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KEP. 49/MEN/2004 - KETENTUAN STRUKTUR DAN SKALA UPAH

MENTERI TENAGA KERJA DAN TRANSMIGRASI REPUBLIK INDONESIA
 
KEPUTUSAN MENTERI TENAGA KERJA DAN TRANSMIGRASI REPUBLIK INDONESIA
 
NOMOR : KEP. 49/MEN/2004
 
TENTANG
KETENTUAN STRUKTUR DAN SKALA UPAH
 
MENTERI TENAGA KERJA DAN TRANSMIGRASI REPUBLIK INDONESIA,
 
Menimbang       :  a.bahwa sebagai pelaksanaan Pasal 92 ayat (3) Undang-undang Nomor 13 Tahun 2003 tentang Ketenagakerjaan, perlu diatur ketentuan struktur dan skala upah;
                           b.bahwa untuk ikut perlu ditetapkan dengan Keputusan Menteri.
 
Mengingat         :  1.Undang-undang Nomor 80 Tahun 1957 tentang Persetujuan Konvensi Organisasi Perburuhan Internasional Nomor 100 mengenai Pengupahan yang Sama Bagi Buruh Laki-laki dan Wanita untuk Pekerjaan yang Sama Nilainya (Lembaran Negara Republik Indonesia Nomor 171 Tahun 1957, Tambahan Lembaran Negara Republik Indonesia Nomor 2153);
                           2.Undang-undang Nomor 13 Tahun 2003 tentang Ketenagakerjaan (Lembaran Negara Republik Indonesia Tahun 2003 Nomor 39, Tambahan Lembaran Negara Republik Indonesia Nomor 4279);
                           3.Keputusan Presiden Republik Indonesia Nomor 228/M Tahun 2001 tentang Pembentukan Kabinet Gotong Royong.
 
Memperhatikan  :  1.Pokok-pokok Pikiran Sekretariat Lenbaga Kerjasama Tripartit Nasional tanggal 23 Maret 2004;
                           2.Kesepakatan Rapat Pleno Lembaga Kerjasama Tripartit Nasional tanggal 23 Maret 2004;
 
MEMUTUSKAN :
Menetapkan        :  KEPUTUSAN MENTERI TENAGA KERJA DAN TRANSMIGRASI REPUBLIK INDONESIA TENTANG KETENTUAN STRUKTUR DAN SKALA UPAH.
 
 
Pasal 1
Dalam Keputusan Menteri ini dimaksud dengan :
1.Upah adalah hak pekerja/buruh yang diterima dan dinyatakan dalam bentuk uang sebagai imbalan dari pengusaha atau pemberi kerja kepada pekerja/buruh yang ditetapkan dan dibayarkan menurut suatu perjanjian kerja, kesepakatan, atau peraturan perundang-undangan, termasuk tunjangan bagi pekerja/buruh dan keluarganya atas suatu pekerjaan dan/atau jasa yang telah atau akan dilakukan.
2.Struktur upah adalah susunan tingkat upah dari yang terendah sampai yang tertinggi atau dari yang tertinggi sampai yang terendah.
3.Skala upah adalah kisaran nilai nominal upah untuk setiap kelompok jabatan.
4.Jabatan adalah sekumpulan pekerjaan dalam organisasi perusahaan.
5.Analisa jabatan adalah proses metoda secara sistimatis untuk memperoleh data jabatan, mengolahnya menjadi informasi jabatan yang dipergunakan untuk berbagai kepentingan program kelembagaan, ketatalaksanaan dan Manajemen Sumber Daya Manusia.
6.Uraian jabatan adalah ringkasan aktivitas-aktivitas yang terpenting dari suatu jabatan, termasuk tugas dan tanggung jawab dan tingkat pelaksanaan jabatan tersebut;
7.Evaluasi jabatan adalah proses menganalisis dan menilai suatu jabatan secara sistimatik untuk mengetahui nilai relatif bobot jabatan-jabatan dalam suatu organisasi.
8.Pengusaha adalah :
   a. orang perseorangan, persekutuan atau badan hukum yang menjalankan suatu perusahaan milik sendiri;
   b. orang perseorangan, persekutuan atau badan hukum yang secara berdiri sendiri menjalankan perusahaan bukan miliknya ;
   c. orang perseorangan, persekutuan, atau badan hukum yang berada di Indonesia mewakili perusahaan sebagaimana dimaksud dalam huruf a dan b yang berkedudukan diluar wilayah Indonesia.
9.Pekerja/buruh adalah setiap orang yang bekerja dengan menerima upah atau imbalan dalam bentuk lain.
 
Pasal 2
Pengusaha menyusun struktur dan skala upah dalam penetapan upah pekerja/buruh diperusahaan.
 
Pasal 3
Dalam penyusunan struktur dan skala upah sebagaimana dimaksud dalam Pasal 2, dilaksanakan melalui :
a. analisa jabatan;
b. uraian jabatan;
c. evaluasi jabatan;
 
Pasal 4
Dalam melakukan analisa, uraian dan evaluasi jabatan sebagaimana dimaksud dalam Pasal 3 diperlukan data/informasi
a. bidang usaha dari perusahaan yang bersangkutan;
b. tingkat teknologi yang digunakan;
c. struktur organisasi;
d. manajemen perusahaan.
 
Pasal 5
(1) Analisa jabatan sebagaimana dimaksud dalam Pasal 3 huruf a, merumuskan jabatan-jabatan baik tenaga pelaksana, non manajerial, maupun manajerial dalam suatu perusahaan.
(2) Analisa jabatan sebagaimana dimaksud dalam ayat (1) akan menghasilakan uraian jabatan dalam organisasi perusahaaan meliputi :
    a. identifikasi jabatan;
    b. ringkasan tugas;
    c. rincian tugas;
    d. spesifikasi jabatan termasuk didalamnya : 
       d.1. pendidikan;
       d.2. pelatihan/kursus;
       d.3. pengalaman kerja;
       d.4. psikologi (bakat kerja, tempramen kerja dan minat kerja);
       d.5. masa kerja;
    e. hasil kerja;
    f. tanggung jawab.
 
Pasal 6
(1) Evaluasi jabatan berfungsi untuk mengukur dan menilai jabatan yang tertulis dalam uraian jabatan dengan metoda tertentu.
(2) Faktor-faktor yang diukur dan dinilai dalam evaluasi jabatan antara lain :
     a. tanggung jawab;
     b. andil jabatan terhadap perusahaan;
     c. resiko jabatan;
     d. tingkat kesulitan jabatan;
(3)Hasil evaluasi jabatan sebagaimana dimaksud dalam ayat (2) digunakan antara lain :
     a. penetapan upah;
     b. penilaian pekerjaan;
     c. penetapan kebijakan pengembangan sumber daya manusia perusahaan.
 
Pasal 7
Dasar pertimbangan penyusunan struktur upah dapat dilakukan melalui :
a.    Struktur organisasi;
b.    Rasio perbedaan bobot pekerjaan antar jabatan;
c.    Kemampuan perusahaan;
d.    Upah Minimum;
e.    Kondisi Pasar.
 
Pasal 8
(1) Penyusunan skala upah dapat dilakukan melalui :
    a. skala tunggal;
    b. skala ganda.
(2) Dalam skala tunggal sebagaimana dimaksud dalam ayat (1) huruf a, setiap jabatan pada golongan jabatan yang sama mempunyai upah yang sama.
(3) Dalam skala ganda sebagaimana dimaksud dalam ayat (1) huruf b, setiap golongan jabatan mempunyai nilai upah nominal terendah dan tertinggi.
 
Pasal 9
(1) Skala ganda sebagaimana dimaksud dalam Pasal 8 ayat (1) huruf b, dapat berbentuk skala ganda berurutan dan skala tumpang tindih.
(2) Dalam hal skala ganda berurutan sebagaimana dimaksud dalam ayat (1), upah tertinggi pada golongan jabatan dibawahnya lebih kecil dari upah terendah pada golongan jabatan diatasnya.
 
Pasal 10
(1) Petunjuk teknis penyusunan struktur dan skala upah sebagaimana terlampir merupakan pedoman sebagai bagian yang tidak terpisahkan dari Keputusan ini.
(2) Penyusunan struktur dan skala upah sebagaimana dimaksud dalam ayat (1) dilakukan dengan memperhatikan golongan, jabatan, masa kerja, pendidikan dan kompetensi dan mempertimbangkan kondisi perusahaan.
 
