Econ 448 Quiz 2

At the ____ level, some jobs may be similar (bookkeepers, tellers, accounting clerks), yet at the ____ level they are very different

- job-family; job

Employers may collect just enough ____ data to make comparisons in the external market for setting wages

- job-level

Person-based structures: skill plans - The majority of applications of skill-based pay has been applied in ____, where the work involves teams, multiskills, and flexibility

- manufacturing

Person-based structures: competencies o Core competencies are often linked to the ____ o Competency sets translate each core competency into ____ o Competency indicators are the observable ____ that indicate competency

- mission statement - action - behaviors

Position Analysis Questionnaire (PAQ)

A standardized job-analysis questionnaire containing 194 items representing work behaviors, work conditions, or job characteristics that are generalizable across a wide variety of jobs

Job Analysis

A systematic method to discover and describe similarities and differences among jobs

What information should be collected

Information related to the job: Job Identification and Job Content Information related to the employee: Employee data

Three hay factors Accountability, problem solving, and know-how

The jobholder requires knowledge and experience consistent with the scale and complexity of the result to be achieved

Job evaluation methods: classification example

class I: executives class II: skilled workers class III: semiskilled workers class IV: unskilled workers

Job evaluation

comparison of jobs within an organization

Defining job evaluation

content and value

Skill- and competency-based structures

look at the person

Job-based structures

look at what people are doing and the expected outcomes

Benchmark jobs example

managerial group: vice presidents, division general managers managers, project leaders, supervisors technical group: head/chief scientist, senior associate scientist, associate scientist, scientist, technician manufacturing group: assembler I, inspector I, packer, material handler, inspector II, assembler II, drill press operator, rough grinder, machinist I, coremaker administrative group: administrative assistant, principal administrative secretary, word processor, clerk/messenger

Structure based on job value orders jobs

on the basis of the relative contribution of the skills, duties, and responsibilities

Major methods: questionnaires, interviews, observations Disadvantages

open to subjectivity; time consuming

Most factor scales are ____ degrees

- 4 to 8

essential functions

- ADA: "essential functions refers to the fundamental job duties of the employment position the individual with a disability holds or desires" - Many employers have modified their job descriptions to include these essential elements

Three hay factors

- Accountability - Accountability and problem solving - Accountability, problem solving, and know-how

Mechanisms to translate into pay - Job Based - Skill Based - Competency Based

- Assign points that reflect criterion pay structure - Certification and price skills in external market - Certification and price competencies in external market

Pay structure - Job Based - Skill Based - Competency Based

- Based on job performed/market - Based on skills certified/market - Based on competency developed/market

Advantages - Job Based - Skill Based - Competency Based

- Clear expectations sense of progress pay based on value of work performed - Continuous learning flexibility reduced work force - Continuous learning flexibility lateral movement

What is valued for - Job Based - Skill Based - Competency Based

- Compensable factors - Skill blocks - Competencies

Criterion pay structure

A pay structure the committee wishes to duplicate with the point method

Reliability of job evaluation techniques

A reliable job evaluation is one where different evaluators produce the same results

Compensable factors

Compensable factors are those characteristics in the work that the organization values, that help it pursue its strategy and achieve its objectives

Person-based structures: competencies

Competency-based approach abstracts the underlying, broadly applicable knowledge, skills, and behaviors that form the foundation for success at any level of job in the organization

Information related to the employee

Employee data

"How to": skill analysis - Whom to involve?

Employees and managers are the source of information

which types of skill plans Specialist: Depth or Generalist/Multiskill Based: Breadth o Assigned to jobs based on certification and work flow

Generalist/Multiskill Based: Breadth

which types of skill plans Specialist: Depth or Generalist/Multiskill Based: Breadth o Certification rather than job assignments

Generalist/Multiskill Based: Breadth

which types of skill plans Specialist: Depth or Generalist/Multiskill Based: Breadth o Earn pay increases by acquiring new knowledge

Generalist/Multiskill Based: Breadth

which types of skill plans Specialist: Depth or Generalist/Multiskill Based: Breadth o Responsibilities can change over a short time

Generalist/Multiskill Based: Breadth

Specialist: Depth example

High school teachers

Job Identification

Includes job titles, departments, the number of people who hold the job, exempt or nonexempt

Determining the internal job structure

Internal work relationships within the organization Job analysis job descriptions job evaluation job structure

Information related to the job

Job Identification and Job Content

Why perform job analysis?

