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Name Muhammad Shabbir Roll No. 508194950


Course: Compensation Management (823) Autumn, 2009

Assignment No. 01
Q. No. 1 The design of the wage and salary administration program
is a particularly important project for any organization. Discuss the
basic development steps of a wage and salary program.

Ans: there are two aspects of responsibility in the wage and salary
administration function. The first aspect is to provide solutions to internal
“customers’ those staff members who approach the unit for assistance in a
specific matter. These customers seek answers to their problems and look for a
quick solution that will not make more problems for themselves. They may not be
mindful of the organization’s interest in building a new (or revamped), wage and
salary administration program and may not be concerned, even if they know.
When these interruptions occur it is essential for us to give attention to that
particular issue or concern and work towards a solution. This “maintenance”
aspect of the function is crucial to the success of any new program that is
developed because the services provided during the operational phase of the
project will be helpful in developing the credibility of the staff. As the program is
developed and moves forwards now for assistance.

The second aspect of the function consist of the projects or programs


alluded to above. In many ways, the wage and salary administration function
operates as a set of wagon wheels(as in figure below).

ANALYSIS OF DEVELOPMENT
CURRENT OF NEW
SITUATION PROGRAM

REVISION MAINTENANC
OF OLD E OF CURRENT
PROGRAM PROGRAM
SERVICES

While goal of the entire unit (the wagon, in the analogy ) is to go forward, it is the
independent turning of the wheels that give the wagon motion.
Any ongoing wage and salary administration project (such as revamping
the performance appraisal system or the introduction of an incentive program )
should include an analysis of the current state of affairs in the organization,
consideration/ development of new programs and revision of existing programs.
Eacho of thse elements (wheels) may each be progressing at its own pace, and if
there are the resources to do so, they may all be spinning at different rates
concurrently. Even if a project ends later that anticipated, it is better to continue
a “business as usual … only better” attitude. The outcome of the project will then
be far more likely to succeed because staff members will have developed a
credibility for the wage and salary administration unit through their daily
routines. Staff members throughout the organization will be more likely to see
the benefit to time of the recently introduced wage and salary administration
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program and to anticipate its benefits- and that is the primary objective of the
program.

AUDIT &
REVIEW
CURRENT
PROGRAM

ANALYZE BUILD AN
PROGRAM INFORMATION
DATA BASE

COMPILE JOB
DISCRIPITION

DEVELOP PAY
POLICY

DEVELOP WASGE
& SALARY POLICY
& PROCEDURE
DOCUMENT
ESTABLISH
COMPENSATION
COMMITTEE

INVENTORY JOB
DESCRIPTION

PERFORM JOB
EVALUATION

BUILD PAY
STRUCTURE

PROVIDE A
MANUAL

Wage & Salary program Development Steps


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AUDIT & REVIEWING THE CURRENT WAGE & SALARY PROGRAM

When any organization starts, it often commences as a small entity with only a
few essential staff members. Initially, salaries and wages are determined by the
entrepreneurs who have taken the risk to start the business. As for the rest of the
organization, as strapped as any start-up is for cash, they will pay salaries at a
sufficient level to attract the employees that they want and thy will pay based on
their experiences, intuition, negotiation skills, and ability to pay. As the
organization establishes itself in the marketplace, functions will be formally
established and systems developed to support the growing organization.

BUILDING AN INFORMAITON BASE


With all the information gathered on the review worksheet, we now have a
“portrait” of the organization’s existing wage and salary function; now it is
appropriate to go forward.
There are actually two distinct, major elements of the information base
upon which the program is to be developed. The first is the installation of
practices that will allow immediately for the accumulation, storage and retrieval
of data to allow for effective implementation of current pay demands while the
formal pay program is being developed.

When building the data required for establishment of a sound information


base, two things happen. First the professional established a systematic
approach, using the organization’s current resources to ensure that he
understands how the organization is accustomed to dealing with pay issues. This
process allows the professional to determine the resources available (equipment,
priorities, and competence of staff in issues regarding pay matters) that will
prove invaluable in determining any new program.

JOB DESCRIPTION COMPILATION


The major aspect in the building of the information base is the compilation
of job description. Here the pay professional should standardize and complete
the job description. that were found to be lacking or missing during the initial
audit and review. If senior managers of the organizations determine that job
descriptions are not required and question their utility the organization’s job
descriptions will serve as an anchor for the pay professional. They will provide a
comprehensive understanding of the organizations and will serve as the initial
basis for job evaluation.

Current issue and concerns


There are several circumstances that warrant immediate attention. They
are to be considered “windows of opportunity”, that is , they are “snapshot”
situations that allow us the chance to gain important insight into the
organization, its values, practices, and needs and the perceptions of its staff. They
are often day to day matters that present problems to the line person who needs
help now. These situations are to be seen as part of the new system that is being
developed and as opportunities for taking a one step at a time approach while
providing new direction, leader ship and expertise. Among the situations that
provide opportunities to grow as a member of the organization and increase
professional credibility are following.

• A job description may be required for a new position that a line manager
wishes to fill. Recruitments needs a job description to start the process and
/ or the position needs to be priced.
• A supervisor wishes to promote an employee and seeks our advise
regarding title and amount of increase.
• An employee is annoyed that he isn’t receiving overtime pay.
• A group of employees has complained to their supervisor that they are
being paid less that their colleagues in the market place.
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• A senior manager complains that the organization is not attracting the best
employees.
• A salary increase recommendation is submitted for an employee whose
title appears to be quite high for his current salary level.
Planning for the future
To build an inventory of job descriptions, starts the process of compiling a
“complete” set of job descriptions there are three approaches to consider:
• Hiring outside support. This can include either a consultant, a pert time
employee, or a student intern.
• Creating an in house project team. This option can create an opportunity
for the organization to increase the number of staff members possessing
job description skills and to develop standardized job descriptions
throughout the organization in “one fell swoop” while gaining a greater
organizational buy in for this laborious process.
• Doing it your self. this is a golden opportunity to get to know a lot of
people throughout the organization, but the task may be arduous, if not
impossible to complete. This first effort is tough enough, but to maintain
the inventory of job descriptions and keep them current is an even more
formidable task in all but the smallest and most static organizations.

