Module 3 PDF
Module 3 PDF
Module 3 PDF
Key to effectively crafting a meaningful job for an employee is starting the thought process by
looking at the values and strategy of the organization. By framing the job in these contexts the job
design process is more likely to align potential employees with the purpose of the company. Once
you have this context the following steps will ensure both meaningful and effective job design:
Assess skills, needs, abilities, and motivations of employees and the organization. Design the job
to meet those needs, abilities and motivations. Implement the new job design. Audit the
success of the job design and begin with step one periodically as well as when problems have
been identified. Taylorism, also known as scientific management, is a foundation for
management and managerial decisions. Frederick Taylor developed this theory in an effort to
develop a science for every job within an organization. Hertzberg's Motivation-Hygiene
theory attempts to uncover psychological needs of employees and enhance employee
satisfaction. In regards to this theory employers are encouraged to design jobs that enhance and
motivate employees beyond simply meeting a daily or weekly quota. This theory highlights the
importance of rewards systems and monitoring when and how employees are rewarded. Simple
recognition is often enough to motivate employees and increase job satisfaction. More effective
jobs can be created when specific goals are established. Goal setting theory as described by
Edwin Locke mainly focuses on the motivational properties of task goals. Task goals can be highly
motivating when set and managed properly. If a company wants to implement goal setting theory
with regards to job design than a reasonable job criteria and description must be established.
Technology and the flattening of the global economy have contributed greatly to the changes we
now see in jobs and job content across the world. We now recognize that a person presented with
quality meaningful work is more likely to do that work well. Because of this insight, job design now
presently takes a couple of prominent forms. The first of which is designed around the evolution
from individual work to work-groups. This job design practice is called Socio-Technical Systems
(STS) approach. Another modern job design theory is the Job Characteristics Model (JCM),
which maintains five important elements that motivate workers and performance.
Socio-Technical Systems (STS) approach This is designed around the evolution from individual
work to work-groups. This approach has the following guiding principles:
Skill variety
Task identity
Task significance
Autonomy
Job feedback
The individual elements are then proposed to lead to positive outcomes through three
psychological states:
Experienced meaningfulness
Experienced responsibility
The knowledge of results
The following section looks at each of the four steps in determining staff pay in more detail.
Skill refers to the experience, training, education, and ability required by the job.
Effort refers to the mental or physical degree of effort actually expended in the
performance of the job.
Responsibility refers to the degree of accountability required in the performance of a job.
Working conditions refer to the physical surroundings and hazards of a job, including
dimensions such as inside versus outside work, heat, cold, and poor ventilation.
Job evaluation is a process that takes the information gathered by the job analysis and places a
value on the job. Job evaluation is the process of systematically determining the relative worth of
jobs based on a judgment of each jobs value to the organization. The most commonly used
method of job evaluation in the United States and Europe is the point method. The point method
consists of three steps:
(1) Defining a set of compensable factors,
(2) Creating a numerical scale for each compensable factor, and
(3) Weighting each compensable factor.
Each jobs relative value is determined by the total points assigned to it. External equity refers to
the relationship between one companys pay levels in comparison to what other employers pay.
Some employers set their pay levels higher than their competition, hoping to attract the best
applicants. This is called leading the market. The risk in leading the market is that a companys
costs will generally be higher than its competitors costs. Other employers set their pay levels
lower than their competition, hoping to save labor costs. This is called lagging the market. The
risk in lagging the market is that the company will be unable to attract the best applicants. Most
employers set their pay levels the same as their competition. This is called matching the market.
Matching the market maximizes the quality of talent while minimizing labor costs. Defining your
market: An important question in external equity is how you define your market. Traditionally,
markets can be defined in one of three ways. One way to define your market is by identifying
companies who hire employees with the same occupations or skills. For example, if a company
hires electrical engineers, it may define its market as all companies that hire electrical engineers.
Another way to define a market is by identifying companies who operate in the same geographic
area. For example, if the company is in Denver, Colorado, the market would be defined as all
companies in Denver, Colorado. A third way to define a companys market is by identifying direct
competitors, that is, those companies who produce the same products and services. For example,
Shady Acres Veterinary Clinic may define its market as all other veterinary clinics. Notice that
these three characterizations can interact, that is, Shady Acres might define its market as all
veterinary clinics in Denver, Colorado that employ veterinary technicians. Surveying compensation
paid: Once you have defined your market, the next step is to survey the compensation paid by
employers in your market. Surveys can be done in a variety of ways.
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1. There are salary data publicly available through the Bureau of Labor Statistics
in the United States.
2. There are salary data publicly available through the Internet.
3. Salary information can be obtained from a third party source, such as an
industry group or employer organization, which has collected general information
for a geographic region or industry.
4. The company can hire a consulting organization to custom design a survey.
5. A company can conduct their own survey.
A company that has performed appropriate research has two sets of data: The first is pay
structure, the output from the job evaluation. The second is market data, the output from the
market survey. The next step will be to combine these two sets of data, to create a pay policy line.
The pay policy line can be drawn freehand, by graphing actual salaries and connecting the dots.
Alternatively, statistical techniques such as regression analysis are used to create a pay policy
line. Regression generates a straight line that best fits the data by minimizing the variance around
the line. In other words, the straight line generated by the regression analysis will be the line that
best combines the internal value of a job (from job evaluation points) and the external value of a
job (from the market survey). You can also enact a policy of leading the market by raising the
line, and the policy of lagging the market by lowering the line.