Lesson 03

53
Performance Management
UNIT II
54
Performance Management:
Systems and Strategies
55
LESSON Performance Management
3
PERFORMANCE MANAGEMENT
CONTENTS
3.0 Aims and Objectives
3.1 Introduction
3.2 Job Information
3.3 Objective of Job Information
3.4 Job Analysis
3.4.1 What should be Analysed?
3.4.2 What Methods of Analysis should be Used?
3.4.3 Job Questionaire
3.5 Job Description
3.5.1 Job Specifications
3.6 Job Employee Benefits Required by Laws
3.6.1 Statutory Employee Benefits in India
3.7 Discretionary Major Employee Benefits
3.8 Employee Services
3.9 Health Care
3.10 Long-term Care Requirements of an Effective Benefits Programme
3.11 Concerns of Management
3.11.1 Job Evaluation
3.11.2 Job Design
3.11.3 Job Assessment
3.11.4 Work Measurement
3.12 Ergonomics: Concept and Definitions
3.12.1 Working Areas
3.12.2 Value Analysis
3.13 Let us Sum up
3.14 Lesson End Activity
3.15 Keywords
3.16 Questions for Discussion
3.17 Suggested Readings
56
Performance Management: 3.0 AIMS AND OBJECTIVES
After studying this lesson, you should be able to:
z Understand the concepts of job analysis, job description, job designing and job
evaluation
z Learn about the sources of job information.
3.1 INTRODUCTION
For performance management in organization, effective information and
documentation on job analysis, job description and job evaluation are important pre-
requisite. All these processes help in identifying job requirements and suitably
describing the job and job-families, skill sets, skill mapping and developing skill
inventories in an organization. In performance management, these are critical inputs to
decide about the job importance and the performance standard requirements. In
simplistic terms, job information provides input about the jobs, as per which jobs are
documented. Job analysis provides inputs for the job contents, job description
facilitates in grouping identical jobs in job families and names it and finally job
evaluation decides the relative worth of a job.
3.2 JOB INFORMATION

Job information is one essential input for effective performance management. . It not
only facilitates job evaluation for compensation designing but also helps in
disseminating information to employees about their duties and responsibilities.
Imperfect knowledge of employees about their duties and responsibilities due to
inadequate job information also affect their performance and overall organizational
productivity. Disseminating job information in the ‘Letter of Appointment’ may not
be adequate. Proper documentation and communication in induction training is the
right approach.
3.3 OBJECTIVE OF JOB INFORMATION

The first objective of job information is to communicate duties and responsibilities
attached to a job to the employees for their clear understanding. This also helps
employees to understand organizational expectations from them.
Another objective of job information is organizational analysis. It helps in workflow
analysis with respect to a job and also helps in identification of redundant work
elements in a job and thus facilitates in job restructuring.
For performance management, job information helps in analyzing the scope for
internal hiring and the requirements of external hiring for staffing various positions in
the organization.
In setting performance standards and establishing job objectives, job information is
essential both in qualitative and quantitative terms. This also facilitates in appraising
performance of an employee against such set standards more scientifically.
For other HR related decisions like; promotion, transfer, relocation, redundancy and
compensation designing, job information provides critical inputs.
3.4 JOB ANALYSIS

Job Analysis is the process of gathering information about the job and evaluating such
information in terms of what is necessary and relevant. Essentially, job analysis
involves three questions: What is a job? What should be analysed? What methods of
analysis should be used?
A job is a group of essentially similar activities or tasks performed by a person or a 57
group of persons. These activities or tasks together become a job. Obviously tasks or
activities of jobs need not be identical. It may be performed in different places, with
different equipment, in a different sequence. Also, some employees may perform
certain activities in addition to the main job. Or some employees may perform a job
occasionally or temporarily, normally to fill in for persons who are absent or on
vacation. This definition of a job is typically used in compensation designing and for
other management practices. However, a more generic description of a job is used,
which is identified by ‘Position’ rather than ‘Job’. A position is a family of jobs in
which specific duties vary but some interchangeability of work is possible and the
functional nature of the work is similar. Examples include assemblers, clerk-cum-
typists, and book-keepers. Broader definition of a job facilitates development of
accurate job information and this accurately reflects the work of each employee.
While on the other hand, the more precise is the job definition, the more difficult it is
to identify the job differences, which further complicates management of employees.
Another basic issue for job analysis is whether the organization should measure works
assigned or work actually performed. Some compensation designing experts argue
that unless job analysis considers work performed, the organization may not account
for employees’ credit for what they are actually doing. On the other hand, analysing
work performed may imply that employees have been given latitude to assign work to
themselves. While in reality, it is the manager’s responsibility to assign a job. The role
of an analyst is essentially to gather job information and not to evaluate the logic of
work assignments. He is primarily responsible for recording of those responsibilities
that a manager has assigned to an employee.
3.4.1 What should be Analysed?

