Management 4220 Chapter 6

classification plans

place jobs into categories based on compensable factors

compensable factors

salient job characteristics by which companies establish relative pay rates. Most companies consider skill, effort, responsibility, and working conditions, which were derived from the Equal Pay Act. These four dimensions help managers determine whether dissimilar jobs are "equal."

job description

summarize a job's purpose and list its tasks, duties, and responsibilities, as well as the skills, knowledge, and abilities necessary to perform the job at a minimum level

Reliable Job Analysis Method

yields consistent results under similar conditions

Job evaluation process entails six steps:

- Determining single versus multiple job evaluation techniques - Choosing the job evaluation committee - Training employees to conduct job evaluations - Documenting the job evaluation plan - Communicating with employees - Setting up the appeals process

Five main activities in Job analysis process

1. Determine a job analysis program 2. Select and train analyst 3. Direct job analyst orientation 4. Conduct the study 5. Summarize the results in job descriptors

Paired comparison

A variation of simple ranking job evaluation plans, orders all jobs from lowest to highest based on comparing the worth of each job in all possible job pairs. a. Useful when there are many (20 or more) jobs to rate b. Every job is paired with every other job - The job with the highest value is given a point - The other job gets nothing c. After all pairs are rated, the jobs are ranked by total points received - The job with the most points is the most valuable - The jobs with the least points is the least valuable

Valid Job Analysis Method

Accurately assesses each job's duties or content

Working Conditions

Are the social context or physical environment where work will be performed.

Benchmark jobs

Benchmark jobs, found outside the company, provide reference points against which jobs within the company are judged

occupational requirements

Include generalized work activities, organizational context, and work context.

worker specifications

Lists the education, KSAs, and other qualifications individuals must possess to perform the job adequately

Worker Characteristics

Refer to the ability, interests, and work styles.

job content

Refers to the actual activities that employee must perform in the job. Job content descriptions may be broad, general statements of job activities or detailed descriptions of duties and tasks performed in the job.

Worker Requirements

Represent the minimum qualifications and skills that people must have to perform a particular job. Such requirements usually include education, experience, licenses, permits, and specific abilities such as typing, drafting, or editing. KSA's

Point Method

Represents a job-content evaluation technique that uses quantitative methodology. Quantitative methods assign numerical values to compensable factors that describe jobs, and these values are summed as an indicator of overall value for the job.

Universal Compensable Factors

Skill, effort, responsibility, and working conditions; virtually every job contains thee to four factors.

job summary

Statement concisely summarizes the job with two to four descriptive statements.

job evaluation

Systematically recognizes differences in the relative worth among a set of jobs and establishes pay differentials accordingly.

Alternation Ranking Method

This ranking process begins by determining which job is the most valuable, followed by determining which job is the least valuable. Committee members then judge the next most valuable job and the next least valuable job. This process continues until all jobs have been evaluated.

job title

a name given to a particular job

simple ranking plans

a specific method of job evaluation, orders all jobs from lowest to highest according to a single criterion (e.g., job complexity or the centrality of the job to the company's competitive strategy)

job-content evaluation

an approach to evaluating job worth, takes skill, effort, responsibility, and working conditions into account.

Market-based evaluation

an approach to job evaluation, uses market data to determine differences in job worth

Job Analysis

is the systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job.

internally consistent compensation systems

clearly define the relative value of each job among all jobs within a company

job duties

describes the major work activities and, if pertinent, supervisory responsibilities

Job structure

formally recognize differences in job characteristics that enable compensation managers to set pay accordingly