Pasal 11
Keputusan Menteri ini mulai berlaku sejak tanggal ditetapkan.
 
Ditetapkan di Jakarta pada tanggal 8 April 2004 
 
MENTERI TENAGA KERJA DAN TRANSMIGRASI REPUBLIK INDONESIA
 
 
JACOB NUWA WEA

Job Analysis

Job Analysis
 
 
Job Analysis merupakan aktifitas yang sangat penting dalam HR Department. Namun pada kenyataannya, banyak sekali para manager yang kurang memahami Job Analysis ini. Beberapa hal yang mendukung ini adalah :
1. Para manager wajib mengetahui seluruh detail informasi mengenai deskripsi pekerjaan di dalam group kerja mereka untuk mengetahui secara tepat proses aliran kerja perusahaan. Hal ini sangat diperlukan guna mengidentifikasi tugas serta pengetahuan, keahlian dan kemampuan yang diperlukan untuk menjalankan bisnis tersebut dengan sempurna.
 
2. Para manager wajib mengetahui "job requirement" dengan tepat untuk pemilihan kandidat yang terbaik. Kadangkala HR Department merekruit kandidat tanpa adanya masukan dari manager yang bersangkutan. Juga manager seringkali melakukan rekruitment tanpa pengetahuan yang tepat. Hal ini akan menimbulkan pemilihan yang "like & dislike" oleh para manager.
 
3. Para manager bertanggung jawab untuk memastikan bahwa setiap individu wajib berprestasi diatas rata-rata. Untuk itu para manager wajib melakukan evaluasi rutin untuk menilai seberapa bagus mereka berprestasi dan memberikan umpan balik kepada yang kurang berprestasi.
 
Para Manager wajib secara jelas mengetahui tugas-tugas yang dibutuhkan/diperlukan untuk seluruh pekerjaan.
Job analysis terdiri dari 2 bagian penting yaitu :
1. Job Description
2. Job Specification
 
 
Job Description
Di dalam sebuah perusahaan terdapat beragam jenis pekerjaan yang tugasnya bervariasi di lingkup pekerjaannya. Iklan rekruitment, salary survey dan benchmarking lainnya menggunakan deskripsi pekerjaan untuk kegiatannya. Deskripsi sederhana yang sering terlihat di salary survey atau benchmarking lainnya adalah Job Descriptor. Outline sederhana ini distandarisasikan secara global. kadang-kadang dalam penulisannya dilakukan secara detail dan spesifik.
 
Fokus dari Human Resources
Job description digunakan secara berbeda baik oleh karyawan maupun Human Resources Department. Seorang Human Resources Officer menggunakan Job Description untuk beberapa kegunaan :
- Menjelaskan fungsi & tanggung jawab dari sebuah pekerjaan.
- Mekanisme rekruitment
- Training & Development (menetapkan & memperbaharui standard)
- Succession Planning / Pengembangan Organisasi (tugas-tugas yang bisa dimasukkan ke dalam pengembangan organisasi secara keseluruhan
- Penetapan secara legal / hukum (bergantung dari kandidat potensial yang akan direkruit)
- Penugasan Karyawan
- Untuk membenchmark dengan posisi yang sudah tertulis di salary survey
 
Fokus Karyawan
Pada saat interview, kandidat dapat meminta salinan job description kepada interver untuk diketahui. Sehingga kandidat dapat melakukan membandingkan jabatan yang ada di pasar pada waktu proses negosiasi. Deskripsi jabatan harus jelas kepada kandidat yang berpotensi untuk diketahui apa yang akan ditawarkan serta pada awal kerja karyawan, kandidat harus diberikan salinan dari deskripsi pekerjaan.
 
Deskripsi pekerjaan haruslah ditinjau ulang pada saat performance review untuk memastikan apakah deskripsi pekerjaannya tersebut dapat merefleksikan pekerjaan yang sekarang. Sehingga karyawan & atasannya dapat saling terlibat dalam membangun tujuan dari perusahaan. Ketika akan melakukan evaluasi ulang terhadap deskripsi pekerjaan, karyawan & atasan dapat saling bekerjasama memperbaharuinya. hasil revisi ulang tersebut harus direview oleh HR Professional untuk memastikan bahwa revisi tersebut memang layak untuk dipertahankan & dijalankan.
 
Pada prinsipnya Deskripsi Pekerjaan berisikan uraian sederhana & mudah dimengerti tentang sekumpulan tugas, pekerjaan & tanggung jawab yang diberikan secara individual tanpa melihat siapa yang menjabat. Jabatan ini akan tetap eksis meskipun orang yang menjalankannya sudah tidak ada lagi. Adapun deskripsi pekerjaan :
- Job Title (jabatan)
- Job Location (lokasi pekerjaan)
- Subordinate / Superior (atasan & bawahan)
- Purpose of the Job (Mengapa pekerjaan ini harus diadakan)
- Responsibilities (Tanggung Jawab pemegang Jabatan)
- Key Performance Indicator (KPI, biasanya masuk ke deskripsi kerja)
- Job Specification
- Eksternal & Internal Link (hubungan keluar & kedalam)
- Manpower Law Regulation
 
Deskripsi pekerjaan ini tidak dimaksudkan untuk menjadi alat untuk mengukur dan menetapkan pengembangan karir ke depannya dimana performance management juga berjalan dengan semestinya.
Pada intinya, apabila sedang melakukan analisa terhadap sebuah deskripsi pekerjaan, hal yang patut dipertanyakan adalah apabila seseorang meninggalkan pekerjaannya, apakah deskripsi pekerjaan yang ditinggalkan itu berubah ? Jika tidak ada perubahan, maka itulah yang seharusnya dilakukan. (Pada kenyataannya seringkali tidak demikian)
 
Job Specification
Spesifikasi pekerjaan adalah sekumpulan dari knowledge, skills, abilities dan karakteristik lainnya
1. Knowledge
Informasi yang berupa pengetahuan standard, prosedural dan aktual yang dperlukan untuk kesuksesan dalam menjalankan tugas
2. Skill
Tingkat keahlian dari setiap individu dalam melakukan pekerjaannya
3. Ability
Kemampuan & keinginan diri secara general yang diperlukan untuk melaksanakan pekerjaaannya
4. Others
Kaakteristik lainnya yang diperlukan seperti semangat motivasi, keteguhan diri dan soft skill lainnya.
 
Metode Job Analysis
Terdapat banyak sekali macam ragam untuk menlakukan analisa job dan tidak ada satupun metoda yang dikatakan terbaik. karena masing-masing memiliki kekuatan dan kelemahannya sendiri.
beberapa metode yang dikenal adalah :
 
a. Metode Position Analysis Questionnaire (PAQ)
Metode ini merupakan salah satu metode yang paling sering digunakan di industri dan sering dilakukan penelitian mengenai instrumen analisa jabatan. PAQ dikembangkan dan dibagi menjadi 6 bagian :
1. Information Input
Kapan & bagaimana seorang pekerja mendapatkan informasi yang diperlukan agar dapat melakukan pekerjaannya dengan baik
2. Mental Processes
Alasan, pengambilan keputusan dan perencanaan serta aktifitas proses informasi yang terlibat di dalam pekerjaannya
3. Work Output
Aktifitas fisik, tools & alat ukur digunakan untuk menjalankan pekerjaan
4. Relationship With Other Person
Hubungan kerjasama yang baik & harmonis diperlukan dalam melaksanakan pekerjaannya
5. Job Context
Aktifitas fisik & sosial dimana pekerjaan dilaksanakan
6. Other Characteristics
Aktifitas, kondisi dan karakteristik yang lain yang berbeda dari yang sudah dijabarkan dan masih relevan dengan pekerjaan
 
b. Metode Task Analysis Inventory
Metode ini memfokuskan pada analisa seluruh pekerjaan yang dijalankan. Sehingga tidaklah heran pada metode ini banyak sekali item-item yang muncul (inventory) yang jumlahnya mencapai ratusan. Agak rumit memang karena banyak sekali subject pekerjaan yang dikumpulkan dalam system ini.
 
c. Metode Fleishman Job Analysis System
Metode ini berdasarkan pada beberapa hal kemampuan yang memadai untuk diterjemahkan ke seluruh dimensi pekerjaan. Beberapa hal tersebut adalah 52 Cognitive, Psychomotoric, Physical, and Sensory Abilities. Skala metode ini terdiri atas deskripsi dari kemampuan, diikuti oleh perbandingan tingkah laku dari beberapa tingkat level kemampuan dalam 7 tingkat skala.
 
