Question

Chapter 12

Fifteen years ago, the A-L Corporation, which is located in Eli, Nevada, undertook an extensive job analysis-job evaluation project. The results of the project were well received by both managers and employees. Until recently, the results of the project were still viable. Now evidence is surfacing which indicates that changes in jobs over the years have created some inequities in the worth of various jobs and compensation employees receive for those jobs. Several managers believe that now is the time to undertake another job analysis-job evaluation project, but they believe that the project this time should be completed by company employees, not outsiders. Accordingly, you have been appointed to coordinate the project.

What do you believe are the important components of the analysis phase of the project?

Eighth Edition

Administrative office Management

An introduction

Zane k. Quible

Answer 1

There are two very important components of the analysis phase of the project. They are as follows:

(1) Risk Evaluation:

In this phase, one needs to evaluate the various types of risk that may arise while doing the project. Some of the risks that may arise are technical risk (lack of necessary technical expertise), financial risk (lack of necessary capital), political risk (changes in government regulations and/or policies), economic risk (possibility of recession) and others. For this purpose, one should conduct thorough and detailed technical analysis, financial analysis, market analysis, economic analysis and other types of relevant analyses.

Different types of contingency plans should be put in place depending upon the nature of risk and magnitude of risk.

(2) Cost-Benefit Analysis:

One should carry out a detailed cost-benefit analysis of doing the project. The benefits should exceed the cost of executing the project. Here in the given scenario, one should ensure that some really good insights regarding inequities in employee effort for a particular type of job and compensation emerge from completion of this project. Also the top management along with the HR Department should take positive action to correct the inequities after getting the necessary insights from the project deliverables. The compensations for certain jobs may need to be upwardly revised to do away with the inequities. Ultimately the employees of A-L Corporation should benefit from the completion of the project and the existing organizational problem should get resolved.