Human Resource Management Job EvaluationRecruitmentReward Management By Suresh

Human Resource Management (Job Evaluation/Recruitment/Reward Management) By: Suresh Muttiah General Manager – Human Resources Union Assurance PLC Mobile : 0777766707 E mail : sureshm@ualink. lk

JOB EVALUATION PROCESS

Job Evaluation “Is a systematic comparison done in order to determine the worth of one job relative to another. ”

Important Features of Job Evaluation • Job evaluation attempts to assess jobs, not people. • The standards of job evaluation are relative, not absolute. • The basic information on which job evaluations are made is obtained from job analysis. • Job evaluations are carried out by groups, not by individuals. • Job evaluation committees utilize concepts such as logic, fairness and • Consistency in their assessment of jobs. • There is always some element of subjective judgment in job evaluation

Benefits of Job Evaluation • IT TRIES TO LINK PAY WITH THE REQUIREMENTS OF THE JOB. • IT OFFERS A SYSTEMATIC PROCEDURE FOR DETERMINING THE RELATIVE WORTH OF JOBS. • AN EQUITABLE WAGE STRUCTURE IS A NATURAL OUTCOME OF JOB EVALUATION. • IT HELPS IN SOLVING WAGE RELATED GRIEVANCES. • IT HELPS IN THE EVALUATION OF NEW JOBS. • IT POINTS OUT POSSIBILITIES OF MORE APPROPRIATE USE OF THE LABOUR FORCE • HELPS THE ORGANIZATION TO BE COST EFFECTIVE IN ORDER TO ACHIEVE GOALS AND OBJECTIVES.

PRE-REQUISITS FOR RESOURCING

Elements of Job Evaluation Job Analysis The Process of obtaining job factors Job Description A Statement of duties, responsibilities and job conditions. Job Specification A Statement of human qualities required to fill the job Job rating Using a predetermined system, study the job description and specifications and assign relative value or score to each job Money Allocation Assign a money rate of pay to each job according to a definite system or scale. Employee Classification Classify all employees under proper job title based upon the content of the work they actually perform.

Job Evaluation Methods Non-analytical Analytical • Points Rating Method Paired comparison • Factor comparison Job Grading/Job • Market Pricing • Job classification • Job Ranking • • Classification

EMPLOYER BRANDING Employer branding is the process of promoting a company, or an organization, as the employer of choice to a desired target group, one which a company needs and wants to recruit and retain.

RECRUITMENT AND SELECTION

WHAT IS RECRUITMENT • RECRUITMENT IS THE PROCESS OF GENERATING A POOL OF QUALIFIED APPLICANTS, FOR VACANCIES, FROM WHICH THE MOST SUITABLE CANDIDATES COULD BE CHOSEN.

QUESTIONS ARISEN IN RECRUITMENT • WHAT IS THE QUALITY OF PEOPLE REQUIRED • WHAT ARE THE SOURCES OF QUALIFIED PERSONNEL • HOW ARE THESE QUALIFIED PERSONNEL TO BE RECRUITED • WHAT IS OUR RECRUITMENT POLICY • WHO IS TO BE INVOLVED IN THE RECRUITING PROCESS • WHAT INDUCEMENTS DOES THE ORGANIZATION HAVE TO ATTRACT QUALIFIED PERSONNEL

Recruitment Methods Internal Methods Job Posting/Job Bidding Use of skill inventories Internal referrals (ERS) Poaching (not an ethically accepted method) External Methods Paper advertising Campus Recruitment Employment agencies From the data bases Personnel previously interviewed Authorized training bodies Career fairs / workshops Virtual sites Magazines TV/Radio Head Hunting Walking Interviews ,

ADVANTAGES OF INTERNAL METHODS • INTERNAL EMPLOYEES ARE MORE FAMILIAR TO THE ORGANIZATION AND ITS CULTURE • THE COST OF RECRUITING INTERNAL EMPLOYEES IS LESS • MOTIVATES THE EXISTING STAFF • BEHAVIOR IS PREDICTABLE • STRENGTHENS THE EMPLOYEE RELATIONS

ADVANTAGES OF EXTERNAL METHODS • WIDE SELECTION • INFUSION OF FRESH BLOOD • ELEMENT OF COMPETITION • CAN GET THE EMPLOYER BRAND ADVANTAGE • CAN SPOT THE BEST TALENT FROM THE COMPETITORS • DEVELOPMENT COST IS LESS

WHAT IS SELECTION “SELECTION IS THE PROCESS IN WHICH CANDIDATES FOR EMPLOYMENTS ARE DIVIDED INTO TWO CLASSES- THOSE WHO ARE TO BE OFFERED EMPLOYMENT AND THOSE WHO ARE NOT” -DALE YODDER

