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Job Analysis: Examine what technique[s] you would use to conduct a job analysis on the job you described in the exercise for this week. Your initial post should be at least 250 words in length. Support your claims with examples from required material in addition to 1 outside scholarly source and properly cite any references. 4 Job Analysis and Evaluation: Foundation of Compensation and Benefits Systems AbleStock.com/Thinkstock Learning Objectives At the conclusion of this chapter, students will be able to: 1. Discuss why internal consistency for compensation systems is important. 2. Discuss the major laws impacting job analysis and job evaluation. 3. Explain what a job analysis does and why it is needed. 4. Explain what a job evaluation does and why it is needed. 5. Explain compensable factors. 6. Discuss what difficulties a small company can run into in conducting a job analysis and job evaluation and what can be done to overcome those difficulties. abc82339_04_c04_077-106.indd 77 12/21/15 9:44 AM Section 4.1 Job Analysis Introduction How much will I get paid? How many vacation days do I get? What insurance coverage do I have and how much does it cost? How can I get a raise? Do I get a bonus? If so, how much? In order to adequately answer questions like these for its employees as well as job candidates, a company needs to have a cohesive approach to providing compensation and benefits. Before a company can design its compensation and benefits system, however, it must first define what jobs and tasks are performed by employees in the company. This is a process that is much more difficult than it initially sounds, and it consists of more than simply reviewing job descriptions. Only then can a company strategically, and not reactively, determine how to pay and reward those performing the work. In this chapter, we will discuss job analysis and job evaluation, the foundation of compensation and benefits systems. We will begin, however, by briefly discussing the idea of internal consistency as it is an underlying goal when creating a compensation and benefits system. From a compensation perspective, internal consistency refers to the relative value of each job within a company compared to every other job. Internally consistent compensation systems establish a hierarchy designed to provide order to a firm’s compensation system. Internal consistency uses KSAOs, which stands for knowledge, skills, abilities, and other factors, as the basis for creating the hierarchy of jobs within a firm. Every job requires the incumbent to possess certain types of knowledge (K), the capacity to use particular skills (S), specific jobrelated abilities (A), and other characteristics (O) such as particular aptitudes. In some instances, personality variables relative to the job are also evaluated. The goal of internal consistency is to ensure that jobs requiring higher levels of KSAOs Critical Thinking are eligible for higher levels of rewards. Job analysis and job evaluation are used to Why is internal consistency important? establish an internally consistent job and How can it be achieved? compensation system. We will explore each of these topics in full detail. First, we turn our attention to determine what each job entails. This information is needed so that the company can then determine the value of each job within an organization to make a determination of how to pay each job. 4.1 Job Analysis A job exists to fulfill an organizational function. The job analysis documents what that function is and how it is fulfilled. More specifically, a job analysis is the systematic process used abc82339_04_c04_077-106.indd 78 12/21/15 9:44 AM Job Analysis Section 4.1 to determine what a job entails, both in terms of the content and duties of the job, as well as what is required from the worker to perform the job. It determines what a worker does in a particular job, under what kinds of environmental conditions, and while using what specific types of knowledge, skills, abilities, and other characteristics (KSAOs) in order to accomplish organizational goals. Sometimes, the terms work analysis or role analysis are used to describe this process. The terms have slightly different nuances—for example, the term work analysis is capturing the idea that the work an employee does is fluid and not always tied to a specific job, while role analysis looks at the role the job plays within the organization instead of the job itself since the role doesn’t typically change but the specific ways of completing the job might. Overall, however, all three terms capture the concept of needing to know what is being done in the organization as well as how and with what skills. Therefore, these terms are often used interchangeably; we will use job analysis for our discussions. To understand why people behave as they do in the workplace and to improve their job effectiveness, we must know what they do. Therefore, a job analysis is the first step in employee selection, training, performance measurement, and other personnel programs. It is important to understand that a job analysis is an evaluation of the job, not the person. A job analysis determines the skills and abilities a person needs to do the job, but it does not evaluate individual workers. This is a key distinction that often gets blurred. Performance measurement, discussed in Chapter 5, is the mechanism used to evaluate individuals performing a job. A job analysis documents what occurs on the job. However, while job titles or descriptions may be outcomes of the job analysis process, they alone are not enough to convey the details of the job. A thorough job analysis is a way to ensure common understanding of the job across different users and perspectives. Before we get into these details, however, let’s gain an understanding of the legal reasons for conducting a job analysis. Legal Considerations for Job Analysis As we learned in Chapter 2, there are many laws governing issues of compensation and benefits. There are three key ones that impact a job analysis: (1) Title VII of the Civil Rights Act, (2) the Americans with Disabilities Act, and (3) the Equal Pay Act. Title VII of the Civil Rights Act Title VII of the Civil Rights Act prohibits discrimination in employment based on race, color, religion, sex, and national origin. A job analysis focuses on the requirements of the job and not on the individual. This helps ensure that the company does not inadvertently discriminate against an individual based on one of these protected classes. Americans with Disabilities Act A job analysis defines the key elements of a job, including the essential functions, the working environment, and the physical demands of a job. Since the Americans with Disabilities Act prevents discrimination against a qualified individual with a disability in employment abc82339_04_c04_077-106.indd 79 12/21/15 9:44 AM Job Analysis Section 4.1 matters, the job analysis can be used to help determine if the person is qualified—can perform the essential functions of the job, with or without reasonable accommodations—and what reasonable accommodations are needed so that a person with a disability could perform the job. By performing a job analysis, a company can determine if a person meets the qualifications for doing the job as well as what type of accommodations might be needed to help ensure compliance with the Americans with Disabilities Act. Equal Pay Act The Equal Pay Act stipulates that men and women who are employed by the same company must receive the same pay if their jobs are identical or very similar. Specifically, if the jobs demand equal levels of skills, responsibility, and effort and if their working conditions are the same, then men and women in those jobs must be paid the same. The criteria that are used to determine if the jobs are identical or very similar and therefore qualify under the act—the skills, level of responsibility, and working conditions—are found in the job analysis. Legally Defensible Job Analysis Given these laws, it is important that a company has a well-constructed job analysis for each job so that it can make sure it is not discriminating against any protected person with regard to its jobs. What makes a well-constructed job analysis? Thompson and Thompson (1982) found that there are nine factors that are important and necessary to having a legally defensible job analysis. They are as follows: Everett Collection/Superstock The fight for equal pay—a protest at the offices of the Houston Chronicle in 1970. 1. A job analysis must be performed and be for the specific job. This means that the company has done a job analysis for the specific job and didn’t just “make it up” or use a job analysis for another job. 2. Results should be in written form. This alleviates having to rely on someone’s memory of what was done and helps ensure consistency. 3. Data should be collected from multiple up-to-date sources by expert job analysts. This is to ensure that the job analysis is accurate and covers all perspectives of the job. 4. Data should be collected from a large and representative pool of subject matter experts (SMEs). Subject matter experts are people who are recognized as experts for their knowledge in a particular area or topic. This makes sure that a sole expert was not relied on as the source of information as well as that the experts chosen were knowledgeable in the particular job being analyzed. 5. The procedures used should be described in detail. This eliminates any doubt as to what techniques were used and what factors were considered in the analysis. abc82339_04_c04_077-106.indd 80 12/21/15 9:44 AM Job Analysis Section 4.1 6. Tasks, duties, and activities should be identified and included in the analysis. These are critical components that need to be included since they are the basis for how employees know what to do for their jobs as well as factors that impact their performance evaluations. 