CHAPTER 6 Building internally consistent compensation systems Flashcards
Internal consistency
this principle establishes a clear job hierarchy, ensuring that jobs within an organization are paid according to their relative value. Jobs that demand higher qualifications, responsibilities, and complexity should be paid more than simpler roles
Job analysis
a systematic and descriptive process to gather and analyze information about job duties, responsibilities, and required qualifications
Job content
describes job duties and tasks
worker requirements
identifies the minimum knowledge, skills, and abilities (KSAs) necessary for job performance
working conditions
specifies the physical and social context in which the job is performed
steps in job analysis
- determine a job analysis program
2.select and train analysts - direct job analyst orientation
- conduct a study using questionnaires, interviews or observation
5.summarize finding in job descriptions
Job analysis units
- element: the smallest tasks
- task: one or more element
- position: a collection of tasks
- job: a group of positions with similar tasks
- job families: a group of two or more jobs with similar characteristics. Example: Clerical job family: file clerk, clerk typist, administrative
clerk - Occupation: a group of jobs
– Office support occupation
Reliable Job Analysis Method
Yields consistent results
under similar conditions
Valid Job Analysis Method
Accurately assesses each
job’s duties or content
Job description should include
– Job title
– Job summary
– Job duties
– Worker specifications
ONET content model : worker oriented
- worker characteristics
- worker requirements
- experience requirements
Onet content model: job oriented
- occupational requirements
- workforce characteristics
- occupation-specific information
Job evaluation
a process used to determine the relative worth of jobs within the organization, which establishes pay differentials between jobs.
compensable factors
these are the salient job characteristics (skill, effort, responsibility, and working conditions) that are used to establish pay
job evaluation process
- Select technique
- Choose committee
- Train members to evaluate
- Document plan
- Communicate with employees
- Set up appeals process
two job evaluation techniques
- market-based evaluation- uses market data to determine differences in job worth
- job-content evaluation- establishes a hierarchy of internal job worth based on the company’s value system
point method
assigns numerical values to compensable factors, such as skills and responsibilities, and sums these values to determine the overall worth of a job.
steps of point method 7
1.select benchmark jobs
2. choose compensable factors
3.define factor degrees
4.determine weight of factors
5.determine point value
6.verify factor degrees and point values
7.evaluate all jobs
simple ranking plans
this plan orders all jobs from lowest to highest according to single criterion such as job complexity
paired comparisons
every job is paired with every other job. After all pairs are rated, the jobs are ranked by total points received.
alternation ranking
the relative value of each job is judged by a single criterion. Ranking begins by determining which job is the most then least valuable
classification plans
place jobs into categories based on compensable factors