UNIT III: MANAGING OF EMPLOYEE JOB (9 Hours)

3.1 Job Analysis

Job analysis is a systematic approach to defining the job role, description, requirements, responsibilities, evaluation, etc. It helps in
finding out required level of education, skills, knowledge, training, etc for the job position. It also depicts the job worth i.e.
measurable effectiveness of the job and contribution of job to the organization. Thus, it effectively contributes to setting up the
compensation package for the Job position.
An important concept of Job Analysis is that the analysis is conducted of the Job, not the person. While Job Analysis data may be
collected from incumbents through interviews or questionnaires, the product of the analysis is a description or specifications of the
job, not a description of the person.
Definition
Job Analysis is a systematic exploration, study and recording the responsibilities, duties, skills, accountabilities, work
environment and ability requirements of a specific job.
Purpose of Job Analysis
The purpose of Job Analysis is to establish and document the 'job relatedness' of employment procedures such as training,
selection, compensation, and performance appraisal.
Determining Training Needs
Job Analysis can be used in training/"needs assessment" to identify or develop:
 training content
 assessment tests to measure effectiveness of training
 equipment to be used in delivering the training
 Methods of training (i.e., small group, computer-based, video, classroom...)
Compensation
Job Analysis can be used in compensation to identify or determine:
 Skill levels
 Compensable job factors
 Work environment (e.g., hazards; attention; physical effort)
 Responsibilities (e.g., fiscal; supervisory)
 Required level of education (indirectly related to salary level).
Selection Procedures
Job Analysis can be used in selection procedures to identify or develop:
 Job duties that should be included in advertisements of vacant positions;
 Appropriate salary level for the position to help determine what salary should be offered to a candidate;
 Minimum requirements (education and/or experience) for screening applicants;
 Interview questions;
 Selection tests/instruments (e.g., written tests; oral tests; job simulations);
 Applicant appraisal/evaluation forms;
 Orientation materials for applicants/new hires.
Performance Review
Job Analysis can be used in performance review to identify or develop:
 Goals and objectives
 Performance standards
 Evaluation criteria
 Length of probationary periods
 Duties to be evaluated.
What Does Job Analysis Involve?
The process of job analysis involves in-depth investigation in order to control the output, i.e., get the job performed successfully.
The process helps in finding out what a particular department requires and what a prospective worker needs to deliver. It also
helps in determining particulars about a job including job title, job location, job summary, duties involved, working conditions,
possible hazards and machines, tools, equipment and materials to be used by the existing or potential employee.
However, the process is not limited to determination of these factors only. It also extends to finding out the necessary human
qualifications to perform the job. These include establishing the levels of education, experience, judgment, training, initiative,
leadership skills, physical skills, communication skills, responsibility, accountability, emotional characteristics and unusual
sensory demands. These factors change according to the type, seniority level, industry and risk involved in a particular job.
Methods of Job Analysis
Several methods exist that may be used individually or in combination. These include:
 Review of job classification systems
 Incumbent interviews
 Supervisor interviews
 Expert panels
 Structured questionnaires
 Task inventories
 Check lists
 Open-ended questionnaires
  Observation
 Incumbent work logs.
A typical method of Job Analysis would be to give the incumbent a simple questionnaire to identify job duties, responsibilities,
equipment used, work relationships, and work environment. The completed questionnaire would then be used to assist the Job
Analyst who would then conduct an interview of the incumbent(s). A draft of the identified job duties, responsibilities, equipment,
relationships, and work environment would be reviewed with the supervisor for accuracy. The Job Analyst would then prepare a
job description and/or job specifications.
The method that you may use in Job Analysis will depend on practical concerns such as type of job, number of jobs, number of
incumbents, and location of jobs.

3.2 Gaining Employee Acceptance

Job evaluation is usually judged successful when employees, unions, and organizations report satisfaction with it. Most surveys
report organization satisfaction levels at 90 percent or better. Employee acceptance is the primary criterion organizations use in
determining the success of a job evaluation plan. This is reflected in the increasing use of employees on job analysis committees
and in the communication steps accompanying job evaluation installations.