What should be the nature of job information for job analysis, depends upon a number
of considerations? Whether the analysis is required for evaluation purposes or for
other purposes as well; what job level is to be analysed; what type of evaluation plan
is to be used; and what job knowledge is held by the analyst who are going to conduct
the evaluation. Certain basic areas of information, which may include:
z Fundamental purpose of the job.
z Work elements in the job. It requires study of specific tasks, areas of
responsibility, and examples of work.
z General importance of each job element and its relationship to the total operation.
How it is integrated with the total job.
z Approximate time spent on each task or specific area of responsibility.
z Scope of the job and its impact on the operation.
z Inherent authority (not only formal delegation but also latitude of action) and
formal or informal audits of work.
z Working relationships (including supervision).
z Specific methods, equipment or techniques, that are required for the job.
z Job climate, including objectives and work environment.
z Job conditions like; physical effort, hazards, discomfort, chasing of deadlines,
travel requirement, creativity and innovations required, etc.
3.4.2 What Methods of Analysis should be Used?

Job information can be obtained in various ways either by a staff analyst or by the
individual line manager. Because of functional proximity, it is always better to
involve the line managers in compiling job information. One relatively simple and
58 inexpensive method of analysis is collecting of job information through the
Systems and Strategies questionnaire response. Direct observation of work performed is another important
method of job analysis. Observation of work is essential to understand the job role.
However, it is more costly and time consuming.
Valuable job information can also be obtained from organisation manual, time-study
reports, former job descriptions, and method studies.
3.4.3 Job Questionaire

A job questionnaire is a special tool for consolidating job information. It is a printed
form, in which essential information about the job may be listed either by the
employee or by his supervisors. The major advantage of the job questionnaire is that it
uses the knowledge of those who are proximate to the job. In addition, it gives each
employee an opportunity to participate and contribute by giving responses to the
questionnaire, which facilitates immediate compilation of job information.
Another important advantage of job questionnaire is that compiled information can be
used as job descriptions. This, therefore, eliminates the requirement of further writing
of job descriptions. Moreover, by using a job questionnaire, organisations also get the
benefit of communicating the up-to-date job information to the employees.
However, the major disadvantages associated with job questionnaire are that, its
success depends on the understanding and writing ability of individual employees and
supervisors. For perceptual incongruence, inconsistencies in the response pattern may
arise. Such inconsistencies in the response pattern may multiply further when more
cross-sections of people participate in the questionnaire response/survey. In addition,
compiling job information from the questionnaire response again may suffer from the
problem of exaggeration. These are the inherent problem of information quality
through job questionnaire.
To eliminate such inherent problems of compiling job information through job
questionnaire, it is always better to compile the information through a combination of
direct observation and job questionnaire. This approach may be time consuming and
involve huge cost, but more scientific as it eliminates the chance of error by both
accounting the perceptive differences between what they perceive and what they do.
Check Your Progress 1

State whether the following statements are true or false:
1. For performance management in organization, effective information and
documentation on job analysis, job description and job evaluation are
important pre-requisite.
2. Job analysis provides inputs for the job contents, job description
facilitates in grouping identical jobs in job families and names it and
finally job evaluation decides the relative worth of a job.
3. Job information not only facilitates job evaluation for compensation
designing but also helps in disseminating information to employees about
their duties and responsibilities.
4. Job Analysis is not the process of gathering information about the job and
evaluating such information in terms of what is necessary and relevant.
3.5 JOB DESCRIPTION

