CHAPTER 2

JOB VALUES AND COMPENSATION DECISIONS

JOB ANALYSIS

Job analysis plays a crucial role in the many facets of human resource management. In this
chapter, we will see the importance of job analysis in compensation management. Job analysis is
defined as the systematic process of obtaining relevant information on a specific job. To get this
information, job analysis consists of a series of activities conducted by job analysts.

NATURE OF JOB ANALYSIS

Job analysis plays a crucial role in compensation management. First, organizations need to
establish a fair compensation structure. Job analysis supports this need by looking at the
similarities and differences in the work contents of each job (Milkovich, Newman, & Gerhart,
2013). Jobs with the same job content will have the same pay. Unless the job is performed in
different locations. For example, if an encoder has the same job content as an administrative
clerk, both positions will have the same pay except when the encoder is in Metro Manila
(National Capital Region) and the administrative clerk is in one of the provinces. But if the job
contents of an encoder and an administrative clerk are different, then they will be paid based on
the work content and, in most cases, the prevailing market rates paid for these positions.

Information obtained on the job helps in comparing a job with other jobs in market pricing which
is something external and in job evaluation which is done internally. Market pricing is needed to
benchmark pay rates across jobs in the industry. Market pricing will be tackled in the last part of
this chapter. Job analysis is the first step in the job evaluation process which will be discussed
later in this chapter.

DIMENSIONS OF JOB ANALYSIS

The job analysis methods are based on several dimensions. They are the following: the
information to be collected, level of analysis, sources of information, and methods of collecting
information (Atchison, Belcher, & Thomson, 2013).

INFORMATION TO BE COLLECTED

This information includes the knowledge, skills and abilities, qualifications, personality traits,
scope of the job, tools and methods used, work conditions, and the contribution of the job to
organizational goals.

Knowledge indicated how much information a jobholder has about the job. Skills and abilities
refer to the capacity or proficiency of an employee to perform a particular task. Qualifications

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are the specific experience, skill, or attitude required to suit the jobholder to perform a particular
job. In some job jobs, several requirements can be used in performing a job analysis. These are
licensures and certifications that job incumbents need to pass before engaging in a particular job.

Personality traits refer to the person’s thoughts, behaviors, and attitudes which are
characterized as consistent and stable. Scope of the job consists of the activities that make up a
particular job. Tools and methods used consist of the relevant instruments, machines, and
techniques that are necessary to effectively perform a particular job. Additionally, equipment
and tools needed in the performance of a job. Additionally, equipment and tools needed in the
performance of a job are also concerns of the job analyst who should determine how much the
employee relies on them.

Work conditions are the work environment where the jobholder performs the job; these also
include the other legal requirements necessary to successfully perform a job; such as work hours,
safety equipment, and physical conditions among others. It encompasses the physical
surrounding, such as exposure to noise, danger, and temperature.

Contribution to organizational goals consists of the job’s overall importance to the achievement
of organizational performance. The most important information collected in job analysis are the
duties and responsibilities of the job. Morgeson (2017) defines duty as the collection of tasks
grouped together for a common purpose. Responsibility means the scope of a job in terms of
how can be done adequately.

LEVEL OF ANALYSIS

When job analysis is conducted, the term job should be explained in the proper context because
what is being analyzed has different levels. The lowest level pertains to employee attribute. It is
the knowledge, skills, abilities, and personality characteristics needed to perform the job.

Morgeson (2017) defined knowledge as all the concepts, facts, and procedures needed in
performing a particular task. It can still be further divided into declarative (what) and procedural
(how) specific to a job. Skills pertain to the competency in accomplishing a task.

They can be either basic or cross functional skills. Basic skills are the fundamental proficiency
needed by an employee such as reading skills. Cross functional skills are developed across
different job functions such as problem-solving skills. Ability is somewhat similar to skills.
However, the ability is a more lasting capacity to perform a range of tasks. They can be in verbal
or quantitative (cognitive), dexterity (psychomotor), and strength (physical) abilities. Skills are
improved through extensive training and experience. Personality characteristics are traits that
are unique to each person. Examples of personality traits are endurance, honesty, dependability,
flexibility, and so on.

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The next level is called an element which is often considered as the smallest division of work.
Usually, an element consists of singular motion which is used in time and motion studies
conducted by industrial engineers. Writing on the board is an example of an element of a grade
school teacher’s job (Morgeson, 2017).

The third level is called a task. It is a collection of related elements performed close to each other
to complete a work assignment. Checking the papers of students after a quiz is an example of a
task performed by the grade school teacher.

