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The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an organization by providing functions such as recruitment, training and development and retention. Human Resource, in order to be strategic, works directly with all levels of management in an effort to help with strategy and the growth of the company to meet their vision. One very important aspect is talent acquisition. Having the right people in key roles within the organization is vital to the success and growth of any company. Performing this function includes job analysis, task and KSA statements, preparing job descriptions, recruiting, and then setting compensation. The entire process from job analysis to compensation is discussed as follows;
When a new job is created or a vacancy occurs, it is the role of a HR representative to fill that void. In order to perform this function they need to first understand what role they are trying fill is and what skills and responsibilities this new role would require. By conducting a job analysis they are able to further define important elements of any job and then search for the person or people that are the most qualified and would be a good fit for the company. Job analysis is the process of describing and recording aspects of jobs and stipulating the skills and other requirements necessary to perform the job. It refers to the process of Gathering and collecting information about responsibilities, duties, skills, the outcomes and the environment that influences working in a particular job field. The job analysis process will help the HR managers find the ideal candidate for the position.
Task analysis is the process by which a task statement is derived. The task statement is the most important element of task analysis process because it provides a standardized, concise format to describe worker actions. It is a document that defines and describes the specific job to be performed by the candidate. The creation of these task statements may take considerable thought and insight. However, the rewards of conducting this due diligence before taking on the task of hiring a new employee, makes the process very simple and less stressful. Everything is clearly defined and above all, measurable in the future.
KSA statements are the job related knowledge, skills and abilities that an applicant must perform successfully in a certain position. It is a statement that helps employees in the process of identifying the employee who best fits in a particular field. KSA statements help hiring managers identify the knowledge, skills and attributes needed to successfully perform a specific job. Knowing the tasks that have to be performed, helps you to identify the KSA that the candidate must possess in order to perform to the companies standards and in return hire the right candidate.
Writing a job description is an important step in the human resource staffing plan. A job description typically outlines the necessary skills, training and education needed by a potential employee for a specified job. It provides an outline of what should be done by a particular employee in a specific position. It should give a brief overview of the role, how it relates to the organizational vision, a list of key responsibilities, requirements and qualifications.Once a job description is prepared, it can serve a basis for interviewing candidates, orienting a new employee and finally in the evaluation of overall job performance. By incorporating and utilizing job descriptions, an organization can better understand the experience and skill set needed to enhance the overall success of the company.
Once the Job analysis, Task statements, KSA statements and the job description are completed, the next step is to search for candidates. A complete recruitment plan identifies vacant positions in an organization that need to be filled so that so that an adequate job advertisement can be created and placed appropriately for a specific period of time. Most recruitment plans include searching both internally and externally from the organization. When organizations choose the right people for the job, these people are not only great performers with their job, but also tend to stay with the organization longer.
The key to the selection process is to choose a strategy for screening candidates that will allow an organization to view the most qualified candidates for the vacant position. Employee selection process usually entails reviewing, screening, interviewing, testing then selecting the best available candidates for theavailable position. Organizations also make use of many outside agencies when completing the selection process. Drug screening and reference checks are often done by a third party. Many companies are beginning to incorporate assessment tests and activities into the selection process to insure additional training is not necessary for potential candidates. A selection method chosen by the organization should allow the selection panel of a company to pick the candidate that is most suited to fill the vacant position.
A performance evaluation is a review and discussion of an employee’s performance of assigned duties and responsibilities. Performance evaluations need to be in place to support decisions made by management and the HR department. The appraisal is based on results obtained by the employee in their job. These evaluations can also be used to teach as they may show areas that need improvement as well as provide backup for recognition of a job well done. It measures skills and accomplishments with reasonable accuracy and uniformity.The performance evaluations need to be structured and performed in a timely manner as well and managers need to be trained appropriately has to how to conduct these evaluations.
Compensation is a systematic approach to proving monetary value to employees in exchange for work performed.Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction. Job analysis can be used in compensation to identify or determine skill levels, compensable job factors, fiscal and supervisory responsibilities and required level of education which is related to salary level. Job descriptions are used as a tool for determining salary ranges.Many people associate compensation with money but when looking for a job, many compensation packages are designed with a package of products in mind. Due to the fact that compensation isn’t just about the dollar figure, compensation packages need to be discussed in great detail when hiring new employees.Overall compensation strategies have to be designed to meet the overall objectives of the organization.