Compiled job information is translated to job descriptions. Job descriptions are written
records of job duties and responsibilities and it provide a factual basis for job
evaluation. Job descriptions recorded on a standard form in uniform manner.
For obvious requirement of writing skill in the preparation of job descriptions, many 59
organisations assign this task to trained and professional job analysts. However, this
by itself cannot guarantee flaw-less job description. This is because a professional job
analyst may not have specific job knowledge. Therefore, despite engagement of
analyst, it is always better to involve the in-house people for scientific description of
jobs.
In terms of format, the job description should first name the job, using the title, which
accurately summarises duties assigned. While naming a job, it is always better to
consider the job family. To illustrate, instead of naming a HR job as HR Manager, if
the term ‘Knowledge Manager’ is used, it may give a contemporary or trendy job title
but for the others (including members within the organisation) it may be a misnomer.
Secondly, job description should then document in a single form (frequently with
short sentences or phrases) a list of duties assigned. What is to be included, while
listing the job duties and how those are to be written will depend on the level of the
position and the purpose to be served by the description. For the top management
level, a job description may be the description of the business goals and objectives.
While, at the operation level, job descriptions may be limited to listing of specific
duties performed, equipment used, and procedures followed. The broader is the use of
the job description information and the higher is the functional level, the longer is the
job description. Therefore, for operational positions, job-description may be about one
page, while for higher management, it may run through many pages.
3.5.1 Job Specifications

In addition to provide information about duties associated with job assignments, job
descriptions also outline basic specifications of the job. Such specifications include
education or experience, required to do the job and special knowledge and skill set
necessary to carry out the job. In addition, specifications also identify the soft skills
like; inter-personal skills, analytical ability, problem solving skills or decision-making
skill, etc. which are required to perform the duties assigned.
This exercise of processing job information is known as developing job specification.
It helps in the evaluation of jobs and at the same time it defines the attributes required
for a job position, which are required while going for recruitment. Therefore, job
specifications list out all those attributes, like; education, experience, age, physical
fitness, etc. along with other soft skills required for performing a job. This also
requires special skill of the analyst, as any judgmental mistake, may defeat the
purpose, not only by selecting a wrong person for a job but also for wrongly
evaluating a job, which is directly associated with job pricing.
Should Employees see their Job Descriptions?

Today’s organisations are dynamic and every now and then require restructuring,
which also necessitates re-designing of job. Therefore, it is widely believed that
showing a job description to employees may cause controversy and in future
employees may resist doing work, which are not specifically listed in their job
descriptions. However, if job descriptions are well developed, there is nothing wrong
in sharing them with the employees, as it spell out the list of duties employees are
expected to perform. To eliminate the problem, an all-inclusive statement like ‘in
addition to the listed duties and responsibilities, your superior may ask you to perform
other tasks time to time’ can be considered.
By sharing job descriptions with employees, organisations can make their job
evaluation process participative and avoid any dissonance on job evaluation results.
This is also important, as organisations are also laden with employees’ dissatisfaction
on job pricing. Communication of job descriptions enhance acceptance of the same, as
employees are not left with any doubts about their duties and responsibilities. Such
60 communication with the employees should be an on-going exercise, as employees also
Systems and Strategies can understand their changed job duties and responsibilities, if any.
Use of Job Description

Job descriptions help in getting the things done through people and it help
management to accomplish following objectives:
1. Efficient organisation of jobs.
2. Proper recruitment or staffing or the organisation.
3. Assigning jobs to people by communicating them their duties and responsibilities
and by setting job standards.
4. Reviewing performance of the people.
5. Improving performance through appraisal and training.
6. Rewarding employees.
Therefore, job descriptions play a very crucial role in key management activities.
However, it is very important for the manager to ensure that job descriptions are
correct and whatever jobs have been assigned are essential. He must ensure that
essential tasks have only been grouped into jobs. Since job descriptions have
interconnectivity, he has to align it to recruitment, performance appraisal, training
needs, promotion, transfer and relocation decisions. From employees’ point of view, it
should also show employees what is expected of them how to do the work assigned.
By listing of assigned duties in a job description, a manager can determine reasonable
performance standard. Identification of such performance standards facilitates
benchmarking of performance of an employee against the best performer.
Job descriptions also facilitate proper manpower utilisation. By periodic reviewing of
the listed duties, a manager can identify which jobs are time consuming but require
lower skill-set. He can reassign such jobs accordingly to lower-paid employees. In
addition, the manager can also study jobs in terms of workload and determine man-
hours required. For low technology and low-skill jobs, he can consider the decision to
off-load the job to sub-contractors. Therefore, it has tremendous implication for
effective HRP in an organisation. We may call this also an instrument for proper
rightsizing of employees in an organisation.
Finally, job descriptions, as a basic management tool, also influence operating
procedures by identifying duplication of work, indicating a scientific workflow,
suggesting better allocation of jobs and by pointing out possible job bottlenecks.
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Skills and
Competency
Industrial Mapping Human Resource
Relations Planning
Setting Safety
and Healthy Recruitment
Standards
Compensation
Job Analysis
Designing Selection
Job
Descriptions
Performance Training &
Appraisal Development
Job
Specifications
Management
Career Planning Development and
and Development Succession
Relocation
Decisions
Figure 3.1: A Central Peripheral Relational Model of Job Analysis
3.6 JOB EMPLOYEE BENEFITS REQUIRED BY LAWS

