Process of Job Analysis

Process of Job Analysis:

The process of job analysis starts with making strategic choices and results in job description and job specification. Above figure shows this process and also points out the uses of information about jobs.

·         Strategic  Choices- To initiate the process of job analysis, an organization has to make strategic choices such as to what extent it will involve employees in the process, what will be the timing and frequency of process?, will it be future oriented or past oriented etc.

We all know that job analysis involves collecting job related data-responsibilities, duties, skills and knowledge required to perform a job.  For these information organization need to consult with its employees also for contents of job. Therefore it is necessary to set a limit till employee needed to involve in the process. Too much involvement may result in bias in favor of a job, as the employee is likely to inflate the duties and responsibilities. On the other hand, if employees are not involved or minimally involved, they ten to become suspicious about motives behind the job analysis.

Another strategic choice relates to the timing and frequency of conducting job analysis. Generally job analysis is conducted when new company is establishing or new job is created or there is change in the job nature due to technological or environmental changes.

Besides, organization has to decide whether job analysis will be future oriented or it will describe how the job has been done in past. Organization also has to think about the sources of collecting data/information of the job. It has to decide the ratio of human and non human resources in collecting job information.

·         Gather Information- gathering information involves three issues:

o   What type of data is to be collected?

o   What methods are to be employed for data collection?

o   Who should collect these data?

What type of data is to be collected depends on the purpose of conducting job analysis. Generally all data related to the job involved in the process of job analysis. Examples of needed data are- description of work activities, machines, tools and equipments used in work, physical working conditions, social and organizational job context, personal requirements such as specific skills, specific education, work experience and aptitudes etc.

Regarding methods of data collection, there are several methods available for collecting data such as observation, interview, questionnaires, checklists, technical conference and diary methods. An organization can use any of these methods depending upon purpose, budget and time frame of job analysis process.

Now, who will collect these data regarding job is another challenge in conducting job analysis. Organization can use three types of individuals: Trained job analysts, Supervisor or Job incumbents. Each of these has their own advantages. For example, trained job analysts will give standardized data where as supervisor and job holders will provide information without any extra cost.

·         Information Processing- To prepare job description and job specification, collected data should be processed properly. Relevant Data should be sorted out from the collected information so that they can fulfill the purpose of creating job description and job specification.

·    Job Description- After processing all data, Job description has to be prepared. Job description includes job title, tasks, duties and responsibilities involved in a job. In brief, It indicates what all job involves.

·         Job Specification- On the other hand, job specification involves listing of employee qualifications, skills and abilities. These specifications needed to do the job satisfactorily.

Meaning of Job Analysis

Job analysis is the process of analyzing jobs. It is very broad concept. Therefore Before describing the meaning and nature of the job analysis, it is important to discuss about the meaning of the job.

·         Job- job is the bundle of related task. For example, inspecting resume of a job seeker is a task. The whole lot of tasks relating to recruitment constitutes job.

Job Analysis- it is the process of collecting job related information. Such information helps in the preparation of job description and job specification. 

From the above Figure we can see that the process of job analysis results into job description and job specification:

·         Job Description- it indicates what all a job involves.  For example, job title, location, job summary, duties machine, tools, equipments, material and forms used, supervision given and received and working conditions.

·         Job Specification- the capabilities that the job holder should possess form part of job specification. For example, education, training, experience, judgment, initiative, physical effort, physical skills, communication skills and emotional characteristics.

The Provident Fund Act-1952

• Objective- PF Act came into force in 1952, in order to secure the life of an employee for rendering his service to organization. This is statutory liability of employer to give PF amount to employee.
• Applicability- This act is applicable to an establishment where 20 or more people are employed. It is applicable to all states of India except J&K.
• Benefits- Following are benefits avail due to PF Act:
• Provide monetary benefits to survive after retirement.
• Minimize risk against health, sickness, disablement of the employee and his dependents.
• Old age Pension benefits.
• Widow pension.
• To maintain dignity & Social status.
• Contribution- Employees and Employer both contribute to Provident fund in the following way:
• Employee’s Contribution- 12% [(EPF) 3.67%, (Pension) 8.33% or 540 whichever is less]
• Employer’s Contribution- 13.61% [3.67% (EPF), 8.33% (Pension), 1.1% (Admin Charges), 0.5% (EDLI), 0.01% (Inspection charges)]

• A/c 1 = Employer and Employee’s part of PF
• A/c 2 = Admin Charges
• A/c 10 = Pension Part
• A/c 21 = EDLI (Employee Deposit Linked Insurance)
• A/c 22 = Admin Charges on EDLI (Inspection Charges)

• PF Challan- PF Challan is submitted every 15^th of the month in SBI Branch. Yearly Challan is also submitted in the month of April. Above is the sample copy of Challan.

