CHAPTER 6: JOB EVALUATION AND WORK FLOW ❑ To provide the conceptual basis for position

ANALYSIS classifications to the employee who will occupy

the position
The Rationale for Job Analysis
• A sound human resource management program THE JOB ANALYSIS PROGRAM AND ORGANIZATIONAL
STRUCTURE
requires knowing the different jobs in the
company.
• The conduct of job analysis has behind it several
 Job analysis helps the organization to make
reasons that are vital to human resource
suitable changes in the organizational structure,
management and the supervision of the work to
so that it matches the needs and requirement of
be done by the workers in the shop or office.
the organization.
Job Analysis
THE ROLE OF HUMAN RESOURSE IN JOB EVALUATION
• It is the process of getting detailed information
 Job analysis is not the sole responsibility of the
about the tasks, duties and responsibilities of the
HRD but a cooperative effort of all operating
job as seen in the organizational structure.
department.
• This involves improving methods and developing  In the event that a manager/supervisor would like
more efficient systems of work. to recommend a job evaluation, he or she should
contact his or her human resources
• Some companies get the services of
representative to discuss the situation and
management consultants to conduct a job
process for conducting the evaluation.
analysis program to be more effective..
(Redesigning or Reclassifying)
• The study of jobs is the responsibility of the
THE GATHERING
personnel department thru the job analyst who is
OF JOB ANALYSIS
trained to conduct the job evaluation program.
A good job analyst must have the following qualifications:

1. Good knowledge of organizational system

THE FOLLOWING ARE THE USE OF JOB ANALYSIS
2. Good intelligence and analytical skills
❑ To specify the duties and responsibilities of the
position. What skills are needed to be done. 3. Good judgment and acumen

❑ To provide job-oriented recruitment and selection 4. Clarity and facility of language

guides. To identify which applicant is most
qualified.
❑ To provide guides in operation-based
compensation determination. The peso value of
the jobs.
❑ To provide information and tools for career
planning and counseling. Matching individual
skills.
❑ To have a guide in the construction of
performance evaluation criteria. Getting info about
the job.
❑ To serve as guide in methods improvement
5. Familiarity with organizational and company
policies
6. Good personality and company policies
7. Tact and diplomacy in getting along with others
GETTING PROCESS IN
JOB INFORMATION
❑ Job analysis starts with a careful understanding of
the relationship of the jobs in the organizational
structure
The following factors are important considerations in job
analysis:

❑ To obtain background information about working
conditions. Identifying hazards and conditions.
❑ To serve as guide in the development of training
programs. Almost all employees will undergo
training.
1. What the job requires the employee to do.
2. How effectively does the employee perform his
assigned duties and responsibilities?
3. Why should the worker do the job?

❑ To assist supervisor in the supervision of the 4. Supervision required in the job