Defining the job description process


May organizations and senior members of management envision a job
description project like any other project- it has a beginning, a middle, and an
end. The end of the project probably comes with the presentation of a large,
unwieldy, already out of date volume.
At the same time that the congratulations go around, the perception also
permeates the organization that the project has been completed so now every one
can move on to something else.
The job description project is a never ending process. Job descriptions are
updated regularly, new ones are added, and obsolete ones dropped. Job
descriptions are constantly being reviewed for accuracy and improved wherever
possible because they are being used for:
• Recruitment
• Transfers
• Promotions
• Performance management
• Career planning
• Staff planning
• Training and Development
• Wage and salary Administration Research

DETERMINING THE ORGANIZATION PAY POLICY


Determine the organization’s philosophy toward the payment of its staff
members. Even if not formally stated, by virtue of what the organization does and
when and how it pays its employees, an attitude is projected. This organizational
pay philosophy takes several different issues into consideration. Information
gathered on the wage and salary Administration program review worksheet
addresses where issues and calls for specific information regarding the existing
pay environment. Do not confine this information to a question and answer
format;
After reviewing all the information, discuss with senior management the
current state of the organization’s pay policy and the direction the organization
should take going forward. Bits of the pay policy may have evolved without a
clear, cohesive pay philosophy. By bringing together all the various elements, we
can present a complete picture to management, thus allowing an actual pay
policy philosophy to emerge.

DEVELOPING WAGE AND SALARY ADMINISTRATION PROGRAM


POLICIES AND PROCEDURES
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From the information gathered from job descriptions, pay policy review,
the review work sheet, and discussions with senior management, we can now
begin developing a set of wage and salary administration policies and procedures.

Developing a Draft Document


Our first step is to draft a package of statements that provides an overview of the
program for the senior members of management to consider. These statements
should be considered a working document and a departure point for determining
the mission and objectives of the wage and salary administration procedures- as
every organization is unique, we must choose those statements and topics in the
sample that apply to the particular organization for which we are drafting the
procedures and practices.

Creating a compensation committee


Another decision to be made is whether the organization wishes to establish a
standing compensation committee to review and approve various salary actions
and other matters. If the organizational commitment is there, the committee
could be a valuable part of the wage and salary administration program. It can
enable the role and function of the wage and salary administration unit to be
understood by a representative body of the organization, which will help to
communicate issues effectively.

On the other hand, the committee might become a bottleneck that could
delay actions and set up barriers to sound wage and salary decisions. It all
depends on the values of the organization and the skills of the people serving on
the committee.

PROVIDING AN INVENTORY OF JOB DESCRIPTIONS TO USE IN


THE JOB EVALUATION PROCESS
If senior management supports the use of job descriptions the next step in
the process is to create an inventory of job description. The issue is important
when discussing the development of wage and salary policies and procedures
because it is the approach that is taken toward job descriptions by the
organization that must be established before the inventory process can begin.

While the use of job descriptions can create problems- they can be too
limiting and they create a lot of paper work- the advantages far outweigh the
disadvantages. Some of the advantages are :
• Helps to define the job for recruiting, performance planning, pay,
transfer, promotion, training, staff planning and career purposes.
• Uses a standard format that allows for consistent application.
• Gives employees a definition of their job in writing.
• Provides a reliable source when comparing salary surveys in other
organization.
• Helps organizations to move swiftly to increase or replace staff due to
increased business or turn over.
• Helps those responsible for work flow to perform a systematic analysis
of each organization’s work process from start to finish.

Evaluating jobs based on job descriptions for pay purposes.


A primary purpose for having job descriptions is to evaluate each job in the
organization for pay purposes. Job evaluation allows the organization to establish
a hierarchy of jobs and to determine internal and external equity. It also helps to
ensure that the organization is meeting the statutory requirement of providing
equal pay for equal work.
Job evaluations can be performed by wage and salary administration
professionals, managers and supervisors or job holders. The choice depends on
the extent to which organization wide understanding and acceptance is an
objective. A compensation committee, if created, could be an effective body for
job evaluations. An invitation could be extended to the manager of the unit who
has the job to include his/her expertise and to provide an opportunity to build
consensus for the program.
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DETERMINING THE APPROPRIATE METHOD OF JOB EVALUATION

the job evaluation process determines the relative worth of each position (job) in
the organization by establishing a hierarchy of positions. This is essential to
determine the price the organization is willing to pay for each of the postions that
it fills. There are two approaches to evaluating jobs, quantitative and qualitative.

Qualitative Methods of job Evaluation:


There three qualitative methods of job evaluation are ranking,
classification, and market pricing.

Ranking Process:
1. determine jobs and units to be included.
2. conduct job analysis and prepare job description.
3. select evaluators.
4. define contribution /value
5. rank either by alternate listing or paired comparison
6. merge unit rankings

classification process:
1. determine jobs and units to be included.
2. conduct job analysis and prepare job description.
3. select evaluators.
4. define classes
5. identify and establish benchmark jobs in the structure.
6. apply system to all other (non benchmark ) jobs.
Market pricing process:
1. determine jobs and units to be included.
2. conduct job analysis and prepare job descriptions.
3. select benchmark (key) jobs to enable comparisons.
4. identify organizations to inititate surveys with.
5. identify off the shelf surveys that will provide relevant pricing for
comparable jobs.
6. conduct the surveys.
7. perform an analysis of results.
8. apply the scale to all other jobs.

QUALITATIVE MEHTODS:

Point plan process:


1. determine jobs and units to be included.
2. conduct job analysis and prepare job descriptions.
3. choose compensable factors.
4. derive factor weights (only two ways: by committee or statistically ).
5. prepare evaluation manual.
6. identify and establish benchmark jobs in structure.
7. apply process to all other (non benchmark) jobs.