3.3 Collecting and Describing Job Data

Job Analysis should collect information on the following areas:
 Duties and Tasks The basic unit of a job is the performance of specific tasks and duties. Information to be collected
about these items may include: frequency, duration, effort, skill, complexity, equipment, standards, etc.
 Environment This may have a significant impact on the physical requirements to be able to perform a job. The work
environment may include unpleasant conditions such as offensive odors and temperature extremes. There may also be
definite risks to the incumbent such as noxious fumes, radioactive substances, hostile and aggressive people, and
dangerous explosives.
 Tools and Equipment Some duties and tasks are performed using specific equipment and tools. Equipment may include
protective clothing. These items need to be specified in a Job Analysis.
 Relationships Supervision given and received. Relationships with internal or external people.
 Requirements The knowledge, skills, and abilities (KSA's) required to perform the job. While an incumbent may have
higher KSA's than those required for the job, a Job Analysis typically only states the minimum requirements to perform
the job.
Collection of Job Data:
Job data: It contains information about various job activities included in a specific job. It is a detailed account of actions which
an employee needs to perform during his tenure. The following information needs to be collected by a job analyst:
 Duties of an employee
 What actually an employee does
 Machines, tools and equipments to be used while performing a specific job
 Additional tasks involved in a job
 Desired output level (What is expected of an employee?)
 Type of training required
Collection of details on job context:
Job Context: Job context refers to the situation or condition under which an employee performs a particular job. The information
collection will include:
 Working Conditions
 Risks involved
 Whom to report
 Who all will report to him or her
 Hazards
 Physical and mental demands
 Judgment
Well like job content, data collected under this category are also subject to change according to the type of job in a specific
division or department.
Job Description:
Job description is all about collecting and recording basic job-related data that includes job title, job location, job summary, job
duties, reporting information, working conditions, tools, machines and equipments to be used and hazards and risks involved in it.
A job description may or may not have specific purpose. It depends on what HR managers want to determine and what is the
objective of conducting the process of job analysis.
Job Description is a summary of job analysis findings that helps managers determine what an employee is supposed to do when
onboard. The purpose of job description depends on the level of details the job findings include. Job description carried for
general purpose typically involves job identification (title, designation, location) and a statement of duties and functions of a
prospective or existing employee. A specifically carried job description includes detailed information about the kind of job, how it
is supposed to be performed and what is expected to be delivered. Let’s discuss the general and specific purpose of conducting a
job description process.
General Purpose of Job Description
General purpose job descriptions are used by organizations to find the very basic information about a particular job opening.
Though data includes worker’s duties but does not contain sub tasks, performance standards and basis for evaluating jobs and
establishing right compensation packages.

