BA 301

HUMAN RESOURCE
MANAGEMENT (HRM)

CHAPTER 10: REWARD MANAGEMENT

Prepared by: CHRISTIAN A. DIAZ, MBA, CHRA
 Learning Objectives

At the end of this chapter, the students are expected to:

• know how the reward management system work in real
life situations;
• be familiar with the process of job analysis and its uses
to HR Function and the Reward Management;
• Be familiar with the data collection process and
methods use in job analysis;
• differentiate between job description and job
specification; and
• understand the use of job evaluation and the different
methods of job evaluation

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 What is Reward Management?
• Reward Management is a management discipline that is
concerned with the formulation of strategies and
implementation of strategies and policies to reward
employees fairly, equitably and consistently in accordance
with their value to the organization.

• It deals with design, implementation and maintenance of

reward systems – (processes, practices, procedures) that
aim to meet the needs of both the organization and its
stakeholders.

• To find out the relative worth of a job in relation to other

jobs, one must understand what’s inside the job itself.
This is done through Job Analysis.

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 Job Analysis
• Job Analysis is a systematic procedure for getting
information about the current or proposed duties and
requirements of a position in order to determine the most
appropriate classification.

• It is a process used to collect information about the duties,

responsibilities, necessary skills, outcomes, and work
environment for a particular job.

• You need as much data as possible to put together a job

description which is the frequent outcome of the job analysis.

• It is the gathering and analyzing of data about a specific job

so that job description and job specification can be written.

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 Data Collection Methods
1. Observation. When the observation method is used, a
manager, job analyst, or industrial engineer observes the
individual performing the job and takes notes to describe the
tasks and duties performed.

2. Interview. This method to collects a variety of information

from an employee by asking to describe the tasks and
duties performed. The method allows employees to describe
tasks and duties that are not observable. They may
exaggerate or omit some tasks and duties.

3. Work Sampling. This is a variation of the interview but done

through random work sampling like once a week or a few
hours a day. Work sampling must be representative of the
job and must gather sufficient data to represent the entire
actual job.
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 Data Collection Methods
4. Questionnaires. Questionnaires can have different
question forms, such as open-ended questions, multiple
choice, checklists or a mix of all of them. Questionnaires
used for job analysis collect data about all aspects that
influence how a job is completed, including both internal
and external factors.

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 JOB DESCRIPTION
• Job description is an abstract of information derived from
the job analysis report describing the duties performed,
the skills training and experience required, the
responsibilities involved, the contribution under which the
job is done and the other relations of the job to the other
jobs in the organization.

• In short, a job description must contain a list of Task,

Duties, Responsibilities (TDR) that the job entails. These
TDRs are observable actions. A good job description must
also contain job specifications – list of the knowledge
skills, abilities and other characteristics (KSAs) required
for an individual to perform the job.

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 Professor Job Description
• Developing curricula and delivering course material.
• Conducting research, fieldwork, investigations, and writing up
reports.
• Publishing research, attending conferences, delivering
presentations, and networking with others in the field.
• Traveling to other universities or academic settings to participate in
learning opportunities and gain experience.
• Participating in committee, departmental, and faculty meetings.
• Providing training and mentoring to teaching assistants and junior
lecturers.
• Reviewing methods and teaching materials and making
recommendations for improvement.
• Assisting with student recruitment, interviews, and academic
counseling sessions.
• Contributing to the creation of an environment that promotes
growth, equality, and freedom of speech.

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 JOB SPECIFICATION
• Job specification is a written statement of educational
qualifications, specific qualities, level of experience,
physical, emotional, technical and communication skills
required to perform a job, responsibilities involved in a job
and other unusual sensory demands.

• Derived from job analysis, job specification is a statement

of employee characteristics and qualifications required for
satisfactory performance of defined duties and tasks
comprising a specific job or function. This refers mostly to
the so called soft skills that a job holder must have in
order to successfully complete the tasks of the position.

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 Professor Job Specification
• A Ph.D. in the relevant field.
• 3-10 years of experience teaching in an academic setting.
• Published articles and proven experience as an academic.
• Strong teaching and mentoring skills.
• Excellent presentation, and written and verbal communication
skills.
• A sound understanding of and passion for subject matter.
• Willingness to work long hours, and travel frequently.
• A growth mindset and excellent networking abilities.