Factor comparison process:


1. determine jobs and units to be included.
2. perform job analysis and prepare job descriptions.
3. select benchmark (key) jobs to enable comparisons.
4. rank benchmark jobs on each factor.
5. allocate benchmark salaries (wages) across factors.
6. compare factor and salary (wage) allocation ranks.
7. construct the job comparison scale.
8. apply the scale to all other (non benchmark) jobs.

BUILDING THE PAY STRUCTURE


After the organization’s jobs have been evaluated, the next step in the
process is to build the pay structure. This is a two step process that include
designing pay ranges and developing grades. A pay range is required to
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determine the actual pay rate for each job. It is a range and not a specific price
to allow for contingencies and the particular characteristics of each of the
persons occupying each job.

Designing pay ranges.


In situations where there is no collective bargaining agreement that has set
pay rates, it I necessary to have a range or spread that an employer is willing
to pay for job because of the differences that people bring with them to a job
and the differences in ability and performance from different employees on
the job. There should be a level below which the organization will not pay- a
difficult concept for some in management to accept, especially if there is a
person willing to take less.
Ranges should be revised periodically to accommodate salary actions and
to remain competitive. Revising them once a year in periods of low inflation
should be adequate. Twice a year may be necessary during periods of severe
inflation.
Setting mid points, minimums, and maximums.
The mid point is the key pay level in the determination of each range and
is the point at which the organization is meeting the market in either a lead,
lag, or match role. The minimums and the maximums are established by
decreasing that level from 10 percent to 50 percent, with a spread of 20
percent to 30 percent the most common. Thus, if 100 percent is considered
the mid point and 20 percent is determined to be the spread, then the range
would be from 80 percent to 120 percent of what was determined to be the
mid point (or market price) level.
Determining overlap between ranges.
There should be a degree of overlap between ranges to accommodate
movement from one range to the next but also to allow for continuing salary
growth while staying in the same range. A large overlap between ranges will
be an indication of very little difference in the value of jobs in adjoining
grades, while a small overlap will indicate the opposite.

Developing grades (classes)


Designing ranges is not a science and not difficult to do. If the reason for the
grades is kept in mind- they are to provide a systemic ranking consistent with
the organization’s hierarchy in relevant worth of positions-and if similarly
weighted jobs are grouped in the same range, then all the jobs considered to
be roughly equivalent in value will be placed in the same range, designated by
the same grade. Jobs of different value will be placed in different ranges. The
number of grades depends upon the variety of jobs and organizational
traditions as well as the hierarchical spread of the organization. Career paths
also help to determine the number of ranges.
Determining internal and external Equity
Every organization is unique and therefore must determine the extent to
which external factors are relevant in the organization’s job hierarchy. For
some positions the organization may wish to pay at a higher level than other
organizations in the marketplace. For other positions the determination may
be identical. Every determination of pay level should be one in which both
internal and external data are considered, with the unique needs of the
organization being the final determinant.

CREATING A WAGE AND SALARY BUDGET


If the organization currently has an ongoing budget process, the detail will
have been discovered during the program review. Armed with all the data
regarding job descriptions, salary (wage) ranges, and classes we are now in a
position to participate in the budget process- forecasting both salary costs and
staffing needs for the next fiscal period. We will also be establishing
procedures for auditing and reviewing the program, comparing actual results
to budgeted figures, and monitoring compliance with policies and procedures.
Implementing an ongoing system of standardized procedures to
keep program current.
Attention must be given to the development and implementation of an
ongoing system of regular procedures that includes:
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• utilization of procedures for monthly salary actions.


• Job description updates at each promotion, transfer, termination.
• The generation of management reports including monthly “salary
plan to actual” comparisons and periodic reviews to ensure
compliance with internal guidelines.

PROVIDING A MANUAL FOR THE PROGRAM TO ENSURE


ORGANIZAITON WIDE UNDERSTANDING AND COMPLIANCE
We should provide a manual to supervisors and managers. This will ensure that
they understand the mechanics of the wage and salary administration program so
that they can effectively process salary actions for the members of their own
staffs. Also, the more they know about the system, the more they will buy into its
processes and the overall program.

Include the following information in the manual.


• Statements of policy and its relationship to organization objectives.
• Steps required for processing salary actions.
• Discussion of an audit element to guarantee organization-wide
coordination of implementation.
• Explanation of the job classification system and the wage and salary
structure.
• Mission and role of the wage and salary administration unit
• Legal ramifications.

Q. No. 02

Job analysis is an activity that is required not only to perform all the
activities of wage and Salary administration effectively but also for a
variety of other organizational needs. There are three major steps in
the job analysis process namely planning the process, collecting data
and documenting the findings explain each in detail ?

Ans: there are three major steps in the job analysis process.
1. planning the process.
2. collecting the data
3. documenting the findings
in preparing for the job analysis process, there are a number of questions we
must answer:-

• for what purpose is the job being analyzed?


• Will there be other purposes for which the results will be used?
• What job analysis method will be selected?
The job analysis plan should identify:
• The method to be used.
• The specific tasks to be completed.
• The sources of job information.
• The individuals responsible for conducting the analysis.
• The required resources.
As part of the wage and salary program, for instance, job evaluation may have
to conduct to determine a job’s worth in the organization and to ensure internal
pay equity. The job evaluation method might require a specific format and
criteria or dimensions for analyzing the jobs, such as:
• Accountability
• Responsibilities
• Use of judgment and problem solving
• Skill requirements
• Mental and physical demands
• Working conditions.
How to use the functional job analysis (FJA) method
There are number of job analysis methods. One of the most popular is the
functional job analysis method.
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This process focuses on :


• The elements of a job, that is, tasks as they effect data, people, and things
• The skills and competencies required to perform these tasks.