3.4 Job Facts

6 Insider Job Search Facts that’ll Make You Re-think How You’re Applying
You’ve made up your mind: It’s time for a career change. If only applying for jobs were as easy as making that decision.
The job search process can be confusing and intimidating, to say the least. But the good news is that there are some little-known
facts that can actually clear up a lot of that confusion and make the process a little more approachable.
So, check these out—they just might make a big difference in your next search:
1. Most Jobs Are a Secret
OK, they’re not a secret, per se, but 80% of jobs never get posted and are only found through networking.
Which means, scouring the web is not enough. It works great for seeing what’s out there, but for all those other jobs, you’ll need
to talk to other humans.
So, make sure to supplement your online research with real-world activities. As a first step, map out who you know. You can start
by creating a list of former co-workers, classmates, teammates, and more. Then, reach out to friends and acquaintances for
informal advice and to learn more about their roles.
Take some time crafting your message:
Weak: “Hey, I noticed you have an open job at your company. Can you help me?”
Strong: “Hi, I’m really interested in exploring different ways to grow my career and enhance my learning. I’d love to learn more
about your experiences.”
2. Knowing Someone on the Inside Can Get You Hired
Maybe the job you’re looking for is posted online, but that doesn’t mean you should keep your interest to yourself. With so many
applicants, more and more companies rely on the networks of their existing employees. Especially because companies want to hire
people who “get it” and who’ll click with the current staff.
Here’s the thing: Only 7% of job applicants get an employee referral, yet referrals account for 40% of all hires! So, basically,
having someone put in a good word will give you a serious leg up on the competition. Luckily, asking is easier than you think.
3. Recruiters Don’t Really Read Your Resume
Well, they do, but they don’t. Recruiters spend, on average, six seconds reviewing your resume. Translation: A resume alone
won’t get you a job, but a bad one can ruin your chances.
So, you need to make it as user-friendly as possible. Include relevant experience, keep it to one page, and whatever you do, don’t
forget to run spell check. A quick scan might not capture all of your awesomeness, but it will catch any glaring errors that will
send your application right to the trash bin.
4. Hundreds of People Are Applying for the Same Job
Did you know that a typical corporate job posting will attract 250 resumes on average? With this in mind, you might want to think
twice before just throwing your resume in with the other 249 again and again. I know, that number’s scary. But it’s a good
reminder of why you do need to tailor your application and put in that extra energy.
So, the first thing to do before you submit any applications is make sure you really want this position. Because if you don’t, you
won’t be motivated enough to do what it takes to stand out. (Or you’ll burn out spending hours applying to jobs you don’t actually
want.)
5. The Job Search Drags on (for Everyone)
On average, it takes about 52 days to fill a job opening. In other words, this won’t be a fast process. And that’s something to keep
in mind when you see an opening that looks amazing. It’s better to take a few days to submit the perfect application than it is to
fire off your materials right away without customizing them at all.
It’s also something to remember when you’re waiting to hear back after an interview. While “having patience” is easier said than
done, it’s certainly key.
6. Your Embarrassing Email Address Will Disqualify You
Hey, [email protected], unfortunately you and your friend [email protected], will fall into the group of 76% of
resumes that are thrown out simply because their email address were unprofessional. I know that seems like an unbelievably high
number, but the good news is, it should cut down on the competition from the 249 applying to the same job as you!
Please, please don’t be the person to use your email from middle school. And don’t overlook less obvious things—like if your
email address is “[email protected]” and you’re trying to land a job in a completely new field.
It’s easy to get discouraged during your job search, but knowledge is power. Hopefully these facts will motivate you to switch up
your process and land that job you deserve.

