Académique Documents
Professionnel Documents
Culture Documents
process
22 july 2014
1. Job Analysis
Job description job duties,
responsibilities, working conditions,
inter-relationship between jobs.
Job Specification Training, skill
required, effort required,
qualifications, abilities, experience.
2. Job Evaluation
Job Evaluation process of grading,
rating or evaluating a job to
determine its value relative to all
other jobs in an organization that are
to be evaluated
provides job with a price
monetary values calculated.
3. Wage surveys
For a firm to be competitive
Wage rate
should provide
MERIT INCREASE
or SINGLE RATE
Which job to be
placed in pay
grade: actual
money value to
be assigned
Differentials in
the pay band
Not subject to
overtime pay
provisions
Annual salary
Jobs include:
supervisory,
managerial,
executive jobs
.jobs include wide
variety of duties
Non-exempt
Subject to overtime
pay provisions
non supervisory in
nature
duties on job tend to
be narrowly defined,
routine tasks
REPRESENTATION
OF TYPICAL
MARKET RATES
RELATIVE TO JOB
STRUCTURE
COMPETETI
VE PAY
RATES
MARKETCOMPETETI
VE PAY
RATES
PAY LEVELS
THAT
CORRESPOND
S WITH
MARKET PAY
LINE.
PAY LEVELS
THAT FALL
ALONG
MARKET PAY
LINE
WIDER PAY
GRADES
MINIMIZE
HIERARCHY &
SOCIAL DISTANCE
BETWEEN
EMPLOYEES
NARROW PAY
GRADES
PROMOTE
HEIRARCHY &
SOCIAL DISTANCE
STEPS
HR professionals establish mid-points
first, then followed by minimum &
maximum values.
Below
minimum pay
range
It should be
brought
within
normal pay
range, by
eliminating
need of
skill/experien
ce
Red
circle
pay
rates
Employee is
paid greater
than
maximum
for their pay
range.
Higher pay rates
help to retain
valued
employees who
may have
lucrative job
offers from
competitors.
For generating
exceptional
performance
COMPA-RATIO INDEX
Helps to index the relative competitiveness
of internal pay rates based on pay range
mid-points.
Employee pay rate
Pay range mid points
=1 employee pay rate=pay range midpoint
>1 employee pay rate exceeds pay range
midpoint
<1 employee pay rate falls below
competitive pay range midpoint