Scales are the frame of reference used in this approach to indicate the degree
of an incumbent’s involvement with things, data, and people and the scales are
based on the premise that:

• In the execution of their jobs, workers are always involved in an


interaction with three elements- regardless of job namely things, data, and
people.
• Workers are also required to utilize physical, mental, and interpersonal
skills in the execution of their jobs.
• The execution of any job activity reflects a hierarchy of skills levels;
• Selecting the three highest activities or function very accurately describes
what workers do in their jobs.

A task orientation:
In this approach, the emphasis is on the tasks to be performed rather than
the title assigned to the job titles are considered unreliable. From research it was
determined that the same tasks showed up repeatedly in different jobs and task
elements could therefore be determined to be the basis for job relation ships. The
tasks were then presented in a cause and effect relationship.

The scales themselves- A Brief Explanation


The data function scale describes the worker’s involvement with
information and ideas in the performance of a task.
The people function scale describes the workers involvement in the
performance of a task that requires communication and interaction with other
people such as customers, clients and co-workers.
The things function scale describes the worker’s involvement in the
performance of a task with tangibles for examples, machines, tools, equipment,
and work aids.
Graduation within the scales are meaningful but usually not between
them. Thus a medium weight level for the people function or the data function is
not necessarily equivalent to a medium weight level for the things functions .

How to use the position Analysis Questionnaire


The second most commonly used job analysis method for wages and salary
administration is the position analysis (PAQ) unlike FJA which focuses on job
elements, PAQ focuses on the behavior required to perform a job. This approach
provides a great deal of insight into the behaviours that enables an incumbent to
succeed on the job.

The PAQ has been described as an attempt to identify six job dimensions:
• Information sources critical to job performance.
• Information processing and decision making critical to job performance.
• Physical activity and dexterity required by the job.
• Physical working conditions and the reactions of individuals to the
conditions.
• Other characteristics such as work schedule and work responsibility.
COLLECTING DATA FOR THE JOB ANALYSIS PROGRAM
Collecting information about a job is the second key step in the job analysis
process. Information concerning jobs may be obtained from incumbents,
supervisors, and other management employees in the same unit or department.
These sources of information my be referred to as “job content experts”.
Tools such as questionnaires, interviews, and observation are used to facilitate
the data collection process.
How to select job content Experts:
The selection of job content experts depends on a number of considerations. It is
clearly preferable to obtain information fro mal lthe incumbents, their
supervisors. However, there may not be sufficient time and resources to do this.
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If there are several incumbents in the job to be analyzed, select a few


representatives to act as job content experts.
Using Questionnaires, interviews and observations in job Analysis
There are several tools that a job analyst can use in collecting job data. The three
most commonly used are questionnaire, interviews, and observations.

Questionnaires
The questionnaire provides a systematic and structured tool for collecting
information about a job. Before designing the questionnaire the wage and salary
professional should speak with the job content experts and observe some
examples of tasks performed on the job to obtain pertinent information.
Some examples of questions that incumbents may be asked are:
• What activities take up most of your work day? Describe each one briefly?
• How do you decide which task has to performed first?
• What steps do you take to complete…?
• What responsibilities do you have?

In selecting or designing a questionnaire, it is critical that the instrument


selected be easily understood by the employees who will be asked to complete
it. It must serve as a useful tool in the gathering of the data required, and
should be able to be completed in a timely and accurate manner.

Interviews:
We may conduct face to face interviews in lie of the questionnaire to
collect information about jobs. The type of questions we choose for the
questionnaire may provide the “script” for an interview.

A structured interview will provide consistency of approach and ensure


that all the required information is obtained. It has the advantage of allowing the
interviewer to obtain clarification as needed, on information provided. The
exchange that takes place during an interview allows a good interviewer to probe
further into the job content. If there are several jobs to be analyzed, however, the
interview process may not be the most efficient method to use because it is time
consuming and could be expensive to conduct.
The interview method is, however, an excellent supplement to
questionnaires. We could interview the job content experts to clarify or verify
some of their responses to the questionnaires, to fill in gaps, or to resolve
inconsistencies in their responses.

Observations:
Direct observations can generate information that would ordinarily be
difficult to obtain through questionnaires or interviews, and they offer a number
of advantages. They enable us to determine the amount of time spent to perform
an activity, the frequency of an activity’s occurrence, the context of the job, and
the interactions between the incumbent and other individuals. In addition,
observation may be he only effective way to understand the operation of
equipment or the process involved in a complex technical task. However, if
observation is only method used for collecting job data, it may be a very time
consuming and expensive method, especially if there are several jobs to be
analyzed in a short period of time.

ANALYZING THE JOB DATA


After the job information has collected, the data must be analyzed through a
series of a activities. The analysis phase is the “value added” portion of the
exercise, where we evaluate all the information collected from the various sources
to provide a concise, accurate, and coherent report.

Ranking the activities by frequency and critically


The activities could be ranked according to the frequency of their occurrence by
using the scores obtained in the questionnaires. Using the rates or scores
assigned by the job content experts for each activity, identify the activities that
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have high frequency and critically and eliminate those with relatively low
frequency and critically.

Grouping activities into major tasks:


The result of the ranking and grouping of activities is used to identify the major
or essential component of the job, which in turn will be used to evaluate its worth
to the organization.

Listing the requirement of the job:


Using the information provided by the job content experts, list the
requirement for ach group of activities.
Defining the job context from data collected.
This analysis may be performed manually or as part of the Human Resource
information System (HRIS). There are computerized statistical packages that can
assist us in grouping and ranking the activities or tasks. There is also automated
job analysis software available in the market.

Reviewing the completed job analysis:


Review the completed job analysis with the supervisors responsible for the
job analyzed. This will ensure accuracy of job information as well as management
acceptance of job analysis results. The analysis of the job content, requirement,
and context will be used to prepare the job description, evaluate the job, and
determine its pay rate.

Q. No. 03:

Answer:

Definition:

Job descriptions are written statements that describe the:

• duties,
• responsibilities,
• most important contributions and outcomes needed from a position,
• required qualifications of candidates, and
• reporting relationship and coworkers of a particular job.