Perlulah diperhatikan untuk setiap perusahaan yang ingin melaksanakan grading, bahwa tanpa analisa pekerjaan yang tepat, tidak akan diperoleh struktur tingkat gaji yang baik & terpercaya. Karena kesalahan pada analisa pekerjaan juga mengakibatkan penilaian strata dan kompensasi yang diberikan menjadi tidak berguna lagi.
 
Widhi Setyo Kusumo
WhiteHouse Consulting
 
Reff.
1. Managing Human Resources, Gomez-Mejia, Prentice Hall
2. Human Resources Management, Noe, McGraw-Hill
3. Human Resources Management, Robert L Malthis, South Western
4. Management Sumber Daya Manusia, Dr.Ir.Tb.Sjafri Mangkuprawira
5. Erisa Ojimba, Certified Compensation Professional

WHY DO WORKERS LEAVE?

 
WHY DO WORKERS LEAVE?
by
Bill Marvin, The Restaurant Doctor™

You can certainly conduct your own surveys to find out what your staff thinks about working for you (and if you think everything is wonderful, perhaps a survey would be enlightening.) However, the odds are that the reasons for any staff discontent will be found on the following list. If you want to dedicate time and money to improve your operation, direct it toward the following areas:

Lack of recognition or reward
The number one thing that workers want is appreciation for the work that they do. When it is not forthcoming or when exemplary performance is not rewarded, it takes the heart out of conscientious workers.

Lack of teamwork
Super stars or individuals who are only interested in advancing their own agenda are just as damaging to effective teamwork as are workers with lesser skills who insist on going it alone. This sort of selfishness will kill the initiative of team players and drive them away because they know that exemplary guest service is a team sport.

Incompatible management style
When the prevailing management style is at odds with an individual's personal style, it can be abrasive. A laid-back person will have just as many problems with an intense, hard-charging management style as an intense person will have with a laid-back approach.

On-going conflicts
Occasional personality clashes between people are normal, but a continuing confrontation will wear out even the most patient person. Be suspicious of people who are regularly involved in on-the-job upsets, regardless of whose "fault" the conflict is.

Quality of life issues
People are working to make a living - they have to have some time to live! Quality-of-life issues are becoming more important as workers realize there is more to happiness than just money. If your staff or management cannot have time to spend with their families, are unable to take a day off when they need it or are burning themselves out routinely working 60+ hours a week, they will eventually find another job.

Lack of control
This is a greater irritant at lower levels of the organization, but nobody likes to feel that they do not have any say in how their work environment operates.

Stress
When workers feel overwhelmed and out of control ("in the weeds"), the resulting stress makes productivity and responsive service impossible. There is a practical limit to how long anyone can operate effectively in this sort of environment.

Politics
In the absence of effective leadership, it is not uncommon for an operation to fragment into cliques. When playing the political game becomes more important than taking care of the guests, good workers will leave.

Pay vs. effort
This problem arises when people feel they are not getting paid enough for the level of work they are doing. It is an equity issue. Confronted with this problem, workers have three options: stay on the job and continue to harbor their resentment, reduce their output to a level they feel is justified by the pay or seek another job.

Poor communication
When your staff is not "in on things" or does not know what is happening, their level of personal security goes down, they feel abandoned or unimportant, and they become disenchanted with the company.

Poor recruiting
The saying goes that "it is hard to fly with the eagles when you work with turkeys." If you fail to hire high quality staff, you will discourage your better workers. Similarly, if you cannot fill vacancies and constantly require your staff to work short-handed, the good ones will inevitably head for the competition.

Lack of orientation
Workers who do not receive a thorough orientation to your company never fully understand the game or their place in it. Eventually they will quit out of frustration.

Lack of training
Failure to train your staff undermines their personal security and delivers a message that they are not very important to the success of your organization. If you don't care, why should they?

Ineffective supervision
To be effective, workers need direction, encouragement, feedback, and reinforcement. If supervisors allow policies to be broken, tolerate standards being compromised or fail to act when action is needed, they lose the respect and support of the staff.

Lack of leadership
Leaders provide a shared vision and inspire their staff to accomplish things they didn't know they were capable of. Leadership is the glue that holds the staff together. All the management skills in the world cannot make up for lack of leadership.

Job inequities
Poverty is relative. The person with the least, no matter how much they have, always feels cheated. Typical job inequities are differing treatment of comparable workers with regard to pay, workload, or privileges.

Lack of management understanding
In this case, understanding deals with the depth of human feeling that managers bring to their work. Managers or supervisors who don't listen, show no compassion or have no rapport with their crew will alienate people and drive them out of the company.

Boredom
Workers facing the same routine day after day will eventually be distracted by a lack of personal growth or development. This will not bother the poor performers, but the lack of professional challenge will push the good workers away.

Lack of job security
If workers feel that their jobs are relatively safe or that they may get "blind-sided" by a reactionary termination, they cannot make a long term mental commitment to the company and its goals. This causes them to become increasingly estranged and feel "out of the loop." Productivity, guest service and retention all suffer.

No opportunities for advancement
Exceptional performers need a sense of motion - a feeling that they are accomplishing something and improving themselves. This is usually demonstrated by their earning new skills and is reflected by their being promoted within the company when the opportunity arises. If qualified workers are not offered the first shot at job openings or if vacancies are routinely filled from outside the company, you will lose the good workers.

Not enough hours
People have to be able to make a living. If they cannot get enough hours to meet their expenses, they will have to take a second job or leave. A shortage of hours is particularly irritating when schedules reflect politics rather than performance.

Lack of benefits
Staff benefits, particularly health insurance, continues to be an issue in many parts of the foodservice industry, particularly among independent restaurants. At this writing, there is no nationally-mandated health care coverage. For workers with families, the lack of employer-supported health insurance can be the factor that sends them looking for other employment.

High turnover
Interestingly, one of the principal causes for hourly workers leaving is high management turnover. A major reason departing managers give for leaving was high turnover among the staff! This is a situation that will only get worse if allowed to continue.

Lack of standards
The best workers have high professional standards. They will not long tolerate poor sanitation practices, lack of commitment to guest service, sloppy personal appearance, and so forth.

Lack of respect
You cannot build loyalty if you talk to your staff as though they were stupid, handle them like children or treat them like potential criminals. If you find yourself habitually expecting the worst from your crew, you will probably get it!

Lack of feedback
You can't play to win if you don't know the score. High achievers always want to know the goal, how they are doing and how they can do better. If your style is to look for problems and if your feedback to your staff is usually negative, you are part of the problem.

Sexual harassment
Sexual harassment is determined in the mind of the person who feels harassed. Just because you do not believe you have sexist attitudes or policies does not mean that others will not have adverse reactions to your choice of words, gestures, jokes, uniforms, and so forth.

Racism
This is another type of unequal treatment. Understand that many minorities are often extremely sensitive to behavior and attitudes that seem to them to be racially influenced. Whether or not their interpretation is accurate from your perspective, you must be sensitive to the fact that racism, like sexual harassment, is determined in the mind of the person who feels discriminated against.

Personal reasons
Several reasons for leaving are, in fact, personal. It is not unusual for people to move out of the area, decide to change careers, graduate from school, retire or decide to devote more time to their families. Be warned, however, that "personal reasons" can be a catch-all category that departing staff may cite to avoid a confrontation with management when their real reason for leaving comes under one of the previous categories discussed.

