1|IAN POGI HRES 311

CHAPTER 6: Job Evaluation and Work Flow Analysis A good job analyst must have the following qualifications:

Job Analysis 1. Good knowledge of organizational system

2. Good intelligence and analytical skills
• It is the process of getting detailed information about the 3. Good judgment and acumen
tasks, duties and responsibilities of the job as seen in the 4. Clarity and facility of language
organizational structure. 5. Familiarity with organizational and company policies
• This involves improving methods and developing more 6. Good personality and company policies
efficient systems of work. 7. Tact and diplomacy in getting along with others
• Some companies get the services of management
consultants to conduct a job analysis program to be more Getting Process in job information
effective.
Job analysis starts with a careful understanding of the
The following are the uses of job analysis: relationship of the jobs in the organizational structure

• To specify the duties and responsibilities of the position. What skills are The following factors are important considerations in job
needed to be done. analysis:
• To provide job-oriented recruitment and selection guides. To identify
which applicant is most qualified. 1. What the job requires the employee to do.
• To provide guides in operation-based compensation determination. The
2. How effectively does the employee perform his assigned
peso value of the jobs.
• To provide information and tools for career planning and counseling. duties and responsibilities?
Matching individual skills. 3. Why should the worker do the job?
• To have a guide in the construction of performance evaluation criteria. 4. Supervision required in the job
Getting info about the job. 5. Working environmental conditions. Exposure to hazards.
• To serve as guide in methods improvement
• To obtain background information about working conditions. Identifying The Importance of a Job Title
hazards and conditions.
• To serve as guide in the development of training programs. Almost all The correct title of a particular job is very important
employees will undergo training.
in the organization. The title of the job must show
• To assist supervisor in the supervision of the employees. Supervisors are
provided with description of jobs under their departments. clearly the area of job activity and must show its
• To provide the conceptual basis for position classifications to the relationships with the other jobs in the unit or
employee who will occupy the position department.
Job analysis helps the organization to make suitable changes The following are suggested guidelines in job title selection:
in the organizational structure, so that it matches the needs
and requirement of the organization. 1. The title must be standard used in industry
2. It must be suggestive of the nature and function of the
The Role of Human Resources in Job Evaluation jobs
3. It must be different from other jobs based on major duties
• Job analysis is not the sole responsibility of the HRD but a
of employees who hold the position
cooperative effort of all operating department.
4. The job titles must be brief but suggestive of its functions
• In the event that a manager/supervisor would like to
recommend a job evaluation, he or she should contact his The Nature of Job Analysis Information
or her human resources representative to discuss the
situation and process for conducting the evaluation. Job analysis focuses on the two important data or information:
(Redesigning or Reclassifying) 1. Job Description – Contains the tasks, duties and
Job analyst - The study of jobs is the responsibility of the responsibilities that the job entails.
personnel department thru the job analyst who is trained to The following are the uses of job descriptions:
conduct the job evaluation program.
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) It serves as a guide in the structural departmentalization.
The Gathering of Job Information
2|IAN POGI HRES 311

e) It could be used as a guide in the horizontal and vertical 2. The Just Wage Theory of St. Thomas Aquinas- This theory is
promotion of the employee’s thereby developing and the basis in the implementation of minimum wage laws. While
promoting morale. it could not be consistent with the minimum requirements for
a decent living in the social organization, it responds to the
2. Job Specification – contains information about employee’s
basic requirements for subsistence living.
qualifications and traits required in the performance of job.
3. The Wage Fund Theory- Expounded by John Stuart Mill and
This information could be used in the following personnel
his followers. Under this theory it would appear that it is futile
activities:
to attempt to increase wages. It would appear that when you
a) It serves as a guide in interviewing applicants increase the wages of the other workers in the company, it
b) It is a guide in the proper selection of the employee as to would redound to decrease the wages of the other sectors,
his qualifications for the proposed vacant positions because the portion of the corporate wage fund goes to the
c) It is used in the assessment of employees for training and selected sectors in the organization.
development
4. Bargaining Theory of John Davidson- The bargaining theory
Job Analysis Methods 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
• The Job Questionnaire Method – The job analyst prepares a price that is determined by the bargaining process between
questionnaires on the purpose of the job analysis. the buyer and seller.
• The Interview Method-the job analyst gets the
information by interviewing the employee of his job. 5. The Marginal Productivity Theory- It offers the best
• The Combination of Interview and Questionnaire explanation of the wages in modern industry. The supply of
Methods – The job analyst gives the questionnaire and labor in any given economy on the whole depends upon the
conducts interview later. total number of individuals who want to work and available
• Observation and Interview Method – involved in the work. Worker’s mobility, which is the transfer from one
observation of the workers at the job site. 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