Job analysis potentially aids every HR function In compensation, job analysis has two critical uses: o It establishes similarities and differences in the work contents of the jobs o It helps establish an internally fair and aligned job structure

Job Specification

Knowledge, skills, and abilities necessary to perform the job. (focus on the person)

Job evaluation methods: ranking Alternation ranking

Orders job descriptions alternately at each extreme. Evaluators agree on which jobs are the most and least valuable, then the next, etc

Job evaluation methods: ranking simple ranking

Orders job descriptions from highest to lowest based on relative value or contribution to the organization

"How to": skill analysis - Establish certification methods.

Peer review, on-the-job demonstrations, or tests Scheduled fixed review points and recertification

Job structure

an ordering of jobs based on their content or relative value

which types of skill plans Specialist: Depth or Generalist/Multiskill Based: Breadth o Basic responsibilities do not vary on a day-to-day basis

Specialist: Depth

which types of skill plans Specialist: Depth or Generalist/Multiskill Based: Breadth o Pay is based on knowledge of the person doing the job, rather than on job content or output

Specialist: Depth

Types of skill plans

Specialist: Depth Generalist/Multiskill Based: Breadth

"How to": skill analysis - What information to collect?

Specific information on every aspect of the production process

Job Description

Tasks, duties, and responsibilities that make up a job. (focus on the job) summary reports that identify, define, and describe the job as it is actually performed

Job evaluation methods: ranking Paired comparison

Uses a matrix to compare all possible pairs of jobs When all comparisons are completed, the job judged "most valuable" becomes the highest ranked job, and so on

Validity

Validity is the degree the evaluation assesses relative job worth

task dimension example

e.g., responsible for ensuring that accurate information is provided to the customer

Using online questionnaire

facilitates statistical analysis of results, allowing faster data collection

Job

group of tasks performed by one person that make up the total work assignment of that person; e.g., customer support representative

Job family

grouping of related jobs with broadly similar content; e.g., marketing, engineering, office support, technical

Major methods: questionnaires, interviews, observations Advantages

involvement of employees

Skill analysis

is a systematic process of identifying and collecting information about skills required to perform work in an organization

Resulting internal structures

job, skill, and competency based

In compensation, job analysis has two critical uses

o It establishes similarities and differences in the work contents of the jobs o It helps establish an internally fair and aligned job structure

Job evaluation methods: point method - Common characteristics of point methods: o ____ factors, and they are based on: - Factor degrees ____ scaled - Weights reflect the relative ____ of each factor

- Compensable - numerically - importance

Job evaluation methods: ranking Disadvantages

- Criteria for comparisons are not called out, evaluations may be subjective - Evaluators must be knowledgeable on every job (which is not practical, especially for large firms) - Results are difficult to defend and costly solutions may be required

Job Content

- Elemental tasks or units of work, with emphasis on the purpose of each task - Task data reveals the actual work performed and its purpose or outcome

Quantify the value - Job Based - Skill Based - Competency Based

- Factor degree weights - Skill levels - Competency levels

Caution of competency-based structure - ____ (and caution) from the research. o Can competencies translate into a ____, objective basis for pay? o Can managers' competencies translate into better company ____? o Is it appropriate to pay what you are ____ of doing versus what you are doing? o Are competency-based systems susceptible to ____?

- Guidance - measurable - performance - capable - discrimination

Compensable factors - Widely used: ____ Guide Chart - Profile Method

- Hay Group

Who Collect the Information?

- Human resource generalists and supervisors - Someone thoroughly familiar with the organization and its job

Employee data

- Includes employee characteristics (knowledge and skills), internal relationships, and external relationships - Position Analysis Questionnaire (PAQ) - 1. Information input; 2. Mental processes; 3. Work output; 4. Relationships with other persons; 5. Job context; 6. Other characteristics

Procedures - Job Based - Skill Based - Competency Based

- Job analysis job evaluation - Skill analysis skill certification - Competency analysis competency certification

Three hay factors Accountability

- Jobs exist to achieve an end result

Manager's focus - Job Based - Skill Based - Competency Based

- Link employees to work promotion and placement cost control via pay for job and budget increase - Utilize skills efficiently provide training control costs via training, certification, and work assignments - Be sure competencies add value provide competency-developing opportunities control costs via certification and assignments

How can the information be collected?

- Major methods: questionnaires, interviews, observations - Using online questionnaire

Limitations - Job Based - Skill Based - Competency Based

- Potential bureaucracy potential inflexibility - Potential bureaucracy requires cost controls - Potential bureaucracy requires cost controls

Who Provides the Information?

