Demonstrate how the job analysis is used to determine the pay range of positions.
Many companies have established some sort of pay band or pay range for positions. With this system, you are fully aware of the pay ranges, which display the lowest to the highest pay of a specific position.
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Job analysis looks to determine the various aspects of a job position and the skill set required by the employee who will hold that position. Job analysis can involve looking into the actual person who is, or will be, in the position. Job analysis however, mainly looks at the actual position itself.
The job analysis produces "job evaluation": a way to determine salary and or hourly wages, along with additional compensation (benefits, bonuses, and such). This job evaluation seeks to assess the relative value of a job position. This value can be compared to other jobs in the organization to determine an appropriate pay scale for the specific position.
The company can also compare the job position to the same position at their competitors. In addition, a company can compare the job position to similar positions in other industries. This helps the company determine compensation.
The job analysis takes a detailed look at a position. To determine pay scales, it must look at all the responsibilities inherent in the job. The employer must perform a detailed analysis of this, and other positions in the organization, to ensure compensation is fair. They do not want a person in a position that has less responsibility; that is less complex, and that requires minimal education and training being financially rewarded more so than a person in a position that requires more education, training, and skill.
At a minimum, a job analysis evaluates not only candidates lining up to fill a job but measures these candidates against two importatnt variables. The first is the local job market and how that market compares to regional, national and international markets. The second is a candidate's overall standing among all candidates vying to fill the position. Since different markets attract candidates for the jobs needing to be filled;economic and geographical considerations affect which candidates can and will show up to fill out an application for a position. Naturally a market can actually get away with how and which candidate it hires.
A 'job analysis' helps define the minimum and necessary requirements for the performance of the job not the person y or x that wants to fill the job. This helps to explain why the job analyses of bakers, scientists, educators, bankers, accountants, life guards, taxi drivers, nurses, palliative care staff, baby sitters, hospitality managers, cruise liner kitchen staff, pilots and police among other types of workers have different and variable job analyses and job descriptions. Not everyone has the know how, education and temperament to actually do every job. The 'bands or ranges' mentioned allow a company to offer a candidate of their choosing what the company is willing to pay in the local market for a given candidate. For budgeting purposes any company needs to know how much money they have going out the door for the candidate they hire. This allows for evaluation of the candidate/employee/contractor from which the company/entity can determine if the company is getting what it is paying for. Or, is simply getting what it can accept.
Other sources that might be used to answer a question of this type could include the following: US Departrment of Labor, Human Resources texts, Organizational Behavior texts and your local city or county libraries. Also, consult Occupational texts and SIC codes.
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