The Foundation For Effective Job Performance And Compensation System Essay

The Foundation For Effective Job Performance And Compensation System Essay

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The foundation for effective job performance and compensation system can be traced to effective job analysis process. Fundamentally, a job analysis should consist of a thorough examination of the job 's duties and knowledge, skills, abilities, and qualities that are required in order to be successful in a specific position, upon which appropriate rewards or compensation can be determined. For many perspectives, jobs are usually made up of requirements and rewards, where rewards may be regarded as a major recruitment strategy for motivating potential employees in order to influence them to stay the organization for a longer period as well as enhance their performance. The most common or basic form of rewards which attracts employees is extrinsic or tangible rewards such as the benefits, job security, pay and so on. However, before awarding any rewards to a particular job or position, it is imperative that the organization or HR professionals appraise the job and determine the right rewards based on the organization 's capability and some relevant factors such as the availability of qualified personnel. This paper will focus on the similarities and differences between the market driven and job worth forms of job evaluation.
Market Driven vs. Job Worth
In general, job evaluation can be regarded as part of an organization 's human resource planning process which relies on the job description and qualifications. According to Chaneta (2014), job evaluation is the process of analyzing and assessing the relative worth of various jobs in an organization for the purpose of comparison and pay grading, and based on qualifications and skills required for a range of jobs. In other words, it forms the basis for pay and benefits negotiation. It ...


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...t years, the Nestle Company has been relying largely on job value to reward its employees. Every worker is aware that the jobs have been graded from line production workers (ICM 1), line leaders (ICM 2), department supervisors, department managers, factory manager, other top management positions. Besides, each employee knows that the pay for each job or position is based on job description and qualification.
Conclusion
Both the market-driven and job-worth systems can be affected by significant changes that occur in the external labor market. Whilst the market-driven system is mostly controlled by existing conditions in the external labor market, job-worth system of job evaluation is greatly influenced by internal equity among the various jobs within an organization. The availability of qualified potential employees would determine the type of system to apply mostly.

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