- Principal sources: Jobholders and supervisors - Subordinates and employees in other jobs that interface with the job under study - Number of incumbents from which to collect data varies with stability of the job and ease of collecting the information

Pay increases - Job Based - Skill Based - Competency Based

- Promotion - Skill acquisition - Competency development

Job evaluation methods

- Ranking - Classification - Point method

Criteria for evaluating the plan

- Reliability - Validity - Acceptability

Employee focus - Job Based - Skill Based - Competency Based

- Seek promotions to earn more pay - Acquire skills - Acquire competencies

Job evaluation methods: ranking Advantages

- Simple, fast, and easy to understand and explain to employees - Least expensive (initially)

Generic compensable factors

- Skill - Effort - Responsibility - Working conditions

Select criterion pay structure - ____ are used to determine the weight for each factor and the factor scales that will reproduce, as closely as possible, the chosen structure

- Statistical modeling techniques

Three hay factors Accountability and problem solving

- To achieve this end result, job holders must address problems, create, analyze, and apply judgement

Job analysis procedures - Job analysis collects ____ on specific tasks or behaviors - A group of tasks makes up a ____ - Identical positions make a ____, and broadly similar jobs combine into a ____

- information - position - job - job family

Outcomes of skill-based pay plans - ____ by employees o It is easy to see the connection between the plan, the work, and the size of the ____ o Provide strong ____ for individuals to increase their skills - Become increasingly ____ - ____ or master of none?

- Well accepted - paycheck - motivation - expensive - "Jack-of-all-trades"

Major methods: questionnaires, interviews, observations Example: 3M's structured interview questionnaire

- What is the main purpose of your job? - What are your job's main duties and responsibilities? - What is the level of formal training/education that is needed to start doing your job? What important skills, competencies, or abilities are needed to do the work that you do?

Validity - Measured in two ways: o Degree of ____ between rankings from job evaluation compared to an agreed-upon ranking of benchmarks used as the criterion o ____: the degree to which the job evaluation plan matches (hits) an agreed-upon pay structure for benchmark jobs

- agreement - "Hit rates"

Eight steps in designing a point plan - Conduct job ____ - Determine ____ factors - ____ the factors - Weight factors by ____ - Select ____ pay structure - ____ and train users - Apply to ____ jobs - Develop online ____ support

- analysis - compensable - Scale - importance - criterion - Communicate - nonbenchmark - software

Acceptability - Methods to assess and improve employee acceptability: o formal ____ process allows a request for reanalysis and/or skills reevaluation o ____ assess perceptions of how useful evaluation is as a management tool

- appeals - employee attitude surveys

Skill-based structures - In contrast, a job-based plan pays employees for the job to which they are ____, regardless of the skills they possess

- assigned

Person-based structures: skill plans - An advantage is less ____ as people are better matched to the work flow

- bottlenecks

Skill-based structures - Structures based on skill pay individuals for all the skills, for which they have been ____, regardless of whether the work they are doing requires all or just a few of those particular skills

- certified

Job evaluation methods: classification - A series of ____ covers the range of jobs - Job descriptions are compared to class descriptions to determine class ____ - Greater ____ of the class definition improves the reliability of the evaluation o It also limits the number of jobs ____ classified - Jobs within each class are considered ____ and will be paid ____

- classes - level - specificity - easily - equal; equally

Defining job evaluation: linking content with the external market - Value of job content is based on what it can ____ in the external market - Higher skill levels or working closely with customers commands ____ wages - Skill level and nature of customer contacts become useful ____ for establishing differences among jobs

- command - higher - criteria

Job evaluation methods: point method - Most ____ used approach to establish pay structures in U.S. - Differ from other methods by making explicit the ____ for evaluating jobs - compensable factors

- commonly - criteria

Legal ____ may require more detailed information

- compliance

Defining job evaluation: linking ____ with the external market

- content

Skill-based structures - Link pay to the ____ of the skills, abilities, and knowledge a person acquires that are relevant to the work

- depth or breadth

Internal alignment reflected in structures - The purpose of job- and person-based procedures is to ____ a pay structure that aids success - Managers must ensure the structure remains aligned by reassessing ____ when necessary - In reality, the distinction blurs and the focus is on what factors create ____

- design and manage - work/skills/competencies - value

Suggested criteria for scaling factors: 1. ensure the number of degrees is necessary to ____ among jobs 2. use ____ terminology 3. anchor degree definitions with ____ job titles and/or work behaviors 4. make it apparent how the degree ____ to the job

- distinguish - understandable - benchmark - applies

Compensable factors - How many factors should be included in the plan. o Overlapping factor raises concerns of ____ o Another challenge (____): - If even one job has a certain characteristic, it is used in the entire work domain

- double counting - "small numbers"

Single versus multiple plans - Many employers design different ____ plans for different types of work

- evaluation

A reliable job evaluation is one where different evaluators produce the same results - Improve reliability by using evaluators ____ with the work and ____ in job evaluation

- familiar; trained

Levels of Analysis - Using broad, generic terms increases ____, but it reduces ____ opportunities for employees