employees. Supervisors are provided with
description of jobs under their departments. 5. Working environmental conditions. Exposure to
hazards.
 THE IMPORTANCE OF A JOB
 The correct title of a particular job is very
important in the organization. The title of the job
must show clearly the area of job activity and
must show its relationships with the other jobs
in the unit or department.
The following are suggested guidelines in job title
selection:
1. The title must be standard used in industry
2. It must be suggestive of the nature and function
of the jobs
3. It must be different from other jobs based on
major duties of employees who hold the position
4. The job titles must be brief but suggestive of its
functions
THE NATURE OF JOB ANALYSIS INFORMATION
 Job analysis focuses on the two important data or
information:
Job Description – Contains the tasks, duties and
responsibilities that the job entails.
The following are the uses of job descriptions:
a. It helps identify and distinguish one job from
other jobs
b. It is used as a tool in the proper employee
recruitment, selection, and training;
c. It helps establish job relationships within the
salary bracket
d. d. It serves as a guide in the structural
departmentalization.
e. e. It could be used as a guide in the horizontal
and vertical promotion of the employee’s thereby
developing and promoting morale.
Job Specification – contains information about
employee’s qualifications and traits required in the
performance of job.
This information could be used in the following personnel
activities:
a. It serves as a guide in interviewing applicants
b. It is a guide in the proper selection of the
employee as to his qualifications for the proposed
vacant positions
c. It is used in the assessment of employees for
training and development
JOB ANALYSIS METHODS
 The Job Questionnaire Method – The job
analyst prepares questionnaires on the purpose
of the job analysis.
 The Interview Method-the job analyst gets the
information by interviewing the employee of his
job.
 The Combination of Interview and
Questionnaire Methods – The job analyst gives
the questionnaire and conducts interview later.
Observation and Interview Method – involved in the
observation of the workers at the job site
WEEK 7: WAGE AND SALARIES ADMNISTATION
THE ROLE OF HUMAN RESOURCE IN THE PAYMENT OF
SALARIES
▪ The most important duty of the Human Resource
is the payment of proper wages and salaries to all
company employees. Set wage scales high
enough to attract better employees and contribute
to the level of profitability that will sustain
continuous profitable operations.
▪ The level of pay must not impair profits, however.
THEORIES OF WAGES
▪ It deals with the payment of labor employed in
competitive enterprises.
▪ Wages represent the payment one factor of
production that is manpower.
▪ Wages are the contributions or are the shares
paid for the value of land, capital and profits.
1. Classical Wage Theory
• This theory is based upon the fundamental
concept that labor is a commodity and we
have to pay the price according to supply and
demand. When the labor supply is greater
than the demand, the lower is the price and
when there is greater demand the higher the
price.
2. The Just Wage Theory of St. Thomas Aquinas
• This theory is the basis in the implementation
of minimum wage laws. While it could not be
consistent with the minimum requirements for
a decent living in the social organization, it
responds to the basic requirements for
subsistence living.
• This theory is the basis in the implementation
of the minimum wage laws.
3. The Wage Fund Theory
• Expounded by John Stuart Mill and his
followers.
• Under this theory it would appear that it is
futile to attempt to increase wages. It
 would appear that when you increase the
wages of the other workers in the
company, it would redound to decrease
the wages of the other sectors, because
the portion of the corporate wage fund
goes to the selected sectors in the
organization.
4. Bargaining Theory of John Davidson
o The bargaining theory proposes that labor
is a commodity like anything that could be
bought at a price by the user. As a
commodity, it carries with it a price that is
determined by the bargaining process
between the buyer and seller.
5. The Marginal Productivity Theory
• It offers the best explanation of the wages
in modern industry. The supply of labor in
any given economy on the whole
depends upon the total number of
individuals who want to work and
available work. Worker’s mobility, which is
the transfer from one company to another
due to opportunities in the other company,
affects the structure of wages in the
industry.
6. The Purchasing Power Theory
• The purchasing power theory tries to
establish the relationship between wages
and the level of economic activity. The
level of economic growth is dependent
upon the savings generated because the
increase in wages creates a surplus that
propels growth. The more income the
worker gets, the bigger the purchasing
power of the workers; then this increases
consumption of goods and services.
Increased consumption of goods
generates employment opportunities.
7. Labor Theory of Value
• Karl Marx propounds this theory of labor.
This gives credence to the value of labor.
It emphasizes that labor is the source of
all product and without this important
component, there could be no goods for
human consumption
8. The Standard of Living Theory of Wages
• A recent development in labor market is
the theory of living wages that means that
wages should be based on the cost of
living. The cost of living is dependent
upon the economic needs of the family for
the basic necessities of life for food,
clothing and shelter.
9. Wage and Salary SurveyS
• Once the worth of a job has been
established using one of the job rating
systems, the actual salary to be paid for
each job must be determined
Procedure in Conducting Wage and Salary Surveys
An examination of the graph will indicate the trend of the
data plotted. A line is drawn to indicate this trend, using
one of the following techniques:
▪ Eye Inspection – The line is drawn freehand so
that about the same number of data points fall
above the line.
▪ The Least Squares – This uses the statistical
formula; the trend line will normally follow a
straight path.
▪ The Second Degree Curve – Using another
statistical formula; the trend line will normally take
the form of a curve and ma more accurately
indicate the trend of the data
The Development of Wage and Salary Structure
▪ The design and operation of wage and salary
structure is the concern of management and
employees. Wage and salary structure is the
hierarchy of jobs to where the pay is attached.
▪ According to salary grade.
The following are the advantages of the wage and salary
structure:
▪ It affects the workers’ earning and standard living.
▪ It ease the recruitment and maintenance of an
effective labor force.
▪ It develops employee morale and increases work
efficiency.
▪ It represents cost and competitive advantage in
the industry.
▪ It helps in preparing budgetary allocations and
eases computation of salary adjustments and as
an aid in short term and long range plans.
▪ It eliminates pay distortions and inequities in
employee compensation.
▪ It establishes an equitable salary range for
various jobs.
Wage Structure Design
▪ The design of the wage and salary structure is the
establishment of the wage classes and rate
ranges. All jobs within a class are treated in the
same way for purpose of economical
administration. Pay structure ranges should be
used in developing a schedule for both rank-and-
file employees, technical and managerial position.
