Chap 004

McGraw-Hill/IrwinMcGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Milkovich/Newman: Compensation, Ninth EditionMilkovich/Newman: Compensation, Ninth Edition

Chapter 4Chapter 4Job AnalysisJob Analysis

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Chapter TopicsChapter Topics Structures Based on Jobs, People, or BothStructures Based on Jobs, People, or Both Job-based Approach: Most CommonJob-based Approach: Most Common Job Analysis ProceduresJob Analysis Procedures What Information Should Be Collected?What Information Should Be Collected? How Can the Information Be Collected?How Can the Information Be Collected? Job Descriptions Summarize the DataJob Descriptions Summarize the Data Job Analysis: Bedrock or Bureaucracy?Job Analysis: Bedrock or Bureaucracy? Judging Job AnalysisJudging Job Analysis Your Turn: The Customer-Service AgentYour Turn: The Customer-Service Agent

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Structures Based On Jobs, People, Or Structures Based On Jobs, People, Or BothBoth

Job-based structures look at what people are Job-based structures look at what people are doing and the expected outcomesdoing and the expected outcomes

Skill- and competency based structures look at Skill- and competency based structures look at the personthe person

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Exhibit 4.1: Many Ways to Create Internal StructureExhibit 4.1: Many Ways to Create Internal Structure

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Exhibit 4.2: Contemporary Job Description Exhibit 4.2: Contemporary Job Description for Registered Nursefor Registered Nurse

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Job AnalysisJob Analysis

The systematic process of collecting information that identifies similarities and differences in the work.

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Exhibit 4.3: Determining theExhibit 4.3: Determining theInternal Job StructureInternal Job Structure

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Job-Based Approach: Most CommonJob-Based Approach: Most Common Why Perform Job Analysis?Why Perform Job Analysis?

– Potential uses for job analysis have been suggested Potential uses for job analysis have been suggested for every major personnel functionfor every major personnel function Type of job analysis data needed differs by functionType of job analysis data needed differs by function

– Internal structure based on job-related information Internal structure based on job-related information provides a work-related rationale for pay differences provides a work-related rationale for pay differences to both managers and employees to both managers and employees

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Job-Based Approach: Most Common Job-Based Approach: Most Common (cont.)(cont.)

Why Perform Job Analysis? (cont.)Why Perform Job Analysis? (cont.)– In compensation, job analysis has two critical uses: In compensation, job analysis has two critical uses:

Establishes similarities and differences in the work Establishes similarities and differences in the work contents of the jobscontents of the jobs

Helps establish an internally fair and aligned job structureHelps establish an internally fair and aligned job structure

Key issue for compensation decision makers:Key issue for compensation decision makers:– Ensuring that data collected are useful and Ensuring that data collected are useful and

acceptable to employees and managers involvedacceptable to employees and managers involved

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Job Analysis ProceduresJob Analysis Procedures Job analysis usually collects information about Job analysis usually collects information about

specific tasks or behaviorsspecific tasks or behaviors– Position Position – a group of tasks performed by one person– a group of tasks performed by one person

– Job – Job – made up from identical positionsmade up from identical positions

– Job family Job family – broadly similar jobs– broadly similar jobs

Traditional, stable structures are shrinking, but Traditional, stable structures are shrinking, but persist in many large organizationspersist in many large organizations

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Exhibit 4.4: Job Analysis TerminologyExhibit 4.4: Job Analysis Terminology

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Exhibit 4.5: Conventional Job Analysis ProceduresExhibit 4.5: Conventional Job Analysis Procedures

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Exhibit 4.6: Typical Data Collected for Job Exhibit 4.6: Typical Data Collected for Job AnalysisAnalysis

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What Information Should Be Collected?What Information Should Be Collected? Job data: IdentificationJob data: Identification

– Job titles, departments, the number of people who Job titles, departments, the number of people who hold the job etc.hold the job etc.

Job data: ContentJob data: Content– Elemental tasks or units of work, with emphasis on Elemental tasks or units of work, with emphasis on

the purpose of each taskthe purpose of each task Employee dataEmployee data

– Position Analysis Questionnaire (PAQ) Position Analysis Questionnaire (PAQ) – McFry Nine Step ProgramMcFry Nine Step Program

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Exhibit 4.7: Communication: Task-Based DataExhibit 4.7: Communication: Task-Based Data

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Exhibit 4.8: Communication: Behavioral-Based DataExhibit 4.8: Communication: Behavioral-Based Data

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Exhibit 4.9: The McFry Nine Step Exhibit 4.9: The McFry Nine Step ProgramProgram

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What Information Should Be Collected? What Information Should Be Collected? (cont.)(cont.)