(Excerpted from "From Turnover to Teamwork" by Bill Marvin, The Restaurant Doctor. Published by John Wiley & Sons, Inc., 1994

Pay Structures / Salary Structures


Dalam sebuah organisasi/perusahaan, diperlukan Struktur Gaji karena beberapa faktor :
- Ethics, konsisten & adil, dimana perlu ditetapkan kerangka yang bisa dibentuk secara logika
- Pay for Position & Pay for Person
- Dasar untuk managemen yang efektif
- Pengawasan, membantu untuk memonitor dan mengontrol implementasinya
- Komunikasi, membantu karyawan untuk mengetahui kesempatan yang tersedia dan memungkinkan untuk dicapai

Dalam menentukan struktur gaji, perusahaan akan memperhatikan beberapa hal :
Struktur gaji dibentuk dari tingkat pekerjaan, kelompok kerja yang berbeda-beda dengan mengacu pada :
- Nilai-nilai internal yang dibentuk dari penilaian pekerjaan
- Nilai-nilai eksternal melalui survey harga pasar
- Berlaku umum, normatif, dan perundingan untuk pekerjaan
Struktur gaji memiliki beberapa ciri :
- Tingkat upah yang berbeda-beda untuk setiap pekerjaan
- Tersedianya ruang lingkup Pay Progression melalui Kinerja, Kompetensi, Kontribusi, Keahlian atau Jasa
- Adanya cakupan upah untuk sekumpulan pekerjaan dan dikelompokkan menjadi tingkatan-tingkatan (grade), individual job atau job families
Grade Structure
Merupakan sebuah urut-urutan / deret yang berinterval dimana kedalamnya diintegrasikan sebuah pekerjaan. Setiap tingkatan mempunyai interval yang sudah ditentukan dan pada umumnya 20-50% diatas minimum.
Broadbanding
Serupa dengan Grade Structure, namun memiliki kisaran yang lebih luas dibaningkan dengan yang konvensional. Range maksimum dari group ini dapat mencapai 100% hingga lebih.
Job Family Structure
Didalam sebuah pekerjaan yang sifatnya sama memiliki perbedaan struktur tingkatan. Pekerjaan-pekerjaan tersebut dialokasikan ke dalam sebuah kumpulan pekerjaan yang berdasarkan aktivitas yang dilakukan, keahlian dan kompetensi seperti pekerjaan IT yang merupakan contoh sempurna untuk job family yang biasanya terdapat pemisahan struktur tingkatan. Banyak sekali type-type struktur gaji dan penggajian seperti pay spines, benefit structures, spot rates, fixed rate, time rate.
Pay Range
Setiap tingkat/band pekerjaan memiliki upah yang memiliki range & interval dengan minimum & maksimum. Biasanya mengikuti sandard pasar. Rata-rata upah untuk sebuah pekerjaan di pasar industri dikonversikan menjadi Titik Tengah (Mid Point) ata dijadikan range yang maksimum dan bergantung pada Metode Progression Pay yang digunakan.
Dapatlah dilihat bahwa pada setiap posisi & sekumpulan gaji di dalam skala itu disebut dengan prosentase. Umumnya hal ini disebut dengan Perbandingan Komparatif / "Compa Ratio". konsep ini sudah digunakan secara luas di Manajemen Penggajian. Gaji dinyatakan sebagai persentase dari Reference Point / Titik Acuan. Oleh karena itu ketika akan menghitung sebuah posisi atau rata-rata untuk beberapa pekerjaan, maka akan terlihat seberapa jauh kita membayar sebuah pekerjaan terhadap karyawan / kandidat tersebut.
Pay Progression
Biasanya angka 100 % itu digunakan sebagai Titik Acuan atau harga pasar rata-rata dari pekerjaan tersebut. Contohnya untuk kandidat yang memiliki kompetensi secara baik untuk seluruh aspek kerja diberikan upah sesuai dengan 100% Reference Point.
Secara umum, ada 2 kategori untuk melaksanakan hal ini :
1. Fixed Incremental System
Pada sistim ini selalu ada kenaikan tahunan dengan beberapa elemen untuk Performance Appraisal. Sehingga apabila karyawan memiliki performance baik akan mendapatkan kenaikan yang baik pula begitu juga dengan sebaliknya. Ketika seseorang mendapatkan 67% Compa Ratio jika tanpa memiliki pengalaman dan baru dalam pekerjaannya. Seseorang yang sudah memiliki pengalaman dapat diberlakukan seperti karyawan yang sudah ada dan sesuai dengan pengalaman & keahliannya. Juga apabila kandidat tersebut sudah memiliki kompetensinya dengan sempurna, dapat diberlakukan max rate.
2. Type Advance
Pada prinsipnya sama seperti sebelumnya, namun ada penambahan kategori yaitu kandidat/karyawan memulai gaji pada level diatas 100% dari Titik Acuan misalnya 130% dari Point Factor.
Range perbedaan ini disebabkan oleh adanya kompetensi yang melebihi dari biasanya serta adanya penambahan tanggung jawab, projek dan coaching karyawan. Beberapa Perusahaan ada yang melakukan peninjauan ulang gaji setiap tahunnya dan ada yang melakuannya secara 6 bulanan atau peninjauan setelah perekruitan dan promosi.
Widhi Setyo Kusumo
WhiteHouse Consulting
Ref.
1. Managing Human Resources, Gomez-Mejia, Prentice Hall
2. Human Resources Management, Noe, McGraw-Hill
3. Human Resources Management, Robert L Malthis, South Western
4. Management Sumber Daya Manusia, Dr.Ir.Tb.Sjafri Mangkuprawira
5. Erisa Ojimba, Certified Compensation Professional

JOB ANALYSIS

JOB ANALYSIS

 Abstract

  This job analysis article defines what job analysis is, explains the importance of job analysis in Human Resource Management, analyzes different methods of job analysis, details how to perform job analysis, and explains how to write job descriptions.

INTRODUCTION TO JOB ANALYSIS

Definition

A study of a specific job, or of all jobs, in an enterprise with respect to operations involved, working conditions, and qualifications required, etc.

 Organizations exist to accomplish some goal or objective. They are collectivities rather than individuals because achieving the goals requires the efforts (work) of a number of people (workers). The point at which the work and the worker come together is called a job — it is the role played by the worker. We need to know a lot of information about these roles/jobs, including:

  • What does or should the person do?
  • What knowledge, skill, and abilities does it take to perform this job?
  • What is the result of the person performing the job?
  • How does this job fit in with other jobs in the organization?
  • What is the job's contribution toward the organization's goals?

Information about jobs is obtained through a process called job analysis.

The goal of this process is to secure all necessary job data. Job evaluation represents the major use of job analysis. It is also our focus in this article. Because the job information needed for various uses may differ, some organizations make a specialized study for each specific use. .

 HISTORY OF JOB ANALYSIS

Job analysis as a management technique was developed around 1900. It became one of the tools by which managers understood and directed organizations. Frederick W. Taylor, through his interest in improving the efficiency of work, made studying the job one of his principles of scientific management. From his ideas emerged time and motion study of jobs. Early organization theorists were interested in how jobs fit into organizations; they focused on the purpose of the job. But this early interest in job analysis disappeared as the human relations movement focused on other issues. It was not until the 1960s that psychologists and other behavioral scientists rediscovered jobs as a focus of study in organizations.

 The organization with the greatest long-term interest in job analysis has been the United States Department of Labor (DOL). The United States Employment Service (USES) of the DOL's Training and Employment Administration has developed job analysis procedures and instruments over many years. These procedures probably represent the strongest single influence on job analysis practice in the United States. The DOL's Guide for Analyzing Jobs and Handbook for Analyzing Jobs show the development of job analysis procedures over almost 50 years. They developed and published The Dictionary of Occupational Titles (DOT) , and they have a policy of helping private employers install job analysis programs. The DOL has led in the development of what is often called the conventional approach to job analysis.

The U.S. Department of Labor last fully updated its Dictionary of Occupational Titles in 1977, with 12,741 positions described (a minor update was released in 1991). No further government releases are planned as O*NET and its SOC codes have replaced the "DOT" in its entirety. ERI has updated the abandoned U.S. DOT. New job descriptions have evolved from ERI's analysis of thousands of salary surveys. Job analysis work fields, skills, MSPMS, and worker-specific occupational characteristics, including new stress measures, are added, updated, and/or enhanced for 14,000 position descriptions and 95,000 occupation titles.