- flexibility; promotion

Complete job descriptions - Use ____ job descriptions to avoid starting from scratch or to cross-check externally - Important source: ____ - Verify the description with jobholders and supervisors to make sure it is ____; make notes of omissions, ambiguities, or needed clarifications

- generic - O*NET (https://www.onetonline.org) - accurate and complete

A reliable job evaluation is one where different evaluators produce the same results - Some organizations use ____

- group consensus

Reliabilities for job evaluation scores are ____ than those for job analysis ratings

- higher

Weight the factors - Factor weights reflect the relative ____ of each factor to the overall value of the job - Weights are often determined through an ____

- importance - advisory committee

Communicate the plan and train users - Involves development of manual containing ____ to allow users to apply plan: o Describes job evaluation ____ o Defines ____ factors o Provides information to permit users to ____ varying degrees of each factor - Includes ____ process for employees

- information - method - compensable - distinguish - appeals

Discrepancies in job analysis - Collect ____ data and discuss discrepancies, asking for sign off on revised results - Disagreements can ____ expectations, learn a better way to do a job, and document how the job is actually performed

- more - clarify

Determining a skill-based structure - Basic decisions o What is the ____ of the plan? o What ____ should be collected? o What ____ should be used to determine and certify skills? o Who should be ____? o How ____ are the results for pay purposes?

- objective - information - method - involved - useful

Using online questionnaire: facilitates statistical analysis of results, allowing faster data collection o Employees complete questionnaires ____ o Allow a ____ number of employees to participate o Results depend on the ____ of input (include good performers in the analysis!) o ____ inventories developed by some consulting firms can assist the design of the questionnaire

- online - large - quality - Quantitative

Some major decisions in job analysis: - Why ____ job analysis? - What ____ is needed? - How to ____ information? - Who to ____? - How ____ are the results?

- perform - information - collect - involve - useful

some major decisions in job evaluation - establish ____ of evaluation - decide whether to use ____ plans - choose among ____ approaches - obtain ____ of relevant stakeholders - evaluate plan's ____

- purpose - single or multiple - alternatives - involvement - usefulness

Job analysis: bedrock or bureaucracy - Employers are ____ jobs, cross-training employees, and using generic job descriptions, improving flexibility - ____ job analysis makes distinctions among levels of jobs, reinforces rigidity - Some analyze work content as part of ____ which looks at how an organization does its work - ____ to job-based structures: skill-based or competency-based system

- reducing - Traditional - supply chain analysis - Alternatives

Apply to nonbenchmark jobs - Final step involves applying plan to ____ jobs o Benchmark jobs were used to develop ____ factors and weights

- remaining - compensable

Levels of Analysis - Influences whether the work is ____

- similar or dissimilar

Person-based structures: ____ plans

- skill

Single versus multiple plans - Firms may start with a sample of benchmark (key) jobs. Characteristics include: o Its contents are well known and relatively ____ over time o The job is ____ across different employers; ____ to one particular employer o A reasonable ____ of the workforce is employed in this job

- stable - common; not unique - proportion

To be useful, compensable factors should be: - based on the ____ of the organization - based on the ____ itself - acceptable to the ____ affected by the resulting pay structure

- strategy and values - work - stakeholders

The final result: ____ - The final result of the "job analysis - job description - job evaluation" process is a ____, a hierarchy of work - Organizations commonly have multiple ____: o derived from different ____ o applicable to different ____ groups or units

- structure - structure - structures - approaches - functional

Skill-based structures - The ____ attaches to the person

- wage

Convention job analysis steps

1) develop preliminary job information 2) conduct initial tour of work site 3) interviewing jobholders and supervisors 4) conduct second tour of work site 5) consolidate job information 6) verify job description

Convention job analysis

The U.S. government developed a step-by-step approach to conducting conventional job analysis

The Americans With Disabilities Act (ADA)

requires that essential elements of a job - those that cannot be reassigned to other workers - must be specified

Determining a skill-based structure Internal alignment: work relationships within the organization

skill analysis --> skill blocks --> skill certification --> skill-based structure

Structure based on job content orders jobs by

skill, duties, and responsibilities

Task

smallest unit of analysis, a specific statement of what a person does; e.g., answers the telephone

Similar tasks can be grouped into a ____

task dimension

Example of competency indicators Impact and influence

the intention to persuade, convince, or influence to have a specific impact. It includes the ability to anticipate and respond to the needs and concerns of others. "impact and influence" is one of the competencies considered "most critical."

Job Evaluation

the process of systematically determining the relative value of jobs to create a job structure for the organization. The evaluation is based on a combination of job content, skills required, value to the organization, organizational culture, and the external market