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Job Design and Job Analysis
Job Design, from a theoretical and academic point of view, is quite technical and may require a lot of input from Operations Management, especially from your IE (Industrial Engineering Dept.).
From HRD's perspective, Job Design sometimes involves the realignment of functions and responsibilities. In today's corporate structures, this usually means Job Expansion and/or enrichment, typically conducted in-house.
Job Analysis (JA) is the initial stage of the Job Evaluation (JE) Program and necessitates real skills and know-how in using HR tools to implement it successfully. It is usually outsourced to external consultants as ordinary HR Managers may lack the appropriate tools and time to perform this task effectively.
If you are interested in learning how to conduct a Job Analysis, please join HR-TOOLS, which is currently discussing Job Analysis.
Ensuring Internal and External Equity
Internal Equity can be achieved through the implementation of a robust Job Evaluation program. Internal equity exists when jobs or positions that significantly contribute to the company's business goals and objectives receive higher pay compared to those that do not. Additionally, internal equity is maintained when senior employees are compensated more than new hires through seniority pay gaps implemented via annual merit increases or adjustments.
These factors are taken into account during Job Rating. Jobs with higher ratings are assigned higher job grades with corresponding pay ranges.
External Equity is established when your salary structure and job rates are competitive with what the market and/or industry pays in your specific area of operation.
The components of an effective compensation system have been detailed in another section (Compensation Philosophy) within this subject matter. There is no need to reiterate them here.
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting