Evaluating the Process of Job Evaluation and Other Factors Determining Pay – Part 2
Evaluating the Process of Job Evaluation and Other Factors Determining Pay – Part 2
According to the topic of this article the author has been discussed the process of job evaluation in previous article. In Organization, following facts are the determining factors of pay in the company. Evaluation is as follows.
- Performance: This includes the previous and/or current work accomplishments or outcomes and behavioral interactions that typically form the basis of written, verbal or observational assessments of a candidate. Employees must meet acceptable job performance levels (contributor or higher ratings) to receive management-initiated salary increases (Montana and Bruce, 2008).
- Work Experience and Education: This includes the relevant employment history and academic qualifications of an incumbent or candidate. Work experience is the employment history of an individual (i.e., job titles held and corresponding descriptions of duties, responsibilities, and tasks performed). Education includes earned academic credentials (i.e., high school diploma, associate degree, bachelor’s degree or specific advanced degree)
There are the important questions; How readily available in the marketplace are the qualifications employee is seeking? Is there a unique qualification the candidate/employee possesses that may enhance the organizational unit‘s ability to meet the organization’s mission and goals?
- Knowledge, Skills, Abilities and Competencies: This includes elements commonly listed for job requirements, hiring qualifications or employee credentials. Knowledge refers to acquired principles and practices related to a particular job (i.e., principles Computer Science and Database managing). Skills refer to acquired psychomotor behaviors (i.e., operation of personal computer and network). Abilities include talents, observable behaviors or acquired dexterity. Competencies include knowledge, skills and underlying behaviors that correlate with successful job performance in the organization.
- Training, Certification and License: This includes job requirements or employee qualifications that are relevant or highly desirable for a particular job. Training refers to a specialized course of instruction outside the realm of recognized academic degree programs (i.e., in-service training). Certification refers to a specialized course of study resulting in a certificate upon successful completion. A license is a required credential to practice one’s occupation.
- Internal Salary Alignment: This is a fairness criterion that takes into consideration the proximity of one employee’s salary to the salaries of others who have comparable levels of training and experience; similar duties and responsibilities; each employee’s performance; and similar knowledge, skills, abilities and competencies (Hersey et al, 2008). To determine internal salary alignment, examine an employee‘s salary in relation to comparable co-workers’ salaries. The HR consultant in the organization can share information about employees performing similar jobs within the organization.
- Current Salary: This is the present base pay compensation of a current employee or job applicant. Examples of base pay compensation include an hourly wage or a weekly, semi-monthly, monthly or annual salary. This factor typically does not include shift differentials, benefits, overtime, incentive premiums, bonuses, commissions or other similar non-base-pay compensation.
It has been stated that majority of the workers are not happy with their jobs and not performing up to expected standards. So, Human resources department of an organization has to make sure that employees will be rewarded according to the contributions they make and above is the specification of the process of job evaluation and other factors determining pay.
References
Hersey, P., Blanchard, K. and Johnson, D. (2008) Management of Organizational Behavior: Leading Human Resources. 9th Edition. Upper Saddle River, NJ: Pearson Education.
Montana, P. J. and Bruce, H. (2008) HR Management. 3rd edition. New York: Barron's Educational Publishers.
I personally not believe that "monitory rewards" are not only the factor that can improve performance & job satisfactions. Free organizational environment, Employee Appreciations, Job security, Work place respect etc. are also impact on the performance & satisfaction.
ReplyDeleteYes. Agreed. But You would be hard-pressed to find an employee who would say, “No thanks, boss; I don't care much for money.” Remember that in this context, as an incentive, money might talk, alright. It just might speak a different language.
DeleteI agreed to you in some context. In a beginning and lower levels of employment yes "money might talk". But in experience talents and higher level positions are more concentrate on other factors that I mention earlier than monitory rewards.
DeleteYes people in high level positions need experiences, talents..... But they don't work without a salary..... Can u ?
DeleteJob security is a important factor as well as the salary. Recent example, one famous multi national pharmaceutical company has merged with another company for a business purpose with out prior notice of employees. Due to the merger the entity changes from holding plc to pvt.ltd .Most of the employees not willing to move to the new entity because there is a huge difference between a PLC and and a pvt limited. Management has offed remarkable salary increments and facilities to the employees but they are still unable to change the mind of employees to the new move.Most of the employees has decided to leave the company.Case is now handling by the LT. So this is not only about the money.
DeleteBoth are very important Pivithuru ...... Remarkable salary with safety ☺
DeleteJob Evaluation the process of determining the value/worth of a job in relation to other jobs is a systematic way in any organization. It tries to make a structured comparison between various jobs to assess their relative worth for the purpose of establishing a rational pay structure.
ReplyDeleteAgree with you Shalomie ☺☺☺ 👌👌👌
DeleteJob evaluation is a systematic process for defining the relative worth or size of jobs within an organisation in order to establish internal relativities. It provides the basis for designing an equitable grade and pay structure, grading jobs in the structure and managing job and pay relativities.
ReplyDeleteHRM departments and units in any organization are typically responsible for a number of activities, such as employee recruitment, training and development, performance appraisal, and rewarding (e.g., managing pay and benefit systems). HR is also concerned with industrial relations, that is, the balancing of organizational practices with regulations arising from collective bargaining and governmental laws.
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ReplyDeleteThe objective of job evaluation is to determine which jobs should get more pay than others. Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs. Job evaluation forms the basis for wage and salary negotiations
ReplyDeleteProduct Market Competition In the competitive market the organization faces challenges such as competition, cost of raw material, quality of service or goods, price ranges etc. All these factor will determine the range of income brought into the organization. This income directly affects labour costs, which is a vital part of the organization's overall production cost.
ReplyDeleteHRM divisions and units in any association are ordinarily in charge of various exercises, for example, worker enlistment, preparing and advancement, execution evaluation, and fulfilling (e.g., overseeing pay and advantage frameworks). HR is additionally worried about mechanical relations, that is, the offsetting of hierarchical practices with guidelines emerging from aggregate bartering and legislative laws.
ReplyDeleteHow does the internal salary alignment get connects with job evaluation???
ReplyDeleteHey Monali,,, 😊
DeleteThe purpose of conducting job evaluation is to fairly determine the monetary value / worth of a job in relation to other jobs in an organization. ...
Using job evaluation results, one can develop appropriate salary grades and decide on other compensation issues. ☺💰💲💵
It helps in keeping down the recruitment and selection costs as it assists in retaining employees. It means, job evaluation inspires for keeping down the labor turnover, as a result of which there will be less need for new recruitment. Moreover, due to the systematic analysis of various aspects of jobs, recruitment and selection can be made by matching the qualification and candidate.
ReplyDeleteDo the performance evaluations methods used in Sri Lanka are realistically evaluate the performances of employees in an organizational level ?
ReplyDelete