Performance Management and Job Evaluation - Essay Example

Performance Management and Job Evaluation and Section # of Part One Introduction In the modern times, human resource is considered as one of the most valuable asset of an organization. No organization can even think of surviving and prospering without the existence of capable and efficient human resource. However, it is a matter of fact that this is not a one sided game that the human resource should put in their best. As a reward to it, it is also the obligation of the organization to compensate their staff for their efforts accordingly. This paper is intended to use one of the job evaluation methods and to establish the relative worth of the given job. More over, using the same information, the incentive plan would be developed for each job. (Ivancevich, 2006) Methods of Job Evaluation There are a number of methods of job evaluation; such as Job Ranking, Job Classification, Point Method and Factor Comparison method. In this paper, the point method would be employed for the comparison of the given jobs. The said method is chosen because, this is a quantitative measure, and thus the elements of subjectivity are removed. This can be applied to a wide range of jobs. Moreover, this can be applied for the newly created jobs equally well. However, there are certain limitations in this method too, thus it is assumed that the pays are accurately assigned for each job and there were no biases while assigning the pay for each factor. (Armstrong and Barron, 2004) Job Evaluation through the Point Method Following are the steps followed to determine the relative worth of the product, followed by respective rationales. In this method, a set of the factor are identified that should be compensated. These factors are broadly classified into following categories. Experience There are some jobs where the experience is essential, such as those involving some unstructured or semi structured decision making. Higher the requirement of asset, high the productivity and thus there should be higher compensation for it. Education Like experience, education is also a function of the performance of complex task, thus the higher the education, the higher the compensation should be. Ability Required The more non-routine abilities required, the grater should be the compensation. Responsibilities If the responsibilities are broader, such as the responsibility to supervise as well, it should be paid higher. Dominant Effort If the mental effort is required, it should be paid higher than the requirement f physical effort. It is so because; the mental effort requires more education and experience so as to be able to take semi-structured and unstructured decisions. Working Conditions If the working conditions are not conducive, the employee should be paid higher. The next step is to determine the various levels for each of the factors determined previously. The levels identified were A. Experience 1. no experience 2. less than 1 year 3. 1-2 years 4. more than 2 years B. Education 1. Graduate 2. Undergraduate 3. High School Pass 4. No education C. Ability required 1. expert 2. average 3. routine work D. Responsibilities 1. Individual 2. Supervisory E. Dominant Effort 1. Mental 2. Physical F. Working Conditions 1. Extreme 2. Mild 3. Conducive After this, the next step is to assign the rating to each factor on the basis of its worth, the rate assigned are as follows Factor Name Level: 1 2 3 4 Maximum Experience 1.2 2.5 3.8 5.0 5 Education 1.8 3.5 5.2 7.0 7 Ability Required 2.7 5.3 8.0 8 Responsibility 5.0 10.0 10 Efforts 3.5 7.0 7 Working Conditions 2.7 5.3 8.0 8 The above mentioned maximum rating to each factor is based on its perceived worth on the scale of 1 to 10. This may however be subjective, but that subjectivity would be effective on all jobs to be evaluated, rather than being biased to only one. The rating to all levels of a factor is determined by equally dividing the maximum rate for the factor among all the levels. For example, if Factor A has maximum rating of 9 and it has 3 levels, thus level 1 would be rated as 3, level 2 and level 3 as 6 and 9 respectively. In the above mentioned ratings, the responsibility is given highest weightage because; if a task is not performed with responsibility the education and experience would not put in much to determine the quality of work. The higher the responsibility required, the higher should be the compensation of the employee, as in case of a supervisor, he is though one employee yet looking after many other(s). The next step is to determine the requirements of various levels of each of the factor for each job. On the basis of the levels chosen, some rating is assigned for each factor of the job. Doing so, we come out with following grading: Job # Job Description Experience