Up to this point, job analysis had focused on the work being done. This changed in the 1970s as psychologists became interested in job analysis. Their contribution was in three areas. The first was in quantifying job analysis. They began to develop questionnaires to collect data on jobs. Second, they contributed to the trend toward a worker orientation to job analysis. Third, they focused in some cases on units smaller than the job, the task, or elements within jobs.

 APPROACHES TO ANALYZING JOBS

There is no one way to study jobs. Many models of job analysis now exist, each focusing on some particular use for job analysis. The process may seek to obtain information about the:

  • work
  • worker
  • context within which the job exists

Further, the approach may be either inductive or deductive. In an inductive approach, information about a job is collected first and then organized into a framework to create a description of a job. In a deductive approach, a model of the information is developed and the collection of data focuses upon this model.

The job analysis formula first outlined by the DOL in 1946 is a simplified but complete model of obtaining information on work activities. The formula consists of (1) what the worker does, (2) how he or she does it, (3) why he or she does it, and (4) the skill involved in doing it. In fact, providing the what, how, and why of each task and the total job should constitute a functional description of work activities for compensation purposes.

 Five Types of Job Descriptors

  1. Worker Functions. The relationship of the worker to data, people, and things.
  2. Work Fields. The techniques used to complete the tasks of the job. Over 100 such fields have been identified. This descriptor also includes the machines, tools, equipment, and work aids that are used in the job.
  3. Materials, Products, Subject Matter, and/or Services. The outcomes of the job or the purpose of performing the job.
  4. Worker Traits. The aptitudes, educational and vocational training, and personal traits required of the worker.
  5. Physical Demands. Job requirements such as strength, observation, and talking. This descriptor also includes the physical environment of the work.

 

Dimensions of job analysis

There are a multitude of job analysis methods. These methods differ on a number of dimensions. We will examine:

  • The level of analysis
  • The information to be collected
  • Methods of collecting information
  • Sources of information

 

Level of Analysis

By calling the concept we're discussing job analysis, we imply that the unit of analysis is the job. Actually, the level or unit of analysis represents a decision that is worthy of discussion.

The lowest level is employee attributes — the knowledge, skills, and abilities required by the job. Some of the models discussed in the previous section suggested this level of descriptor.

One level up is the element. An element is often considered the smallest division of work activity apart from separate motions, although it may be used to describe singular motions. As such, it is the unit of analysis for time and motion study, and is used primarily by industrial engineers.

The next level is the task, a discrete unit of work performed by an individual. A task is a more independent unit of analysis. It consists of a sequence of activities that completes a work assignment.

When sufficient tasks accumulate to justify the employment of a worker, a position exists. There are as many positions as employees in an organization.

A job is a group of positions that are identical in their major or significant tasks. The positions are sufficiently alike, in other words, to justify being covered by a single analysis and description. One or many persons may be employed on the same job.

Jobs found in more than one organization are termed occupations.

Finally, occupations grouped by function are usually referred to as job families.

Obviously, the level or unit of analysis chosen may influence the decision of whether the work is similar or dissimilar. By law (the Equal Pay Act of 1963) if jobs are similar, both sexes must be paid equally; if jobs are different, pay differences may exist.

As suggested in the previous section, the unit of analysis used differs among organizations. Although the procedure is called job analysis, organizations using it may collect data at several levels of analysis. Research has shown that jobs can be similar or dissimilar at different levels of analysis. The more detailed the analysis, the more likely that differences will be found.

 

Information to Be Collected

Since the job is the connection between the organization and the employee, it may be useful to develop a model based on this common connection. We can say that both the organization and the employee contribute to the job and expect to receive something from it. In order for these results to come about, something has to happen inside the job. This dual systems-exchange model is illustrated in the system exchange model of job analysis.

The vertical dimension of the model is the person-job relationship. The person brings his or her knowledge, skills, abilities, and effort to the job (cell 1). These are used in activities, which are divided into physical, mental, and interactional types (cell 3). For the person, the results are the rewards and satisfaction received from working on the job (cell 5). These rewards can be both intrinsic and extrinsic. Extrinsic rewards are the basic subject of this book.

The horizontal dimension of the model is the organization-job relationship. The organization brings to the job resources needed to perform the job and ways to do the job that coordinate with organizational needs; the latter are perceived as constraints (cell 2). These resources and constraints determine the way the job activities (cell 3) are carried out. The organizational results are some product created or service performed by the employee; these outcomes are in the form of a change in data, people, and/or objects (cell 4). These results can be defined in terms of quantity, quality, and time.

Responsibilities and duties. We should not leave this section without a word about two commonly used terms: responsibilities and duties. While job descriptions are often organized around these concepts, we feel that they are not useful terms in identifying job content. Both terms move the analyst away from thinking about what is done and how. When done well, descriptions of duties and responsibilities describe why work is done adequately (cell 4). But few of these descriptions do this well. This leaves the job incumbent with some vague statement about why he or she is doing something, but little knowledge of what it is or how to do it (cell 3). This makes it difficult to determine performance levels. And the job evaluator has a collection of words that provides little help in determining the relative worth of jobs in the organization. Adjectives then become the main determinant of job level. It is this kind of job description that has lead many personnel directors to decry the futility of job analysis and job descriptions.

 

Methods and Sources of Job Information

Probably the most common picture that comes to mind when one thinks about collecting job information is that of an analyst interviewing a job incumbent. This is indeed a common way in which job information is collected, but it is far from the only way. The best interviews are those for which the analyst has prepared by examining organization data, as well as any past descriptions of the job. A related technique would be to observe the job incumbent performing the job. This technique is most successful for jobs that are physical in nature. The interview or observation may be totally inductive, one in which the analyst has no preconceived idea about the job, to a very structured situation in which the analyst has a clear pro-forma as to the information sought.

While these one-on-one techniques may be the most common, it is not the only way for an analyst to obtain information directly from others. Of increasing popularity are group-based techniques. Such groups may consist of any of the following:

  • Knowledgeable incumbents
  • Supervisors
  • Technical experts such as industrial engineers or organization analysts
  • Others that deal with the incumbents of the job

Any combination of these groups may be used, for instance, in a manner similar to a 360-degree performance appraisal.

The advantage of using groups is to collect a large amount of information rapidly, as well as to provide help in integrating the information. However, using groups can be costly, and getting the group together may be difficult.

A more typically structured technique is that of a questionnaire. This may be used by the job analyst in an interview, but it is more typically completed by the incumbent without such aid. Preparation of a questionnaire takes both time and skill of individuals knowledgeable of both the jobs and questionnaire preparation. Questionnaires may be of a paper and pencil variety, but recently are more likely to be a computer-based program. Computer-based questionnaires may be either designed specifically for the organization, or a more general one used to collect information from a large number of people working in many different organizations.

Lastly, the organization has a variety of information that is useful for gathering information about specific jobs, particularly the job context. These may be:

  • Policies and procedures manuals
  • Other records such as performance appraisals, old job descriptions, correspondence regarding the job, and information about work output
  • Literature regarding the job, both from within the organization and outside the organization
  • Where equipment plays a large part of the job, the design specifications

 

 

JOB ANALYSIS METHODS

 

There is a plethora of job analysis methods, and it would be fruitless to try and discuss all of them. In this section we will review some of the more popular approaches to job analysis, as well as those that represent a particular approach.

It will be seen that these job analysis methods differ in descriptors, levels of analysis, and methods of collecting, analyzing, and presenting data. We will evaluate these approaches in terms of purpose, descriptor applicability, cost, reliability, and validity.

 Conventional Procedures

Conventional job analysis programs typically involve collecting job information by observing and/or interviewing job incumbents. Job descriptions are then prepared in essay form. Much of the conventional approach comes from the long experience of the United States Employment Service in analyzing jobs. As mentioned previously, the original job analysis formula of the DOL provided for obtaining work activities. The DOL's 1972 revision of this schedule requires the job title, job summary, and description of tasks (these were referred to as work performed in the 1946 formula), as well as other data.

Conventional job analysis treats work activities as the primary job descriptor. As a consequence, the use of the conventional approach by private organizations focuses largely on work activities rather than on the five types of descriptors used in the DOL job analysis schedule.

