AGBM 406 NOTES. EGERTON UNIVERSITY MODULE
TOPIC 8: JOB ANALYSISJob Analysis is a procedure, by which pertinent information is obtained about a job, i.e., it is a detailed and systematic study of information relating to the operation and responsibilities of a specific job. An authority has defined job analysis as ―the process of determining, by observation and study, and reporting pertinent information relating to the nature of a specific job... ―It is the determination of the tasks which comprise the job and of the skills, knowledge, abilities and responsibilities required of the worker for a successful performance and which differentiate one job from all others.
Information provided by Job AnalysisJob analysis provides the following information:
Sources of information for job analysisAccording to George R. Terry, ―the make-up of a job, its relation to other jobs, and its requirements for competent performance are essential information needed for a job analysis‖. Information on a job may be obtained from three principal sources:
Methods of Job AnalysisThere are four methods or approaches are utilised in analysing jobs. These are:
Purposes and Uses of Job AnalysisA comprehensive job analysis programme is an essential ingredient of sound personnel management. It is fundamental to manpower management programmes because the results of job analysis are widely used throughout the programmes. The information provided by job analysis is useful, if not essential, in almost every phase of employee relations.
JOB DESCRIPTIONJob description is a written record of the duties, responsibilities and requirements of a particular job. It is concerned with the job itself and not with the work. It is a statement describing the job in such terms as its title, location, duties, working conditions and hazards. In other words, it tells us what is to be done and how it is to be done and why. It is a standard of function, in that it defines the appropriate and authorised contents of a job.
Job description helps top executives, especially when they jointly discuss one another‘s responsibilities. Overlapping or confusion can then be pointed out questions can be raised about the major thrust of each position, and problems of structure can be identified.
A job description becomes a vehicle for organisational change and‘ improvement. A job description contains the following:
A job description enables us to frame suitable questions to be asked during an interview. It is particularly helpful when the application from is, used as a tool for eliminating the unfit personnel. A job description helps us in:
a. JOB SPECIFICATIONJob Specification is a standard of personnel and designates the qualities required for an acceptable performance. It is a written record of the requirements sought in an individual worker for a given job. In other words, it refers to a summary of the personal characteristics required for a job. It is a statement of the minimum acceptable human qualities necessary for the proper performance of a job. Job specifications translate the job description into terms of the human qualifications which are required for a successful performance of a job. They are intended to serve as a guide in hiring and job evaluation. As a guide in hiring, they deal with such characteristics as are available in an application bank, with testing, interviews, and checking of references.
Job specifications relate to:
b. JOB DESIGNJob analysis helps in developing appropriate design of job to improve efficiency and satisfaction. Job design is the process of deciding on the contents of a job in terms of its duties and responsibilities, on the methods to be used in carrying out the job, in terms of techniques, systems and procedures and on the relationships that should exist between the jobholder and his superiors, subordinates and colleagues. It is a deliberate and systematic attempt to structure the technical and social aspects of work so as to improve technical efficiency and job satisfaction. Job design is an attempt to create a match between job requirements and human attributes. It involves both organising the components of the job and the interaction patterns among the members of a work group. The main objective of job design is to integrate the needs of the individual and the requirements of the organisation. Needs of employees include job satisfaction in terms of interest, challenge and achievement. Organisational requirements refer to high productivity, technical efficiency and quality of work. Today, educated and creative employees demand well-designed jobs. Therefore, increasing attempts are being made to redesign jobs so as to improve the quality of working life. A systematic body of knowledge on the designing of jobs has been developed after the Industrial Revolution and the large scale enterprises.
Approaches to Job Design: The main approaches to job design are described below :
Limitations of Performance Appraisal:The main problems involved in performance appraisal are as follows:
1. Errors in Rating:Performance appraisal may not be valid indicator of performance and potential of employees due to the following types of errors:
2. Lack of Reliability:Reliability implies stability and consistency in the measurement. Lack of consistency over time and among different raters may reduce the reliability of performance appraisal. inconsistent use of measuring standards and lack of training in appraisal techniques may also reduce reliability. Different qualities may not be given proper weight age. Factors like initiative are highly subjective and cannot be quantified.
3. Incompetence:Raters may fail to evaluate performance accurately due to lack of knowledge and experience. Post appraisal interview is often handled ineffectively.
4. Negative Approach:Performance appraisal loses most of its value when the focus of management is on punishment rather than on development of employees.
5. Multiple Objectives:Raters may get confused due to two many objectives or unclear objective of performance appraisal.
6. Resistance:Trade unions may resist performance appraisal on the ground that it involves discrimination among its members. Negative ratings may affect interpersonal relations and industrial relations particularly when employees/unions do not have faith in the system of performance appraisal.
7. Lack of Knowledge:The staff appraising performance of employees might not be trained and experienced enough to make correct appraisal.
JOB EVALUATIONJob Evaluation is a system wherein a particular job of an enterprise is compared with its other jobs. In the present industrial era, there are different types of jobs which are performed in every business and industrial enterprise. Comparative study of these jobs is very essential because on the basis of such study the structure of wages for different types of jobs is prepared. The comparison of jobs may be made on the basis of different factors such as duties, responsibilities, working conditions, efforts, etc. In nut shell, it may be said that job evaluation is a process in which a particular job of a business and industrial enterprise is compared with other jobs of the enterprise. Some scholars name it the determination of job rate.