7. The most important tasks should be identified, especially for employee selection. This ties the job analysis (what is the job) to employee selection (who will do the job). Employee selection is beyond the scope of this book and will not be covered in detail; however, as mentioned in the “Uses of a Job Analysis” section below, employee selection is one of the outcomes of a job analysis. The job analysis provides the company with a detailed job result that it can then use to select the right worker for that job. 8. The entry-level competencies needed for the job should be specified. This means setting the minimum requirements needed to perform this job. Some requirements are needed immediately upon beginning a job, while others can be learned. It is important to know what employees must be able to do on day one and what they can learn to do after beginning Critical Thinking a job. 9. At a minimum, the KSAOs and tasks What are some of the aspects of a should be specified. This entails legally defensible job analysis? Describe being specific about which knowlinstances in your own work experience edge, skills, abilities, and other attriin which these aspects have been butes are needed for the job as well applied. as making sure that actual on-the-job behaviors are included. Goal and Objectives of a Job Analysis The overall goal of a job analysis is to translate what is actually done in a job to something that can be put down in writing. This means that the understanding of the job cannot be vague— instead, it must be specific, detailed, and distinct (Harvey, 1991, 2012). Accordingly, these are the key objectives of a job analysis: • Identify behaviors and tasks that must be done in order for the job to fulfill its function. • Identify the knowledge, skills, abilities, and other characteristics (KSAOs) that are needed to perform job functions. • Identify the work environment or context in which the job exists (work schedule, physical location, etc.). • Record the materials, tools, and equipment needed to perform the job. • Document the amount of time spent by employees in accomplishing major work tasks, goals, etc. At a macro level, measurable or observable KSAOs and behaviors critical to successful job performance are often grouped together as competencies. You will encounter competencies more when considering employee selection and training versus compensation, but be aware that these macro level considerations are what are typically meant when a company refers to “core competencies” and are often identified in a job analysis. abc82339_04_c04_077-106.indd 81 12/21/15 9:44 AM Job Analysis Section 4.1 Additionally, you want the job analysis to be reliable. A reliable job analysis will produce consistent results upon repeated evaluation or under similar conditions. That is, if several analysts conduct a job analysis in a similar manner (e.g., using the same data-gathering techniques), their methods are reliable if they reach similar conclusions. Ultimately, our concern is with the validity (i.e., accuracy) of the job analysis, and reliability is a necessity for accuracy. Elements in a Job Analysis A job analysis involves looking at both the actual work to be done and the tools needed by the worker in order to get the work done. Specific and detailed information needs to be gathered about each of these aspects—the work and the tools—in order to understand what is actually done on the job. Below are the key elements that are included by the Department of Labor and most organizations when conducting a job analysis. Behaviors and Tasks Behaviors and tasks relate to the activities the worker does while performing the job. These activities are both tangible, which can be seen or observed, and intangible, which cannot be directly seen or observed. This element covers the worker’s actions and activities used in getting the job done. Consider the job of payroll clerk. This job involves keeping track of data about individual employees and ensuring they each get paid the correct amount and on time. For this job, tangible tasks would involve activities such as entering data into a spreadsheet, while an intangible activity would be analyzing the data once it is entered. Roles and Relationships Roles and relationships encompass how the job fits within the overall organization and what interactions the person in the job has with information and other people, both inside and outside the organization. For example, for a payroll clerk position, the job fits within the accounting function that is used to support the company’s human resources department, which supports the company’s overall operations. The position of payroll clerk entails working with other accounting personnel and managers, among others, within the company and with third-party vendors outside the company. An organizational chart (see Figure 4.1) shows boundaries, reporting relationships, communication channels, and a visual representation of job relationships. Traits Traits are those elements of education, vocational or technical training, personal characteristics, aptitude, and attitude required of the worker. For our payroll clerk example, such traits could include having an associate’s degree, being precise and accurate, and paying attention to detail. abc82339_04_c04_077-106.indd 82 12/21/15 9:44 AM Section 4.1 Job Analysis Figure 4.1: Sample organizational chart An organizational chart helps outline how a position interacts with the rest of the company. CEO CFO VP of HR COO VP of Finance Manager Benefits VP of Operations Manager Payroll Manager Selection Payroll Clerk & Other Employees Employees Employees Employees Employees Employees Employees Employees Employees Employees Treasurer Controller Manager - Manager Distribution R&D Manager Products VP of Sales Manager Marketing Manager Bus. Dev. Materials and Technology Materials and technology cover the tools, equipment, and other aids that a worker would need to complete the job. For our payroll clerk, the tools needed range from basic paper and pencil to a computer to a filing cabinet. A more mechanical job, like a car mechanic, would involve specialized equipment such as a jack to lift a car or a specific type of wrench. Physical and Mental Demands Physical and mental demands refer to the conditions required of the worker to perform the job. This covers what is physically demanded of the worker, such as standing or sitting for long periods of time or lifting a heavy weight, as well as the mental demands on the worker, such as how stressful the job is and what the impact of making decisions is. For example, an ER doctor faces more mental demands due to the life-and-death decisions being made in critical situations, whereas a payroll clerk does not face that level of instant impact based on decisions made. In our payroll clerk example, the physical conditions are likely to involve frequently sitting at a desk and working with a computer. While this may not sound particularly challenging, it is important to consider what is needed relative to the Americans with Disabilities Act to determine if a particular handicap may be reasonably accommodated by an employer. In our example, if the clerk is blind, it is likely the job context would involve providing access to auditory information from the computer and the use of a headset or semiprivate office so sound would not affect nearby workers. For some companies and jobs this would represent a reasonable accommodation and for others it would not. wea82339_04_c04_077-106.indd 83 1/7/16 1:35 PM Job Analysis Section 4.1 Work Environment The work environment consists of the environmental conditions that a worker operates in. This section details areas such as the noise level, the temperature, and the cleanliness of the area where the worker operates. Our payroll clerk would most likely operate in a typical office setting with a low to moderate noise level, controllable temperature, and a clean, nondusty area. O*NET The U.S. Department of Labor provides an invaluable starting place for job analysis, job evaluation, and writing job descriptions, known as the Occupational Information Network (O*NET). It allows anyone—job seekers, employees, employers, job and compensation professionals, and any other interested party—to browse occupations to see what the work involves, what specific tools are used, and what specialized training (e.g., licenses, educational level) are required. O*NET (www.online.onetcenter.org) is a continuously updated database that contains hundreds of job-related descriptors. The database also provides seamless connectivity to the site’s career exploration and assessment tools for job seekers, students, and anyone else interested in exploring, identifying, finding, or changing jobs, occupations, or careers. Each job, each occupation, and each career requires a different mix of and a different emphasis on knowledge, skills, abilities, and other characteristics required to perform a job effectively. Such distinguishing elements are used to explain and define important features of an occupation using standardized, measurable sets of variables referred to as descriptors. The daily aspects and activities of the job together with the interests of a typical worker doing that specific type of work are available. There are 277 descriptors collected by the O*NET program in addition to others provided by various federal agencies. O*NET also provides a taxonomy (a scheme of classifications) to define the set of all occupations. This classification system, last revised in 2010, includes 974 occupations. O*NET has replaced the Dictionary of Occupational Titles and in most cases should be used. However, the Dictionary of Occupational Titles is still provided on the Department of Labor’s website (www.oalj.dol.gov/libdot.htm) because it provides a mechanism for researching past jobs and because it was a standard reference in several types of cases adjudicated by the Office of Administrative Law Judges. The last published edition of the Dictionary of Occupational Titles was 1991. To see the O*NET report for a payroll clerk, visit the website (http://www.onetonline.org/ link/summary/43-3051.00). Job Analysis Techniques Now that we know what needs to be included in a job analysis, how do we get that information? There are numerous techniques that can be used to gather the detailed information about a job that is needed in order to perform a job analysis. Some techniques allow you to gather a lot of information cheaply, while others are more expensive but allow intensive examination of the