SELECTION PROCESS • SCREENING THE APPLICATIONS (SHORT LISTING PROCESS) • PRELIMINARY INTERVIEWS • SELECTION TEST ( IQ, EQ, LANGUAGE, TECHNICAL KNOW-HOW) • EMPLOYMENT INTERVIEWS • ASSESSMENT CENTRES • REFERENCE CHECK & BACKGROUND CHECK • SELECTION DECISION • PHYSICAL/MEDICAL EXAMINATION • EMPLOYMENT OFFER

METHODS OF INTERVIEWING • ONE-ON-ONE INTERVIEWS • GROUP INTERVIEW • PRELIMINARY INTERVIEWS • BOARD INTERVIEW • STRESS INTERVIEW • COMPETENCY BASED INTERVIEWS • BEHAVIORAL INTERVIEWS

GROUP ACTIVITY – ASSESSMENT CENTRE Competencies • Team work • Decision Making • Leadership DISCUSS - Your company is in to car manufacturing industry, you need to develop a new economical car which can capture Sri Lankan Market. 10 minutes

REFERENCE & MEDICAL CHECK • EMPLOYMENT REFERENCE CHECK • NON-RELATED REFERENCE CHECK • BACKGROUND CHECK • CREDENTIAL CHECK • MEDICAL TEST

ALTERNATIVE RESOURCING STRATEGIES • OUTSOURCING /IN-SOURCING / OFF -SHORING • JOB ENLARGEMENT / JOB ENRICHMENT • AMALGAMATION • RE-STRUCTURING • OVERTIME

EVALUATION OF RECRUITMENT AND SELECTION PROCESS • NUMBER OF CV’S RECEIVED • NUMBER OF CV’S MEET MAIN CRITERION (PERCENTAGE) • NEW HIRE FAILURE RATIO • AVERAGE TIME TAKEN TO FILL VACANCIES • COST PER HIRE

REWARD MANAGEMENT AND ITS ATTRACTION ON EMPLOYEE PERFORMANCE

OBJECTIVES q WHAT IS REWARD MANAGEMENT? q TYPES OF REWARDS IN YOUR COMPANY (FINANCIAL AND NON FINANCIAL) q HOW FINANCIAL REWARDS CONTRIBUTES TO THE ATTRACTION OF EMPLOYEES IN YOUR COMPANY q HOW NON FINANCIAL REWARDS CONTRIBUTES TO THE ATTRACTION OF EMPLOYEES IN YOUR COMPANY q HOW THE PERFORMANCE OF THE EMPLOYEES HAVE INCREASED THROUGH ABOVE REWARD TYPES(DATA ON YOUR COMPANY, EXAMPLES AND YOUR ACHIEVEMENTS) q WHAT KIND OF REWARD MANAGEMENT PRACTICES AND PACKAGES SHOULD BE PROMOTED BY THE COMPANIES IN TODAYS CONTEXT (COMPONENTS SHOULD BE INCLUDED IN THE REWARD PACKAGE, AS A SUMMARY AND CONCLUSION)

DEFENITION OF REWARD MANAGEMENT q THIS MANAGEMENT DISCIPLINE IS CONCERNED WITH THE FORMULATION AND IMPLEMENTATION OF STRATEGIES AND POLICIES, THE PURPOSES OF WHICH ARE TO REWARD EMPLOYEES FAIRLY, EQUITABLY AND CONSISTENTLY IN ACCORDANCE WITH THEIR VALUE TO THE ORGANISATION. q IT DEALS WITH DESIGN, IMPLEMENTATION AND MAINTENANCE OF REWARD SYSTEMS (PROCESSES, PRACTICES, PROCEDURES) THAT AIM TO MEET THE NEEDS OF BOTH THE ORGANISATION AND ITS

PURPOSE OF REWARD PROGRAMMES INCREASED PRODUCTIVITY RELATED TO PERFORMANCE BOOSTER FOR MORALE ATTRACT TALENT REDUCE GRIEVANCES REDUCE EMPLOYEE TURNOVER CONTROL TARDINESS & ABSENTEEISM RETENTION OF COMPETENT EMPLOYEES CREATE JOB SATISFACTION TO SECURE INTERNAL AND EXTERNAL EQUITY TO ENSURE DESIRED BEHAVIOUR MANAGE LABOUR COSTS 26

GENERAL MODEL OF ORGANIZATIONAL REWARD SYSTEMS Types of Rewards • Financial/material (extrinsic) • Social (extrinsic) • Psychic (intrinsic) Organization’s Reward Norms • Profit maximization • Equity • Equality • Need Distribution Criteria • Results • Behavior Desired Outcomes • Attract • Motivate • Develop • Satisfy • Retain

