In order for companies to run effectively, they need qualified staff. The quality of work depends on the quality and compensation of its employees. Companies need to recruit the right people with the required skills in order to perform better (Bergmann & Scarpello, 2002, pp. 123-127). Companies pay workers for the job done. For them to accomplish this, they must establish a strategy to use in order to rate jobs and have fair and effective pay rate. Job evaluation is a strategy and process used to determine the value of a job as compared to other jobs within the organization. Having a job evaluation will help determine a good pay structure. Job evaluation process involves:
The aim of a job hierarchy is to form a basis for;
Job evaluation is categorized into two methods namely; a) non-quantitative method that consists of grading and ranking and b) quantitative method that consists of factor comparison and point rating (Harding, et al., 1960, p. 200).
In this case, the non-quantitative method will be used where grading method will be used to evaluate various jobs. The method involves a committee appointed to recruit qualified applicants for the job. Job grade refers to a group of various jobs that involves the application of same skills to accomplish the task. They are developed through analysis and its importance is based on the skills, responsibilities, duties, experience knowledge and authority of the job (George & Taylor, 1957, p. 70).
Civil is an Engineering discipline dealing with construction, planning and maintaining natural and physical built environment. It consists of four departments: project, roadway, bridge and construction departments (MGGraw-Hill, 2013, pp. 225-300). The four departments have the following responsibilities:
Civil Engineer4, Gs-11 (3 posts)
Basic pay: $1500
House Allowance: $ 700
Medical Allowance: $250
Pension: $ 150
Leave Allowance: Should be paid annually and should be equivalent to the Basic Salary while the Terms of Service should be Permanent. Likewise, applicants should reports tasks to project manager and direct technicians, administrative staff and engineers, technicians on the given tasks.
Basic pay: $1000
House Allowance: $ 650
Medical Allowance: $200
Pension: $ 100
Leave Allowance should be paid annually and Equivalent to the Basic Salary
Terms of Service: Permanent
The staff reports to civil engineer and assigns jobs to technicians and administrative workers.
(a) Responsibilities and Duties
Basic Salary: $1800
House Allowance: $ 850
Medical Allowance: $270
Pension: $ 200
Leave Allowance is paid annually equal to the Basic Salary
Terms: Permanent
The applicant reports to senior engineer and assigns jobs to civil engineers and assistant engineers.
Staff Engineer 11, Gs-7 (7100posts)
Basic Salary: $850
House Allowance: $ 400
Medical Allowance: $100
Pension: $50
Leave Allowance paid annually and Equal to Basic Salary
Terms of service: contract
The applicant reports to engineer instructor and assigns jobs to engineer training and engineer intern.
Responsibilities And Duties
Engineer Intern1, Gs-5 (50posts)
Basic Salary: $300
Terms of service: contract
Engineer Instructor111, Gs-7 (7100 posts)
Basic Salary: $1100
House Allowance: $ 650
Medical Allowance: $200
Pension: $ 100
Terms of service: contract
The applicant reports to civil engineer and assigns jobs to technicians and administrative workers.
Engineer in Training1, Gs-5 (100posts)
Basic Salary: $300
Conclusion
Once job evaluation is complete you move to another stage of pay grading (determining pay scale for different types of jobs (Theresa & Trevor, 2000, p. 300).
One of the methods is pay grade method where several levels are developed and each task is assigned different pay. This method is fair since every employee performing a similar task is within the scale. However, the method is and may not be appropriate in hiring the right people. The challenge to pay to grade is that there is no employee motivation to work harder (Society for Human Resource Management, 2006). They have an attitude that even if they perform better their pay levels will not change. It also increases many hierarchy levels to develop pay structure that is inappropriate for small companies. Secondly, is the going rate model where analysis for a given job is put in mind when determining compensation structure (Oflaherty, 2002, p. 333). It is affected by demand and supply of labor in the market.
Thirdly, Management fit model where each manager are involved in deciding who should be paid a certain amount of job when being hired. The challenge is there are biases and resentments within the firm. However, moral issues may occur which hinders the flow of work.
Pay structure aims at motivating employees. Before making a decision concerning pay consider the size of the firm and the expected growth. More formal pay strategies should be implemented as the organization grows. In addition, when you operate locally or overseas have a centralized strategy and communicate well to your employees about pay structure. Involve employees in designing pay by survey and questionnaire. This will help in creating transparency process thus motivating employees to perform. Organizations should constantly review their pay to ensure businesses stay within the given range (Martocchio, 2006, p. 126).
The EEOC is an act that addresses discrimination in the job, FLSA act that has exempt and non-exempt workers and protects child labor, FUTA act that pays unemployed workers and FECA act protects compensation to people with disabilities arising from accidents on the job. Apart from the factors above, HR managers need to observe the law of pay within the country and what others firms are offering to employees by carrying out a survey. HR should analyze the laws pertaining minimum wage of each person, special persons and the reward that each person is entitled to bearing in mind the factors of determining pay structure. They should have a plan, purpose, and goals to follow. They should make salary budgets that best fit the company resources. In this case, pay grade method is the best choice for every employee performing a similar task is within the scale and it is fair and equitable to workers.
References
Bergmann, T. & Scarpello, V., 2002. Compensation Decision Making. South Western: Pearson.
Carver, B. & Vondra, A., 1994. Alternative Dispute Resolution:”Why it Doesn’t Work and why it Does,”. Havard Business Review, pp. 120-129.
Economic Research Institute, 2006. Economic Research Institute. [Online].
George, W. & Taylor, F. C., 1957. In New Concepts in Wage Determination. New York: McGraw- Hill Irwin.
Gupta, N. & Jenkins, G., 1992. THE Politics Pay. Montreal, Pearson.
Harding, D., Madden, F. & Colson, K., 1960. Analysis of a Job Evaluation System. Applied Psychology, pp. 354-357.
Livernash, R. E., 1957. Internal Wage Structure. New York: Pearson.
Lussier, R. N. &. H. J. R., 2016. Human Resource Management: Functions, Applications, & skill development (2nd ed.), Thousand Oaks, CA: Sage Publications.
Martocchio, J., 2006. Strategic Compensation. Prentice Hall: Pearson.
MGGraw-Hill, 2013. ”Highway Engineering”. MGGraw-Hill Concise Encyclopedia of Science and Technology. New York: MGGraw Hill.
Milkovich, G., 2008. Compensation. [Online].
Oflaherty, 2002. Highway Location,Design, Construction, and Maintenance of Road Pavements. UK: Oxford 4th edition.
Reynolds, P., 2015. Workforce Management Essentials. London, UK: Sage.
Rogers, M., 2002. Highway Engineering. UK: Oxford.
Theresa, M. & Trevor, C. O., 2000. The Roles of Departmental And Position Power in Job Evaluation. Academy of Management, pp. 761-771.
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