Because job evaluation purports to distinguish jobs on the importance of work activities to the employing organization, this descriptor seems primary. In fact, using the DOL's original job analysis formula (what the worker does, how the worker does it, and why the worker does it) may provide reasonable assurance that all the work activities are covered. One of the functions of this model is to require the analyst to seek out the purpose of the work.

In some private use of the conventional approach, worker attributes required by the job are also sought. Ratings of education, training, and experience required may be obtained, as well as information on contacts required, report writing, decisions, and supervision. In part, these categories represent worker attributes, and in part they represent a search for specific work activities.

Some conventional job analysis programs ask job incumbents to complete a preliminary questionnaire describing their jobs. The purpose is to provide the analyst with a first draft of the necessary job information. It is also meant to be a first step in obtaining incumbent and supervisor approval of the final job description. Of course, not all employees enjoy filling out questionnaires. Also, employees vary in verbal skills and may overstate or understate their work activities. Usually, the job analyst follows the questionnaire by interviewing the employee and observing his or her job.

 

Reliability and validity. Conventional job analysis is subjective. It depends on the objectivity and analytical ability of the analyst, as well as the information provided by job incumbents and other informants. Measuring reliability (consistency) and validity is difficult because the data is non-quantitative. Having two or more individuals analyze the job independently would provide some measure of reliability, but would also add to the cost. Perhaps the strongest contributor to both reliability and validity is the common practice of securing acceptance from both job incumbents and supervisors before job descriptions are considered final. These procedures develop a content validity for job descriptions.

 

Costs. Conventional job analysis takes the time of the analyst, job incumbents, and those assigned to ensure consistent analysis and form. In the author's experience, people with moderate analytical skills can be taught to analyze jobs on the basis of the job analysis formula (what, how, why) in a few hours.

An early survey found some dissatisfaction with conventional job analysis, especially with its costs and the difficulty of keeping the information current. McCormick's review of job analysis, while concluding that the continued use of conventional methods testifies that they serve some purposes well, suggests more attention to a comprehensive model and more quantification.

As suggested earlier in the article, work activities represent the primary descriptor in job analysis for job evaluation purposes. However, these data take considerable effort to obtain and are of questionable reliability. It would be desirable to develop a standardized quantitative approach that retains the advantages of conventional job analysis, while permitting a less costly and time-consuming approach.

 

  Position Analysis Questionnaire

The best-known quantitative approach to job analysis is probably the Position Analysis Questionnaire (PAQ), developed by McCormick and associates at Purdue University. The PAQ is a structured job analysis questionnaire containing 194 items called job elements. These elements are worker-oriented. Using the terminology of the DOL's 1972 job analysis formula, they would be classified as worker behaviors. The items are organized into six divisions:

(1)   information input

(2) mental processes

(3) work output (physical activities and tools)

(4) relationships with others

(5) job context (the physical and social environment)

(6) other job characteristics (such as pace and structure)

 

Each job element is rated on six scales: extent of use, importance, time, possibility of occurrence, applicability, and a special code for certain jobs.

Job analysts or supervisors usually complete the PAQ. In some instances managerial, professional, or other white-collar job incumbents fill out the instrument. The reason for such limitations is that the reading requirements of the method are at least at the college-graduate level. Training in the use of the PAQ is available Data from the PAQ can be analyzed in several ways. For a specific job, individual ratings can be averaged to yield the relative importance of and emphasis on various job elements, and the results can be summarized as a job description. The elements can also be clustered into a profile rating on a large number of job dimensions to permit comparison of this job with others. Estimates of employee aptitude requirements can be made. Job evaluation points can be estimated from the items related to pay. Finally, an occupational prestige score can be computed. Analysts can enter collected data online in PAQ'sEnter-act system, or (for a fee) they can send it to PAQ Services, Inc., for entry.

Reliability and Validity. The PAQ has been shown to have a respectable level of reliability. An analysis of 92 jobs by two independent groups yielded a reliability coefficient of 0.79.

 Functional Job Analysis

Functional Job Analysis (FJA) is usually thought of in terms of the familiar "data, people, things" hierarchies used in the Dictionary of Occupational Titles. Developed by Sidney A. Fine Associates, this comprehensive approach has five components:

(1)   identification of purposes, goals, and objectives

(2) identification and description of tasks

(3) analysis of tasks on seven scales, including three worker-function scales (one each for data, people, and things)

(4) development of performance standards

(5) development of training content

 

Trained job analysts develop FJA data from background materials, interviews with workers and supervisors, and observation. The method provides data for job design, selection, training, and evaluation, and could be used at least partially for most other personnel applications. It has been applied to jobs at every level.

The major descriptor in FJA is work activity. Fine and his colleagues have developed a number of task banks as a means of standardizing information on this descriptor. FJA is rigorous, but it does require a heavy investment of time and effort.

 JOB DESCRIPTIONS

Regardless of who collects job information and how they do it, the end product of job analysis is a standardized job description. A job description describes the job as it is being performed. In a sense, a job description is a snapshot of the job as of the time it was analyzed. Ideally they are written so that any reader, whether familiar with the job or not, can "see" what the worker does, how, and why. What the worker does describes the physical, mental, and interactional activities of the job. How deals with the methods, procedures, tools, and information sources used to carry out the tasks. Why refers to the objective of the work activities; this should be included in the job summary and in each task description.

An excellent set of prescriptions of writing style for job descriptions is offered by the Handbook for Analyzing Jobs.19 These include a terse, direct style; present tense; an active verb beginning each task description and the summary statement; an objective for each task; and no unnecessary or fuzzy words. The handbook also suggests how the basic task statement should be structured: (1) present-tense active verb, (2) immediate object of the verb, and (3) infinitive phrase showing the objective. An example would be: (1) collects, (2) credit information, (3) to determine credit rating.

Unfortunately, many words have more than one meaning. Perhaps the easiest way to promote accurate job-description writing is to select only active verbs that permit the reader to see someone actually doing something.

JOB ANALYSIS: DEAD OR ALIVE?

This article started by stating that job analysis is the first step in most Human Resource activities and, in particular, in wage setting. Despite this, the future of job analysis is in doubt. Many would claim that job analysis is an outdated activity that the times have made obsolete. It is seen as a symbol of the out-of-date bureaucratic organization that is being supplanted with smaller, more nimble forms of organization. The reasons for this concern are many:

  • Jobs are changing in a way that makes them more fluid and flexible. Workers are required to do "what needs to be done," and not "what is in the job description."
  • Job descriptions are becoming more generic, and more like occupational descriptions than job descriptions.
  • Job descriptions are broad so as to accommodate the growth of the individual on the job without requiring a whole series of promotions.
  • Automation impacts job descriptions in that the function of the worker is changing to more mental or non-observational activities.
  • The computer is impacting job analysis by creating new ways to collect data, and allows for a higher level of analysis than in the past.
  • There is a greater concern with the personal aspects of job analysis (such as personality traits required for success or competencies and interpersonal relations ) than the traditional work-related topics.
  • Teams are becoming more important in getting work done. These teams require members to do a range of activities in the team that are broader than that typically contained in a job description.

Interestingly, much of the discussion about the demise of job analysis is really about the demise of the job analyst. The position of job analyst is being incorporated into the role of the people who need to use information about jobs in order to accomplish their work. One sign of this is the use of new terms to cover the task of analyzing jobs, including work analysis, work modeling, and competency modeling.

 

 SOURCES

1 Brannick, M.T. and Levine, E.L., Job Analysis: Methods, Research and Applications for Human Resource Management in the New Millennium, Thousand Oaks, CA., Sage Publishers, 2002.

2. Fine, S.A. and Cronshaw, S.F. Functional Job Analysis: A Foundation for Human Resource Management, Mahwah, N.J. Lawrence Erlbaum, Publishers, 1999.

3. McCormick, E.J., Jeanneret, P.R. and Mecham, R.C. Position Analysis Questionnaire, Bellingham, WA. PAQ Services, 1989.

4. H. Risher, "Job Analysis: A Management Perspective," Employee Relations Law Journal, Spring 1979, pp. 535-51.

5. K. Perlman, "Job Families: A Review and Discussion of Their Implications for Personnel Selection," Psychological Bulletin (1980), 1-28.

6. E. J. Cornelius 111, T. J. Carron, and M. N. Collins, "Job Analysis Models and Job Classification," Personnel Psychology (1979), 693-708.

7. Hartley, D.E., "Job Analysis at the Speed of Reality," Training and Development, September 2004, pp. 20-22.

8. Brannick & Levine, Op Cit.

9.  Peterson, N.G., Jeanneret, P.R., Mumford, M.D. & Borman, W.C. Occupational Information System for the 21st Century, 1999.

10.  Lucia, A.D. & Lepsinger, R. The Art and Science of Competency Models: Pinpointing Success Factors in Organizations, San Francisco, Jossey Bass/Pfeiffer, 1999.

11. "The Future of Salary Administration" Compensation and Benefits Review, July/August, 2001, p.10.

(ArticlesBase ID #999561)

http://www.articlesbase.com/human-resources-articles/job-analysis-999561.html

HR Practices: Job Evaluation

HR Practices: Job Evaluation

 

Job analysis and evaluation (JAE) is the process of creating a structure that establishes the worth of each job to the organization and typically is based on the jobs content (such as the skills needed, job duties, and working conditions) or its external market value and not on the abilities of the individual performing the job. The Job evaluation process was started with the intention of providing Role Clarity to all the employees. Job titles can often be misleading - either unclear or unspecific - and in large organizations it's impossible for those in HR to know each job in detail. This is where JAE helps to understand the each role.
It is essential to have clear, detailed and up-to-date job descriptions on which to base the job evaluation. The JAE data can be meaningfully used for the following processes:
* Recruitment and Induction
* Determining pay and grading structures
* Ensuring a fair and equal pay system
* Deciding on benefits provision - for example, bonuses and cars
* Comparing rates against the external market
* Undergoing organizational development in times of change
* Undertaking career management and succession planning
* Reviewing all jobs post-large-scale change, especially if roles have also changed.

Jobs are basically measured against 3 major factors:
Know How (KH) - Inputs
Problem Solving (PS) - Processing
Accountability (A) – Outputs
I have tried to compile the characteristics that are measured in JAE, by no means it represent exhaustive list:
Knowledge and skills
* work experience
* qualifications
* external qualifications
* specialist training

People management
* human relations skills
* ability to deal with work pressure
* supervisory responsibility

Communication and networking
* social skills
* presentation skills
* diplomacy

Freedom to act
* depth of control
* supervision received

Decision-making
* judgment
* initiative
* analytical ability

Working environment
* knowledge of special working practices
* breadth of management skill required

Impact and influence
* efficiency
* impact on customers
* responsibility
* results of errors

Financial responsibility
* budgeting

There are some principles of Job evaluation are:
a. Job evaluation is an ongoing process.
b. Job evaluation is an evaluation of the role, not the person doing it.
c. A job evaluation scheme should be a fair system, understood by and communicated to employees.
d. It should be transparent, and reviewed regularly to ensure business needs continue to be met. The type of scheme chosen will depend on the organisation needs. But any staff making decisions on job roles will need training in the chosen system.
e. Evaluation is based on Job content which means job that has to be achieved.

Evaluation requirements are met by:
a. Job Understanding by means of job description
b. Judgments: JAE is concerned with making judgments in order to maximize the objectivity
c. Criteria for assessing job content: Number of criteria are required. The two most common criteria of job evaluation are: whole job ranking, where jobs are taken as a whole and ranked against each other; and awarding points for various aspects of the job. In the points system various aspects or parts of the job such as education and experience required to perform the job are assessed and a points value awarded - the higher the educational requirements of the job the higher the points scored.
d. A common scale of measurement is required against which to make judgments.
e. Cross-checks are required to ensure that the judgments are sound.

Involving employees in the job evaluation process can increase their commitment and further engagement with the organisation, but they must remain impartial at all times in the process.

(ArticlesBase ID #970698)
Swapnil Saurav

Swapnil Saurav

Swapnil Saurav

Swapnil Saurav Email: swapnil.saurav@gmail.com http://www.linkedin.com/in/swapnilsaurav I blog at: http://swapnilhere.blogspot.com/

A New Approach to Expatriate Compensation in 2009

A New Approach to Expatriate Compensation in 2009

 
The challenges of ensuring expatriates are paid fair salaries across different countries, in the current economic climate, of the credit crisis together with rapid currency and inflation fluctuations are increasingly complex.

The current economic climate has made it necessary to constantly review expatriate salaries.  Rapidly fluctuating exchange rates and inflation can increase or decrease the amount of salary paid, and significantly impact purchasing power both positively and negatively in a very short period of time.  The approach many organizations have taken is to convert a spendable percentage (typically 60%) of the expatriate's salary into the host country currency on a monthly basis and to provide non-cash benefits such as accommodation, transport, education of children etc.  This can result in employers paying too much or too little salary in these volatile times. 

Too Much: The expatriate experiences short-term upside, as a result of a change in the exchange rate.  A fall in the value of the host country currency against the home country currency, without an increase in the prices of goods and services in the host country, results in the expatriate having increased purchasing power.  It may appear for a while that all is well.  The expatriate has an unexpected windfall.  A wise expatriate will save this windfall knowing that the situation will not be permanent.  Either the exchange rate will adjust back to where it was or prices and inflation will begin to increase until economic equilibrium is achieved.  The reality is, that in the short-term the employer will be faced with increased overall salary costs, and will eventually have to deal with disappointed expatriates when the trend inevitably reverses itself and their purchasing power drops again to realistic levels.

Too Little: The expatriate experiences short-term downside as a result of a change in the exchange rate.  An increase in the value of the host country currency against the home country currency, without a decrease in the prices of goods and services in the host country, results in the expatriate having reduced purchasing power.  This is when the employer faces complaints from expatriates unable to make ends meet.  Prices of goods and services have remained the same in the host country but as a result of the change in the exchange rate, the expatriate receives less salary in local currency.  In the long term either the exchange rate will adjust back to where it was, or prices and inflation will begin to decrease until economic equilibrium is achieved.  The reality is that in the short-term the employer will be faced with decreased overall salary costs and will have to deal quickly with unhappy expatriates.

Clearly the approach on converting a portion of the salary into host country currency on a monthly basis does not work any more.

The expatriate compensation questions that employers must consider:

-What amount of salary will ensure that the expatriate will have the same purchasing power overseas as they have at home?

-What process / tool will be used to ensure the salary retains its purchasing power when inflation and exchange rates change?

New Approach: The ideal approach is for the employer to decide on a process / tool that establishes and maintains the expatriate's salary purchasing power.  The Salary Purchasing Power Parity (SPPP) approach is one such approach and involves the following steps:

-Committed Salary: Decide what amount / portion of the current salary (in home currency) will remain in the home country to meet committed expenses such as mortgage commitments, retirement funding, savings etc.

-Home Gross Spendable Salary: Establish what amount / portion of the current salary (in home currency) is spent in maintaining the expatriates current standard of living / lifestyle.

What will the expatriate need to spend their salary on in the host country?  For example will accommodation be provided or will the expatriate pay rent, will healthcare

be provided etc.

-Home Net Spendable Salary: Establish the net spendable salary by deducting the amount of tax, social contributions and any other statutory deductions applicable in the home country to the Home Gross Spendable Salary.

-Host Net Spendable Salary: Use the established amount of Home Net Spendable Salary in home currency, to calculate the amount of Host Net Spendable Salary required in the host country, in order for the expatriate to have the same amount of purchasing power as they have in their home country.  The calculation comprises 4 factors:

1) The difference in the cost of living index for the same basket of goods and services between the home and host country applicable for the spendable salary. 

2) The difference in hardship that the expatriate and their family are likely to experience.

3) The exchange rate between the home and host country.

4) The Net Spendable Salary

-Host Gross Salary: The Host Net Spendable Salary is "grossed up" by the amount of tax, social contributions and any other statutory deductions applicable in the host country, to establish the host gross salary that will provide the expatriate with the same standard of living as they had in their home country.

The Host Gross Salary is established in local host currency.  As a result it is no longer subject to changes in the exchange rate.  Over time the salary may be eroded by local inflation which will be reflected in the cost of living indexes.  It is recommended that the Host Gross Salary be reviewed on a quarterly basis, to monitor the impact of any change in cost of living and the exchange rate.