““Essential elements” and the Americans with Essential elements” and the Americans with Disabilities ActDisabilities Act– Requires that Requires that essential elements essential elements of a job – of a job – those that

cannot be reassigned to other workers – must be be specified for jobs covered by the legislation specified for jobs covered by the legislation

– Essential functions – Essential functions – the fundamental job duties of the fundamental job duties of the employment position the individual with a the employment position the individual with a disability holds or desiresdisability holds or desires

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Level of analysisLevel of analysis– Level at which an analysis begins influences Level at which an analysis begins influences

whether work is similar or dissimilarwhether work is similar or dissimilar Microscopic approachMicroscopic approach Broad, generic descriptionsBroad, generic descriptions

– Countervailing viewCountervailing view Promotion to a new job title is part of the organization's Promotion to a new job title is part of the organization's

network of returnsnetwork of returns Reducing title may reduce opportunities to reinforce Reducing title may reduce opportunities to reinforce

positive employee behaviorpositive employee behavior

What Information Should Be Collected? What Information Should Be Collected? (cont.)(cont.)

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Conventional methodsConventional methods

– Questionnaires and interviewsQuestionnaires and interviews

Advantages: involvement increases understanding of Advantages: involvement increases understanding of processprocess

Disadvantage: open to bias and favoritism Disadvantage: open to bias and favoritism

How Can the Information Be Collected?How Can the Information Be Collected?

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Quantitative methodsQuantitative methods

– Quantitative job analysisQuantitative job analysis

Advantages: practical and cost-effectiveAdvantages: practical and cost-effective

Disadvantages: Disadvantages:

– Important aspects of a job may be omittedImportant aspects of a job may be omitted

– Resulting job descriptions can be faultyResulting job descriptions can be faulty

How Can the Information Be Collected? How Can the Information Be Collected? (cont.)(cont.)

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Exhibit 4.10: 3M’s Structured Interview QuestionnaireExhibit 4.10: 3M’s Structured Interview Questionnaire

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Exhibit 4.11: Online Job Analysis QuestionnaireExhibit 4.11: Online Job Analysis Questionnaire

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Exhibit 4.12: Online Job ProfileExhibit 4.12: Online Job Profile

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Who collects the Who collects the information?information?

Who provides the Who provides the information?information?

What about What about discrepancies?discrepancies?

Top management (and Top management (and union) support is criticalunion) support is critical

How Can the Information Be Collected? How Can the Information Be Collected? (cont.)(cont.)

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Job Descriptions Summarize The DataJob Descriptions Summarize The Data Job description Job description – information collected is – information collected is

summarized and documented in a way that will summarized and documented in a way that will be useful for HR decisions, including job be useful for HR decisions, including job evaluationsevaluations– Job specifications Job specifications – knowledge, skills, and abilities – knowledge, skills, and abilities

required to adequately perform the tasksrequired to adequately perform the tasks Describing managerial/professional jobs – Describing managerial/professional jobs –

more-detailed information on the nature of the more-detailed information on the nature of the job, its scope, and accountabilityjob, its scope, and accountability

Verify the descriptionVerify the description

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Exhibit 4.13: Job Description for a Exhibit 4.13: Job Description for a ManagerManager

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Exhibit 4.14: Job Description for Nurse Exhibit 4.14: Job Description for Nurse 100 Years Ago100 Years Ago

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Job Analysis: Bedrock or BureaucracyJob Analysis: Bedrock or Bureaucracy Reducing number of different jobs and cross-Reducing number of different jobs and cross-

training employees makes work content more training employees makes work content more fluid and employees more flexiblefluid and employees more flexible

Generic job descriptions provide flexibility in Generic job descriptions provide flexibility in moving people among tasks without adjusting moving people among tasks without adjusting paypay

Traditional job analysis making fine distinctions Traditional job analysis making fine distinctions among levels of jobs could reinforce rigidityamong levels of jobs could reinforce rigidity

Analyzing work content is now conducted as Analyzing work content is now conducted as part of work flow and supply chain analysispart of work flow and supply chain analysis

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Judging Job AnalysisJudging Job Analysis ReliabilityReliability

– Measure of consistency of results among various Measure of consistency of results among various analysts, various methods, various sources of data, analysts, various methods, various sources of data, or over timeor over time

ValidityValidity– Examines the convergence of results among sources Examines the convergence of results among sources

of data and methodsof data and methods AcceptabilityAcceptability UsefulnessUsefulness

– Practicality of information collectedPracticality of information collected

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A Judgment CallA Judgment Call Work-related information is needed to Work-related information is needed to

determine pay, and differences in work determine pay, and differences in work determine pay differences determine pay differences –– no satisfactory no satisfactory substitutesubstitute

Real issue should be:Real issue should be:– ““How much detail is needed to make these pay How much detail is needed to make these pay

decisions?”decisions?”