Would you change anything in your process at this point? No I wouldn’t change anything. This is because of the following reasons:
I don’t think that I would change anything about my paper because I did do extensive research on a HR Receptionist position to determining the skills, qualifications and experience needed for this type of positions. There is a legal need to do a job analysis. Employers who wish to demonstrate that their selection processes are valid will need to start with the job analysis. There are also management reasons for doing the analysis. It yields an improved process for obtaining, retaining and managing organization’s work. Job description communicates the organization’s expectations to its employees.
In conclusion, we have discussed the importance of the job analysis process which includes task statement, KSA statement and job description. Job analysis is the procedure used to determine tasks, duties and responsibilities of each job, and identify knowledge, skills and abilities appropriate to perform the job.The job analysis process can render positive outcomes like increased profits, employee retention and reaching overall organizational goals when implemented successfully within an organization.
We have also discussed importance of human resource department’s ability to recruit, select candidates appropriately and continue ongoing performance evaluations with the organization’s employees.An organization cannot build a good team of working professionals without good Human Resources. The key functions of the Human Resources Management team include recruiting people, training them, performance appraisals, motivating employees as well as workplace communication, workplace safety, and much more. As you can see, human resource plays a very big role in the foundation of an organization.
Literature review on compensation
Compensation can be defined as any rewards obtained by employees in return for their labor. Compensation can be divided into three aspects, that is; direct financial compensation, indirect financial compensation and non-financial compensation. Direct financial compensation consists of pay received in the form of wages, salaries, bonuses and commissions provided at regular intervals. Indirect financial compensation includes all financial rewards which are not included in direct compensation, and form part of the social contract between the employer and employee such as benefits, leaves, retirement plans, education and employee services. Non financial compensation refers to topics such as career development and advancement opportunities, opportunities for recognition as well as work environment and conditions.
As much as many employees focus on direct financial compensation, it is the non-financial rewards that are more effective in the long term employee engagement. Job position covers the various duties such as interesting duties and responsibilities, autonomy, challenges, authority feeling of achievement, advancement opportunities and opportunities for recognition.
Work environment focuses on; competent supervision, fun and effective co-workers, flexible scheduling, modified retirement and fair and consistent practices and policies.
Levels of firms’ productivity widely depend on good compensation strategies. In small businesses, coordination between general resource management practices lacked, hence, diminished productivity levels. Besides, personnel related problems are arising as a result of unclear, outlined policies on human resource management and compensation in small businesses. Inadequate and inefficient management of human resources often adversely affects employee’s perception of equity, resulting in dissatisfaction, inadequate motivation, higher turnover and lower productivity (Tate, et al, 1982). Unlike small businesses, large businesses rely on a well organized, formal personnel development to ensure effective human resource management.
There are various policies that aid in proper human resource management and increment of productivity levels. These policies are based on both wage payment and other fringe benefits. In order for these policies to effectively work, one need to enact proper maintenance practices which include; appropriate induction of an employee, conducting performances review, providing employee service and instituting governance.
However, the surveys were done to come to a conclusion on the gap that was observed between ‘what could be’ and ‘what was’ (in terms of professional human resource management) might be caused by at least four factors; a lack of formal personnel management training, a lack of perception on the part of decision makers that productivity is improved by use of generally accepted human resource management practices, a lack of incentive because employers are family members or an inability to use human resource management practices effectively because of size and monetary constraints.
Compensation can also be achieved through recognition of personnel. Recognition of personnel is done by considering the following; the length of service, above and beyond program, peer to peer, retirements and sales. Rewarding of the recognized personnel is done through; certification and or plaques, cash gifts, certification and company logo merchandise. Recognition is meant to; salute years of service, create a positive work environment, encourage high performance, foster a culture of recognition and raise personnel morale.
Not all gestures succeed. Celebrating employees can also backfire, as far as the research conducted by Business Scholars at Harvard Business School. There were two reasons that emerged; first, “employees strategically gave the program improving timelines only when eligible for the reward, and call in sick to retain eligibility,” scholars explain. Secondly, “employees with perfect pre-program attendance or high productivity suffered 6.8% productivity decrease after program introduction, suggesting they were de-motivated by awards for good behavior they already exhibited.”
