The : Whole Foods job analysis - Case Study Example

The case study: Whole Foods job analysis Introduction Job evaluation refers to the determination of relative internal value of a specific jobin an organization based on duties and responsibilities, which are assigned to that specific job. Job evaluation determine the worth of a specific job as compared to other jobs with an objective of developing and implementing a fair and equitable system for paying wages or salaries in any given organization (Wilton 2010, p. 123). The whole food distribution company intends to evaluate its job structure and develop corresponding job titles and letters. Following the completion of job analysis and description, Whole Foods Company intends to evaluate its jobs and jobs structure. The techniques used to evaluate the jobs and job structures include job ranking, factor (pair) comparison, point method and job classification. Job ranking is one of the simplest and easiest methods of job evaluations. Jobs are ordered according to perceived seniority or on overall worth to the organization. Ranking method utilizes ordering, weighting and paired comparison. According to Jawahar-Lal (2008 p. g 182), jobs are then grouped to determine salary levels. The ranking method is simple and effective when few jobs are evaluated. However, it is difficult to administer when jobs are many and subjective. Point method measures job performances through scales and job factors. Thus, it does not focus entirely on employee ranking and job functions. Employees perceive point method as more reliable and valid as compared to ranking method. Factor comparison is more complex and scientific in its process as compared to any other job evaluation method. Factor comparison applies use of factors such as mental and physical effort as well as responsibility. The factors have predetermined weights attached to them, which indicates importance to their overall success. Job classification technique makes use of job groups and classes. The jobs performed by employees are measured using scales. Jobs performed by employees are ranked from the highest to the lowest positions as dictated by perceives value and quality to the organization (Armstrong and Baron, 1995 P. 65). Job classification method utilizes non-analytical grading, which allows comparison of whole job with a scale based on hierarchy of a defined grade. Grades that are used are factors that may include tasks undertaken, skills, experience and responsibility as well as competence and initiative among others. Table1: Jobs structure by titles and corresponding job letters. Job titles  Job Procurement manager C Store manager H Grocery supervisor F Assistant operation manager D Assistant store manager G Cook or Chef A Stock Clerk I Cashier B Dishwasher E Factors that were considered in job evaluation The skill covers experience, education and ability required. It also covers creative thinking and person relations skills. The second factor is responsibility (accountability). Responsibility refers to both fiscal and supervisory. An employee is a supervisor if he or she has authority and power to give instructions (orders) to subordinates and or be held responsible for actions or activities of his or her subordinates. Fiscal responsibility is another form of responsibility requiring employees to take care of monies of employers appropriately. Responsibility is dictated by the degree of freedom to act, number and type of subordinate staff as well as work complexity among many others. Thirdly, the mental and physical efforts are also important. Effort reflects degree of physical and mental stress as well as level of concentration. Fourth, working conditions cover location, hazards as well as extreme environment that employee works in. Job and job structure evaluation The most appropriate method for evaluating job and job structure of whole foods company is the point method. This method measures job performance through scales and associated job factors. The points are then allocated to each factor based on order of importance. Whole foods Company evaluated Jobs A to Job I using the following process (steps). The jobs are already selected. Therefore, the first thing to do is to identify key factors and allocate points to each factor based on perceived importance. This is done by collecting information and evaluating it to derive specific points. Collection of information on factors is done using questionnaires that were used for job analysis, observing as well as interviewing managers, supervisors and employees of the giant whole foods distributor. Thirdly, each job was rated based on skills, mental effort, physical effort, responsibility and working conditions. Factors can be divided further into sub-factors and relative importance of sub-factors (factors) in every job is determined. This is followed by assigning percentage figures that represented its proportional importance in getting the job done to each job. The degree of education factor is considered using the following criteria. Table2: Points allocated to level of education as a factor Degree Sub-factors 0.01 Ability to do simple calculation and high school level of education. 