Chap004 Job Analysis

Milkovich/Newman: Compensation, Ninth Edition
Chapter 4
Job Analysis
McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
Exhibit 4.1: Many Ways to Create Internal Structure
4-2
Exhibit 4.2: Contemporary Job Description
for Registered Nurse
4-3
Job Analysis
The systematic process of collecting

information that identifies
similarities and differences in the
work.
4-4
Job-Based Approach: Most Common
 Why Perform Job Analysis?
– Potential uses for job analysis have been suggested
for every major personnel function
– Internal structure based on job-related information
provides a work-related rationale for pay differences
to both managers and employees
4-5
Job-Based Approach: Most Common
(cont.)
 Why Perform Job Analysis? (cont.)
– In compensation, job analysis has two critical uses:
 Establishes similarities and differences in the work
contents of the jobs
 Helps establish an internally fair and aligned job structure
 Key issue for compensation decision makers:
– Ensuring that data collected are useful and
acceptable to employees and managers involved
4-6
Exhibit 4.3: Determining the
Internal Job Structure
4-7
Exhibit 4.4: Job Analysis Terminology
4-8
Exhibit 4.6: Typical Data Collected for Job
Analysis
Exempt/Non-exempt
4-9
Information To Be Collected:
Other Issues
 “Essential elements” and the Americans with
Disabilities Act
– Requires that essential elements of a job – those that
cannot be reassigned to other workers – must be
specified for jobs covered by the legislation
4-10
How Can the Information Be Collected?
 Conventional methods
– Questionnaires, interviews, observation
 Advantages: involvement increases understanding of
process
 Disadvantage: open to bias and favoritism
– Exhibit 4.10
4-11
(cont.)
 Quantitative methods
– Quantitative job analysis
 Advantages: practical and cost-effective
 Disadvantages:
– Important aspects of a job may be omitted
– Resulting job descriptions can be faulty
– Exhibits 4.7, 4.8, 4.11, 4.12
4-12
(cont.)
 Who collects the
information?
 Who provides the
information?
 What about
discrepancies?
 Top management (and
union) support is critical
4-13
Job Descriptions Summarize The Data
 Job description – information collected is
summarized and documented in a way that will
be useful for HR decisions, including job
evaluations
– Job specifications – knowledge, skills, and abilities
required to adequately perform the tasks
4-14
Exhibit 4.13: Job Description for a
Manager
4-15
Exhibit 4.14: Job Description for Nurse
100 Years Ago
4-16
When to Review Jobs and Revise Job
Descriptions
 Assigning a new incumbent to a job
 When major changes are made in product or
outputs provided by work unit or individual
 Introduction of new equipment, methods, or
procedures to workplace
 Reorganization of work unit
 Implementation of a new pay system
 When a new responsibility (a major work
activity area) is added to job
4-17
Job Analysis: Bedrock or Bureaucracy
 Reducing number of different jobs and cross-
training employees makes work content more
fluid and employees more flexible
 Generic job descriptions provide flexibility in
moving people among tasks without adjusting
pay
 Traditional job analysis, making fine
distinctions among levels of jobs, could
reinforce rigidity
 Analyzing work content is now conducted as
part of work flow and supply chain analysis
4-18
Judging Job Analysis
 Reliability
– Measure of consistency of results among various
analysts, various methods, various sources of data,
or over time
 Validity
– Examines the convergence of results among sources
of data and methods
 Acceptability
 Usefulness
– Practicality of information collected
4-19
A Judgment Call
 Work-related information is needed to determine
pay, and differences in work determine pay
differences – no satisfactory substitute
 Real issue should be:
– “How much detail is needed to make these pay
decisions?”
4-20

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Milkovich/Newman: Compensation, Ninth Edition

The systematic process of collecting

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