3.5 Job Contract

An employee who works under contract for an employer. A contract employee is hired for a specific job at a specific rate of pay.
A contract employee does not become a regular addition to the staff and is not considered a permanent employee.
What Is an Employment Contract?
An employment contract is a signed agreement between an employee and an employer. It establishes both the rights and
responsibilities of the two parties: the worker and the company.
Read below for more information on what is included, and the pros and cons of a contract.
What is Included in an Employment Contract
Also known as a contract of employment or employment agreement, an employment contract lays out the rights and
responsibilities of both employer and employee. More specifically an employment contract can include: 
 Salary or wages: Contracts will itemize the salary, wage, or commission that has been agreed upon.
 Schedule: In some cases, an employment contract will include the days and hours an employee is expected to work. 
 Duration of employment: An employment contract will specify the length of time the employee agrees to work for the
company. In some cases, this might be an ongoing period of time. In other cases, it might be an agreement set for a specific
duration. Other times, a minimum duration is laid out, with the possibility of extending that period.
 General responsibilities: Contracts can list the various duties and tasks a worker will be expected to fulfill while employed.
 Confidentiality: Although you may have to sign a separate non-disclosure agreement, sometimes a contract might include a
statement about confidentiality. 
 Communications: If an employee's role involves handling social media, websites or email, a contract might include a point
that the company retains ownership and control over all communications. 
 Benefits: A contract should lay out all promised benefits, including, but not limited to, health insurance, 401k, vacation time,
and any other perks that are part of the employment.
 Future competition: Sometimes a contract will include a non-compete agreement (also known as an NCC). This is an
agreement stating that, upon leaving the company, the employee will not enter into jobs that will put him or her in competition
with the company. Often an employee will have to sign a separate NCC, but it also might be included in the employment
contract.
Other possible terms include an ownership agreement (stating that the employer owns any work-related materials produced by the
employee), information on solving disputes at work, or qualifications on where the employee can work after leaving the company
(this is a way to limit competition between related companies).
Benefits and Drawbacks of a Written Employment Contract
A written contract is a great way to clearly define the job, your responsibilities, and your benefits. It prevents any confusion about
the job.
However, be sure to carefully read all elements of an employment contract before signing it. Make sure that you are comfortable
with every part of the contract. If you break the contract, there might be legal consequences. Therefore, make sure you are able to
uphold every part of the written agreement. For example, if the contract requires you to stay at the job for a minimum period,
make sure you will be able to do this. Also, if the contract places limits on where you can work upon leaving the company,
consider whether or not you are comfortable with this.
Implied Employment Contracts
An implied employment contract is one that is inferred from comments made during an interview or job promotion, or from
something said in a training manual or handbook. For example:
 Implied contracts can be inferred from actions, statements, or past employment history of the employer. 
 An employee may have seen or recorded a history of promotions, raises, and annual reviews for themselves and their
coworkers.
 During an interview, a potential employee may be told that the employee’s job is a long-term or permanent position in place
unless they are fired for a good reason. 
Enforcing an Implied Contract
While implied contracts are difficult to prove, they are binding. Employees can prove that an implied contract was established by
pointing out actions, statements, policies, and practices of the company that led them to believe with reasonable cause that the
promise would come to fruition.