The accumulation of tasks to indicate one’s employment is called a position. The position of an
employee also indicates the salary that he/she should receive from the organization. Meanwhile,
grouping the positions are alike and can be covered by a single analysis. For example, many
persons are doing the same job in the manufacturing plant. A factory helper, warehouse staff,
forklift operator, and lineworker have different positions but are doing the same job. The
grouping of jobs with similar content is called a job family. Examples are engineering, marketing,
human resources, and production, to name a few. Lastly, jobs found in the different organizations
are called occupations. For example, one question fund in a government-issued form such as an
income tax return is, “What is your occupation?” The usual answer is; “Employee,” applicable for
being a government or private.

SOURCES OF INFORMATION

Job analysts usually obtain information from the job incumbents themselves. They are the ones
who currently perform the job and are considered to be the best persons who can describe the
details of the job. Another important source of information can be taken from the supervisors of
the job incumbents. They are knowledgeable about the duties and responsibilities of their
people. Those who deal directly with the job incumbents can also provide some support in giving
some information about the job.

There are also documents that can help job analysts in getting more details about the job, such
as policies and manuals, performance appraisals, old job descriptions, and other sources like
articles journals, and electronic publications that can further describe the job.

METHODS OF COLLECTING INFORMATION

There are several methods that job analysis uses in collecting information about the job. They
are the following: observation, interview, and survey questionnaire (Morgeson, 2017).

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Observation

Job analysts can observe incumbents and record how they perform the job. A good thing about
observation is that actual performance is seen on record. However, the disadvantage is that some
aspects of the job such as those that require mental activity cannot be recorded. The cognitive
part is not seen, including some aspects of the decisions which cannot be physically observed.

Interview

To overcome the weakness of the observation, interviews can be done with the job incumbents.
Through this method, job analysts can ask for any type of information about the job. Validation
and clarification on certain details of the job can readily be done by the job analysts. Employees
can answer right away and clarify the statements that are somewhat questionable. However,
interviews can be very time-consuming for both the job analysts and employees.

To break the time-consuming individual interviews, group interviews are also possible. Job
analysts can filter and identify key aspects of the job through the information provided by the
interviewees.

Survey Questionnaire

Lastly, job analysts may use a survey questionnaire as a tool to get the details of the job. One
advantage of using a survey questionnaire is that it is a written document and job analysts can
refer to it anytime when needed. The disadvantage, however, is the carelessness of some
employees in responding to the questions.

It is advised that job analysts use only one method but a combination of methods to offset the
drawbacks of each method. For example, to validate the information found in the survey
questionnaire, individual interviews or group interviews can be done. On the other hand,
observations can be supported by either a survey questionnaire or interview.

JOB ANALYSIS PROCESS

The conventional way of conducting job analysis consists of six steps. It starts from the
preliminary gathering of information and ends with the checking of the job description for the
job analyzed.

1. Create an initial job information. The job analyst should first review existing documents such
as an old description of the job to serve as a guide for conducting the interview with the
jobholder. All other documents aside from the job description should be reviewed as well so that
the job analysts can have an overview of the job.

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2. Visit the work area. The second step is to conduct an initial visit to the work area of the
jobholder. Here, the job analyst will be familiarized with the work conditions, the tools and
methods being used, and the physical layout relevant to the performance of the job.

3. Conduct an interview. The third step is the conduct of the interview. It is best that the job
interview should be done with the immediate supervisor of the jobholders. The supervisor is in
the best position who can provide an overview of the duties of the jobholders, who in turn
collaborate as their jobs fit together as a group. Then, this is followed by the jobholder.

One of the considerations is that the jobholder is not new in the team. There is not sufficient
information obtained from an employee who just recently joined the group. If there are several
employees holding the same job, the job analyst should carefully select and scrutinize who
among the jobholders can give relevant information, without inflating the work content or
exaggerating some of the duties, work conditions, and personality traits among others. The job
analyst should exercise fairness in the selection of interviewees, considering sex and ethnic/racial
aspects.

4. Visit the work area for the second time. The fourth step is to visit the work area for the second
time. This is to refine, correct, or add the information initially obtained from the first interview.

5. Collate acquired job information. The fifth step is the collation of all the interviews done and
other materials considered about the job and consolidating them altogether into one coherent
job description. This step is the hardest since the job analyst will have to invest a lot of time to
put all the data together for a good and reliable job description. In some organization, a resource
person who is an expert or very much knowledgeable about the job is invited to assist the job
analyst.

6. Validate job description done. The last step is the review of the job description by all the
interviewees such as the immediate supervisor and the jobholders in a group setting. Each is
given a copy and the group reviews the job description per item, line by line. The job analyst takes
note of all the corrections.

Prepared by:

ROBERT II I. GEONSON, MPA

Part time Instructor

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