Definitions: Some eminent scholars have defined Job evaluation as follow:
OBJECTIVES OF JOB EVALUATION
Principles of Job EvaluationThere are certain broad principles, which should be kept in mind before putting the job evaluation programme into practice. These principles are:
Advantages of Job Evaluation
Methods of Job Evaluation
MERIT RATINGMerit rating in a technique to evaluate the merits of duals according to job request merit. The personal abilities that an individual brings to his job, measured by the extent to which his output or quality of his work exceeds the minimum that can reasonably to expected for his basic rate of pay. The definitions of merit rating are given as follows:
Objects of Merit Rating
Methods of Merit Rating
DISTINCTION BETWEEN JOB EVALUATION AND MERIT RATINGThe objective of Job Evaluation and Merit Rating are almost same, because both the techniques aim at making comperative study of the abilities and performance of an employee. Even then there are technical differences between these two. These differences are as follows:
Job Evaluation| Merit Rating
Limitation of Job Evaluations
TOPIC 10: EMPLOYEE TRAINING AND DEVELOPMENTTraining is an organized activity for increasing the knowledge and skills of people for a definite purpose. It involves systematic procedures for transferring technical know-how to the employees so as to increase their knowledge and skills for doing specific jobs with proficiency. In other words, the trainees acquire technical knowledge, skills and problem solving ability by undergoing the training programme.
According to Edwin B. Flippo, ―Training is the act of increasing the knowledge and skills of an employee for doing a particular job.
Objectives of Training
NEED AND IMPORTANCE OF TRAINING
Distinction between Training and DevelopmentS/NO | Training | Development
METHODS OF TRAININGOn-the-Job Training Methods: This type of training is imparted on the job and at the work place where the employee is expected to perform his duties. It enables the worker to get training under the same working conditions and environment and with the same materials, machines and equipments that he will be using ultimately after completing the training. This follows the most effective methods of training the operative personnel and generally used in most of the individual undertaking.
Off-the-job Training Methods Following are the off the job training techniques:
TOPIC 11: EMPLOYEE COMPENSATION
Chapter IntroductionEmployees have to be paid for the effort they put in the organization. This is in terms of employee compensation. This is a sensitive subject in most organizations today. A company's compensation system must include policies, procedures, and rules that provide clear and unambiguous determination and administration of employee compensation. Otherwise, there can be confusion, diminished employee satisfaction, and potentially costly litigation.
Definition of Employee CompensationEmployee compensation is payment to an employee for work done or in return for their contribution to the organization. The most common forms of compensation are wages and salary. But employee compensation is much more than salary and wages as we shall see in this chapter. Compensation levels should be measured against employees in the company, other employees in similar companies and performance for there to be equity in the organization.
Importance of CompensationA fair compensation system is a must for every business organization. The fair compensation system will help in the following:
An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed.
Factors Influencing Employee Compensation
Types of CompensationEmployee compensation can be direct or indirect compensation.
1. Direct CompensationDirect compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization. The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical reimbursements, special allowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time.
Basic SalarySalary is the amount received by the employee in lieu of the work done by him/her for a certain period say a day, a week, a month, etc. It is the money an employee receives from his/her employer by rendering his/her services.
House Rent AllowanceOrganizations either provide accommodations to its employees who are from different state or country or they provide house rent allowances to its employees. This is done to provide them social security and motivate them to work.
ConveyanceOrganizations provide for cab facilities to their employees. Few organizations also provide vehicles and petrol allowances to their employees to motivate them.
Leave Travel AllowanceThese allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization.
Medical ReimbursementOrganizations also look after the health conditions of their employees. The employees are provided with medi-claims for them and their family members. These medi-claims include health-insurances and treatment bills reimbursements.
BonusBonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one month’s salary of the employee.
Special AllowanceSpecial allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans; insurance, club memberships, etc are provided to employees to provide them social security and motivate them which improve the organizational productivity.
2. Indirect CompensationIndirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes.
Leave PolicyIt is the right of employee to get adequate number of leave while working with the organization. The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity leaves, statutory pay, etc.
Overtime PolicyEmployees should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overtime pay, etc.
HospitalizationThe employees should be provided allowances to get their regular check-ups, say at an interval of one year. Even their dependents should be eligible for the medi-claims that provide them emotional and social security.
InsuranceOrganizations also provide for accidental insurance and life insurance for employees. This gives them the emotional security and they feel themselves valued in the organization.
Leave TravelThe employees are provided with leaves and travel allowances to go for holiday with their families. Some organizations arrange for a tour for the employees of the organization. This is usually done to make the employees stress free.
Retirement BenefitsOrganizations provide for pension plans and other benefits for their employees which benefits them after they retire from the organization at the prescribed age.
Holiday HomesOrganizations provide for holiday homes and guest house for their employees at different locations. These holiday homes are usually located in hill station and other most wanted holiday spots. The organizations make sure that the employees do not face any kind of difficulties during their stay in the guest house.
Flexible TimingsOrganizations provide for flexible timings to the employees who cannot come to work during normal shifts due to their personal problems and valid reasons.
KASNEB Past Papers: ATD Level I, DCM Level I, DICT Level 1, Entrepreneurship and Communication, May 2018
KASNEB Past Papers: ATD Level I, DCM Level I, DICT Level 1, Entrepreneurship and Communication, May 2017
KASNEB Past Papers: ATD Level III, DCM Level III, Principles of Public Finance and Taxation, November 2018
KASNEB Past Papers: ATD Level III, DCM Level III, Principles of Public Finance and Taxation, May 2017