Education Ability Required Responsibility Dominant Efforts Working Conditions Total Points A Floor Finisher 2.5 3.5 2.7 5.0 3.5 5.3 22.5 B Checkout Aide 2.5 3.5 2.7 5.0 3.5 8.0 25.2 C House Keeping Aide 2.5 3.5 2.7 5.0 3.5 8.0 25.2 D Projects Aide 5.0 3.5 5.3 5.0 3.5 8.0 30.3 E Flat Iron Attendant 1.2 1.8 2.7 5.0 3.5 2.7 16.9 F Washer Extractor Operator 5.0 5.2 2.7 10.0 7.0 2.7 32.6 The total points as shown in the above table shows the relative worth of each job. According to this, Job F is most worthwhile job as it also involves complex decision making (Centrifugal force extractor requires judgment in loading so loads are not out of balance, thereby causing damage to equipment or hazards to employees) as well as the supervisory role, the overseeing the work of assistant operator/washer extractor. Whereas, Job E requiring no significant level of compensable factors, is least on the ladder of 'worth'. The Incentive Plan Since the point method is used, which is a quantitative method, the development of incentive plan is most essential. What now needs to be done is simple to assign some dollar value to each point given in the above table and reward the employees for their pays accordingly (Merchant and Stede). This dollar amount per point may vary on the basis of growing inflation. Assume it to be $10 at the moment. The wags for each job would be Job # Job Description Total Points Wage ($) A Floor Finisher 22.5 225 B Checkout Aide 25.2 252 C House Keeping Aide 25.2 252 D Projects Aide 30.3 303 E Flat Iron Attendant 16.9 169 F Washer Extractor Operator 32.6 326 So far as the increments are concerned, they must be attached to the increase in the levels of various factors and corresponding increase in his points will lead to increase in his total rating and thus the wage would automatically increase. For example, if experience of the house keeping aide increases 2 years, his rating would increase from 2.5 to 5, leading to increase in total points from 30.3 to 32.8, so the wage should be 328, an increment of $25. However, this is the simpler version, as the constraints increase, the plan would also be affected. Part 2 AN EMPLOYEE HAS BEEN MISSING STAFF MEETINGS ON A CONSISTENT BASIS. THE SUPERVISOR HAS ALREADY ISSUED AN ORAL WARNING This problem is related to Attendance. In this case, I would suggest issuing the written warning to the employee. If, this does not work out in the desired direction, that is, the employee keep on missing staff meetings even after the issuance of the written notice, he should then be warned that for every next meeting that he would miss, he would lose x dollars from his salary. This action is suggested because the written notice would avoid legal discrepancies for further actions. AN EMPLOYEE HAS A 30% ERROR RATE IN DATA ENTRY FOR A HIGH TECH COMPANY This type of disciplinary violation may be termed as 'on the job in disciplined behavior'. In this case, the first step is to notify, preferably written, to the employees that he has very higher rate, leading to the losses for the company. If the problem persists, even after notification, another step should be taken. If the cause of high error rate is carelessness, then pay deduction is good option, whereas, if the cause is lack of some skill, he should be given training or suspended with pay (so that he can get training in that time). As the prior warning is given, no ethical or legal issues may arise. AN EMPLOYEE IS ABSENT FROM WORK, ON A YEARLY AVERAGE, 15% OF THE TIME This problem is related to Attendance. The employee must be warned that if he makes any other absence beyond the minimum allowed limit, his pay would be deducted. Moreover, an upper boundary should also be set that if he exceeds x % of time annually, say 8%, he would be fired. Since, some absences are allowed; there should be no legal or ethical issues. AN EMPLOYEE IS ARRESTED FOR DRUNK DRIVING OFF DUTY This is an 'Off the job undisciplined behavior'. For this, the employee should be notified about the dislike of company with such action of him. Moreover, he should be made to submit a written undertaking that since his organization gives high value to corporate social responsibilities, he is well aware that ANY action may be taken against him by his organization, if he repeats such action. Since the employee is given warning rather than being fired and he writes himself the undertaking, thus ethical as well as legal issues are avoided. Works Cited 1) Ivancevich, J. (2006), "Human Resource Management", New York: McGraw- Hill/Irwin 2) Armstrong, M., & Baron, A. (2004), "The Job Evaluation Handbook (Developing Practice)", Westport, CT: Hyperion Books 3) Merchant, K., & Stede, W. (2007), "Management Control Systems: Performance Measurement, Evaluation and Incentives", (2nd Edition). London: Prentice Hall. Read More