A job description is a list of the general tasks, or functions, and responsibilities


of a position. Typically, it also includes to whom the position reports,
specifications such as the qualifications needed by the person in the job, salary
range for the position, etc. A job description is usually developed by conducting a
job analysis, which includes examining the tasks and sequences of tasks
necessary to perform the job. The analysis looks at the areas of knowledge and
skills needed by the job. Note that a role is the set of responsibilities or expected
results associated with a job. A job usually includes several roles. The job
description might be broadened to form a person specification. An alternate
terminology used under the UN system is Terms of reference (TOR).

• 1 Purpose
• 2 Possible job description items
o 2.1 Job title
o 2.2 Job duties
o 2.3 Roles and responsibilities
o 2.4 Job specifications or qualifications
o 2.5 Key role interactions

Salary and benefits Purpose

The objective of a job description is to have a clear outline of duties and


responsibilities to make the screening process as direct and focused as possible.
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Job descriptions may have the following elements:

• improvement cooperation by giving all members of the organization


insight in existing responsibilities/roles
• enabling career moves within the organization
• determination of amount of pay per function
• increase of results by specification of responsibilities and key performance
indicators
• development of job owner by specification of competences
• may include the phrase "perform other duties as assigned"

Possible job description items


Job title

A specific designation of a post within an organization, normally associated with


a job description that details the tasks and responsibilities that go with it. With
the rise of online job search engines, job titles became increasingly important. In
many cases, this causes job title inflation.

Job duties

may also be called Tasks Performed; may be as lengthy as necessary to fully


describe each essential duty or responsibility which comprises the employee's
functions, generally starting with principle duties.

Roles and responsibilities

This includes supervisory level, managerial requirements, and any working


relationships and may also include your corporate/individual objectives.

Job specifications or qualifications

Key role interactions

Salary and benefits

Describes the compensation type, hourly or salary, and amount. In addition it


includes both standard benefits and any fringe benefits associated with the
position.

Sample job description:

Title of the position


Senior Mailroom Clerk

Department
Operations

Reports to
Building Services Supervisor

Overall responsibility
Supervise mailroom staff and interface with all levels of management regarding
mail and supply deliveries

Key areas of responsibility

• Maintain established shipping/receiving procedures


• Sort and distribute mail on a timely basis
• Maintain all photocopiers, fax machines, and postage meters
• Order, store, and distribute supplies
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• Facilitate all off-site storage, inventory, and record management requests


• Document current policies and procedures in the COS Department as well
as implement new procedures for improvement
• Oversee the use of a company van when needed
• Ensure that water and paper is available for customers on a continuous
basis

Consults with

• Building Services Supervisor


• Mailroom staff
• All levels of management

Term of employment
12 months

Qualifications

• Strong sense of customer service


• Good organizational skills
• Ability to lift a minimum of 25 pounds
• Supervisory experience in a corporate mailroom environment
• Good driving record

Tips:

• Don’t rely solely on a job’s history as you’re putting together a job


description for today. Focus instead on what the job needs to be in light of
the organization’s current needs and long-term objectives.
• A task is what the person in the job will actually do. Qualifications are the
skills, attributes, or credentials a person needs to perform each task.
Clarify the actual tasks and responsibilities before you start thinking about
what special attributes will be needed by the person who will be fulfilling
those responsibilities.
• A well-written job description consists of more than a laundry list of the
tasks and responsibilities that the job entails. It reflects a sense of
priorities.
• Credentials (such as degrees and licenses) are absolute necessities in some
jobs. The thing you want to make sure of, however, is that whatever
credentials you establish have a direct bearing on the candidate’s ability to
become a top performer.
• The job you describe must be truly doable. When you’re lumping several
tasks into the same job description, make sure that you’re not creating a
job that very few people could fill.
• Use specific language. For example:

Too General Specific


Proficient with Microsoft Word, Excel,
Computer literate
QuickBooks
Ability to communicate technical
Good communication skills
information to nontechnical audiences
Receives, sorts, and files monthly
Handles administrative chores
personnel action reports
14

Project Job Description

This Project Manager Job Description template lists all of the


responsibilities of a Project Manager role within a project.

Although it has been completed for a Project Management role, you can use this
template to write a Job Description for any role within an organization.

Completing a Project Job Description is actually a time consuming and


challenging task, as it defines the targets for a role. It also defines how those
targets are going to be measured and how the performance of the role will be
assessed. This template will help you to create Job Descriptions for your
organization, faster than ever before.

This Job Description template will help us to:

Define the real purpose of the role


List the key responsibilities of the role
Define who this role will be reporting to
Create a detailed Organizational Chart
List the skills and experience needed
Define any relevant qualifications
Set out the key performance criteria
Identify the salary and working conditions

To help us complete these tasks, this template will provide you with:

A complete worked example of a Job Description


Instructions for every section within the document
A sample list of skills and experience needed
An Organization Chart diagram
Examples of key performance criteria
Lots of helpful hints and practical tips

This comprehensive template describes how to complete a detailed Job


Description for any role in your organization, with very little effort. It also
includes lots of practical, real-life examples to help you to fill-in the gaps,
saving you time and energy.

Whether we need to create a management, project or team role, this template


has all of the relevant sections and procedures needed to create a professional
Job Description today.

Q. No. 04

Discuss the Budget process and how effective it is to achieve


organizational goals in a better way?

