Study with HRM: Concept of Job Analysis

Study with HRM: Concept of Job Analysis: JOB ANALYSIS  Job analysis (JA) is a process of identification and determination of the particular job duties, requirements and responsibili...

Concept of Job Analysis

JOB ANALYSIS 

Job analysis (JA) is a process of identification and determination of the particular job duties, requirements and responsibilities. In other words, it is the identification and description of what is happening on the job. It is an essential and pervasive human resources technique and the starting point for other human resources activities. Simply stated, job analysis is a formal and detailed examination of jobs. It is a systematic investigation of the tasks, duties and responsibilities necessary to do a job.  

Definition :

A duty is a larger work segment consisting of several tasks (which are related by some sequence of events) that are performed by an individual, for example, pick up, sort out and deliver incoming mail.

Factors Influencing compensation Strategies

Design compensation strategies involves determination of the hierarchy of grades, formulating a compensation structure, and finalizing the pay packages with the aim to attract and retain talented workforce. 

The external and internal factors that affect a compensation strategy are:

1. Individual factors 
2. Organisational factors 
3. Competitive factors 
4. Product cost factors  

Let's discuss each one in detail:

1. Individual factors - Organisations while designing compensation strategy consider employees concern about compensation worth. In designing the compensation strategy individual skill, knowledge, expertise, attitude, sex, work environment and experience play an important role in fixing the level of the job.

2. Organisational factors - Organisational learning depends on productivity of employees and their efficiency which marks the designing of compensation strategy. This measures the company's  ability to pay.

3. Competitive factors - The compensation strategy also depends on the mission and vision of the organisation. That means whether the organization is willing to lead, develop competitiveness or meet the changing environments.

4. Product cost factors - It is a process of converting the job price into a monetary award to the employee performing employee performing or going to perform that job. 

Compensation Professional's Goals

The prime duty of human resources management is to optimize the best use of human resources,and to encourage and motivate the employees to increase the effectiveness of their potentials, which helps the company to develop a competitive advantage. Compensation here plays an important role to make the  employees comfortable, energetic, enthusiastic and motivated to do their best for the organization. The figure below describes a model to understand the need of effective compensation management to meet this objective of any organization.

                             

Employer's and Employee's Objective  

Employer's Objectives :

The main objective of the employers is to acquire competent employees at reasonable costs to the company. Other objectives could be:

1. To justify the cost to the company through performance and productivity improvement
2. To comply with legal rules 
3. To boost the morale of the employees  

Employee's Objectives :  

The employee's objectives are aimed at equity-based compensation, fair evaluation of their worth, comfort at the work place and commitment of adequate cushion for inflation and better performance. 

Thus, the employee's objectives are:

1. To get equity based remunerations.
2. To satisfy their worth
3. To have cushion for price inflation.
4. To have security and welfare consideration.

Compensation and Organizational Objectives

The compensation system is designed to achieve certain objectives. Though the main objective of compensation management is to attract competent personnel, minimize the conflict, encourage the employees to perform better, and have a culture and policies to retain them, it aims at treating the employees as an asset to the organization and properly maintains them and keep satisfied.

The establishment of equity is an important objective of compensation management. However, the general objectives of compensation management are listed below.

• To attract and  acquire qualified and competent employees to meet the organizational objectives.
• To secure internal and external equity 
• To control the desired behavior of the employees
• To reduce conflicts and grievances

Every organization has a goal to accomplish and an urge to develop competitiveness, and therefore tries to acquire and retain the talents by designing and offering attractive compensations.

 

Compensation

Compensation is a key factor in attracting and keeping the best employees and  ensuring the competitive edge in an increasingly competitive world. Compensation and reward system play a vital role in a business organization. 

Compensation refers to the monetary rewards to an individual for the efforts he/she offers to any organization or institution.   

TYPES OF COMPENSATION 

The most common types of compensation are mentioned below:

• Base Pay 
• Variable Pay
• Benefits 
• Incentive

Base Pay : The base pay (the fixed salary or wage) that constitutes the basic rate for the job, which is fixed. It may be varied according to the grade of the job or, for manual workers, the level of skill required. Base pay will be influenced by internal and external relativity.

Base pay maybe expressed as an annual, weekly or hourly rate.

Variable Pay : Variable pay is non-traditional compensation method. Also known as 'at-risk' pay, as it is performance-based.It is can take various forms like a share in the profits, saved costs, individual and team incentives for attaining the set goals or lump sum awards.

Benefits : Benefits include pensions, sick pay, insurance cover, company cars and other 'perks'. They comprise of elements of remuneration additional to the various forms of cash pay and also include provisions for employees that are not strictly remuneration, such as annual holidays.

Incentive : It is the additional form of compensation that is directly linked with performance and paid over and above  the standard pay. Incentives can be tied to the performance of an individual employee, a team of employees, a total business unit, or some combination of individual, team and unit.