SESSION 2 Defining Internal Alignment and Job Analysis

SESSION 2 - Defining Internal Alignment and Job Analysis JOB ANALYSIS p. 1

Job Analysis SESSION 2 - Defining Internal Alignment and Job Analysis INTERNAL STRUCTURE Job Based Person Based PURPOSE Collect, summarize Work information Job analysis Job descriptions Determine what to value Job Evaluation Classes/Comp factors Assess value Factor degrees & weighting Translate into structure Job-Based structure Skills Competencies p. 2

Job-Based - Job Analysis & Description Program SESSION 2 - Defining Internal Alignment and Job Analysis Planning of the program: üsetting objectives üdetermining required information üselecting job analysts Communicating the program Collecting information about jobs Writing job descriptions Distributing job descriptions üemployees üImmediate supervisors üHR department Updating job descriptions p. 3

Planning the Program SESSION 2 - Defining Internal Alignment and Job Analysis Ø Setting Objectives • Job descriptions must do more than define the various responsibilities attached to each job • It should indicate the behavior required of employees and the performance expected from them p. 4

Planning the Program SESSION 2 - Defining Internal Alignment and Job Analysis Ø Determining the Required Information Management, technical or professional jobs Position of the job within the organization -Official job title -Department or division involved -Place of work -Immediate supervisor’s job title -Title(s) of employees reporting to this position Purpose of the job Specific responsibilities and duties Education and experience required to perform the job Relationship to other jobs within and outside the organization Office staff or hourly personnel Position of the job within the organization -Official job title -Department or division involved -Place of work -Immediate supervisor’s job title Purpose of the job Specific regular and occasional tasks and elements Qualifications and experience required to perform the job Equipment and tools used p. 5

Planning the Program SESSION 2 - Defining Internal Alignment and Job Analysis Ø Choice of Job Analyst Three sources of information about a job : • the individual concerned • their immediate supervisor • the job analyst Usually the most used approach is the job analyst, and to a lesser extend the immediate supervisors p. 6

Communicating the Program SESSION 2 - Defining Internal Alignment and Job Analysis Ø Communication Essential Characteristics : • Why (objectives), what (data required), and how (process) • Management must demonstrate total commitment to the program • Wherever applicable, unions to be informed of the program before disclosed to the concerned employees • Line supervisors to be informed prior their employees p. 7

Collecting Information about Jobs SESSION 2 - Defining Internal Alignment and Job Analysis Ø By Observation • Applicable for basic jobs only Ø Via a Questionnaire • Open questionnaire – Usually completed by the incumbent - widely used • Closed questionnaire – (check-off answers) • Structured questionnaire – Multiple choices answer Ø Through an Interview • Best approach but very time consuming p. 8

Collecting Information about Jobs SESSION 2 - Defining Internal Alignment and Job Analysis Ø Job Analysis Terminology Job Family Grouping of related jobs with broadly similar content; e. g. Marketing, office support, Finance, HR, etc. Job Grouping of tasks performed by one person that make up the total work Assignment of that person; e. g. Concierge, Housekeeper, Florr Mgr, etc. Tasks Smallest unit of analysis, a specific statement of what a person does, e. g. welcome guests arriving at the hotel; Independent carrying out of orders in the food and nonfood area; Training and management of kitchen Team Members p. 9

SESSION 2 - Defining Internal Alignment and Job Analysis Writing Job Descriptions Ø It is a written record of the duties and responsibilities of a specific job compiled through job analysis Ø It consists of statements which identify and describe the scope and contents of a job Ø It provides an outline of the essential functions and major duties of a job Ø It does not describe all details of a job p. 10

SESSION 2 - Defining Internal Alignment and Job Analysis Writing Job Descriptions p. 11

SESSION 2 - Defining Internal Alignment and Job Analysis Writing Job Descriptions p. 12

SESSION 2 - Defining Internal Alignment and Job Analysis Writing Job Descriptions p. 13

SESSION 2 - Defining Internal Alignment and Job Analysis Writing Job Descriptions p. 14

Writing Job Descriptions SESSION 2 - Defining Internal Alignment and Job Analysis Ø Purpose of the Exercise Job analysis Identification of Duties & Responsibilities Recruitment Selection & Hiring Training & Dev’mt Career planning Job alignment Job description Perf. evaluation Job evaluation HR Planning Check mkt value Salary structure p. 15