Chapter 7 : Wage & Salary Administration tries to establish the relationship between wages and the level
of economic activity. The level of economic growth is
The Role of Human Resources in the Payment of Salaries
dependent upon the savings generated because the increase
• The most important duty of the Human Resource is the in wages creates a surplus that propels growth. The more
payment of proper wages and salaries to all company income the worker gets, the bigger the purchasing power of
employees. Set wage scales high enough to attract better the workers; then this increases consumption of goods and
employees and contribute to the level of profitability that services. Increased consumption of goods generates
will sustain continuous profitable operations. employment opportunities.
• The level of pay must not impair profits, however. 7. Labor Theory of Value- Karl Marx propounds this theory of
Theories of Wages labor. This gives credence to the value of labor. It emphasizes
that labor is the source of all product and without this
• It deals with the payment of labor employed in important component, there could be no goods for human
competitive enterprises. consumption.
• Wages represent the payment one factor of production
that is manpower. 8. The Standard of Living Theory of Wages- A recent
development in labor market is the theory of living wages that
• Wages are the contributions or are the shares paid for the
means that wages should be based on the cost of living. The
value of land, capital and profits.
cost of living is dependent upon the economic needs of the
1. Classical Wage Theory- This theory is based upon the family for the basic necessities of life for food, clothing and
fundamental concept that labor is a commodity and we have shelter.
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.
3|IAN POGI HRES 311

Wage and Salary Surveys- Once the worth of a job has been SALARY RANGE- It is the range of the salary that is paid to an
established using one of the job rating systems, the actual employee doing similar functions that has a minimum and
salary to be paid for each job must be determined. maximum pay and a series of step adjustments. It is to provide
adjustment in pay for performance evaluation without
Procedure in Conducting Wage and Salary Surveys:
distorting the salary pay plan.
a) Defining the labor market
Methods of Wage Payment
b) List of key job positions
c) Detailed description of jobs ▪ By the Time Worked.
d) Collection of salary data
HxR=W
e) Compilation of salary data
f) Results of survey ▪ H – Hours
▪ R – Rate per hour in pesos
An examination of the graph will indicate the trend of the data
▪ W – Total wages earned
plotted. A line is drawn to indicate this trend, using one of the
following techniques: ▪ By the Amount of Work Produced
• Eye Inspection – The line is drawn freehand so that about NxU=W
the same number of data points fall above the line.
• The Least Squares – This uses the statistical formula; the ▪ N – Number of units produced
trend line will normally follow a straight path. ▪ U – Rate per unit in pesos
• The Second Degree Curve – Using another statistical ▪ W – Wages earned per day or per week
formula; the trend line will normally take the form of a Payment by piecework is satisfactory under the following
curve and ma more accurately indicate the trend of the conditions:
data.
▪ When a unit of completed work can be measured easily;
The Development of Wage and Salary Structure ▪ When there is a clear relationship between a workers’
• The design and operation of wage and salary structure is effort and the results of his efforts;
the concern of management and employees. Wage and ▪ When the quality of work is less important than quantity
salary structure is the hierarchy of jobs to where the pay or when quality standards are uniform and measurable;
is attached. ▪ When the flow of work is regular, breakdowns are few and
jobs follow a standard procedure, with few interruptions.
• According to salary grade.
Wage and Salary Policies
The following are the advantages of the wage and salary
structure: ▪ The wage and salary plan must be easily understood.
• It affects the workers’ earning and standard living.
▪ Salaries in the wage plan should be easily computed.
• It ease the recruitment and maintenance of an effective labor ▪ Salaries must be made relevant with efforts.
force. ▪ Incentive wage
• It develops employee morale and increases work efficiency. ▪ The method of payment should be stable and unvarying
• It represents cost and competitive advantage in the industry.
Morale Renewal in the Workplace
• It helps in preparing budgetary allocations and eases
computation of salary adjustments and as an aid in short term ▪ Know that leaders have limitations.
and long range plans. ▪ Choose character. We have no control of things in life.
• It eliminates pay distortions and inequities in employee ▪ Walk the talk. Integrity is important in the workplace.
compensation. ▪ Avoid compromising. You have to choose between right or
• It establishes an equitable salary range for various jobs. wrong.
▪ Use the same measures on yourself. Leader not immoral.
Wage Structure Design- The design of the wage and salary
▪ Face the mirror. Ask somebody to tell your character.
structure is the establishment of the wage classes and rate ▪ Show the mirror to your leaders. Show them their mirror too.
ranges. All jobs within a class are treated in the same way for ▪ Don’t just admit mistakes; correct them.
purpose of economical administration. Pay structure ranges ▪ Have an improvement plan. Exert effort to mend your character.
should be used in developing a schedule for both rank-and-file ▪ Rebuild and do not slide back. Set your mind towards future.
employees, technical and managerial position.
4|IAN POGI HRES 311