3.6 Elements of Job Descriptions

1. General Information
Provide general, organizational information about the position, including department, proposed working title, job family, zone, job
category, FLSA exemption, etc.  NOTE:  Only those individuals identified as Hiring Managers in this information area will
receive an electronic notice of classification approval.
2. Job Summary
Summarize the basic functions and responsibilities.  Applicants will see this summary as the Description of Work on a Job
Posting.  It may be easier to write the summary after completing the other sections of the job description.
3. Salary Considerations
When preparing the job description the hiring manager should indicate salary action requested - hiring range for new/vacant
position, salary increase for reclassification, or no change in salary for an update of description.  Hiring managers should indicate
the desired hiring rate/range, or the desired salary for an employee.  Include rationale, when appropriate.  Department
Heads/Chairs and Dean/Directors may indicate their concurrence on the form.  Consultation with HR is encouraged when setting a
hiring rate/range or increase.  Advance consultation with HR is required if the classification of the position will result in a
decrease in salary.
4. Duties and Responsibilities
In order of importance, describe the principle responsibilities.  Include the percentage of time devoted to each responsibility.  The
total percentage must equal 100 percent.  The described duties must correlate with the other sections of the description, i.e., Job
Summary, Salary, Zone Definition Factors, Minimum Qualification Requirements and Physical Requirements.
 Write in a consistent format.
 Use clear and concise language.
 Use present tense, action verbs to begin each item.
  Avoid gender-based language.
 Avoid unnecessary words.
Example: “Transports inter-office mail to locations throughout facility.”
To meet the legal requirements of ADA, identify essential functions of the job. ADA defines essential functions as:
a. The reason the job exists,
b. A limited number of employees available to distribute work, or
c. Functions are highly specialized and require expertise.
As a general guideline, any single duty/task that occupies 20 percent or more of the incumbent's time is considered essential. Place
an asterisk “*” next to all duties considered to be essential.
5. Zone Definition Factors
The information provided in these factors is used to determine zone placement.  Provide information not contained in either Duties
and Responsibilities or Qualification Requirements.  Factor descriptions for each zone are described in the Zone Placement Matrix
and defined in Zone Assignment Matrix Factor Definitions.
The completion of this section as it relates to a specific job will enable the organizational unit leadership to match the job to a
zone in the appropriate job family.
Problem-Solving/Decision-Making
Indicate to what degree this job will exercise these skills.
1. Factors to Consider
o How much authoritative advice will be given?
o What level of analysis or information gathering will be needed?
o How much freedom will the incumbent have?
2. Example Descriptions
o Makes decisions or judgments covering routine situations, within established guidelines.  If problem is beyond
this scope, seeks advice or resolution from manager / supervisor.
o Many problem-solving situations will require independent analysis of relevant information from multiple
sources.
o Analyzes job responsibilities, recommends and implements approved changes.
Interactions
Describe the frequency and nature / purpose of contact with other people.
1. Factors to Consider
How much and what kind of contact will the incumbent have with co-workers, University employees outside the unit,
people outside the University, customers?
2. Example Descriptions
o Daily interaction with co-workers to gather or provide information needed to accomplish tasks.
o Daily interaction with other University units to exchange information and schedule meetings.
o Occasional interaction with individuals at peer institutions of higher education to gather or provide information.
o Daily interaction with customers who order products or services, in order to provide information such as pricing,
availability and shipping alternatives.
Nature of Supervision
Identify how much supervision the job will both give and receive. Indicate whether supervision will be given over regular staff,
temporary staff/student or none at all. Indicate whether supervision received by this job will be close, moderate or none at all.
Impact
Describe how influential this position is within the institution.
1. Factors to Consider
o How much is the incumbent involved within the institution, based on the importance of the decisions or final
recommendations typically rendered?
o What is the likely effect of potential errors made by the incumbent in the regular course of work?
o How much impact does an incumbent have on the fiscal affairs of the institution?
o How important is the impact of the work of this position to the operations, activities and future of the entire
institution?
2. Example Descriptions
o Decisions and influence are limited to short-range decisions and planning within a small group or activity.
o Errors may result in significant disruption of operations or services or damage to individuals or activities.
o There is responsibility for budget development, expense control, and/or revenue generation usually covering one
or more areas within a large organizational unit, or an organizational unit or university activity of moderate size.
6. Minimum Qualifications
Identify the minimum education, knowledge, skills and abilities (KSAs) and experience necessary for entry into the job, including:
 Level of education (such as high school, Bachelor's degree, Master's degree), and specific degree requirements.
 Work experience, both type and amount.
 Special training, certification or licensure (such as LPN or CPA)
 Special knowledge, skills or abilities (such as PC skills, Spanish language)
Factors to Consider
 Make sure KSAs represent bona fide occupational qualifications.
  Be specific and realistic to ensure legal defensibility.
 Relate job specifications to what, why and how work is done. Guard against inflated specifications.
 List the education, work experience, and technical/professional skills required to be able to perform the job rather than
those that describe the ideal candidate.
 Specify if education is required or if equivalent experience can be substituted.
For positions that require patient care/contact, the Joint Commission on Accreditation of Healthcare Organizations (JCAHO)
requires the following special qualification be identified:
 Include age specific population (s) served.
 Include the appropriate technical expertise competency statement
Criminal History Background Check:  Indicate if a criminal history background check is required.  See criteria in Criminal
Background Check Investigation Policy for Non-academic Positions.
7. Physical Requirements
Complete the General Physical Requirements Section describing the work environment and physical demands (i.e., environmental
elements, travel, irregular hours, hazardous/unpleasant working conditions, etc.) of the position.  Indicate if a physical
examination is required before entrance to this position.  Complete the remaining parts if the job requires at least occasional
manual effort, climbing, lifting, reaching, exposure to harsh conditions, exposure to dangerous chemicals, and so forth.  The
identification and explanation of the physical requirements of a job have legal ramifications related to ADA, and therefore should
be prepared thoughtfully.