SALARY RANGE
▪ It is the range of the salary that is paid to an
employee doing similar functions that has a
minimum and maximum pay and a series of step
adjustments. It is to provide adjustment in pay for
 performance evaluation without distorting the
salary pay plan.
Salary Adjustment with
High Seniority
▪ Review the performance of the employee.
▪ An employee cannot gain normal merit increase if
he/she is not worthy of it.
Methods of Wage Payment
▪ By the Time Worked.
HxR=W
H – Hours
R – Rate per hour in pesos
W – Total wages earned
▪ By the Amount of Work Produced
NxU=W
N – Number of units produced
Other Information Related to Wages
U – Rate per unit in pesos
W – Wages earned per day or week
Payment by piecework is satisfactory under the following
conditions:
▪ When a unit of completed work can be measured
easily;
▪ When there is a clear relationship between a
workers’ effort and the results of his efforts;
▪ When the quality of work is less important than
quantity or when quality standards are uniform
and measurable;
▪ When the flow of work is regular, breakdowns are
few and jobs follow a standard procedure, with
few interruptions.
CHAPTER 8: MANAGEMENT FO PERFORMAMVE
Wage and Salary Policies
PERFORMNACE APPRAISAL
▪ The wage and salary plan must be easily
understood.
▪ Salaries in the wage plan should be easily
computed.
▪ Salaries must be made relevant with efforts.
▪ Incentive wage
▪ The method of payment should be stable and
unvarying
THE PURPOSE OF PERFORMANCE APPRAISAL
Morale Renewal in the Workplace
▪ Know that leaders have limitations.
▪ Choose character. We have no control of things
in life.
▪ Walk the talk. Integrity is important in the
workplace.
▪ Avoid compromising. You have to choose
between right or wrong.
▪ Use the same measures on yourself. Leader
not immoral.
▪ Face the mirror. Ask somebody to tell your
character.
▪ Show the mirror to your leaders. Show them
their mirror too.
▪ Don’t just admit mistakes; correct them.
▪ Have an improvement plan. Exert effort to mend
your character.
▪ Rebuild and do not slide back. Set your mind
towards future.
▪ Blue Collar – Manual laborers
▪ White Collar – office workers
▪ Pink Collar – Job associated with women like
nursing, secretariat, etc.
Labor Grades
▪ SKILLED LABOR – These are workers who have
received specialized training to do their jobs.
▪ UNSKILLED LABOR – These are workers who
have received no specialized training and have
few specific skills.
▪ PROFESSIONALS – Those workers who need
an advanced degree to do their jobs.
APPRAISAL SYSTEM
▪ One of the major keys in effective management. It
is a basis in determining who should be promoted
to a higher position.
▪ Effective performance appraisal should be
focused on the legitimate desire of employees for
progress in their position.
▪ STRATEGIC PURPOSE- the performance
management system should link employee
activities with the organization goals and
 objectives. These strategies are implemented
through defining results, behavior, and to some
extent employee characteristics that are
necessary for carrying out the predetermined
goals and objectives.
▪ ADMINISTRATIVE PURPOSE- performance
management information relative to performance
appraisal points to the use of evaluation in
decisions, for salary adjustments, promotion,
retention, and termination, lay off and recognition
of individual performance.
▪ DEVELOPMENTAL PURPOSE- it is to develop
employees who are effective in their jobs. When
employees are not performing as well as they
should, performance management improve their
performance.
The Criteria in the Development of a Measuring Instrument
▪ -The value of a performance rating depends upon
the factors to be measured and the extents of its
validity and reliability. The traits or characteristics
must be clearly defined so that the raters will have
no doubt about what the traits mean.
▪ VALIDITY- extent to which the performance
measure assesses all the relevant aspects of the
performance. Ratings are valid if they are
accurate measures of the employees
performance
▪ RELIABILITY- rating may be considered reliable
if they are consistent. They are consistent if the
individual employee in a group receives
essentially the same ratings when evaluated at
least twice by the same rate at different times by
the different raters.
▪ ACCEPTABILITY- refers to whether the people
who use the performance measure accept it.
Many very elaborate performance measures are
extremely valid and reliable yet many managers
and supervisors do but want to use them as they
consume so much time.
▪ SPECIFICITY- extent to which the performance
measure gives specific guidelines to employees
about what is expected of them and how they can
meet expectations.
DEVELOPING AND ADMINISTERING AN APPRAISAL PLAN
There are certain guidelines in developing and
understanding an appraisal plan using the following steps;
1. Secure full agreement of line managers about the
need for a formal performance appraisal plan and
for the purpose in which it will be used.
2. Secure plans of their companies and existing
literature on the subject to develop a plan best
suited for the needs of the particular organization
3. Enlist the cooperation of the supervisor in drawing
up the appraisal plan, discuss the factors to be
used and the uniform descriptions or instructions
to be followed.
4. Make sure that the purposes and nature of the
performance appraisal plan are explained to
those who will make the appraisal. These are the
first level supervisors and department heads and
those who will be affected by the appraisal.
5. Provide training to those who will use the
instruments. Training will provide enough
knowledge on how the rating scale will be used to
avoid biases and provide uniform appraisal of the
employees.
6. Develop and achieve staff coordination.
7. Arrange the periodic discussion of the
performance appraisal.
8. The appraisal system should be carefully used in
selecting employees for possible promotions.
9. Provide for challenges and review of performance
appraisal.
APPROACHES TO PERFORMANCE MANAGEMENT
COMPARATIVE APPROACH- it consists of techniques
that require the rater to compare the individuals
performance with that of others. The following are
techniques under the approach.
a. Ranking- this method provides a comparison of
the relative qualities of performance among the
employees in a group or unit
b. Forced distribution technique- this system uses
five-point job performance scale in the rating
employees who are doing similar jobs.
c. Paired comparison method- this method name of
each employee who is to be rated is written on
the card. Each employee to be rated is the off
paired with every other employee in the same
unit.
d. The checklist method- It provides a number of
traits or factors with corresponding definitions for
evaluating the employees written in the left hand
column of the form such as quantity of work done,
quality of work, attitudes toward work, judgement,
reliability, cooperation, punctually and others.
BEHAVIORAL APPROACH- attempts to define the
behavior an employee exhibits to be in the job.
a. The critical incident- this requires managers to
keep a record of a specific examples of effective
and ineffective performances on the part of each
employee
 b. The behavioral anchored rating scale- builds on
the critical incidents approach; designed to
specifically define performance dimensions by
developing behavioral anchors associated with
the different levels of performance.
individual performance. Employee’s recent
behavior is the basis.
3. Central tendency – Incorrectly rated near the
average or middle scale. Play safe.

