Equity in Job Structures

Equity in Job Structures
Are you receiving a “competitive” level of pay? Are you offered the same benefits as others in similar lines of work? How might the answers to these questions impact your willingness to remain productive and engaged at your job?

Adams’ equity theory of motivation suggests that employees actively and continuously make comparisons of their work “inputs” to the “outcomes,” or total rewards they may receive. This input-outcome ratio is the informal driver of the equity framework. A pay structure built upon internal equity has at its core the concept of “equal pay for equal work.” Internal equity, also known as internal alignment, relates to the fairness of an organization’s pay structure.

When a pay structure is equitable, pay levels accurately reflect the internal value of each job according to the importance of the work performed. For large and fast-growing organizations, finding internal equity can be challenging and complex, because of the number of job evaluations that must be conducted and the restructuring of pay levels. However, determining the equity of job positions and adjusting pay accordingly can be very valuable for organizations. Organizations that have job equity and appropriate pay levels tend to have greater internal consistency, better morale, and increased competitive advantage.

To complete this Assignment, consider the information presented thus far in your course text. Specifically, reflect on the ways in which a well-aligned job structure can contribute to the various methods of job analysis and job evaluation. Apply this information to the scenario below to prepare a presentation that restructures an organization’s internal job structure. Independent research will be required to identify how HR can use this restructuring as a source for promoting greater equity within an organization.

Scenario

You are an HR professional working for a well-known organic health food chain in the Southwest, responsible for the coordination of compensation and benefits. You are required to report to the HR director on a bi-weekly basis.

Over the past five years, your organization has enjoyed substantial growth. Consequently, the organization has hired hundreds of new employees and has added many new positions and departments. At the outset, this growth was seen as positive, but “growing pains” quickly became evident, as large numbers of new employees were integrated into the existing policies and procedures of the organization. This rapid growth quickly outdated the job descriptions and pay grades established nearly a decade ago. The HR Director is concerned, as job titles have proliferated to the point of absurdity.

In anticipation of the annual pay adjustment period, the HR Director asked you to head up a team to conduct job evaluations and validate or revise current job descriptions and pay rates. She wants your team to ensure that the organization has an internally equitable job structure that supports the organization’s strategic goals. She has emphasized that validated job descriptions and pay rates are essential to many HR functions, including recruitment, training, and especially compensation.

To get started, she has asked you to prepare a presentation on the scope of the project at hand. She would like you to address her preliminary concerns and thoughts related to job evaluation and restructuring, and provide resources for the information you find.

For this Assignment, create a PowerPoint Presentation that addresses the following concerns:

The HR Director read a recent periodical about the Department of Labor’s O*NET resource. Describe O*NET’s capabilities as a basis for conducting a job evaluation. Explain whether O*NET could be used for revamping job descriptions for the project rather than a consulting firm or an expensive software package.
The HR Director is concerned about employees’ perceptions and acceptance of the underlying job structure. In your research, look for information on potential benefits of employee involvement in the processes of job evaluation. What are the benefits of employee involvement in job evaluation? What are the costs? Assess employee acceptance of job evaluation results, as well as issues that may arise related to pay confidentiality and other proprietary information.
The HR Director is aware that some employees have heard about the organization’s potential plans to conduct job evaluation. She wants to reassure employees, and has asked you to outline a plan for supervisors and store managers to address any concerns within their departments. What are some approaches to communicating the organization’s goals in future job evaluation efforts? How can these approaches to communication prevent misconceptions about layoffs and department cuts?
The director realizes there are a variety of approaches that organizations might utilize to determine the relative value of jobs. These plans vary across organizations and industries. Provide some preliminary information about at least two different approaches to job evaluation and their applicability to this specific situation and organization.
When preparing your presentation remember to:

Identify key issues that should be addressed, providing answers to the questions already posed by the HR Director (outlined above). Your presentation should have 5–8 slides, excluding references and title.
Include detailed presenter notes for each slide.
This is where the bulk of the information in your presentation should be located. Write your presenter notes in paragraph form, and include all information you would provide verbally if you were to actually present your slides to the HR Director.
Be sure to thoroughly address each of the four major tasks outlined in the bullet points above.
Provide a minimum of two relevant and recent references for each slide.
Compile your references into one slide at the end of your presentation.
This slide will not be counted toward your 5- to 8-slide requirement.
Include a title slide.
This slide must include your name, course name and number, and Assignment title. Applicable graphics are also appropriate.
This slide will not be counted toward your 5- to 8-slide requirement.

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