Other Information Related to Wages DEVELOPING AND ADMINISTERING AN APPRAISAL PLAN

▪ Blue Collar – Manual laborers There are certain guidelines in developing and understanding an
▪ White Collar – office workers appraisal plan using the following steps;
▪ Pink Collar – Job associated with women like nursing, 1. Secure full agreement of line managers about the need for a formal
secretariat, etc. 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
Labor Grades 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
▪ SKILLED LABOR – These are workers who have received plan, discuss the factors to be used and the uniform descriptions or
specialized training to do their jobs. instructions to be followed.
4. Make sure that the purposes and nature of the performance appraisal
▪ UNSKILLED LABOR – These are workers who have received plan are explained to those who will make the appraisal. These are the
no specialized training and have few specific skills. first level supervisors and department heads and those who will be
▪ PROFESSIONALS – Those workers who need an advanced affected by the appraisal.
degree to do their jobs. 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.
CHAPTER 8 MANAGEMENT OF PERFORMANCE APPRAISAL SYSTEM 7. Arrange the periodic discussion of the performance appraisal.
8. The appraisal system should be carefully used in selecting employees
PERFORMNACE APPRAISAL- One of the major keys in effective for possible promotions.
management. It is a basis in determining who should be promoted to 9. Provide for challenges and review of performance appraisal.
a higher position. Effective performance appraisal should be focused
APPROACHES TO PERFORMANCE MANAGEMENT
on the legitimate desire of employees for progress in their position.
COMPARATIVE APPROACH- it consists of techniques that require the
THE PURPOSE OF PERFORMANCE APPRAISAL
rater to compare the individuals performance with that of others. The
STRATEGIC PURPOSE- the performance management system should following are techniques under the approach.
link employee activities with the organization goals and objectives.
a) Ranking- this method provides a comparison of the relative
These strategies are implemented through defining results, behavior,
qualities of performance among the employees in a group or unit
and to some extent employee characteristics that are necessary for
b) Forced distribution technique- this system uses five-point job
carrying out the predetermined goals and objectives.
performance scale in the rating employees who are doing similar
ADMINISTRATIVE PURPOSE- performance management information jobs.
relative to performance appraisal points to the use of evaluation in c) Paired comparison method- this method name of each employee
decisions, for salary adjustments, promotion, retention, and who is to be rated is written on the card. Each employee to be
termination, lay off and recognition of individual performance. rated is the off paired with every other employee in the same
unit.
DEVELOPMENTAL PURPOSE- it is to develop employees who are d) The checklist method- It provides a number of traits or factors
effective in their jobs. When employees are not performing as well as with corresponding definitions for evaluating the employees
they should, performance management improve their performance. written in the left hand column of the form such as quantity of
work done, quality of work, attitudes toward work, judgement,
The Criteria in the Development of a Measuring Instrument
reliability, cooperation, punctually and others.
VALIDITY- extent to which the performance measure assesses all the
BEHAVIORAL APPROACH- attempts to define the behavior an
relevant aspects of the performance. Ratings are valid if they are
employee exhibits to be in the job.
accurate measures of the employees performance.
a) The critical incident- this requires managers to keep a record of a
RELIABILITY- rating may be considered reliable if they are consistent.
specific examples of effective and ineffective performances on
They are consistent if the individual employee in a group receives
the part of each employee
essentially the same ratings when evaluated at least twice by the
b) The behavioral anchored rating scale- builds on the critical
same rate at different times by the different raters.
incidents approach; designed to specifically define performance
ACCEPTABILITY- refers to whether the people who use the dimensions by developing behavioral anchors associated with
performance measure accept it. Many very elaborate performance the different levels of performance.
measures are extremely valid and reliable yet many managers and c) The organizational behavior modification- this entails managing
supervisors do but want to use them as they consume so much time. the behavior of the employees through a formal system of
behavioral feedback and reinforcement.
SPECIFICITY- extent to which the performance measure gives specific
guidelines to employees about what is expected of them and how
they can meet expectations.
5|IAN POGI HRES 311