c. The organizational behavior modification- this 4. Rater’s bias – If a manager has a strong dislike of
entails managing the behavior of the employees a certain ethnic group.
through a formal system of behavioral feedback
5. Halo effect – rates an employee with high or low
and reinforcement
on all items because of one characteristic.
RESULT APPROACH- this focuses on managing the
6. Contrast error – rate people relatively with other
objectives, measurable results of a job or workgroup. We
people rather than by performance standards.
will examine two performance management systems that
uses results;
THE PERFORMANCE MANAGEMENT APPRAISAL
FEEDBACK
a. Management by Objectives(MBO)- used in most
companies who believe in results as bases of 1. FEEDBACK AS A SYSTEM
performance management. The top management
a. Data- factual information regarding observed
defines the company’s strategic goals and
actions or consequences of actions.
objectives and passes it in to the next level of the
management and down the line. b. Evaluation- is the way the feedback system
reacts to the fact and requires performance
b. Productivity measurement and Evaluation
standards.
system(PROMES)- the goal of this system of
management is to motivate the employees to go c. Action- a system in which data and evaluation
for a higher level of productivity. influence action.

Problems of Management Appraisal 2. THE APPRAISAL INTERVIEW

• Whatever performance appraisal the organization
decide to use, there are problems to its
implementation. Some managers are reluctant to
appraise their subordinates. The disillusionment
that is still so widespread with respect to
managerial performance appraisal comes from
the practice of measuring and evaluating, and this
causes controversies and misgivings.
• Another problem measurement appraisal is the
assumption of traits that is open to question. The
connection between performance and possession
of specific traits is doubtful. Others believe that
traits appraisal is vague and confusing, since
raters could not observe all the time the
employees traits and characteristics.
• There are many possible sources of errors in the
performance of appraisal process. One of the
major sources of error is lack of careful
understanding rates on the real purpose of
management appraisal.
-This presents an opportunity for the manager to
talk about the employees potential and also their
weakness. It could be emotional experience for
the manager and the employees because
manager must communicate both the praises and
the constructive criticisms in the evaluation
EFFECTIVE PERFORMANCE MANAGEMENT SYSTEM
An effective management appraisal must be;
1. Consistent with the strategic mission and goals of
the organization
2. Beneficial as a development tool.
3. Useful as an administrative tool of management.
4. Legal and job related.
5. Generally fair and acceptable by the supervisor
and the employees.

