INTERNAL CONSISTENCY - Pearson Education

INTERNAL CONSISTENCY - Pearson Education

STRATEGIC COMPENSATION A Human Resource Management Approach Chapter 7 Building Internally Consistent Compensation Systems 7-1 Prentice Hall, Inc. 2006

Prepared by David Oakes Internal Consistency Compares value of a job against others Represents job structure or hierarchy Job descriptions are its cornerstone Recognizes differences in job characteristics 7-2 Prentice Hall, Inc. 2006

Job Structure Processes Job analysis A descriptive procedure Identifies & defines job content Job evaluation Reflects value judgments Compensation systems set pay levels 7-3 Prentice Hall, Inc. 2006 Worker Requirements

Skills Education Experience Licenses Permits

Special abilities 7-4 Prentice Hall, Inc. 2006 Job Analysis Process Determine job analysis program Select & train analysts Direct job analyst orientation Conduct the study Summarize results: write job descriptions

7-5 Prentice Hall, Inc. 2006 Job Analysis Data Gathering Methods Questionnaires Interviews Observation Participation 7-6 Prentice Hall, Inc. 2006

JOB ANALYSIS UNITS Elements Tasks Position Job Job family Occupation 7-7 Prentice Hall, Inc. 2006 SOC Standard Occupational Classification

System Office of Management and Budget Replaces DOT Lists 23 Occupational Groups, 98 Minor Groups 452 Broad occupations

822 Detailed occupations 7-8 Prentice Hall, Inc. 2006 Sources Job incumbents Supervisors Job analysts 7-9 Prentice Hall, Inc. 2006

Writing Job Descriptions Should Include Job title Job summary Job duties Worker specifications 7-10 Prentice Hall, Inc. 2006 Legal Considerations Equal Pay Act Must justify pay differences

FLSA Determine exemption status ADA Determine essential job functions 7-11 Prentice Hall, Inc. 2006 ADA Guidelines Essential Job Functions Position has an essential function

Requires high skills or expertise Decided case - by - case Non - essential jobs are marginal 7-12 Prentice Hall, Inc. 2006 O*NET Categories Experience requirements Occupational requirements Occupation specific requirements

Worker requirements Worker characteristics Labor market characteristics 7-13 Prentice Hall, Inc. 2006 Experience Requirements Experience & training

Related work experience On - site training On - the - job training Apprenticeships Licensing Licenses & certificates Formal education 7-14 Prentice Hall, Inc. 2006

Occupation Requirements Occupational skills Occupational knowledge Tasks Machines Tools Equipment Duties

7-15 Prentice Hall, Inc. 2006 Worker Requirements Basic skills Cross - functional skills Knowledge Education 7-16 Prentice Hall, Inc. 2006

O*NET Sources Libraries, public & academic U.S. Government Printing Office http://www.doleta.gov American Psychological Assoc An Occupational Information System for the 21st Century: The Development of O*NET 7-17 Prentice Hall, Inc. 2006 Universal Compensable Factors

Skill Effort Responsibility Working conditions 7-18 Prentice Hall, Inc. 2006 Job Evaluation Process Steps

Select technique Choose committee Train members to evaluate Document plan Communicate with employees Set-up appeals process 7-19 Prentice Hall, Inc. 2006

Point Method Steps Select benchmark jobs Choose compensable factors Define factor degrees Determine weight of factors Determine point value Verify factor degrees & point values Evaluate all jobs 7-20 Prentice Hall, Inc. 2006

Job Evaluation Qualitative Approaches Simple ranking plan Paired comparisons Alternation ranking Classification plans 7-21 Prentice Hall, Inc. 2006 Alternatives To Job Evaluations Market pay rates Pay incentives

Individual rates Collective bargaining 7-22 Prentice Hall, Inc. 2006

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