RESULT APPROACH- this focuses on managing the objectives, CHAPTER 9 THE MANAGEMENT OF EMPLOYEE BENEFITS AND
measurable results of a job or workgroup. We will examine two SERVICES
performance management systems that uses results;
FRINGE BENEFITS- Any of various benefits received from an
a) Management by Objectives (MBO)- used in most companies who employer apart from salary.
believe in results as bases of performance management. The top
management defines the company’s strategic goals and ▪ It is anything that is not covered by regular salaries and wages.
objectives and passes it in to the next level of the management ▪ Anything that contributes to the improvement of the conditions
and down the line. of work, and that motivates the employees to do good work.
b) Productivity measurement and Evaluation system (PROMES)- the CONCEPT OF BENEFITS
goal of this system of management is to motivate the employees
to go for a higher level of productivity. ▪ Benefits are anything that is not covered by regular salaries and
wages.
▪ Additional compensations that the employees receive regularly
1. Problems of varying standards – the manager should avoid using at an interval stipulated in the company policies and guidelines.
different standards among employees performing their jobs. ▪ Granted to employees to assist them and facilities are provided
2. Recent effect – the error which the rater gives greater weight to so that they will enjoy their stay in the company.
recent events when appraising individual performance. ▪ To develop greater commitment and loyalty and to keep good
Employee’s recent behavior is the basis. employees in the company roster.
3. Central tendency – Incorrectly rated near the average or middle OBJECTIVES OF THE COMPANY IN GRANTING THE FRINGE BENEFITS:
scale. Play safe.
4. Rater’s bias – If a manager has a strong dislike of a certain ethnic ▪ To provide additional protection and comfort to their employees and
group. their families as they consider them as member of the team.
5. Halo effect – rates an employee with high or low on all items ▪ To maintain and develop employees as an effective work force duly
committed to their corporate mission and vision.
because of one characteristic.
▪ To develop productive and happy employees and develop greater
6. Contrast error – rate people relatively with other people rather
loyalty and commitment to motivate them to remain in the employment
than by performance standards. of the company.
▪ To develop greater partnership in the development of quality products
THE PERFORMANCE MANAGEMENT APPRAISAL FEEDBACK
and services to their customers and clients.
▪ To develop satisfied employees and more concerned workers to avoid
1. FEEDBACK AS A SYSTEM
activism in the workplace that will interfere with company production.
a. Data- factual information regarding observed actions or ▪ To develop partnership with labor unions and employee’s associations.
consequences of actions. THE COMPANY BENEFITS SHOULD FOCUS ALONG THE FOLLOWING
b. Evaluation- is the way the feedback system reacts to the fact and PRINCIPLES:
requires performance standards.
c. Action- a system in which data and evaluation influence action. ▪ Company benefits should be based on the financial conditions and the
capability of management to pay additional cost of operations.
2. THE APPRAISAL INTERVIEW- This presents an opportunity for the ▪ Benefits granted should not interfere with company operation and
manager to talk about the employees potential and also their management has the prerogative to control the same.
weakness. It could be emotional experience for the manager and the ▪ Benefits should be fair to all employees of equal rank and position, and
employees because manager must communicate both the praises and should be capable of uniform implementation.
▪ The benefits must have mutual value to both employers and the
the constructive criticisms in the evaluation
employees concerned.
EFFECTIVE PERFORMANCE MANAGEMENT SYSTEM ▪ The employee must understand the costs benefit implementation and
they should work hard so that the company will maintain its ability to pay
An effective management appraisal must be; the added fringes.

1. Consistent with the strategic mission and goals of the THE COMPANY BENEFITS SHOULD FOCUS ALONG THE FOLLOWING
organization PRINCIPLES:
2. Beneficial as a development tool.
- Benefits must be measured in terms of employees’ services to
3. Useful as an administrative tool of management.
the company
4. Legal and job related.
5. Generally fair and acceptable by the supervisor and the Measurement in the policy guidelines should receive the benefits in
employees. terms of the following criteria.
6. Useful as documentary evidence in all personnel actions.
▪ LENGTH OF SERVICE
▪ RETIREMENT BEBEFITS
▪ OTHER BENEFIT PROGRAMS
6|IAN POGI HRES 311

- Benefit programs should be a cooperative effort of top • COMMUNICATING BENEFITS TO EMPLOYEES -benefits are
management and employees. investments in the greater job satisfaction and increased
commitment for better performance on the job.
CLASSIFICATION OF BENEFITS

STATUTORY BENEFITS- are benefits mandated by law.

• 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.

• 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.
• 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
management of employees’ loans and cash advances.