(ArticlesBase ID #737389)
Steven Coleman

Steven Coleman runs the most comprehensive international cost of living website available Xpatulator.com an internet service that provides free cost of living and hardship information for 276 global locations to registered users. The premium content calculators allow you to customise your own cost of living index by choosing your own basket groups and includes a COLA calculator. Follow Steven on twitter
steveninseattle.

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What's the Right Level of Long-term Incentives

What's the Right Level of Long-term Incentives

Q: What's the right level of long-term incentives?

Answer: The use of long-term incentives has become more prevalent over the past 15 years, with the portion of the Total Compensation package that it comprises increasing dramatically. While there's no standard formula for determining the value of long-term incentives for executives, there are a number of factors that a company should consider when determining the appropriate level of payment, including.

· External Competitiveness – Identifying levels that peers/competitors within the industry are paying for similar positions.

· Internal Equity – Considering the hierarchical level of the executive within the company.

· Performance – The financial performance of the company and the performance of the individual should be considered.

· Implications of the Company – Tax burdens, other liabilities, and regulations must be considered when determining long-term incentive payments.

The value of long-term incentives can vary dramatically between companies and among individuals within companies. Long-term incentives can make up 35% to 72% of the Total Compensation package, depending on the company and the position the executive holds.

(ArticlesBase ID #114060)
Paul R. Dorf is the Managing Director of Compensation Resources, Inc. He is responsible for directing consulting services in all areas of executive compensation, short and long-term incentives, sales compensation, performance management systems, and pay-for-performance salary administration. He has over 40 years of Human Resource and Compensation experience and has held various executive positions with a number of large corporate organizations. He also has over 20 years of direct consulting experience as head of the Executive Compensation Consulting Practices for major accounting and actuarial/benefit consulting firms, including KPMG, Deloitte Touche Tohmatsu (formerly Touche Ross), and Kwasha Lipton.

Yes To Limiting Top Executives Compensation

Yes To Limiting Top Executives Compensation

 

I was particularly encouraged by the top executive compensation limits set forth in the Stimulus Plan, yet dismayed when they were eliminated or watered down.

The Stimulus Plan passed by a 246-183 and a 60-38 margin in the House and Senate respectively. Although Republicans Collins, Spechter and Snow all were instrumental in hammering out several compromises, nary a House Republican cast a FOR vote; some predicting ruin if it passed.

Are we not IN a ruinous condition? Haven't these same Republicans asked an unemployed person, uninsured family or elderly citizen eating cat food recently how they're doing?

If it wasn't such a serious situation I might have been amused to read of worry there'll be a brain drain on Wall Street, if top level executive comp was limited. Recently insiders' voiced concerns that excessive taxes being voted upon AIG's & Merrill Lynch's top officials' retention bonuses were somehow unfair.

Responding to our government's attempts to reclaim $4.4 million of retention bonuses for Freddie Mac & Fannie Mae's four top executives, Federal Housing Finance Agency Director James Lockhart said, "We run a great risk of these same employees deciding this is the last straw and walking away."

Many Americans who do theirs, and also the work of those laid off, could easily cop the "last straw" excuse, but do not. Yet according to their annual Securities and Exchange Commission report, Fannie Mae apparently paid their Deputy Chief Financial Officer a tidy $1.1 million retention bonus AND an additional $160,000 cash bonus for filing their financial statements on time. Call me old fashioned, but I remember times when if you didn't do your job on time you were demoted or fired.

With all due respect, Mr. Lockhart, just where would these overpaid executives of failed agencies "walk" to? Last I looked, a fair amount of unemployment has set up camp, and hedge fund managers-the once easy fall back position from corporate America-are in line to buy tents.

Apparently there is a growing belief that there aren't any top level executives out there with a desire to return to some semblance of integrity, who would gain pride-yes other types of gains do exist besides the almighty greenback--in being instrumental in breathing new life into our once proud, now dilapidated, financial institutions.

Michael S. Melbinger, an executive compensation lawyer at Winsteon & Strawn in Chicago commented on the Stimulus Plan's proposed top executive pay limitations, "There is no pay for performance in this." Have we not already issued FAR too much pay for FAR too little performance for FAR too many years on Wall Street?

Are there no motivated individuals whom may be enticed with the near promise of fame and future book or movie deals (that would surely provide more wealth than an annual salary OR bonus) when they put their shoulder to the grindstone and lifted their companies out of the ashes and into a Phoenix state? Might even a few talented individuals remain of the Warren Buffet ilk-in 2008 he received the same $100,000 of base salary he has for 25 years, and $25,000 of director fees-- that would be motivated by their good name being upheld, or their not-so-good name being raised up a notch or two, when they performed?

Yes, President Obama's admonition for us all to "pitch in" applies even to top executives. It's time they use their brains for a tiny bit more than their family's luxury ski trips and ultra (not-green) fleets of bling-bling cars and otherwise opulent life styles, and roll up their sleeves to restore even a modicum of consumer confidence in the system.

Not only would this be smart, it may better ensure that we don't touch off class wars. The middle class is shrinking rapidly. There's a clearer distinction between the haves and the have nots; and the have nots are restless.

So not just is it moral to provide hope for hard working Americans, it is economically essential to stop the horrifically steep increases in unemployment. Let's get people back to work. Some of them are downright hungry; some justifiably angry. For those of us with jobs and food, we're looking for some measure of controls on those whose appetite for unlimited personal gain is apparently unrequited.

As a financial advisor, I'd be grateful for some signs that our government is strengthening Wall Street, so that I could encourage people to "invest in the stock of America" again.

Absent that confidence, the employed Larry Lunch buckets and Nancy Nurses will park their 401(k) or 403(b) in a fixed income sub-account. Not only will that not hasten the stock markets' recovery, but it will be damning to their long-term purchasing power; very possibly translate into them having to work another 10 years just to make up the lost performance compared to that of stocks, at least historically speaking.

Apparently the big fear is that companies whose executives are greedy beyond words (OR works) will seek to repay TARP monies soonest so they can be out-from-under the new executive compensation restrictions. Then, the fear continues, particularly banks could restrict the flow of loans, etc., that were designed to increase liquidity into the system-you know, Main Street.

Clearly they forgot to insert the "instructions for use" page into the TARP check envelopes; the ones where the banks were supposed to be lending to mom and pop America, not sucking up other foreign or domestic financial institutions to buttress their balance sheets, or worse yet, pay themselves big year-end bonuses. Remind me, how then would the non-flow of monies stop if TARP monies were to be repaid?

Failed companies' top execs need to admit to themselves and their families they weren't worth those groups of zeroes, nor will they receive such disproportionate compensation for horrific performance going forward. They'll perform in a fiduciary capacity and take what the shareholders feel is commensurate to their performance for the next 2 years. They'll acknowledge this will indeed involve a lifestyle adjustment--something they could receive free training on, from droves of other executives laid off even since September 2008.

There's no silver bullet; yet there's a hole in our collective row boat. We can't waste time fussing about whose end it's in; start bailing. The votes have been cast; a Stimulus Bill has passed. There's no time for smug, "I'm not responsible cause I didn't vote for it" excuses. If there's anything I hate it's a quitter, worse yet a sore loser, or a person who refuses to entertain an idea that didn't originate in their own corpus collosum. Let all that rationale comprise your campaign rhetoric next election. In the meantime, roll up your sleeves as elected politicians and work till the job is done.

What history will report on, is who did what to contribute to sound legislation to monitor the use of these Stimulus Plan funds; best ensuring that the end result is not perfect, yet the most favorable, towards solving America's biggest problems.

This country, its citizens, and their financial health and hopes rest on your bi-partisan cooperation.

(ArticlesBase ID #866782)
Debra L. Morrison

Debra L. Morrison is a sought after international motivational speaker who motivates audiences of mature women to master their finances, through generous helpings of humor and analogy. Debra's special personal attributes, coupled with her wealth of experience gained from heading her own firm for 14 years, has given her such credibility that she has been featured as an expert in investing and financial planning with ABC, Fox, CNN, and CNNfn, the latter two of which she had co-hosted a live-call in show on investing for 1.5 years, opposite Stuart Varney and John Metaxsis.

http://www.articlesbase.com/investing-articles/yes-to-limiting-top-executives-compensation-866782.html

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