job. You will have to determine what time and budget constraints you have abc82339_04_c04_077-106.indd 84 12/21/15 9:44 AM Job Analysis Section 4.1 and then pick the best methods for your particular situation and company. Additionally, you need to determine which positions and how many are to be examined. Before getting into the techniques used to gather information, you need to consider the sources of that information. There are four basic sources of job information. Each has its own advantages and disadvantages, so you will want to use more than one source. • Incumbent—Since this is the person doing the job, the incumbent will know more about what he or she actually does than other sources will; however, the information provided isn’t always accurate or reliable. The incumbent may have some bias, may want to inflate his or her status, or may not understand the context of the job in relation to the overall operations of the company. • Supervisor—The supervisor knows what is supposed to be done in the job but not necessarily what is actually done or how it is done. The supervisor also is not actually doing the job, so he or she may not understand the full scope or nuances of the job. • Other Knowledgeable Individuals—These are individuals such as customers (both internal and external to the company), subordinates, industry analysts, and executives that have some, usually specialized, knowledge of the job. • Preexisting Information—This uses information that is already available, such as previous job analyses, job descriptions, policies and procedures manuals, or outside sources like O*NET. What follows are the basic techniques used in conducting a job analysis. You will often see these techniques presented as if they are independent—they aren’t. They should be used in conjunction with each other to give you a more complete picture of the job. Interviews Interviews are probably the most commonly used technique because they are flexible and easy to understand. However, they are also the most common technique that is not used well because people assume they know how to do an interview and don’t need to be trained on how to properly conduct one. Interviews may range from completely unstructured (such as “Tell me all about your job”) to highly structured interviews that involve a detailed checklist of every possible aspect of a job. Usually, the best and most efficient approach falls somewhere between the two extremes. Conducting an Interview To conduct an interview properly, you need to follow a structured procedure to ensure consistency across interviews and to make sure you are gathering all pertinent information. The first step in the process is to clarify why you are talking with this particular person, keeping in mind what information you can learn from the individual as well as the context and overall goal of the job analysis. An interview with an incumbent, the person doing the job, will be different from an interview with a supervisor, which in turn is different from an interview with senior management. abc82339_04_c04_077-106.indd 85 12/21/15 9:44 AM Job Analysis Section 4.1 The next step is to create an interview guide that has the questions to be asked as well as room for notes. When creating the interview guide, remember you are looking for the whole picture of the job—what is done, who does the work, the resources available, the environment in which the work takes place, and the end result. You are trying to determine all the components that go into the job. An example of an interview guide to use when conducting a job analysis is presented in Figure 4.2. Keep in mind that an interview guide is not universal. You will need to tweak it to fit the job you are looking at since not all questions are appropriate for every job. Also, you will want to allow room for follow-up questions and time for discussion. As an interviewer, it is usually a good idea before concluding the interview to end with a “what have we left out of this discussion” question to make sure you are getting a complete picture of the job and capturing the essence of what the job entails. When conducting an interview, you need to be structured, yet flexible. This will enable you to obtain standard information while also providing room to adjust for the flow of the interview. Listed below are some hints for successful interviewing: • Take notes. • Use the interview guide as just that, a guide, not a recipe you have to follow line by line—don’t ask questions if they have already been answered by an interviewee in response to a different question. • Be professional, but try not to be too formal; put the interviewee at ease. • Start off by saying something like, “I’m here to learn from your expertise; you are the expert in your job and my goal is to learn about your job from you.” • Get complete answers to your questions. Ask follow-up questions such as these: • Give me another example. • Walk me through the process. • What else is involved? • When does this occur? • When/how often does this occur? • What happens/happened next? • Ask for clarification of jargon or professional language you do not understand. (You can say, “You are the expert here; tell me what that means.”) • Don’t accept generalizations; get details. • Be unbiased—you aren’t there to judge what the person is saying. Types of Interviews Interviews are typically conducted face-to-face on an individual basis. There are some times, however, when other methods are more conducive, such as the special cases below. Panel Interview—A panel interview involves multiple people interviewing one person. A panel interview would be used when multiple people need to understand the job or when experts are needed to ask more technical questions. Focus Group—A focus group, also called a group interview or workshop, typically involves one person interviewing multiple people. Focus groups are used when you want the group to interact and build on each other’s ideas. They abc82339_04_c04_077-106.indd 86 12/21/15 9:44 AM Section 4.1 Job Analysis Figure 4.2: Sample interview guide for conducting a job analysis Determining all the components that go into a job can be complicated. It’s best to create a structured procedure that will help you gather all the important details. Sample Interview Guide for Job Analysis BACKGROUND INFORMATION: Employee’s Name Job Title Department Interviewer’s Name Date of Interview PURPOSE OF JOB: JOB DUTIES (what, how, when, why): Main Duties and Responsibilities Daily Tasks Weekly Tasks Quarterly Tasks Periodic Tasks Duties This Job Shouldn’t Do Duties Not Included in Job Description COMMON ISSUES, PROBLEMS, or OBSTACLES: IMPACT of JOB on COMPANY: Financial Other IMPACT of ERRORS: On Job On Others On Company EDUCATION REQUIREMENTS: Degree(s) Certifications/Licenses EXPERIENCE REQUIRED: TOOLS REQUIRED: Tools, equipment, etc. SUPERVISION REQUIRED: Of the Incumbent By the Incumbent LEVEL of DECISION MAKING: PHYSICAL DEMANDS: Standing/Kneeling/Pushing/Pulling/Carrying/ Sitting/Reaching/Climbing/etc. ENVIRONMENTAL CONDITIONS: Noise/Temperature/Location/Vibration/ Hazard Materials/Ventilation/etc. OTHER: Anything else; anything we’ve missed abc82339_04_c04_077-106.indd 87 _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ 12/21/15 9:44 AM Job Analysis Section 4.1 are also used when there are time or schedule constraints since multiple people can be interviewed in one sitting. When putting together a focus group, make sure the people in the group are of the same level. If you have a manager in the group with subordinates or lower-level employees, you won’t get full answers because the manager will typically dominate the conversation and could intimidate (likely unintentionally) the other employees, who will look to the manager to gauge what they are supposed to say. Technology-based Interviews—These interviews are conducted utilizing technology, such as phone, video, and chat, rather than in person. Typically these are designed to help with logistics for those who are not in the same location or to save on costs. The interviews can be conducted as a typical interview, with the procedures we discussed above. Adjustments might need to be made to account for the technology used and any issues that might arise. Written Interview—A written interview is an open-ended questionnaire. It usually starts off with general categories and then leads into specific examples. A written interview is used to gather information from a large number of people when data collection isn’t feasible with the other methods discussed due to time and logistics issues. A limitation of the written interview is that it does not allow for follow-up questions based on answers the person gives. You lose out on the interactions between the interviewer and interviewee that often lead to insightful information. Observation Using observation to understand a job is one of the oldest approaches. Frederick Taylor’s scientific management was all about using observation to get information. The observation technique for conducting a job analysis is especially important if you are not familiar with the job being analyzed. It helps you get a “day in the life” perspective of the job and gathers information beyond what would be provided in interviews and questionnaires. Observation can also help with gaining knowledge about the vocabulary, tools, tasks, and environment of a job. An added benefit is if the observer can participate in the job, as long as it is feasible and practical for the observer to do so. Additionally, judges and lawyers in cases challenging employment procedures appear to put more faith in a job analysis if it includes observation. Below are some hints to help make the observation technique effective: • • • • Take notes. Remember the goal of the job analysis (selection, training, etc.). Be unobtrusive; ask questions but don’t get in the way. Observe for enough time to see a representative sample of the job (it is better to observe one incumbent for a decent length of time than several for short periods of time). • Observe during peak times. • Make note of both the frequency and duration of behaviors. Questionnaire A questionnaire is a written set of questions about a job that ask respondents to rate certain aspects of the job (KSAOs, tools, equipment, etc.). The questionnaire, either online or in abc82339_04_c04_077-106.indd 88 12/21/15 9:44 AM Job Analysis Section 4.1 paper-and-pencil format, is administered to employees and supervisors who know the job, to subject matter experts, to former job incumbents (if possible—e.g., they still work at the company but in different jobs), and to customers. This technique is useful as a backup to observations and interviews as it provides a different perspective and additional information than that gathered through interviews and observations. You can use off-the-shelf or customized questionnaires. They both use the same basic approach: (1) Jobs are broken down into a set of elements or characteristics and then (2) the selected respondents complete the questionnaire based on their knowledge of the target job. The questions asked are similar to those asked in an interview, such as what are the duties of this job; how do you perform those duties; what do you use in terms of equipment, tools, and so on to perform your job; how many employees report to you; and what certifications and education are needed for this job. Some practitioners use only custom measures or specific published measures; however, the type of measure used should really be based on the situation. Sometimes a custom approach is needed and sometimes an off-the-shelf approach is best. Both methods have merit. The custom measures provide more job-specific information, while prefabricated measures allow you to compare across jobs that are otherwise different. Look at the goal of the job analysis to decide which type of measures to use. The most common tailored questionnaire is the Task Analysis Inventory. This questionnaire collects information from SMEs about ratings of tasks and other necessary information as determined by the goal of the particular job analysis. When using the questionnaire, you will want to make sure you document the SME’s expertise and job knowledge as well as the ratings of task importance or frequency. You can modify the questionnaire to adjust for things such as the relevance of the task knowledge to a new hire, the coverage of the task by the selection test proposed, the difficulty of task, and the trainability of the task. Questionnaires can get long and tedious to fill out. To help combat this problem, streamline the questions as much as possible, format the questionnaires with a professional and clean look, and break out the different sections to make the questionnaire easier to complete. You also want to make sure the questionnaire is as easy to understand as possible. A variation or expansion of the questionnaire is keeping diaries and logs. With this technique, employees are asked to record significant or important activities on a regular basis and their reactions, feelings, or speculations about the event in terms of its relevance to the organization’s goals. Another way this technique is handled is by texting or calling employees to indicate when to record what they are doing at a point in time while they are working. Usually, the messages are randomly distributed throughout the workweek, averaging three times per week. This technique provides a different angle or perspective for gathering information; however, it uses self-reported data, so the information may not be the most accurate or unbiased. Critical Incidents Critical incidents focus on collecting information about critical aspects of job performance— both good and bad. It is usually done with a focus group, but most of the formats previously discussed can be utilized. With the critical-incidents technique, information about the situation, the behaviors involved, and the outcome is collected using specific behavioral examples of especially good and especially bad performance. abc82339_04_c04_077-106.indd 89 12/21/15 9:44 AM Job Analysis Section 4.1 This approach requires keeping detailed and ongoing records of key aspects of a given job that impact the organization and the goals of the business unit in which the job exists. The record-keeping is ex post facto, or after the fact. That is, the supervisor must record behaviors based on results of actions previously taken that, in his or her judgment, were particularly effective or ineffective in terms of desired results. Information must include the events leading up to the situation, a precise description of the actions taken by the employee, the results of the actions taken, and a judgment as to the amount of control exhibited by the worker (Antariksa, n.d.; Morgan & Smith, 1996). This technique should be used in conjunction with other techniques and never alone. It can be a fun session because incumbents get to talk about the situations that have been most influential to them on the job; however, it is easy to get off track with this technique. Also, you can get biased information from this technique as individuals tend to present themselves in the best light possible. Flow-Charting Flow-charting allows people to connect the work performed by several individuals, such as on a team or between teams of people, whose work impacts the next related team in the production or service process. The advantage of this approach is that individual job boundaries do not exclude adjacent jobs that impact one another, resulting in a more strategic picture of jobs in an organization (see Sanchez, 1994). Flow charts can be very useful in graphically representing processes and work flow. Choosing the Best Techniques Choosing which job analysis techniques to use is not always easy. The best advice is to do as much as you can with the time, resources, and budget available. At a minimum you will want to do some observations, a few interviews, and a review meeting with SMEs. Additionally, you will need to be sure to validate that the data collected accurately reflects the actual work, conditions, and other characteristics being examined. To do so, use a combination of approaches (e.g., interviews and questionnaires) and check with job incumbents, former incumbents, supervisors, subject matter experts, and even customers outside of the organization. An example of this latter item is the recorded message commonly played before a customer service representative comes on the line indicating that the phone call made to the company may be recorded for quality assurance purposes. Alternatively, the customer may be asked if he iStock/Thinkstock or she would be willing to stay on the The task statement for this textile worker could be phone, or in the chat room for online “write a project summary report for the supervisor interactions, for a short survey after to document work accomplishments.” the call is completed. abc82339_04_c04_077-106.indd 90 12/21/15 9:44 AM Job Analysis Section 4.1 The last step in the process of gathering information is to take the narrative information provided by the different techniques, such as interviews, observations, and so on, and turn it into tasks (information centered on the work to be done) and KSAOs (information centered on the worker). Let’s discuss how this is done. First, you need to understand what a task is. A task is defined as one complete activity with a beginning and an end that is performed by only one person and results in an outcome that contributes to a product or service. Therefore, you will need a task statement for each activity or task that an employee will perform. Good task statements should describe the what, how, and why (the who is the worker) of each task—what the worker does, how the worker does it, and why the worker does it. Below are examples of poor task statements: • Attend meetings (problem: not clear what the task is—ask why the action is needed). • Create, maintain, and audit personnel records (problem: covers three different tasks—each one needs a separate task statement). • Schedule work activities (problem: too broad—need to be more specific). Examples of good task statements are below, with each one covering only a single task and answering the what, how, and why for each task. • • • • • Attend weekly and monthly staff meetings to discuss priorities for the next week. Evaluate new operating system software to determine its utility for the office. Write project summary reports for supervisor to document work accomplishments. Update computerized personnel data for all employees to maintain current records. Establish work standards for accounting department based on accounting principles. The other component needed is the KSAOs for the position. Based on the data gathered through your job analysis techniques (interviews, observations, critical incidents, etc.), you will need to detail the knowledge, skills, abilities, and other characteristics that are necessary to perform the job. You want to truly capture what KSAOs are needed by the worker in order for the worker to be able to perform the job efficiently and effectively. You don’t want to include unnecessary KSAOs, nor do you want to make the level of KSAOs higher or lower than that truly needed to perform the job. If there is a KSAO that you would like but is not necessary in performing the job, you can put it under “preferred,” such as “preferred—bilingual (Spanish and English).” To use our payroll clerk example, below is an example of a task statement and some KSAOs that would be created based on the information obtained through the various job analysis techniques. Note: There will be multiple task statements and KSAOs for each position. • Task Statement: enters and verifies employee times in the timekeeping system to ensure accurate recording and calculation of weekly payroll amounts • • • • abc82339_04_c04_077-106.indd 91 Note: You wouldn’t want to just list the task as “enters employee times” because it doesn’t give the why and how that task is done. Knowledge: knowledge of basic payroll terminology Skills: skill in operating current versions of payroll software systems Abilities: ability to perform basic math functions to identify pay administration errors Other Characteristics: attention to detail 12/21/15 9:44 AM Job Analysis Section 4.1 Approaches for Conducting a Job Analysis The previous section discussed job analysis techniques, which are the ways to gather information about the different components of a job. This