• Forms used in PF Returns- Following are forms used in Filing PF Return:
• Form 5- To submit monthly PF return in which new employee details is mentioned
• Form 10- To submit monthly PF return in which Left employee details is mentioned.
• Form 12A- That is used for the same purpose which contains consolidated details of that particular month- new joinees, left employees and employer-employee PF contributions.
• Form 3A- Used for annual PF Returns.
• PF Calculation- PF (EDLI and charges not included) can be calculated in the following way:
• Employee’s Part- Basic Salary * 12%
• Employer’s Part- (Basic Salary* 3.67%) + (Basic Salary * 8.33% or 540)

• Note- Maximum limit for the calculation of Monthly Penssionable salary is Rs. 6500 (see above figure for details)

Meaning and Theories of Remuneration

Remuneration Meaning- The compensation an employee receives in return of his or her contribution to the organization.

 Remuneration is the reward for employment in the form of pay, salary, or wage, including allowances, benefits (such as company car, medical plan, pension plan), bonuses, cash incentives, and monetary value of the non cash incentives.

Components of Remuneration- An average employee in the organized sector is entitled to several benefits such as salary and wages, incentives, fringe benefits etc. following are the major components of remuneration-

·       Wages and Salary- Wages represent the hourly rates of pay whereas salary represents the monthly rates of pay regardless number of hours put in by an employee.

·         Incentives- incentives are basically “payment by results”. Incentives depend on productivity, sales, profits or cost reduction efforts. There are two types of incentives schemes:

o   Individual Incentive Scheme- Applicable to specific employee performance.

o   Group Incentive Scheme- It is applicable where a given task demands group efforts for completion.

·     Fringe Benefits- It includes PF, gratuity, medical care, hospitalization, accident relief, health & group insurance, canteen, uniform and recreation etc.

·         Prerequisites- These are allowed to executives and include company car, club membership, paid holidays, furnished house, stock option schemes etc.

·    Non Monetary Benefits- These include challenging job responsibilities, growth prospect, competent supervision, comfortable working conditions etc.

Theories of Remuneration- In order to understand which components of remuneration are more effective, we can look at theories of remuneration-

·         Reinforcement & Expectancy Theory

Reinforce theory suggests that behavior which has a rewarding experience is likely to be repeated. Implication of remuneration in this theory is that high employee performance followed by a will make future employee performance more likely.

Expectancy theory is link between rewards and behavior.  According to this theory, motivation is product of valance, instrumentality and expectancy. Remuneration system differs according to their impact on these motivation components.  Pay system differ most in their impact on instrumentality-the perceived link between behavior and pay. Valance of pay outcomes remains the same under different pay system. Expectancy perceptions often have more to do with job design and training than pay system.

·         Equity Theory- Equity theory emphasis in pay structure of employee remuneration. It suggests that an employee who perceives inequity in his or her rewards seeks to restore equity. When employee perceives inequity it can result in lower productivity, higher absenteeism or increase in turnover.

Remuneration system needs to meet three types of equity which directly impact motivation, commitment and performance-

o   Internal Equity- Perceived fairness of pay differentials among different jobs with organization.

o  External Equity- Employees’ perception of fairness of remuneration relative to those outside organization.

o Individual Equity- Employees’ perception of pay differentials among individuals who hold identical job in the same organization.

·       Agency Theory- Focuses on the divergent interests and goals of the organization’s stakeholders and the way that employee remuneration can be used to align these interests and goals. This theory talks about two important stakeholder i.e. employer and employee. Employer plays a role of principal whereas employee plays a role of agent. Remuneration paid to employee (agent) is called agency cost. Agent wants high agency cost whereas principals want to minimize it.

Agency theory says that principal must choose a contracting schemes that helps align the interest of agent with the principal’s own interest.