The Job and Compensation Management

8/6/2019 The Job and Compensation Management

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THE JOB &

COMPENSATION

MANAGEMENT



CONCEPT OF JOB IN

COMPENSATION MAKING Any discussion of jobs and job analysis assumes aknowledge of certain definitions:

Element –The smallest step into which any work activity canbe sub-divided without analyzing the separate motions,movements, and mental processes involved in performingthat activity.

Task – one or more elements of the distinct activities thatconstitute the logical and necessary steps leading to aspecified end-result.

P. Williams



CONCEPT OF JOB IN COMPENSATION

MAKING (con’t)

Position – a collection of tasks that constitute a singleemployee’s total work assignment.

Job – a group of positions that are identical with respectto their major (essential) tasks.

Job family – a grouping of jobs into larger groups based

on similarity of tasks performed.

P. Williams



JOB ANALYSIS

The term job analysis is a generic term thatrefers to any systematic process of gatheringinformation about work requirements.

The purpose of job analysis should be thedeciding factor for the type of information

that must be gathered.

P. Williams



JOB ANALYSIS (Con’t)

Job Analysis is used to establish and document

the job relatedness of employment proceduressuch as training, selection, compensation and

performance appraisal.

To make better employment and management

decision, save money and increase productivity.

P. Williams



ROLE OF THE JOB

ANALYSIS Job Analysis results in the creation of three

types of end-products:

1. Job Description or Job Specification

2. Classification of jobs into job families

3. Job Evaluation

P. Williams



JOB DESCRIPTION

A job description is the enumeration of the job’s

function in the organization, its relationship tpother jobs, the job’s essential tasks, and the job’s

working conditions.

A job description contains:

The job title The date implemented or updated

Manager’s signature for approval

P. Williams



JOB SPECIFICATION

A job specification is a specialized jobdescription.

In personnel selection, job specification arestatements of the specific knowledge, skilland ability required of individuals who will beperforming the job.

P. Williams



CLASSIFICATION OF JOBS INTO

JOB FAMILIES FOR PAY DECISIONS

Job descriptions are often used to

classify jobs into job families for thepurpose of determining how much topay each job within the family.

P. Williams



JOB EVALUATION

Job Evaluation – is referred to the

process of determining the relative

value of jobs to the organization,without taking into consideration the

pay for those jobs or the performance

of the individuals on those jobs.

P. Williams



STEPS IN CONDUCTING

JOB ANALYSIS Step 1 – Preliminary Consideration

Step 2 –Types of information collected

Step 3 – Sources of Job Information

Step 4 – Method of data collection

Step 5 –Coordination of data collection

Step 6 – Data tabulation and presentation

Step 7 –Validity and reliability of date collection

Step 8 –Cost benefit analysis

P. Williams



STEP 1

Preliminary Consideration include: Establishment of a job analysis policy

Establishment of a communication policy

Review of legal issues

Identification of information needs

P. Williams



STEP 2

The types of information to be collected will depend onthe purpose of the job analysis.

For compensation decision making, the necessaryinformation must include: Job Function

Duties

Responsibilities

Essential Tasks

Work conditions

P. Williams



STEP 3

Sources of the Job Information – the

two primary sources of job analysis

are:1. Job incumbent

2. Immediate Supervisor

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STEP 4

Methods of Data Collection – there are manymethods that can be used to collect the jobanalysis information.

Some commonly used methods are: Direct Observation

Questionnaires

Interviews

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STEP 5

Coordination of Data Collection withManagers – the Compensation analyst mustbe sure that whatever method is used tocollect the information does not interferewith each operating unit’s ability to operateaffectively and efficiently

P. Williams



STEP 6

Data tabulation is a significant undertaking,

especially in organization that have many jobsbeing analyzed or many employees working in a

few jobs.

When the number of respondents is large, it is

essential that the date tabulation issue isaddressed in the early stages of job analysis

design.

P. Williams



STEP 7

Reliability and Validity of Data Collection –

Reliability is the consistency of the dataobtained, it refers to consistency of data

between analysts or within an analyst’s data.

Consistency of data between analyst compares

the data obtained by different analysts who arestudy the same jobs.

P. Williams



STEP 8

Cost Benefit Analysis – the organization must

calculate the total cost of its proposed jobanalysis process and compare it with the

perceived benefits.

The cost should include the cost of time that the

human resource department must allocate tothe project and the time that supervisor and job

incumbent must spend on the project.

P. Williams



THE END

THANK YOU

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The Job and Compensation Management