section covers the approach toward conducting a job analysis—how you put all the information together. There are two different basic approaches for this: using a customized approach or using an off-the-shelf technique. Customized Using a customized method means the job analysis is done explicitly for that job in that specific company. A person or team is dedicated to conducting the job analysis. An internal or an external approach can be taken. With an internal approach, someone within the company who is properly trained conducts the job analysis. In this situation, it is important that the head of the team, such as the HR manager or director of selection, is a trained job analyst. He or she guides the overall process and delegates specific steps to others on the team. Working with the core team members, the head of the team determines which techniques will be used, who will be involved, and so on, as well as how all information will be gathered and compiled. The head of the team reviews the completed analysis and makes it final. With an external approach to a customized job analysis, the same steps are taken as with an internal approach except that the person or team doing the work is from outside the company. They are consultants hired to conduct the job analysis. The consultants handle all the details of the job analysis, with final approval given by the head of HR or other person designated within the company to be the contact person for the consultants. Before being hired, the consultants would typically have presented a bid in response to the company’s RFP, or request for proposal. The RFP details what the company is trying to accomplish, what time frame is available for the project, and how much money is allocated to the project. Often, multiple consulting companies will bid on the project and each will submit a bid that details how the consultant will get the project done. After review by the head of HR or other members of the RFP committee, the company then selects the winning bid and awards the project to that consulting company. The consulting company then takes over the project, keeping the designated company representatives in the loop on the process and typically having company employees serve as SMEs on the project. This approach is used when a company doesn’t have someone within the company who has the expertise to conduct a job analysis or when the person in the company has the expertise but doesn’t have the time, or desire, to conduct a job analysis from start to finish. Often, it is more efficient to outsource the process to experts rather than have someone take on the project along with his or her regular duties. Off-the-Shelf With the off-the-shelf approach, the job analysis is conducted using a standardized job analysis process that is not created specifically for the job being examined. A detailed analysis is done for the job, but in more general terms, and the analysis is packaged in a set format for other companies to use, with little or no ability to customize it for their specific situations. This approach offers a cheaper and faster way to conduct a job analysis; however, the tradeoff for the speed and lower cost is loss of customization. Many different off-the-shelf techniques exist. The two examples we will discuss are the Position Analysis Questionnaire (PAQ) and the Common-Metric Questionnaire (CMQ). abc82339_04_c04_077-106.indd 92 12/21/15 9:44 AM Job Analysis Section 4.1 Position Analysis Questionnaire The Position Analysis Questionnaire (http://www.paq.com) is a structured, systematic data collection and interpretation methodology used to measure job elements and relate them to human characteristics (McCormick, Jeanneret, & Mecham, 1972). The PAQ evaluates basic units of work, called job elements, to analyze jobs. Trained analysts then evaluate these elements and rate jobs across dimensions such as information input (where and how the worker gets information), mental processes (reasoning and other processes that workers use), work output (physical activities and tools used on the job), relationships with other persons, and job context (the physical and social contexts of work). The PAQ is used to • compare jobs to one another to achieve internal compensation equity; • create recruiting and selection criteria for jobs by identifying the demands of a given job and worker aptitudes, interests, and temperaments; • study the nature of work; and • together with O*NET, and historically the Dictionary of Occupational Titles, to help apply the provisions of the ADA in the workplace. Common-Metric Questionnaire The Common-Metric Questionnaire (http://commonmetric.com/cmqonline) utilizes general work activities (GWAs) to describe jobs. The goal is to evaluate all jobs on a standard scale or “common metric” that allows comparisons across jobs, even when different tasks are performed in the jobs. Thus, the CMQ is designed specifically for comparing different jobs for the purpose of setting employee-selection standards, developing compensation systems, providing career guidance advice, developing job families, and other such activities. Uses of a Job Analysis A job analysis results in a lot of useful information that can be utilized by a company to Critical Thinking improve and enhance its operations since it provides the company with systematic sets Why can it be said that a job analysis is of tasks, skills, and tools needed to complete the basis for most HR decisions? key functions within the company. The results from a job analysis can then be used to determine a company’s training, selection, and performance measurement needs. A job analysis can also highlight the need to redesign or reorganize a job as well as future job needs. Job Description One basic output of a job analysis is the job description. A job description is a list of the duties, responsibilities, tasks, working conditions, and other essential elements needed to complete the job in a satisfactory manner as well as the traits, skills, educational background, abc82339_04_c04_077-106.indd 93 12/21/15 9:44 AM Section 4.1 Job Analysis and personality characteristics needed of the worker. The job description tells the worker what he or she will be doing and what background he or she needs in order to qualify for the job as well as be successful in it. The job description helps clear up ambiguity about a job since it details what the position is in terms of duties, responsibilities, tasks performed, and so on. An example of a job description is shown in Figure 4.3. Figure 4.3: Sample payroll clerk job description A job description performs the important function of clarifying a position’s duties, responsibilities, and tasks performed. It can be a useful tool in training, selection, and performance measurement. Sample Job Description Title: Payroll Clerk Position Overview: In this position, the employee is accountable for accurately collecting timekeeping information and issuing pay to employees by calculating earnings and deductions in accordance with legal and company policies and practices Responsibilities: • Collect and summarize timekeeping information • Review and verify source documents • Enter payroll data using appropriate software • Process payroll by established deadlines • Investigate and correct payroll discrepancies and errors • Adjust payroll accounts due to job moves, salary increases, changes in deductions, etc. • Update payroll accounts to account for new employees, retirements, and terminations • Maintain comprehensive records • Ensure compliance with federal and state regulations and guidelines • Other duties as assigned Qualifications: • High school diploma or equivalent; Associate’s degree in business preferred • 1+ years of payroll processing experience • Solid computer and data entry skills • General math skills Competencies: • Detail oriented • Communication skills—verbal and written • Customer service orientation • Confidentiality • Planning and organizing • Financial software Training Needs A job analysis shows what skills are needed to perform a job. The company can then use that information to design a training program to improve its workers’ abilities to perform those skills. The training program can cover soft skills, such as leadership, communication, and conflict resolution, as well as hard skills, such as how to operate a piece of machinery and how to use spreadsheet and word-processing programs like Microsoft Excel and Word. By knowing what is needed to perform a job—information derived from a job analysis—a company will be able to provide the training needed to improve the performance of its workers. abc82339_04_c04_077-106.indd 94 12/21/15 9:44 AM Job Analysis Section 4.1 Selection Criteria In order to select the right person for a job, it is first necessary to carefully analyze the requirements of the job. A job analysis provides this information. It identifies the knowledge, skills, abilities, and other characteristics (KSAOs) that are needed in order to perform a job. By knowing this, it can be determined what to look for in new employees. A job analysis also provides the information needed to give a realistic job preview, including the duties of the job and the working environment, to job candidates so that they understand what the job entails and can decide if it is something they want to do and can do. As we mentioned at the beginning of the chapter, a job analysis can provide information that can be used to help prevent discrimination, a key element that is taken into account in a personnel selection system. Basis for Performance Measurement System Whereas a job analysis is the evaluation of a job, a performance measurement system is an evaluation of the person doing the job. Before a person can be evaluated, it is necessary to know the details of the job. That’s where a job analysis comes in. It identifies the outputs of a job as well as the KSAOs needed by an individual to perform a job. A company then uses this information to evaluate how a person is performing in the job. The company compares what is required for the job, per the job analysis, to how the individual is actually doing in the job. A performance measurement system is used to evaluate how much a person should be compensated for a job, the basis for