0.075 Ability to do all clerical work and a graduate 0.15 Ability to handle mails, create contacts, take initiative, independent and post graduate Table 3: Factors and associated points   Education Experience Problem solving Physical effort Communication Team work Responsibility Computer skills Organization skills Mental effort Flexibility Total points Degree of importance 0.15 0.18 0.05 0.05 0.07 0.05 0.2 0.02 0.05 0.08 0.1 1 Fourthly, Armstrong et al. (2005) stated that job titles for each job structure and each job is established and rated accordingly. The points of each job are then summed. Jobs with similar points are placed in same pay level (grade). For instance, procurement and store manager have equal summed points of 0.975. Therefore, they are placed in same job group and pay level. Both jobs are most valued in the organization and dishwasher is least valued. Table 4: Job titles, degree of importance of each job and factors (sub-factors).           Job titles Job Education Experience Problem solving Physical effort Communication Team work Responsibility Computer skills Organization skills Mental effort Flexibility Total points Degree of importance   0.15 0.18 0.05 0.05 0.07 0.05 0.2 0.02 0.05 0.08 0.1 1 Procurement manager C 0.15 0.18 0.05 0.025 0.07 0.05 0.2 0.02 0.05 0.08 0.1 0.975 Store manager H 0.15 0.18 0.05 0.025 0.07 0.05 0.2 0.02 0.05 0.08 0.1 0.975 Grocery supervisor F 0.15 0.18 0.05 0.025 0.07 0.05 0.2 0.005 0.05 0.08 0.05 0.91 Assistant operation manager D 0.075 0.1 0.05 0.05 0.07 0.05 0.1 0.02 0.05 0.08 0.1 0.745 Assistant store manager G 0.15 0.1 0.05 0.025 0.07 0.05 0.1 0.02 0.05 0.04 0.05 0.705 Cook or Chef A 0.01 0.18 0.01 0.05 0.035 0.05 0.01 0.005 0.05 0.02 0.01 0.52 Stock Clerk I 0.075 0.01 0.025 0.05 0.035 0.05 0.01 0.1 0.05 0.02 0.05 0.475 Cashier B 0.01 0.01 0.025 0.01 0.035 0.05 0.015 0.02 0.05 0.04 0.01 0.275 Dishwasher E 0.01 0.01 0.01 0.05 0.035 0.05 0.01 0.005 0.05 0.02 0.01 0.26 Fifth, when each job title is expressed in terms of total points, it can then be converted into money values. Table 5: conversion of job grades into monetary value  Job titles Job group Daily wage rate ( $) Point range Managers C 20-24 1-0.95 Supervisors H 16-19.5 0.94-0.8 Assistant operation managers I D 14-15.5 0.79-0.74 Assistant manager II G 12.5-13 0.73-0.65 Cook or Chef A 11.5 -12 0.64-0.5 Clerks I 10.5-12 0.49-0.3 Cashiers B 10.5-11.5 0.29-0.2 Cleaners E 8- 10 0.29-0.2 Advantages of point method The advantage of point method includes ability to express the value of job in monetary terms and is applicable to wider range of jobs. It is also applicable to new jobs. Point method is important and compels raters to consider all important factors associated with the job. It is consistent because different raters using similar factors are likely to get similar results. The method also minimizes errors associated with rating because it is systematic. The point method is relatively simple to use and considers the components of the job rather than the total job. In addition, point method is perceived by employees as more reliable and valid as compared to ranking method. The main disadvantage of point method is that it uses subjective judgments Most useful parts in evaluation process The parts that were most useful during job evaluation is the use of factors and sub-factors because it provided a basis for awarding points to various job groups. To make excellent job evaluation and grading, it is important to gain a lot of information through research on various factors that directly influence job grading. Secondly, it is important to develop job descriptions that do not conflict with each other. To improve on job descriptions, it is important to develop clear division of labor at all departments to avoid overlapping tasks that makes grading difficult and may cause conflict of tasks among the employees. Conclusion Job evaluation is key to establishing the most important jobs in an organization to be able to award salaries, wages and distribute tasks fairly. Job evaluation can be done using ranking, point or factor comparison methods. The Whole Foods jobs description formed the basis of job evaluation. The job titles that emerged from job analysis include procurement and stores manager, grocery supervisor, assistant store and assistant procurement manager, cook, stock clerk, cashier and dishwasher. Managers were ranked as most valuable jobs while dishwashers as well as cashiers were ranked as low level jobs in the company. Point evaluation method was used in the job evaluation process. This led to identification of factors and points were awarded to factors depending on their importance. Point method evaluation is easy to use and is meritorious. The highest paid employees are those ranked as managers. Reference Armstrong, M. & Cummins, A. (2008). Valuing Roles: How to Establish Relative Worth. London: Kogan Page Publishers. Armstrong, M. & Baron, A. (1995).The job evaluation handbook. London: PublisherCIPD. Armstrong, M., Cummins, A., Hastings, S. & Willie (2005). Job Evaluation: A Guide to Achieving Equal Pay. London: Kogan Page Publishers. Jawahar-Lal. (2008). Cost Accounting. New Delhi: Tata McGraw-Hill Education. Mathis, J. (2007). Human Resource Management. New York: Publisher Cengage Learning. Wilton, N. (2010). An Introduction to Human Resource Management. London: Sage Publications Ltd. Read More