Writing Job Descriptions SESSION 2 - Defining Internal Alignment and Job Analysis Ø Typical Problems with Job Descriptions • Often poorly written, providing little guidance. • Often not updated as job duties and specifications change • May violate the law by including specifications unrelated to the job • Job duties written in vague rather than specific terms • Could limit the scope of the job-holder • Could restrict ability to cope with change • Creates significant administrative workload • Not always linked to other HR activities or processes p. 16

SESSION 2 - Defining Internal Alignment and Job Analysis Distributing Job Descriptions Ø Job descriptions should be distributed to interested parties, i. e. • The concerned incumbent – Indications of what the organization expect from them • The supervisors – They are directly responsible for managing their staff • The HR department – Beside job evaluation, to develop various programs : – Recruitment, performance appraisals, career planning, training, etc. • To all employees – To provide firsthand information about career opportunities p. 17

SESSION 2 - Defining Internal Alignment and Job Analysis JOB EVALUATION “Job evaluation is the process of arranging jobs within an organization into a hierarchy based on their relative requirements, so that employees are paid in proposition to the requirements of their job. ” p. 18

Job Evaluation SESSION 2 - Defining Internal Alignment and Job Analysis INTERNAL STRUCTURE Person Based Job Based Skills Competencies PURPOSE Collect, summarize Work information Job analysis Job descriptions Determine what to value Job Evaluation Classes/Comp factors Assess value Factor degrees & weighting Translate into structure Job-Based structure p. 19

Job Evaluation SESSION 2 - Defining Internal Alignment and Job Analysis Ø The Importance of Value Systems Job evaluation – means an assessment of the work, not the incumbent – involves establishing a hierarchy of job based on requirements – to pay the incumbents of a position in proportion to the requirement of their job, and not to determine pay levels or specific pay differentials – to create internal pay equity based on the various job requirements – technical characteristics are less important than the use made of them – Success is measured by the results it achieves, not the method used p. 20

What Approach? SESSION 2 - Defining Internal Alignment and Job Analysis INTERNAL STRUCTURE Job Based Person Based Skills Job Ranking General ranking Paired ranking Classification Job-to-predetermined- standard comparison Job Slotting Market Pricing Competencies Job to Job Comparison Qualitative driven Reporting basis Based on external competitive salary data Quantitative driven Point Method Job-to-factor Evaluation p. 21

SESSION 2 - Defining Internal Alignment and Job Analysis Two Broad Issues In the simplest terms, compensation program design must address two broad issues: Paying for the Job�� Paying for the Individual�� Ø Grade/band structure Ø Pay guidelines/policies Ø Considerations: • Comparison markets • Skills, knowledge and experience • Pay position relative to market • Performance versus longevity • Balance of external versus internal focus • Internal equity p. 22

Job Evaluation Alternatives ALTERNATIVES Greater Complexity SESSION 2 - Defining Internal Alignment and Job Analysis Less Complexity p. 23

What Approach? SESSION 2 - Defining Internal Alignment and Job Analysis Ø Job ranking / Paired comparison • Orders the job descriptions from highest to lowest – based on a global definition of relative value or contribution to the organization’s success – Pair ed comparison involves comparing all the jobs with each other to determine the more demanding job in every pair • Ranking is simple and easy to understand • Suitable for small organizations • Least expensive method Issues : • Relatively time consuming when large population • Provides no information about the differences between jobs p. 24

What Approach? SESSION 2 - Defining Internal Alignment and Job Analysis Ø Classification • Involves identifying and determining a number of classes into which all jobs in the particular cluster in question can fit • Used for centralized evaluation of a large number of jobs • Simple and inexpensive • Flexible Issues • Calls for extensive knowledge of the nature of the jobs under evaluation and a remarkable capacity synthesis • Outcome of an arbitrary process designed to differentiate certain jobs • May leave too much room for manipulation p. 25