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 JOB EVALUATION
• Job evaluation is defined as the assessment of the
relative worth of varied jobs on the basis of a consistent
set of job and personal factors such as qualifications and
skills required.

• The objective is to determine which jobs should get more

pay than others.

• Each job is evaluated to determine the job content or

weight in terms of its contribution to the achievement of
organizational goals. Based on this evaluation, the salary
range for each job is determined.

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 Methods of Job Evaluation
1. Ranking Method
• The simplest method of job valuation, jobs are
arranged from highest to lowest, in order of their value
or merit to the organization.

• Jobs can also be arrange to relative difficulty in

performing them. The jobs are examined as a whole
rather than on the basis of important factors in the job.

• The jobs at the top of the list has the highest value
and obviously the job at the bottom will have the
lowest value.

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 Methods of Job Evaluation
• Example of Ranking Method

Rank Position Monthly Salary

1 Accountant 25,000.00
2 Accounting Clerk 20,000.00
3 Purchasing Assistant 18,000.00
4 Secretary 16,000.00
5 Encoder 13,000.00
6 Utility man 11,000.00

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 Methods of Job Evaluation
2. Classification Method
• In the job classification method, the evaluator writes
descriptions of each class of jobs and then puts them
into the grade that best matches the class description.
Because this process is subjective, with a wide variety
of jobs and general job descriptions, positions could
fall within more than one grade level.

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 Methods of Job Evaluation
• Example of Classification Method
Class Rank Employees
Class 1 Executives General Manager, Assistant
Manager, Department
Supervisor, etc.
Class 2 Skilled Workers Purchasing Assistant, Cashier,
Secretary, Warehouse Clerk,
Encoder, etc.
Class 3 Semiskilled Steno Typist, Machine
Workers Operators, Switchboard
Operator, etc.
Class 4 Less Skilled Filing Clerk, Messenger,
Workers Utility Man, etc.

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 Methods of Job Evaluation
3. Factor Comparison Method
• A scientific method designed to rank job roles based
on a breakdown of factors rather than the role as a
whole.

• The ultimate goal of factor comparison is to assign the

relative parts of each job role a financial value i.e. the
amount of compensation offered for that part of the
role.

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 Methods of Job Evaluation
• Example of Factor Comparison Method
Factors/Key Daily Wage Physical Mental Skill Responsibility Working
Jobs Rate Effort Effort Conditions
Electricians 60 11(3) 14(1) 15(1) 12(1) 8(2)
Fitter 50 14(1) 10(2) 9(2) 8(2) 9(1)
Welder 40 12(2) 7(3) 8(3) 7(3) 6(3)
Cleaner 30 9(4) 6(4) 4(5) 6(4) 5(4)
Labourer 25 8(5) 4(5) 6(4) 3(5) 4(5)

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 Methods of Job Evaluation
4. Point Method
• The point method is an extension of the factor
comparison method. Each factor is then divided into
levels or degrees which are then assigned points.
Each job is rated using the job evaluation instrument.
The points for each factor are summed to form a total
point score for the job.

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 Methods of Job Evaluation
• Example of Point Method
Job Factors Percentage Weights Equivalent Points
I. SKILLS 30 300
A. Technical Skills 5 50
B. Interpersonal Skills 10 10
C. Managerial Skills 15 150
II. EFFORT 20 200
A. Mental Effort 15 150
B. Work Pressure 5 20
III. RESPONSIBILITY 50 500
A. Impact on Operations 25 250
B. Responsibility over People 15 150
C. Responsibility over Company
Assets 10 100

TOTAL 100% 1,000 pts.

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 Wage and Compensation Benefits
1. Employee Minimum Wage
• Region VII is Php 366.00

2. Overtime Pay
• The employee who renders service beyond the
schedule indicated in the contract will be given
additional compensation equivalent to his regular
wage including at least 25% premium.

3. Premium Pay
• A premium pay is an overtime pay for rest days and
official holidays. Employee shall be paid an additional
compensation from the rate of the first eight hours on
a holiday or rest day plus at least 30%.

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 THANK YOU

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