TYPES OF EMPLOYMENT REWARDS/COMPENSATION

Benefits of a proper Reward Management Programme 29

COMPONENTS OF TOTAL REMUNERATION q BASE PAY: BASE PAY IS THE FIXED COMPENSATION PAID TO AN EMPLOYEE FOR PERFORMING SPECIFIC JOB RESPONSIBILITIES. IT IS TYPICALLY PAID AS A SALARY, HOURLY (OR IN SOME SITUATIONS PIECE RATE). THERE IS A TENDENCY TOWARDS MARKET ORIENTATION AND THE INCREASING ROLE OF QUALIFICATIONS. q CONTINGENT PAY: INDIVIDUAL CONTINGENT PAY RELATES FINANCIAL REWARDS TO THE • INDIVIDUAL PERFORMANCE, ORGANISATION OR TEAM PERFORMANCE, • COMPETENCE, • SERVICE, • CONTRIBUTION OR • SKILL OF INDIVIDUAL EMPLOYEES. q CONSOLIDATED PAY: BUILT INTO THE BASE PAY q VARIABLE PAY: PROVIDED IN THE FORM OF CASH BONUSES (INCREASING ROLE NOWADAYS). q EMPLOYEE BENEFITS: ELEMENTS OF REMUNERATION GIVEN IN ADDITION TO THE VARIOUS FORMS OF CASH PAY

FACTORS AFFECTING THE DETERMINATION OF PAY Ø DEMAND & SUPPLY OF WORKERS – LABOUR MARKET CONDITIONS Ø BARGAINING POWER – TRADE UNIONS Ø COST OF LIVING Ø CONDITION OF THE PRODUCT IN THE MARKET PLACE Ø COMPARATIVE WAGES Ø CAPACITY TO PAY Ø PRODUCTIVITY OF LABOUR Ø JOB REQUIREMENTS Ø GOVERNMENT MINIMUM WAGE POLICY Ø GOODWILL OF THE COMPANY 31

WHY DO REWARDS FAIL TO MOTIVATE? q TOO MUCH EMPHASIS ON MONETARY REWARDS q REWARDS LACK AN “APPRECIATION EFFECT” q EXTENSIVE BENEFITS BECOME ENTITLEMENTS q COUNTERPRODUCTIVE BEHAVIOR IS REWARDED q TOO LONG A DELAY BETWEEN PERFORMANCE AND REWARDS q TOO MANY ONE-SIZE-FITS-ALL REWARDS q USE OF ONE-SHOT REWARDS WITH A SHORT-LIVED MOTIVATIONAL IMPACT q CONTINUED USE OF DEMOTIVATING PRACTICES SUCH AS LAYOFFS, ACROSS-THE-BOARD RAISES AND CUTS, AND EXCESSIVE EXECUTIVE COMPENSATION

Most Common Employee Benefits Offered Today (Other than salary) q q q Benefit Type Life Insurance Vacation Pay Holiday Pay Medical Care Retirement Plans Education Assistance Programs Non-Production Bonuses Employee Assistance Programs Healthcare Reimbursement Accounts Dependent Care Reimbursement Accounts q Wellness Programs q Job-Related Travel And Accident Insurance q Employer Assistance For Childcare q Fitness Centers q Long Term Care Insurance q Adoption Assistance q Stock Options q Subsidized Commuting q Flexible Workplace q Employer Provided Personal Computer

EXECUTIVE COMPENSATION PROGRAMS Financial Compensation q deferred bonuses – paid to executives over extended time periods, to encourage them to stay with the company q stock options – allow executives to purchase stock in the future at a fixed price q hiring bonuses – compensate for the deferred compensation lost when leaving a former company q Golden parachutes protect executives when a merger or hostile takeover occurs by providing severance pay or a guaranteed position.

EXECUTIVE COMPENSATION PROGRAMS Nonfinancial Compensation Perquisites free financial, legal and tax counseling club memberships paid life insurance supplemental retirement accounts interestfree loans perks may include postretirement consulting contracts mortgage assistance expense accounts company cars supplemental disability insurance

KEY STRATEGIC ISSUES IN COMPENSATION q DETERMINING COMPENSATION RELATIVE TO THE MARKET. q STRIKING A BALANCE BETWEEN FIXED AND VARIABLE COMPENSATION. q DECIDING WHETHER OR NOT TO UTILIZE TEAM-BASED VERSUS INDIVIDUAL PAY. q CREATING THE APPROPRIATE MIX OF FINANCIAL AND NON-FINANCIAL COMPENSATION. q DEVELOPING A COST-EFFECTIVE COMPENSATION PROGRAM THAT RESULTS IN HIGH PERFORMANCE.

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