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Human Resource on Itec Ltd

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Human Resource on Itec Ltd
Introduction

As HR manager I have been asked to produce a report about my opinion on job evaluation as a whole. It will include my definition of job evaluation, a discussion regarding the factors determining an employee’s wage or salary, the advantages and disadvantages of performance related pay and an exploration of the factors determining an employee’s performance at work.

Finally, I will come to the conclusion to whether I think that job evaluation is a worthwhile procedure to Nick Moor and the organisation and whether it will prevent equal pay claims. 1a. Job Evaluation

“Job evaluation can be defined as ‘a method of determining the relative worth of a job to an organisation” {www.cipd.co.uk}

Itec Ltd can use job evaluation to compare the value of different jobs within the company. Any job can be broken down into a number of factors. These are the skills, effort, responsibility, knowledge, and tasks that a job entails. This will allow Nick Moor to decide on the wages or salary for that particular job. If another job has greater skill or responsibility, then Nick Moor can decide to award it a higher rate of pay.

Job evaluation has become a lot more popular over the last decade. It has been seen by businesses as a rational way of working out why some jobs are paid more than others. For example at ‘The Perfume Shop’, wages and salaries for different members of staff are evaluated by the different responsibilities they have. A sales assistant has a lower rate of pay than a senior sales assistant simply because the senior sales assistant has more responsibility with the day to day running of the business i.e. banking, cashing up etc.

An issue within Itec Ltd is the disputes regarding equal pay. Job evaluation can help rectify the situation by assessing whether the employees are doing work of equal pay.

The most common method of job evaluation is a point’s scheme. A number of factors (listed below.) are found which are common to all jobs.


Bibliography: Bratton, J, Gold, J (2003) Human Resource Management 3rd Edition. Hampshire, Palgrave Macmillan. Hall, D. Jones, R. Raffo, C. (2004) Business Studies. Lancaster, Causeway Press Limited. Needham, D. Dransfield, R. (2000) Advanced Business. Oxford, Heinemann Educational Publishers. Tutor2u (2000) [online] Available from World Wide Web: www.tutor2u.net Wikipedia (1994) [online] Available from World Wide Web: www.wikipedia.com Bized (2006) [online] Available from World Wide Web: www.bized.co.uk/learn HRM [online] Available from World Wide Web: www.hrmguide.co.uk Newell, Helen. Scarbrough, Harry (2002) HRM in context. Hampshire, Palgrave. CIPD [online] Available from World Wide Web: www.cipd.co.uk EIU [online] Available from World Wide Web: www.eiu.com
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