A budget process refers to the process by which governments create and


approve a budget. The Financial Service Department prepares worksheets to
assist the department head in preparation of department budget estimates · The
Administrator calls a meeting of managers and they present and discuss plans for
the following year’s projected level of activity.The managers can work with the
Financial Services, or work alone to prepare an estimate for the departments
coming year. · The completed budgets are presented by the managers to their ·
15

Executive · Officers for review and approval. Justification of the budget request
may be required in writing. In most cases, the manager talks with their
administrative officers about budget requirements. Adjustments to the budget
submission may be required as a result of this phase in the process

The Nonprofit Budgeting Process


A budget is a plan that identifies the financial resources required to
achieve programmatic objectives. Once constructed, this plan assists staff and
board in managing the organization both programmatically and financially
throughout the year.
Establishing a schedule of key action and decision points in the process allows
adequate time for information gathering and decision making. How long the
process should take and who should be involved varies depending on the
management style and complexity of the organization. Typically the budgeting
process should begin at least four months before the end of the fiscal year to
ensure the budget is approved by the Board before the start of the new year.
THE BUDGETING PROCESS
Step 1: Planning the Process
• Identify who will coordinate the budgeting process and
which staff, board members and committees need to be
involved;
• Agree upon key definitions, assumptions and document
formats;
• Set timelines and key deadlines;
• Determine and schedule any training or key meetings.
Step 2: Communicating about the Process
• Clearly communicate responsibilities, expectations and
deadlines to everyone involved;
• Explain and distribute forms and assumptions.
Step 3: Programmatic Goal Setting
• Determine program goals and objectives;
• Project staffing requirements and salary and benefit
assumptions based on program goals;
• Get board agreement on goals and assumptions.
Step 4: Information Gathering
• Research and gather information about income and expenses based on program
goals and assumptions;
• Construct budget details by program;
• Communicate regularly to avoid duplication of effort and to share information
and assumptions.

Step 5: Compilation and Revision


• Have one person compile all information, review it for consistency and
redistribute to everyone involved;
• Leave plenty of time for review and revisions.
Step 6: Committee Review
• Have the finance committee and other appropriate staff and board committees
review a budget draft and key assumptions;
16

KEYS TO A SUCCESSFUL BUDGETING PROCESS


1. Clearly identify programmatic objectives that are aligned with the mission and
strategic plan.
2. Determine the financial resources needed and available to achieve program
goals.
3. Involve staff and board members in the process to improve accuracy of
information and commitment to the plan.
4. Document! Don’t rely on memory. Write down assumptions and formulas.
This will be very important in managing the budget throughout the year.
5. Customize your process. The steps each organization takes will be somewhat
different.
BUDGET PREPARATION SCHEDULE

July/August
Step 1: Planning the Process Executive Director meets with financial staff and
finance committee to plan budgeting process and set timelines. Budget worksheet
and template formats updated.
September
Step 2: Communicating about the Process Staff meeting held to communicate
process, responsibilities and deadlines to all participants. Report made to board
about process, timelines and assumptions.
Step 3: Programmatic Goal Setting Board and committees review strategic goals
and identify priorities; Staff meet within programs/departments to brainstorm
and plan for programmatic goals for next year.
September/October
Step 4: Information Gathering Managers draft program or department budgets
based on plans and assumptions.
November
Step 5: Compilation and Revision Designated coordinator compiles information
to prepare an initial organizational budget draft. Managers review and revise
initial draft.
Step 6: Committee Review Finance committee meets to review budget draft and
assumptions and make recommendations.
December
Step 7: Final Approval Board meeting held and budget proposal and
programmatic and fundraising assumptions are presented for approval.
December/January

Step 8: Implementation and Management Staff meeting held to discuss budget,


program goals and timelines for new year.
• Be sure to allow enough time between committee meetings and the final
approval deadline to address questions and recommendations and make
revisions.

Step 7: Final Approval

• Distribute information to the board prior to the board meeting, including


budget draft, program goals and other supporting information;

• Have program and development committees play a role in making an


informative presentation to the board based on the opportunities, challenges and
resources behind the budget numbers;
17

• Have the finance committee or treasurer present the budget proposal to the
board.

Step 8: Implementation and Management

The real work begins once the budget is approved:


• Communicate budget, program goals and timelines for the next year to staff;

• Review actual income and expense compared to the budget on a monthly basis;

• Update and revise the budget as there are changes during the year. Depending
on the significance of changes, the board may need to approve revisions.

HOW TO ACHIEVE EFFECTIVE BUDGETING


The budget is the primary tool local governments use to make decisions
about service priorities and fiscal policies. The quality of the decisions for
allocating scarce resources depends on the quality of the process employed. By
adopting best practices in budgeting, an organization can improve decision-
making
and operations while enhancing public accountability.

In budgeting, as in other aspects of local government operations, the


organization must adopt a process well suited to its particular circumstances.
While some variation is inevitable, there are four commonly recognized best
practices or components of effective budgeting:

•Incorporating long-term planning


•Developing clear budget guidelines
•Establishing a link between the budget process, goals and objectives
•Involving and enhancing communication throughout the budget process

Incorporating long-term planning into the annual budget is the first


component of effective budgeting. An annual budget should reflect the
municipality’s plan for the future. Before the annual budget process begins, a
careful financial status analysis should be completed. This analysis, based on
financial forecasts, should include an assessment of the current, near, and long-
term financial outlook of the organization. This financial status serves as the
framework within which the budget is developed by determining the level of
services that can be sustained now and in the future.

A budget process involves multiple departments, decision-makers and


stakeholders. Clear budget guidelines are crucial to ensure that the process is
completed in a timely and effective manner, and to enhance department
involvement in the budget process. The guidelines should be developed annually,
based on the financial outlook of the organization, and should identify financial
constraints, provide policy direction, and identify assumptions for departments
to use in compiling budget requests.

Another key to successful budgeting is to incorporate departmental goals


and objectives into the budget process. Goals should be general statements
describing a desired state. Objectives should represent
time-defined and quantifiable statements of what is to be accomplished.
Improvements in organizational efficiency can best be attained when a system of
mutually understood goals and objectives is in place and when policies are
established to achieve those goals and objectives. These policies drive the
resource allocation decisions made during the budget process.

Finally, the budget process should involve and enhance communication


with stakeholders including citizens and the governing body. Opportunities
18

should be sought to enhance input throughout the budget process. In addition,


the budget document itself should serve as a communication tool.