What Approach? SESSION 2 - Defining Internal Alignment and Job Analysis Ø Classification Example: • GS-5 includes all classes of positions the duties of which are (1) to perform, under general supervision, difficult and responsible work in office, business, or fiscal administration… • GS-9 includes all classes of positions the duties of which are (1) to perform, under general supervision, very difficult and responsible work along special technical, supervisory, or administrative experience… p. 26

What Approach? SESSION 2 - Defining Internal Alignment and Job Analysis Ø Market Pricing • Uses the labor market to determine the value of jobs • Readily comprehensive • Easily applicable • Simple Issues • Overlooks the question of internal pay equity • Hierarchy is based solely on market price • Ignores the fact that pay is only one component of compensation • Does not consider the specific characteristics of organizations p. 27

What Approach? • Structure developed on competitive market practices • Based on market surveys • The competitive market data drives the salary structure 200 ’ 000 Compagny XYZ 150 ’ 000 Euro SESSION 2 - Defining Internal Alignment and Job Analysis Ø Market Pricing (continued) 100 ’ 000 5 6 7 8 9 10 11 12 13 14 15 Grades p. 28

What Approach? • structured around the organization chart • Job positioned following the organization charts • Usually defined by departments/type of activities 100 ’ 000 50 ’ 000 Marketing 150 ’ 000 Euro SESSION 2 - Defining Internal Alignment and Job Analysis Ø Job Slotting Finance 100 ’ 000 50 ’ 000 p. 29

What Approach? SESSION 2 - Defining Internal Alignment and Job Analysis Ø Point Method • Classical position evaluation (Hay type) – Position profile/responsibilities & challenge • Computer aided job evaluation – Multiple choice questionnaire approach based on weighted factors • Mix evaluation – Similar to the classical evaluation plus individual skills & competencies • Competency evaluation – Individual profile (competencies, aptitudes, and know-how) p. 30

SESSION 2 - Defining Internal Alignment and Job Analysis Classical Evaluation (Hay type) • Based on the profile, responsibilities & challenge of the position • Job descriptions essential for the exercise • Structured around factors such as: Know-How – Education, experience, management responsibilities, supervision/motivation of subordinates/employees Problem Solving – Challenge and thinking environment Accountabilities – Freedom of action and accountabilities on revenues/budgets p. 31

Classical Evaluation (Hay type) SESSION 2 - Defining Internal Alignment and Job Analysis • Assigns point values based on compensable factors. • Each job receives a total point value, and relative worth can be compared. • Is also known as Hay plans, from the consulting company at the origin of this method p. 32

SESSION 2 - Defining Internal Alignment and Job Analysis Computer aided evaluation • Based on the profile/responsibilities & challenge of the position evaluated through a defined position questionnaire (multiple choice) • Structured around factors such as: – – – Know-How (education, experience, international dimension) Communication (internal & external to the organization) Dimension (revenue/budget, number of employees) Effectiveness (reporting, contribution et impact of error) Leadership (level of decision and management) Challenge (level of autonomy, creativity and working environment) p. 33

SESSION 2 - Defining Internal Alignment and Job Analysis Computer aided Job Evaluation Position : Telemarketing Evaluation Questionnaire Know-How Communication Dimension Effectiveness Leadership Challenge 65 101 33 78 55 45 Total 377 = 112’ 300 Salary Surveys p. 34

SESSION 2 - Defining Internal Alignment and Job Analysis Mixed Evaluation Ø Similar to the preceding evaluation process but with an individual assessment. Ø Additional questionnaire specific to skills and competencies. Position description Position questionnaire Individual Assessment p. 35

Ø Individual profile (competencies, skills & know-how) taken into consideration to establish the market value of the incumbent as well as to position him/her within the organization Ø Assessment and valuation of the individual profile fragmented by families of competencies and skills C 40% 20% 33’ 000 200 ’ 000 20% 8’ 000 D 80’ 000 Level 30% 110 ’ 000 Individual Competencies & Skills B 50 ’ 000 A 40 ’ 000 SESSION 2 - Defining Internal Alignment and Job Analysis Competency evaluation 10’ 000 = 131’ 000 = Individual value p. 36

SESSION 2 - Defining Internal Alignment and Job Analysis Pluses & Minuses (for quantitative methods) p. 37

SESSION 2 - Defining Internal Alignment and Job Analysis Comparison of Job Evaluation Methods p. 38