3.7 Job Requirements and Pay

Job Requirements: These include basic but specific requirements which make a candidate eligible for a particular job and also
the pay which they are entitled to receive in the future.
Job requirements and pay
Companies base compensation on numerous factors. Some companies pay more attention to the following job factors or job
requirements. Almost all companies use some form of analysis to set compensation.
The collected data includes:
 Knowledge or basic information required to perform a job successfully
 Specific skills such as communication skills, IT skills, operational skills, motor skills, processing skills and so
on
 Personal ability including aptitude, reasoning, manipulative abilities, handling sudden and unexpected
situations, problem-solving ability, mathematical abilities and so on
 Educational Qualifications including degree, diploma, certification or license
 Personal Characteristics such as ability to adapt to different environment, endurance, willingness, work ethic,
eagerness to learn and understand things, behaviour towards colleagues, subordinates and seniors, sense of
belongingness to the organization, etc
For different jobs, the parameters would be different. They depend upon the type of job, designation, compensation grade and
responsibilities and risks involved in a job.

3.8 Job Evaluation

Meaning
Job evaluation is an assessment of the relative worth of various jobs on basis of a consistent set of factors. It is a system of
determining the relative worth or money value of a job in relation to other jobs in an organization.
Job evaluation is thus, a method used to describe, analyze, compare and evaluate jobs within a unit, a branch or an industry on the
basis of the work content and the job requirements in order to place them under particular wage or salary grades.
Job Evaluation – Definition
Job evaluation may be defined as a process of determining the relative worth of jobs, ranking & grading them by comparing the
duties, responsibilities, requirements like skill, knowledge of a job with other jobs with a view to fix compensation payable to the
concerned job holder.
“Job evaluation is a process of determining the relative worth of the various jobs within the organization, so that differential
wages may be paid to jobs of different worth”. – Wendell French.
Characteristics of job evaluation:
 It is a method of evaluating jobs in a systematic approach
 It is an analysis of the work involved in it's starting point
 It is the process of analyzing and describing positions grouping them and determining their relative value by comparing the
duties of different positions in terms of responsibilities and other requirements
 It is a system to deal exclusively what assessment of the jobs and not concerned with the employees assigned to the job
 It is designed only to establish wage differential and is not concerned with the absolute wage level.
Objectives of job evaluation
Primary Objectives
o To establish wage level of a plan
o To bring new jobs on relative parity with existing jobs and
o To facilitate wage negotiations
Secondary objectives are
o To determine qualities for new jobs for employee selection
o To determine Criterion for merit rating and promotions
o To analyse wage rates
o To find scope of automation and improvement
o To train new supervisors

