivenessrequired.

III Usual purposes of contacts are to exchange information and settle 66specific problems encountered in course of daily work.

II Contacts may be repetitive but usually are brief with little or no 42

continuity.I Contacts normally extend to persons in immediate work unit only. 18

A Point Method Example (Cont )



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A Point Method Example (Cont.)FACTOR: COMPLEXITY OF DUTIES

III Performs work where only general methods are available.Independent action and judgment are required regularly to analyzefact, evaluate situations, draw conclusions, make decision, andtake or recommend action. 85

II Performs duties working from standard procedures or generally

understood methods. Some independent action and judgment arerequired to decide what to do, determine permissible variationsfrom standard procedures, review facts in situations, anddetermine action to be taken, within limits prescribed. 51

I Little or no independent action or judgment. Duties are sostandardized and simple as to involve little choice as to how to dothem. 17

A Point Method Example (Cont )



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A Point Method Example (Cont.)4. Determine Factor Weights - Assume

the committee believes that education

is quite important for administrative jobcluster and sets the weight for education at 35%. The weights of other four factors were determined by the

committee to be:Job Knowledge—25Contacts—18

Complexity of Duties—17Initiative—5

The percent total is 100%



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5. Determine Factor Point Values -Committee determines total number of points for the plan. Number may vary,

but 500 or 1,000 points may work well.Committee has determined that a 500point system will work.

J b E l ti W k h t



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Job Evaluation Worksheet(500-Point System)

Degree of Factor

Job Factor Weight 1 2 3 4 5

Education 35% 35 70 105 140 175

Job Knowledge 25% 25 50 75 100 125

Contacts 18% 18 42 66 90

Complexity of Duties 17% 17 51 85

Initiative 5% 5 10 15 20 25



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6. Validate Point System - Each committeemember should take a random sample of

jobs within chosen job cluster and

calculate weights for each job selected

Point total for Administrative 2 job isdetermined to be 239 points

J b E l ti W k h t f



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Job Evaluation Worksheet for Administrative 2 Position

Degree of Factor

Job Factor Weight 1 2 3 4 5

Education 35% 35 70 105 140 175

Job Knowledge 25% 25 50 75 100 125

Contacts 18% 18 42 66 90

Complexity of Duties 17% 17 51 85

Initiative 5% 5 10 15 20 25

Total Job Value 239



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Job Pricing

• Placing dollar value on worth of job

• Pay grades - Grouping of similar jobs tosimplify pricing jobs

• Wage curve - Fitting of plotted points tocreate smooth progression between paygrades

• Pay ranges - Minimum and maximum payrate with enough variance between toallow for significant pay difference



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Job Pricing (Cont.)

• Broadbanding - Collapses many paygrades into few wide bands to improveeffectiveness

• Single rate system - Pay ranges notappropriate for some workplace conditionssuch as some assembly lines

• Adjusting pay rates - Overpaid andunderpaid jobs

Scatter Diagram of Evaluated Jobs Illustrating



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Scatter Diagram of Evaluated Jobs IllustratingWage Curve, Pay Grades, and Pay Ranges

100 200 300 400 500

17.20

$19.80

18.50

15.9014.6014.0013.3012.90

12.00

Average Pay per Hour (Current Rates or Market Rates)

W a g e C

u r v e

Evaluated Points1 2 3 4 5Pay Grades

1

2

3

4

5

Pay Ranges for Pay Grades

0- 99 1 $12.00 $13.30 $14.60100-199 2 13.30 14.60 15.90

200-299 3 14.60 15.90 17.20300-399 4 17.20

5 17.20 18.50 19.80

Evaluated Points Pay Grade Minimum Midpoint Maximum

Summary



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Broadbanding• Technique that collapses many

pay grades (salary grades) intofew wide bands to improveorganizational effectiveness

• Lateral employee development

• Develop employee skills andencourage team focus

• Employee attention directedaway from vertical promotionalopportunities

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HRM-JOB ANALYSIS - Job Evaluation - Jan-Jun'11