Effective budget documents include a summary that identifies major


service level changes or shifts in priorities, major financial factors impacting the
budget, and provides multi-year financial summary information.

A BUDGET TIMELINE
Squeezing the lofty goals of the accompanying article into the reality of local
budget writing is the worthwhile challenge that faces local officials every day. To
help you, Manchester Manager Jeff Wilson shares below his town’s schedule for
budget preparation. Manchester is on a July 1 fiscal year; towns that are on a
calendar fiscal year, or who have a different town meeting date, may need to
adjust it to suit their needs.

April Capital Improvement Program (CIP) memo to Department Heads.


May Deadline for departmental capital requests.
June Town Manager develops CIP proposal and submits same to Selectboard.
July Selectboard holds public hearing on CIP.
August Selectboard approves CIP.
October Annual budget memo to Department Heads.
November Deadline for departmental budget requests.
Town Manager meets with Department Heads.
December Town Manager develops budget proposal and submits it to
Selectboard.
Selectboard holds budget hearing.
Selectboard approves budget.
January Selectboard warns Town Meeting.
February Selectboard’s budget proposal mailed to voters.
March Town Meeting approves budget.

Two Fundamental Budgeting Principles

There are two fundamental budgeting principles: 1) a budget is


a tool for planning and monitoring; and 2) for the budget to be
accurate, effective, and uniting, the process must be inclusive.
Let’s look at each of these principles more closely.

A tool for planning and monitoring


The act of determining what the organization wants to
accomplish, how much that will cost, and how the necessary
resources will be generated, is a form of strategic planning—if
done thoughtfully. In fact, a lot of strategic thinking and
reflection should happen before you begin setting specific
income and expense targets. This is a healthy and necessary
time of annual reflection and one of the primary reasons that
the budgeting process should begin several months before year-
end.

Typical opportunities include:


19

• expansion of a program into a new geographic area


• partnership with another nonprofit to improve services or impact
• initiation of a capital campaign; and pursuit of a new funding stream

Typical threats include:

• the loss of a major funding source


• a new competitor in your mission area
• unfavorable political changes at the local, state, or national levels

Here’s an example of one organization’s goals and objectives:

2008-09 Budget: Goals and Objectives (as of April 15, 2008)


Overall Goal 2008-09 Objective
• Salary increases to all staff
Stabilize programs and • Replace computers and
ensure equipment
highest quality
• Increase direct client support
• Build liquid operating reserve
Improve on key financial
• Reduce overhead rate
health
indicators
• Obtain line of credit
• Increase endowment income
• Increase board role in
fundraising
Maximize fundraising • Build temporarily restricted
effectiveness balance

• Maximize cost recovery in


foundation grants

An inclusive process
The second guiding principle of budgeting is that to be accurate,
effective, and uniting, the budgeting process must be inclusive.
Staff will feel accountable to a plan they helped develop.

So what roles do all the players have in an inclusive budgeting process?

• Board members provide big picture direction and oversight to the


process; they also approve the final budget.
• Program managers plan for the costs needed to accomplish objectives;
in some cases, they are also the best people to plan for program-generated
income.
• Development staff plan for the contributed income that can realistically
be included as well as the costs they will incur to raise it.
• The finance manager serves as budget manager collecting input,
building the Excel budget workbook, and updating and distributing drafts.
• The executive director provides overall strategic direction.

A cautionary note to executive directors: don’t pull an all-nighter to whip up the


budget the day before the board meeting (or ask your finance manager to do so).
You’re almost guaranteeing a less-than-accurate plan and a useless tool for
controlling financial activity throughout the year. And good luck holding staff
accountable to the budget.

Q. No. 05

A performance appraisal, employee appraisal, performance review, or


(career) development discussion is a method by which the job performance
20

of an employee is evaluated (generally in terms of quality, quantity, cost, and


time) typically by the corresponding manager or supervisor. A performance
appraisal is a part of guiding and managing career development. It is the process
of obtaining analyzing and recording information about relative worth of an
employee to the organization.

Contents

• 1 Aims
• 2 Methods
• 3 Criticism
• 4 See also
• 5 References
• 6 Sources
• 7 External links

Aims

Generally, the aims of a performance appraisal are to:

• Give an employees feedback on performance


• Identify employee training needs
• Document criteria used to allocate organizational rewards
• Form a basis for personnel decisions: salary increases, promotions,
disciplinary actions, bonuses, etc.
• Provide the opportunity for organizational diagnosis and development
• Facilitate communication between employee and administration
• Validate selection techniques and human resource policies to meet federal
Equal Employment Opportunity requirements

Methods

A common approach to assessing performance is to use a numerical or scalar


rating system whereby managers are asked to score an individual against a
number of objectives/attributes. In some companies, employees receive
assessments from their manager, peers, subordinates, and customers, while also
performing a self assessment. This is known as a 360-degree appraisal and
forms good communication patterns.

The most popular methods used in the performance appraisal process include the
following:

• Management by objectives
• 360-degree appraisal
• Behavioral observation scale
• Behaviorally anchored rating scales

Trait-based systems, which rely on factors such as integrity and


conscientiousness, are also commonly used by businesses. The scientific
literature on the subject provides evidence that assessing employees on factors
such as these should be avoided. The reasons for this are two-fold:

1) Because trait-based systems are by definition based on personality traits, they


make it difficult for a manager to provide feedback that can cause positive change
in employee performance. This is caused by the fact that personality dimensions
are for the most part static, and while an employee can change a specific behavior
they cannot change their personality. For example, a person who lacks integrity
may stop lying to a manager because they have been caught, but they still have
low integrity and are likely to lie again when the threat of being caught is gone.
21

2) Trait-based systems, because they are vague, are more easily influenced by
office politics, causing them to be less reliable as a source of information on an
employee's true performance. The vagueness of these instruments allows
managers to fill them out based on who they want to/feel should get a raise,
rather than basing scores on specific behaviors employees should/should not be
engaging in. These systems are also more likely to leave a company open to
discrimination claims because a manager can make biased decisions without
having to back them up with specific behavioral information.