a compensation and benefits system and the focus of this book. Performance measurement will be covered in Chapter 5. Redesign Jobs A job analysis can be used to redesign and reorganize jobs to make them better and more efficient. By knowing the details of a job, gaps or problems in a job as well as overlap between jobs can be identified and then fixed. Additionally, sources of discomfort, such as stress, environmental demands, and problems with human-machine interface or ergonomics issues, can be identified and corrected. Identify Future Jobs Sometimes a job analysis must be performed for a job that does not currently exist. Sometimes referred to as a visionary job analysis, this goes beyond simply redesigning a currently existing job. For new jobs, it is necessary to carefully consider who the SMEs for the position could be. There are no incumbents to serve as experts and, correspondingly, managers do not have previous experience with the position. In this instance, it becomes critically important to consider why a new job is being created and what function that job will fill in the organization. Only once the purpose for the job is fully understood can experts be identified, typically based on the tools and technology being utilized, as well as knowledge acquired from potential experts both internal to and from outside the organization. abc82339_04_c04_077-106.indd 95 12/21/15 9:44 AM Section 4.2 Job Evaluation Impact of the Use of a Job Analysis on Techniques Used As we mentioned previously, choosing which job analysis techniques to use is not always easy and is limited by the time, resources, and budget available. The uses of a job analysis also impact which job analysis techniques you will use. For example, if the information is to be used primarily for recruiting potential employees and developing job descriptions, interviewing job incumbents and supervisors, having the information reviewed by SMEs, and using checklists of duties is likely to be sufficient. Using the PAQ, CMQ, or similar measure, however, may be better suited for developing quantitative data used for classifying jobs and comparing them to each other within a given business unit or across business units as part of your selection system or performance measurement system. Of course, this also depends on internal resources and budgetary issues. Critical Thinking A large oil company has decided to implement an accelerated “highpotential” development program to give potential high performers exposure to and familiarity with multiple aspects of the organization. You must do the job analysis to use as a basis for setting the pay for individuals in this program. What techniques would you use? Any special considerations? Who would be your SMEs? Additionally, a job analysis needs to be updated periodically to account for changes in the workforce and the ways things are done. Even though a job title may stay the same, the underlying duties and responsibilities of the person will change in response to changes in the business environment. For example, the move from typewriters to computers changed not only the skills needed but also how work was performed. Workers now needed to know keyboarding (“typing”) skills as well as how to operate a computer and use software programs, such as word-processing and client relationship management systems, on the computer. It also changed the role of the secretary, as many managers took on the task of creating their own memos and documents. A job analysis is a critical building block when developing a compensation system. It impacts what is done, how it is done, by whom it done, and how the people are selected and paid within a company. Therefore, a quality job analysis must be performed in order to gather the critical information needed. The other critical component that provides the foundation for a compensation system is job evaluation. 4.2 Job Evaluation After determining what is involved in performing the jobs in the company from the job analysis, you must then determine how they relate to each other with respect to their value to the organization. This is where job evaluation comes in. Job evaluation is a technique used to systematically recognize differences in the relative worth among a set of jobs and to establish pay differentials accordingly. With job evaluation you are breaking down jobs into classes that can then be assigned a wage category. The arrangement of jobs within the different classes reflects the values and priorities that management places on various positions. This results abc82339_04_c04_077-106.indd 96 12/21/15 9:44 AM Job Evaluation Section 4.2 in jobs that require greater qualifications, more responsibilities, and more complexity being ranked higher on the pay scale, and therefore receiving greater rewards, than those that are ranked lower. Job evaluation can be looked at as “job analysis for compensation.” Ultimately, the effort that goes into a job analysis and job evaluation results in a wage and compensation structure within the organization. As we will discuss in Chapter 5, effectively designing a compensation and benefits program involves both internal fairness and a consideration of the external job market. This process begins with determining the value of a job to the organization through a job evaluation. Goals of a Job Evaluation The goals of a job evaluation are to establish the pay for each job in the company and to create a pay structure that is equitable. The job evaluation is used to take all the information from a job analysis and put it into a format that allows for comparison to more easily determine how much to pay each job. By following a set procedure for establishing pay—the job evaluation—a company is able to create a pay structure that is fair, consistent, and unbiased. As we mentioned Wavebreak Media/Thinkstock in Chapter 1, the goals of a compenA successful job evaluation will help establish a sation and benefits system are to fair and unbiased pay structure that consistently ensure internal and external consisrewards a company’s employees. tency, attract high-quality talent, motivate and retain talent, and meet legal requirements. A job evaluation helps achieve this by providing a systematic and equitable mechanism for establishing pay for each job within a company. Legal Considerations As we discussed in the job analysis section and Chapter 2, there are many laws and regulations that must be taken into account when dealing with compensation and benefits issues. With job evaluation there are two key laws that have an impact on how we develop job evaluation programs—Title VII of the Civil Rights Act and the Equal Pay Act. Title VII of the Civil Rights Act As we’ve previously discussed, Title VII of the Civil Rights Act protects against discrimination in employment based on race, color, religion, sex, and national origin. This protection extends to pay, meaning a company can’t discriminate by paying someone less just because of his or her race, color, religion, sex, or national origin. This means that when conducting a job evaluation, care must be taken to avoid biases against these protected groups when setting salary bands. abc82339_04_c04_077-106.indd 97 12/21/15 9:44 AM Job Evaluation Section 4.2 Equal Pay Act Again, as we’ve previously discussed, the Equal Pay Act stipulates that men and women who are employed by the same company must receive the same pay if their jobs demand equal levels of skill, responsibility, and effort, and if their working conditions are the same. Often, men and women hold different titles even within occupational groupings. This practice has often led to women being paid less than men. The concept of comparable worth has been introduced as a way to remedy this. Comparable worth is the idea that promotes equal pay for similar work. It takes the concept of “equal pay for equal work” a step further by basing pay on similar types of work, which includes skill, responsibility, and effort. The idea behind comparable worth is to raise wages for traditionally female-dominated jobs to the level of those for comparable male-dominated jobs in order to eliminate sex as a factor in setting wages. Compensable Factors A job analyst or supervisor may take two different approaches in determining whether one job is of more value to the organization than another. The first method is intuitive and is generally based on experience, which may work for very small firms. The second method is used widely and involves factors that jobs have in common. These factors are known as compensable factors, which are significant, measurable job characteristics by which companies establish relative pay rates. Examples of compensable factors are the amount of effort needed to perform a job or specific skill sets and how proficient a job incumbent may be in using such skill sets. Many companies use skill, effort, responsibility, and working conditions as the compensable factors to assess for their compensation systems since these factors are derived directly from the Equal Pay Act. Numerous companies have packaged the concept of job evaluation and compensable factors into models to use in providing consulting services to companies wishing to outsource their job evaluation needs. While the underlying theories and ideas are the same, each consulting firm puts its own spin on the concept. For example, the Hay Group, a global management consulting firm with over 12,000 organizations as clients, emphasizes just three compensable factors in its model—know-how, problem-solving skills, and accountability requirements (Hay, 2010). In its model, know-how is the amount and quality of technical/ specialized skills, managerial skills, and human relations skills possessed by and used by the incumbent. Problem solving has to do with the thinking environment (job context and problem definition and clarity) and the thinking challenge (types and difficulty level of problems). Accountability has three dimensions, including the freedom to act (how empowered the worker is to take action and have an impact on decision making), scope (specific business measures used by a firm and the degree to which the job may positively impact the business), and impact (the influence of the job on business results). The Hay Group model