6. Useful as documentary evidence in all personnel

✓ To correct some of the fears in the management actions.
appraisal system, the following error should be
THE MANAGEMENT OF EMPLOYEE BENEFITS AND
studied very carefully;
SERVICES
1. Problems of varying standards – the manager
FRINGE BENEFITS
should avoid using different standards among
employees performing their jobs. Any of various benefits received from an employer apart
from salary.
2. Recent effect – the error which the rater gives
greater weight to recent events when appraising
 - It is anything that is not covered by regular
salaries and wages.
- Anything that contributes to the improvement of
the conditions of work, and that motivates the
employees to do good work.
CONCEPT OF BENEFITS
• Benefits are anything that is not covered by
regular salaries and wages.
• Additional compensations that the employees
receive regularly at an interval stipulated in the
company policies and guidelines.
• Granted to employees to assist them and facilities
are provided so that they will enjoy their stay in
the company.
• To develop greater commitment and loyalty and to
keep good employees in the company roster.
OBJECTIVES OF THE COMPANY IN GRANTING THE
FRINGE BENEFITS:
• To provide additional protection and comfort to
their employees and their families as they
consider them as member of the team.
• To maintain and develop employees as an
effective work force duly committed to their
corporate mission and vision.
• To develop productive and happy employees and
develop greater loyalty and commitment to
motivate them to remain in the employment of the
company.
• To develop greater partnership in the
development of quality products and services to
their customers and clients.
• To develop satisfied employees and more
concerned workers to avoid activism in the
workplace that will interfere with company
production.
• To develop partnership with labor unions and
employee’s associations.
THE COMPANY BENEFITS SHOULD FOCUS ALONG THE
FOLLOWING PRINCIPLES:
• Company benefits should be based on the
financial conditions and the capability of
management to pay additional cost of operations.
• Benefits granted should not interfere with
company operation and management has the
prerogative to control the same.
• Benefits should be fair to all employees of equal
rank and position, and should be capable of
uniform implementation.
• The benefits must have mutual value to both
employers and the employees concerned.
• The employee must understand the costs benefit
implementation and they should work hard so that
the company will maintain its ability to pay the
added fringes.
• Benefits must be measured in terms of
employees’ services to the company
• Measurement in the policy guidelines should
receive the benefits in terms of the following
criteria.
• Benefit programs should be a cooperative effort of
top management and employees.
CLASSIFICATION OF BENEFITS
• STATUTORY BENEFITS
are benefits mandated by law.
• STATUTORY BENEFITS
• 13TH month pay given half in June and
half in December
• Maternity leave
• Paternity leave with pay when husband’s
wife gives birth.
• Medicare fund
• COMPANY BENEFITS
are benefits granted by the company outside of
those mandated by law.
COMPANY BENEFITS
• Christmas and mid-year bonus
• Emergency leave
• Personal leave
• Profit-sharing
PROFIT SHARING
• It is an incentive plan under which an employer
agrees to share with his personnel a specified
portion of the net profits of his business at the end
of each fiscal period or over a given period.
 PURPOSE OF PROFIT-SHARING
• Employees would feel they have stake in the
company if they get a direct share in the profits of
the enterprise in which they work.
• Aims to modify employees’ attitudes to achieve
greater employee efficiency, productivity and
loyalty to the firm.
management of employees’ loans and cash
advances.
• COMMUNICATING BENEFITS TO EMPLOYEES
-benefits are investments in the greater job
satisfaction and increased commitment for better
performance on the job.

• Employers who subscribe to the concept of profit-

sharing look upon their workers as partners or co-
workers of the enterprise.

TYPES OF PLANS
• CASH PLANS (Current Distribution Plan)
- provide for payment of the employee’s share in
the profit in cash based on his salary or wage.

• DEFFERED DISTRIBUTION PLAN

- this program establishes a trust fund to provide
employees with future payment. (retirement plan)

• THE PURCHASE PLAN

-participating employees are permitted to
purchase often through payroll deductions, or less
than the prevailing market price or at par value

STRATEGIC BENEFIT IMPLEMENTATION

• BENEFIT SURVEY AND BENCHMARKING

-benefits should be within the level of the industry
in the community and those of the competitors in
business.

• COST CONTROL STRATEGY

-it is assumed that the larger the cost of benefits
category, the greater the opportunity for savings.

• STAFFING COST STARTEGY

-employers may change staffing practices to
control benefit costs.

• THE DEMOGRAPHIC COMPOSITION COST

STRATEGY
-the benefits must be designed along the
demographic need of the human resources to be
more relevant and appreciated.

• ORGANIZATION OF EMPLOYEES
COOPERATIVES
-organization of employee associations’
cooperatives will greatly help unburden