3.9 Job Ranking

Job Ranking Method of Job Evaluation-Detailed Presentation
Ranking Method—Under this system, all the jobs are arranged or ranked in the order of importance from the simplest to the
hardest, or in the reverse order each successive job being higher or lower than the previous one in the sequence. It is not necessary
to have job descriptions, although they are useful. A common practice is to arrange all the jobs according to their requirements by
rating them and then to establish the group or classification. In this method, jobs are not split up into their component parts,
however comparison is made on the basis of whole jobs. Three techniques are generally used for ranking purposes:
1. Utilizing job descriptions.
2. Making paired comparisons.
3. Ranking along a number line.
1. Utilizing job descriptions—When this procedure is followed, each rater is given a set of job descriptions, one for each job to be
ranked. The job descriptions are then studied and analysed. The differences between them are noted with respect to the key
points selected for comparison. The rater determines which job in the series requires least amount of various characteristics
used for comparison, and places that job in the lowest rank position. He then determines which job requires next higher
amount of characteristics and places it next to preceding job's rank. And so on. Sometimes, two or more jobs fall in the same
rank position.
In such cases, they are assigned the same rank position.
After each rater has assigned the rank independently, their rankings can be compared. This comparison is usually made by having
the raters meet as a committee and discuss with each other their respective rankings. Final rankings may be done by majority vote
or averaging the rankings of raters.
The method just described above involves independent ranking first and then and integration with the ranking of the other raters.
2. Making group comparisons. In the preceding method, a rater is required to keep in mind all the jobs being ranked in order to
place them in their correct relationship to each other. But this task may become difficult as the number of jobs increases.
Distinguishing differences among jobs may be overlooked or forgotten. This would result in less accurate evaluation. To do
away with this weakness, "paired comparison method" has been suggested. This method involves following steps :
(a) First of all, each job is paired with every other job in the series. Suppose there are four jobs say, refund clerk, transfer clerk,
adjuster and collection clerk, their pairs will occur as follows :
Refund Clerk------------------------------- Transfer Clerk
Transfer Clerk--------------------------------- Adjuster
Collection Clerk--------------------------- Refund Clerk
Refund Clerk--------------------------- Adjuster
Transfer Clerk--------------------------- Collection Clerk.
(b) Next the rater examines each pair and determines which of the two is more difficult in terms of characteristics selected as
guides. Thus he has to keep only two jobs in mind. He then underlines the more difficult job.
© How many times a particular job is rated more difficult than others, is counted.
(3) Ranking along a number line—Here ranks obtained from job descriptions or paired comparison are spaced along a number
line. For example job X is the highest rank job and job Y is picked up to find out its closeness to job X.
The ranking system of job evaluation usually measures each job in comparison with other jobs in terms of the relative importance
of the following five factors:
(i)Supervision and leadership of subordinates.
(ii)Cooperation with associates outside the line of authority.
(iii)Probability and consequence of errors.
(iv)Minimum experience requirement.
(v)Minimum education required.
The method has following Merits and Demerits.
Merits
(1) It is simple, easily understood and easy to explain to employees. It is, therefore suitable for all small organizations.
(2) It is far less expensive to put into effect than other systems and requires little effort for maintenance.
(3) It requires less time, fewer forms and less work.
Demerits
(1) As there is no standard for an analysis of the whole job position, different bases of comparison between rates occur. Since the
process is initially based on judgment, it tends to be influenced by a variety of personal biases.
(2) Specific job requirements are not analysed: rater's judgment is .strongly influenced by present wage rates.
(3) The system merely produces a job order and does not indicate to what extent it is more important than the one below it. It only
gives us its rank but it does not indicate how much higher or more difficult a job is in comparison to another job.

3.10 Market Pricing Approach

Market pricing approach to job evaluation:
This approach looks at external data. Job evaluation forms the basis for market pricing. You utilize job descriptions to compare
jobs to like positions within the external marketplace. Pay data are collected from published sources and the value of the position
within the competitive market is determined.
  Considers the organization’s compensation philosophy. (Where do we want to position ourselves vis-à-vis the market?)
 Examines internal value against market data.
 Requires an overlay to see how it fits with the internal hierarchy.
Goals of Market Pricing
Market pricing is used by many organizations, to determine:
 The competitive value of individual positions
 The company’s overall positioning in the marketplace
 The company’s pay positioning against its compensation philosophy
 Whether pay programs achieve basic objectives of compensation
 Internal equity

3.11 Maturity Curve Method

Maturity Curve Approach of Job Evaluation:
Maturity curves have their largest use in modeling market pay for employees engaged in technical work such as engineering, and
in particular in research and development, although they are also used in many other areas. One reason for using maturity curves
to describe the market for technical disciplines is that job matching is difficult because sometimes the incumbents are working on
proprietary or classified projects and it is not possible to share descriptions of the actual work they are doing. Another reason is
the culture of the organizations that have used maturity curves for many years.
With the maturity curve method, a series of curves is developed to provide
different levels of worth or value of the individual. The distribution of rates of pay
within ally one interval originating on the horizontal axis would indicate a level of performance. A curve is formed by joining
the same distribution points at all intervals.
Maturity curve closely resembles a learning curve, in that the curve rises rapidly
In the early stages, then it flattens out and even bend slightly downward in its latter stages.
Maturity curve and competency based pay:
Maturity curves are individual based. Here the major compensable factor is knowledge, skill and abilities (KSA) derived from the
formal education of the individual. The process recognizes expansion of the KSA through years of work experience which is
formally equated with rates of pay for years of work experience.