Criticism

Performance appraisals are an instrument for social control. They are annual
discussions, avoided more often than held, in which one adult identifies for
another adult three improvement areas to work on over the next twelve months.
You can soften them all you want, call them development discussions, have them
on a regular basis, have the subordinate identify the improvement areas instead
of the boss, and discuss values. None of this changes the basic transaction... If the
intent of the appraisal is learning, it is not going to happen when the context of
the dialogue is evaluation and judgment.

Benefits of Appraisal
Perhaps the most significant benefit of appraisal is that, in the rush and bustle of
daily working life, it offers a rare chance for a supervisor and subordinate to have
"time out" for a one-on-one discussion of important work issues that might not
otherwise be addressed.

Almost universally, where performance appraisal is conducted properly, both


supervisors and subordinates have reported the experience as beneficial and
positive.

Appraisal offers a valuable opportunity to focus on work activities and goals, to


identify and correct existing problems, and to encourage better future
performance. Thus the performance of the whole organization is enhanced.

For many employees, an "official" appraisal interview may be the only time they
get to have exclusive, uninterrupted access to their supervisor. Said one employee
of a large organization after his first formal performance appraisal, "In twenty
years of work, that's the first time anyone has ever bothered to sit down and tell
me how I'm doing."

The value of this intense and purposeful interaction between a supervisors and
subordinate should not be underestimated.

Motivation and Satisfaction


Performance appraisal can have a profound effect on levels of employee
motivation and satisfaction - for better as well as for worse.

Performance appraisal provides employees with recognition for their work


efforts. The power of social recognition as an incentive has been long noted. In
fact, there is evidence that human beings will even prefer negative recognition in
preference to no recognition at all.

If nothing else, the existence of an appraisal program indicates to an employee


that the organization is genuinely interested in their individual performance and
development. This alone can have a positive influence on the individual's sense of
worth, commitment and belonging.

The strength and prevalence of this natural human desire for individual
recognition should not be overlooked. Absenteeism and turnover rates in some
organizations might be greatly reduced if more attention were paid to it. Regular
performance appraisal, at least, is a good start.
22

Training and Development


Performance appraisal offers an excellent opportunity - perhaps the best that will
ever occur - for a supervisor and subordinate to recognize and agree upon
individual training and development needs.

During the discussion of an employee's work performance, the presence or


absence of work skills can become very obvious - even to those who habitually
reject the idea of training for them!

Performance appraisal can make the need for training more pressing and
relevant by linking it clearly to performance outcomes and future career
aspirations.

From the point of view of the organization as a whole, consolidated appraisal data
can form a picture of the overall demand for training. This data may be analysed
by variables such as sex, department, etc. In this respect, performance appraisal
can provide a regular and efficient training needs audit for the entire
organization.

Recruitment and Induction


Appraisal data can be used to monitor the success of the organization's
recruitment and induction practices. For example, how well are the employees
performing who were hired in the past two years?

Appraisal data can also be used to monitor the effectiveness of changes in


recruitment strategies. By following the yearly data related to new hires (and
given sufficient numbers on which to base the analysis) it is possible to assess
whether the general quality of the workforce is improving, staying steady, or
declining.

Employee Evaluation
Though often understated or even denied, evaluation is a legitimate and major
objective of performance appraisal.

But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since
evaluative and developmental priorities appear to frequently clash. Yet at its most
basic level, performance appraisal is the process of examining and evaluating the
performance of an individual.

Though organizations have a clear right - some would say a duty - to conduct
such evaluations of performance, many still recoil from the idea. To them, the
explicit process of judgment can be dehumanizing and demoralizing and a source
of anxiety and distress to employees.

It is been said by some that appraisal cannot serve the needs of evaluation and
development at the same time; it must be one or the other.

But there may be an acceptable middle ground, where the need to evaluate
employees objectively, and the need to encourage and develop them, can be
balanced.

Workforce Diversity

One of our greatest strengths is the diversity of our workforce, with men and
women of many nationalities and backgrounds working together and sharing
common objectives. Schlumberger does not have a 'nationality' which describes
its culture, but operates in a truly global fashion throughout the world. As a
company, we encourage fair employment practices worldwide and offer equal
opportunities to all our employees. We also try to take family considerations into
account in any decisions about personnel matters or assignments.

Workplace Diversity—developing human resources for the future


23

Our customers, suppliers and shareholders are increasingly global and diverse.
They expect us to understand, respond and deliver services that meet their
unique expectations.

We must attract and retain top performers worldwide from the full depth of the
talent pool and address the evolving needs of our workforce in terms of quality of
life and dual career expectations. By creating a variety of perspectives—gender
and culture—that stimulate productive creativity and innovation—we maintain
our competitive edge.

Three prerequisites upon which we will proceed with our diversity efforts:

• We are a publicly traded corporation concerned with profitability and


shareholder return.
• Meritocracy drives our actions, decisions and employee advancement.
• While it is a competitive advantage that our workforce communicates in a
multitude of languages, English is the common language of our internal
management communication.

Gender Diversity—a commitment to act


Our gender diversity focus began in 1994 and we have made progress since that
time. Looking forward, our goal is to continually increase the percentage of
women we recruit worldwide, ensure proper career development for high-
performing women, and increase our organizational flexibility to accommodate a
wider range of personal situations.

Nationality Diversity—leveraging the human resources of all nations


Schlumberger has been successful in attracting and developing nonwestern
nationalities or nationalities from emerging countries, now integrated into all
levels of the work force, including senior management.

Family and Work Life-mobility initiatives that work


Our people, men and women worldwide, are our main asset. The change in the
composition of our workforce necessitates an adjustment in our attitude toward
recruitment, retention and mobility of our employees.

Dual Careers—moving across functions, technologies and geographies


One of the most significant changes in our society in the last several decades has
been the entry and continued presence of women in the working population.
Families in marriages in which both spouses work are now the largest single
group of families in the workplace.

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