evaluates jobs using a set of common facCritical Thinking tors that measure inputs (required knowledge, skills, and capabilities), throughputs Apply the concept of compensable (processing of inputs to achieve results), factors to your resume. What are your and outputs (end result expectations). significant qualities as viewed from a job Each job’s content is analyzed relative to evaluation standpoint? each factor and represented by a numerical value (Hay, 2005). abc82339_04_c04_077-106.indd 98 12/21/15 9:44 AM Job Evaluation Section 4.2 Whatever approach is used, the goal is to identify common elements of each job that allow direct comparisons to other jobs. Job Evaluation Techniques To perform a job evaluation, the job evaluator takes a series of factors (effort, skill, responsibilities, problem solving, and working conditions) into account, weights these factors based on importance or value to the company, and then places each job at a point on a continuum. This continuum is then broken down into a series of groups that correspond to wage categories or salary bands. One of four methods (ranking, classification, factor comparison, and the point system) is typically used to do this. Ideally, using more than one method is preferred as it helps evaluate the jobs, especially diverse jobs, in a more comprehensive manner. In practice, however, it is often not practical to use two different methods to evaluate all jobs, so the company will select the method that logistically makes the most sense for it to use. Ranking The ranking method is one of the simplest to administer. With this method, jobs are compared to each other and rank-ordered based on the overall worth or value of the job to the organization. After the ranking, the jobs are then grouped to determine the appropriate salary levels. The worth of a job is usually based on judgments of skill, effort (both physical and mental), responsibility (supervisory and fiscal), and working conditions. There are three ways of ranking jobs: (1) ordering, (2) paired comparison, and (3) weighting. With ordering, you just put job titles in order of importance to the organization. With paired comparison, each job is compared against all other jobs in the company. Weighting adds a little bit more sophistication to the process by giving more importance (weighting) to some factors over others. For example, mental effort may be judged to have more importance than physical effort. The advantages of the ranking method are that it is simple and very effective when there are relatively few (fewer than 30) jobs to be evaluated. The disadvantages are that this method is subjective and difficult to administer as the number of jobs increases. Additionally, since there is no standard used for comparison, new jobs would have to be compared with the existing jobs to determine the appropriate ranks. In essence, the ranking process would have to be repeated each time a new job is added to the organization. There are some tips that can be used to make this method a more manageable process. Since it is usually not realistic to rank all jobs in any given organization, unless it is a particularly small firm, you can instead rank jobs by department or, if small enough, by strategic business unit (e.g., marketing). Instead of using all characteristics of a job, you can use a subset, such as the top three compensable factors, to rank all the jobs in a company. You can split the jobs among several individuals to rank and then come together as a committee to rank all the jobs for the company. abc82339_04_c04_077-106.indd 99 12/21/15 9:44 AM Job Evaluation Section 4.2 Classification The classification method is used if you already have a system in place. With the classification method, you are fitting the jobs into an existing wage category structure or hierarchy. Raters are asked to classify jobs into orderly groups called classes if they are similar jobs. Alternatively, the groups are referred to as grades if they contain jobs of similar difficulty level but are otherwise different. For example, a fire chief and a press secretary in the federal government’s General Schedule (GS) rankings would be considered to be in the same grade level (http://www.opm.gov/policy-data-oversight/pay-leave/pay-systems/general-schedule). Each level in the grade/class structure has a description and associated job titles. Each job is assigned to the grade/class providing the closest match to the job. The classification of a position is decided by comparing the whole job with the appropriate job-grading standard. To ensure equity in job grading and wage rates, a common set of job-grading standards and instructions are used. Because of differences in duties, skills, knowledge, and other aspects of trades and labor jobs, job-grading standards are developed mainly along occupational lines. The standards do not attempt to describe every work assignment of each position in the occupation covered. Instead, the standards identify and describe those key characteristics of occupations that are significant for distinguishing different levels of work. They define these key characteristics in such a way as to provide a basis for assigning the appropriate grade level to all positions in the occupation to which the standards apply. The advantages of the classification method are that it is simple and the grade/class structure exists independent of the jobs and therefore, new jobs can be classified more easily than in the ranking method. The disadvantages are that classification judgments are subjective and some jobs may appear to fit within more than one grade/class. Additionally, the standard used for comparison (the grade/class structure) can be biased by job titles, and this could result in some jobs being unfairly impacted, such as female-dominated jobs being rated lower than primarily male jobs. Factor Comparison With the factor-comparison method, a set of compensable factors is identified as determining the worth of jobs (Benge, Burk, & Hay, 1941). Typically, the number of compensable factors is small (four or five) and easily identified. For example, it may be decided to use the compensable factors of skill, responsibilities, effort, and working conditions to set the worth of the jobs in the company. Next, benchmark jobs are identified. Benchmark jobs should be selected as having certain characteristics: (1) equitable pay (not overpaid or underpaid) and (2) a range of values across the compensable factors. For each factor, some jobs would be at the low end of the scale while others would be at the high end of the scale. The jobs are then priced, and the total pay for each job is split into pay for each factor (see Table 4.1). abc82339_04_c04_077-106.indd 100 12/21/15 9:44 AM Section 4.2 Job Evaluation Table 4.1: Sample factor comparison The hourly rate is divided into pay for each of the following factors: Job Hourly Rate Pay for Skill Pay for Effort Pay for Responsibility Pay for Working Conditions Admin Assistant $11.00 5.50 2.50 2.50 0.50 Accountant $21.75 9.50 5.25 5.50 1.50 Payroll Clerk Manager $15.50 $30.00 7.00 12.00 4.00 6.50 3.50 9.00 1.00 2.50 This process establishes the rate of pay for each factor for each benchmark job. Slight adjustments may need to be made to the matrix to ensure equitable dollar weighting of the factors. The other jobs in the organization are then compared with the benchmark jobs, and rates of pay for each factor are summed to determine the rates of pay for each of the other jobs. The advantages of the factor-comparison method are that the value of the job is expressed in monetary terms and the method can be applied to a wide range of jobs as well as newly created jobs. The disadvantage is that the pay for each factor is based on judgments that are subjective. Point System The point system is an extension of the factor-comparison method. With this technique, also known as the point method, a set of compensable factors are identified as determining the worth of jobs. Typically, the compensable factors include the major categories of skill, responsibilities, effort, and working conditions. These factors can then be further defined as follows: • Skill 1. Experience 2. Education 3. Ability • Responsibilities 1. Fiscal (money/equipment) 2. Supervisory • Effort 1. Mental 2. Physical • Working Conditions 1. Location 2. Hazards 3. Extremes in Environment Each factor is then divided into levels or degrees that are assigned points. The points for each factor are summed to form a total point score for the job. Jobs are then grouped by total point abc82339_04_c04_077-106.indd 101 12/21/15 9:44 AM Considerations Due to Company Size Section 4.3 scores and assigned to grades/classes so that similarly rated jobs would be placed in the same wage categories or salary bands. The main advantage of this method is that it expands the factors that are used to evaluate the jobs to provide a more comprehensive view of the job. It also has the advantages of providing the value of the job expressed in monetary terms and of providing the ability to apply the technique to a wide range of jobs as well as newly created jobs. As with any of the methods, a disadvantage is that the pay is based on subjective judgment, although this technique does give more concrete factors on which to evaluate the jobs. HR-Software.net offers free point method job evaluation software at http://www.hr-software .net/cgi/JobEvaluation.cgi. You can experiment with this software to get a feel for how the point system works. 