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Chapter 5 Activity Management of Human Resources
Chapter 5 Activity Management of Human Resources
Year/Section: BPA-3A
Promotion
Organizations must use the employee performance appraisal process to increase staff
productivity and outcomes. Performance appraisals are an annual process in which an
employee's performance and productivity are assessed against a set of goals.
Performance appraisal
Choosing the correct performance appraisal method is more important than ever
because it indicates your attitude toward your employees and how concerned you are
about their morale. Once you've selected the best performance review approach for
your purposes, the following step is to effectively execute it to close important
performance gaps and solve pressing issues that have an influence on Returns.
Factor comparison
The element comparison approach is a hybrid of ranking and points factoring
techniques. To establish benchmarks, jobs with similar responsibilities are identified
inside the organization. Identifiable factors for benchmark occupations are prioritized
during factor analysis and then compared to market rates to give each compensable
factor a monetary value. This method has the advantage of being consistent and less
subjective, but it is also the most difficult and expensive.
Job ranking
This is the simplest way, and it's appropriate for smaller businesses with a limited
number of job titles. Job ranking creates a ranking of jobs within the point factor system
by placing them in a hierarchy of their importance to the firm. The positions are often
graded based on a single factor, such as the level of difficulty or the level of education
required to execute the work well. The most significant level in the hierarchy is the top;
the person who sits at the top has the most power.
Job classification
This is a system of grading. The job categorization approach involves creating
descriptions for each class of occupations and assigning a grade to each one based on
the job's skill and complexity that best matches the class description. As a result,
positions may fall into more than one grade level, depending on the level of
responsibility, abilities required, and physical exertion required to do the job.
Job descriptions- are an important part of both pay and selection systems because they
spell out the responsibilities, requirements, functions, duties, location, atmosphere, and
other features of a job in writing. Work descriptions can be written for individual jobs or
entire job families.
Job analysis - the method of studying jobs in order to create job descriptions.
Interviews, surveys, and observation are examples of job analysis techniques.
Job evaluation- a method for comparing jobs in order to determine suitable pay levels
for specific occupations or job parts. Ranking, classification, factor comparison, and the
point method are the four main strategies.
Pay Structures- compensation processes can be standardized with this tool. The
majority of pay structures have multiple grades, each having a minimum salary/wage
and either step increments or a grade range. When it comes to union jobs, step
increments are prevalent because the salary for each job is pre-determined through
collective bargaining.
Salary Surveys- salary and market statistics are gathered. Average salaries, inflation
indicators, cost of living indicators, and salary budget averages may all be included.
Companies can either buy the results of survey vendors' polls or conduct their own
compensation surveys. When acquiring the results of salary surveys conducted by other
vendors, keep in mind that the surveys could be conducted within a single industry or
across industries, as well as within one geographical location or across multiple
geographical regions. Before comparing the wage findings to your organization,
determine which industry or geographic location the results apply to.
Bonuses- differ from one another. Bonuses are a type of variable pay that can be used
by anyone other than salespeople. Year-end bonuses are a frequent example, in which
employees are paid a lump payment, or a percentage of a lump sum, based on the
company's performance, the individual's achievement of defined incentive-based
targets, or at the discretion of the manager. Bonuses can be given out on a more regular
basis, such as quarterly.
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