Compensation related issues have called for relevant compensation plans and decisions in order to cater equally for personnel. There are various decisions that human resource management makes concerning compensation as highlighted below;
Compensation decisions are essential in compensation strategies. Compensation of personnel depends on the market position (level of pay relative to competitors), internal versus external orientation, hierarchy (the pay structure and the basic-job versus skills-for the pay structure reward mix, and the basis of research performance versus seniority, groups versus individual and criteria used) (Lawler 1981). These are issues that determine decision of salary increment.
Increasing list of decisions has raised doubts about the efficacy of a strategic perspective. It brings to mind the multiple facts of job satisfaction that made the constraint more complex than originally conceived (Heneman, 1985), hence, t is necessary to differentiate decision which are strategic from those that are not.
Compensation decision making widely depends on the strategic policies as highlighted below;
Competitiveness, whose degrees vary among various organizations and among occupations within them, from a strategic perspective, competitiveness refers to positioning a firm’s compensation relative to its competitors (Belcher, et al, 1987). It deals with total return trade off decision.
Internal structure- the internal pay structure is a fundamental policy that requires strategic decisions. Typically it refers to the distribution of rates or internal pay differentials. (Simon, et al, 1987.) Decisions involved depend on the issue of pay, equity and slope of the hierarchies.
Forms of pay- this is another policy that pertains the forms of the mix of various elements of total compensation (Heneman, et al, 1973). Decisions include the number of forms to offer, the degree to which each is contingent to employees maintaining their membership in the organization like entitlement, or performance like incentives, relative importance of each form and the proportion of the workforce eligible for each firm.
Basis for increase-decisions based on the strategic policies involved in granting pay increase are also involved; they range from an emphasis on short versus long term incentives (Caroll, et al, 1987).
Role in the human resource strategy- description of firm’s human resources strategies plays a very important role in decision making (Dyer, 1985).
Administrative style- this process is used to administer compensation decision also referred to as strategic properties. It deals with issues such as employee participation, communication centralization and dispute resolutions mechanisms.
Compensation planning and administration has various challenges which require efficient decision making criteria. These compensation related decisions are formulated to do away with disputes that may result from pre hiring pay, ongoing employment, legal compliance, equal pay out and fair labor standards acts.
From what we have seen in the scholarly articles, for one to improve business productivity, it is essential to have relevant compensation strategies to provide guidelines on personnel compensation. Many small businesses are characterized by inadequate and insufficient management of human resources which tend to affect employee’s perception of equity, resulting to dissatisfaction, inadequate motivation and lower productivity, hence, proper human resource management strategies are essential in building a well organized, formal, personnel department to ensure high productivity levels.
Compensation can also be achieved through proper recognition of personnel by considering different aspects as highlighted in the articles above. Recognition is essential as it fosters work environment and also encourages high performance through appraisal of morale among the staff.
In order to come up to a proper compensation plan, the human resource department needs to formulate clear policies and procedures to follow. These policies aid in decision making regarding various compensation incentives to personnel or employees. These decisions involve financial compensation which is in form of wages, salaries, bonuses and commissions, leaves, retirement plans and other employee services; non financial compensation decision on job positions and working environment related factors.
In short, it is essential for a good human resource management to have relevant policies which are essential in identifying when and how to compensate personnel properly.
Amba-Rao, S. C. & Pendse, D. (1985). Human Resource Compensation and Maintenance Practices. American Journal of Small Business, 10(2), 19-29.
Belcher, D., & Atchison, T. (1987). Compensation administration (2nd ed.). Englewood Cliffs, N.J.: Prentice-Hall.
Caroll S. (1987). Business strategies and Compensation Systems. In D.B Balkin &L.R. Gomez Mgia, New Perspectives in Compensation, Pp 343- 355, Prentice Hall. Ellig, B. R. (1981), Compensation Elements: Market Phase Determines the Mix. Compensation Review. Third Quarter, 30-38.
Freedman, S. (1978). Some Determinants of Compensation Decisions. Academy of Management Journal, 397-409.
Heneman, H. G. (1985), Pay Satisfaction in K. M. Rowland & G. R. Ferns (eds), Research in Personnel and Human Resource Management, vol 3, p 115-139.
Lawler, E. E., III. 1981. Pay and organizational development. Reading, Mass.: AddisonWesley.
Simon, H. (1950). Public administration. New York: Knopf.
Tate, J. 1957. Suggestions toward a reformulation of wage theory. Reprinted in Mahoney,1979.
Thompson, K. (2014). Honoring Employees is Good Business. Phi Kappa Phi Forum, 94(2), 26.