4.3 Considerations Due to Company Size While the concepts of job analysis and job evaluation, which lay the foundation for a solid compensation and benefits system, apply to any organization, there are some differences in how the topics are approached due to the size of the organization. A key difference is in the knowledge base regarding job analysis and job evaluation. A large company can afford—both in terms of money and manpower—for its employees to specialize in their jobs. Therefore, the different aspects of compensation and benefits can be handled by small, select groups who focus on their specific areas and are well informed about those areas. A small company, however, has to rely on just a few people—and often, just one person—to handle its human resource needs. Therefore, the HR professional has to be more of a jack of all trades. As such, he or she would not be as knowledgeable about the issues involved with job analysis and job evaluation. It also isn’t likely that management knows of the need for a job analysis or job evaluation, or if management does know, then the decision is usually made that it is not necessary to perform these because the company is too small for those steps. Instead, small companies will often just put together ad hoc job descriptions and assign salaries to those jobs without any standard process, even though the techniques discussed in this chapter can be used effectively despite limited resources. Another key difference between large companies and small companies in the handling of job analysis and job evaluation is the amount of resources that can be devoted to the topics. Large companies will have more money to devote to the process, either in the form of hiring internally to cover the work or by outsourcing the work to experts in the field. A small company, on the other hand, is not going to have the resources to perform an extensive job analysis or job evaluation. Its money is limited as well as the manpower available to devote to the work involved. abc82339_04_c04_077-106.indd 102 12/21/15 9:44 AM Considerations Due to Company Size Section 4.3 Given the limited resources and small size, it is understandable that a small company does Critical Thinking not go through the same process as a larger company with more resources and employHow should you approach job analysis ees. Small companies, however, still need to and job evaluation differently in a address the job analysis and job evaluation small company as compared to a large topics with a standard process. At a miniorganization? mum, small companies can use O*NET as the basis for setting the jobs within a company. Because O*NET gives the average work done based on job title—the average skills, average responsibilities, average salary, and so on—the company will need to tweak the O*NET job to match its requirements. Using O*NET gives some standardization to the job process, something small companies can benefit from. Case Study A Moat for Your Castle Inc.: Out of Control At the end of Chapter 2, the fictional company A Moat for Your Castle Inc. was introduced. As a reminder, this company is based in El Paso, Texas, and builds fences and pools. The company grew from a startup and business is booming. In fact, the business has grown so much that the owners are finding it necessary to diversify the number and types of jobs in the organization. Before, the only distinction was between office workers who handled the logistics of running the business and installers and others who actually built the fences and pools. The residential pool business that previously was a small part of the business has now grown to account for as much revenue as fence construction, and employees have begun specializing in the different types of construction. Back in the office, it has been necessary to hire a clerk to deal with compensation and benefits administration, an accountant to keep up with finances, and buyers to deal with sourcing and purchasing parts. This has all happened organically, with no attention paid to job descriptions or structure. Recently, several longtime employees have left to work for other organizations. The company has found it difficult to replace these employees, and business has slowed as a result. What are some possible reasons for why long-term employees are leaving the company? Do you think the difficulty in hiring replacements is due to the same or different issues? How could job analysis be used to help the company? How could job evaluation be useful for this company? What impact would being a small company have on the job analysis and job evaluation process? abc82339_04_c04_077-106.indd 103 12/21/15 9:44 AM Summary & Resources Summary & Resources Summary In this chapter, we discussed the two components that are the basis for a fair and equitable compensation and benefits system—job analysis and job evaluation. We learned that job analysis is examining what each job entails, while job evaluation is determining how much to pay each job. Internal consistency provides order to a firm’s compensation system and uses KSAOs (knowledge, skills, ability, and other characteristics) as the basis for setting up the hierarchy of a compensation system. Compensable factors form the basis from which to evaluate jobs. As we learned in Chapter 2, there are legal implications when dealing with compensation. The specific laws dealing with the topics in this chapter are Title VII of the Civil Rights Act, the Equal Pay Act, and the Americans with Disabilities Act, all of which prohibit discrimination. Companies can either outsource their job analysis or perform it internally. Either way, there are various techniques, such as interviews, observation, and surveys, that can be used to conduct a job analysis. Job evaluation can be done by the simple ranking method to the more sophisticated point system method, with variations in between. Finally, we ended the chapter by addressing the limitations that small companies have. Small companies often lack the resources and time, as well as possibly the knowledge, to recognize that these two elements—job analysis and job evaluation—are key components in a solid compensation and benefits system. We provided some advice on how small firms can address these limitations. Key Terms classes Groups of similar jobs. comparable worth The notion that promotes equal pay for similar work. compensable factors Significant, measurable job characteristics by which companies establish relative pay rates. competencies Measurable or observable KSAOs and behaviors critical to successful job performance. grades Groups of jobs of similar difficulty level but that are otherwise different jobs. abc82339_04_c04_077-106.indd 104 internal consistency The relative value of each job within a firm compared to every other job. job analysis The systematic process to determine what a job entails, both in terms of the content and duties of the job as well as what is required from the worker to perform the job. job description A list of the duties, responsibilities, tasks, working conditions, and other essential elements needed to complete the job in a satisfactory manner as well as the traits, skills, educational background, and personality characteristics needed in the worker. 12/21/15 9:44 AM Summary & Resources job evaluation A technique used to systematically recognize differences in the relative worth among a set of jobs and to establish pay differentials accordingly. subject matter experts (SMEs) People who are recognized as experts for their knowledge in a particular area or topic. Occupational Information Network (O*NET) A government database that documents details on the work involved, the specific tools used, and the required specialized training for various jobs. visionary job analysis A job analysis for a job that does not currently exist. KSAOs Stands for knowledge, skills, abilities, and other factors; is the basis for creating the hierarchy of jobs within a firm. abc82339_04_c04_077-106.indd 105 task One complete activity with a beginning and an end that is performed by only one person and results in an outcome that contributes to a product or service. 12/21/15 9:44 AM abc82339_04_c04_077-106.indd 106 12/21/15 9:44 AM
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Explanation & Answer

Attached.

Running head: JOB ANALYSIS METHODS

Job analysis methods
Student’s Name
Institutional Affiliation

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JOB ANALYSIS METHODS

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There exist several methods of collecting information about jobs yet choosing one, or a
combination of the available choice depends on the preference of the person seeking the job.
These focus on collecting the information that defines the tasks in a way that a person can better
understand his or her qualifications for a position that is aspired. In this paper, I will discuss the
job analysis methods that I used to analyze a position that I would like to work in the future after
the completion of my degree.
One of the job analysis methods that I used was the observation method. Here I observed
various employees and recorded their tasks and qualities in a communications and media
company. I specifically went to the company and requested time to these observations. In the
course of the observation, I interacted with a wide range of employees and their responsibilities
in the company (Weathington & Weathington, 2016). With the aim of analyzing human resource
management in the company I was able to discover the responsibilities in the position and how
the current human resource managers dealt with challenges in the company.
Another analysis method I used was interviewed. In the interviews, I interacted with
many human resource managers and go a gist of how the position affects organization qualities
(Fine & Getkate, 2014). In this manner, I gained a better understanding of how the position
would increase my knowledge. Additionally, I used questionnaires to ask more critical questions
about the ways that human resource management affects organizations in terms of reaching goals
and objectives.
In a nutshell, job analysis methods are vital in the choosing of the right positions for any
career yet finding the correct analysis method to use depends on the preferences of anyone. For
me, my job analysis skills helped me understand the needs of human resource positions in

JOB ANALYSIS METHODS

different companies and how they affect my career in terms of acquisition of knowledge.
Therefore, it is crucial that anyone understands what position he or she aspires to get and do the
right analysis of the job.

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JOB ANALYSIS METHODS

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References
Fine, S. A., & Getkate, M. (2014). Benchmark Tasks for Job Analysis: A Guide for Functional
Job Analysis (fja) Scales. Hoboken: Taylor and Francis.
Weathington, B. L. & Weathingto...


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