An employee benefit is more a holistic term, comprising of both wage and non-wage
component of total labour costs. Non-wage components are given more in the form of
benefits in kind. Employee benefits are also called fringe benefits, perquisites, or
perks. Wage component of employee benefits are paid in cash, hence it is more like a
normal wages or salaries. Where employee benefits are given in cash, we call it salary
sacrifice, as employees avail such benefits, per se in exchange of their cash salaries.
Both the wage and non-wage component of employee benefits are taxable, barring a
few strategically chosen one.
3.6.1 Statutory Employee Benefits in India

Indian Labour Laws require organizations to provide some statutory employee
benefits, both monetary and non-monetary in nature. Here we are explaining some of
the statutory employee benefits, which organizations, by and large need to provide:
1. Employee Security: Physical and job security to the employee promotes security
to the employees and their family members. Organizations provide job security,
confirming the employees in regular pay roll, after they complete the probationary
period. Such confirmation creates a sense of job security in the minds of the
employees. Ensuring regular payment of wages, in compliance with the relevant
Labour Laws, further strengthens this. Adopting adequate safety measures, on the
other hand, ensures physical security. It also includes accident prevention steps,
pollution free workplace, etc.
2. Retrenchment Compensation: The Industrial Disputes Act, 1947 provides for the
payment of compensation in case of lay-off and retrenchment. The non-seasonal
industrial establishments employing 50 or more workers have to give one month’s
notice or one month’s wages to all the workers who are retrenched after one
year’s continuous service. The compensation is paid at the rate of 15 days wage
62 for every completed year of service with a maximum of 45 days wage in a year.
Systems and Strategies Workers are eligible for compensation as stated above even in case of closing
down of undertakings.
3. Lay-off Compensation: In case of lay-off, employees are entitled to lay-off
compensation at the rate to 50% of the total of the basic wage and dearness
allowance for the period of their lay-off except for weekly holidays. Lay-off
compensation can normally be paid up to 45 days in a year.
4. Safety and Health Provisions: Employee’s safety and health should be taken care
of in order to protect the employee against accidents, unhealthy working
conditions and to protect worker’s capacity. In India, the Factories Act, 1948,
stipulated certain requirements regarding working conditions with a view to
provide safe working environment. These provisions relate to cleanliness, disposal
of waste and effluents, ventilation and temperature, dust and fume, artificial
humidification, over-crowding, lighting, drinking water, latrine, urinals, and
spittoons. Provisions relating to safety measures include fencing of machinery,
work on or near machinery in motion, employment of young persons on
dangerous machines, striking gear and devices for cutting off power, self-acting
machines, easing of new machinery, probation of employment of women and
children near cotton openers, hoists and lifts, lifting machines, chains, ropes and
lifting tackles, revolving machinery, pressure plant, floors, excessive weights,
protection of eyes, precautions against dangerous fumes, explosive or
inflammable dust, gas etc. Precautions in case of fire, power to require
specifications of defective parts of test of stability, safety of buildings and
machinery etc.
3.7 DISCRETIONARY MAJOR EMPLOYEE BENEFITS

Drawing a tentative list of employee benefits, both with the wage and non-wage
components, is difficult. However, from the industry practices, we can categorise it to
housing, group insurance, income protection (with optimization of fixed and the
variables), retirement benefits, tuition fees reimbursement, funding of children
education, contribution to different social security schemes, club membership,
international tours, different types of leave (other than the statutory one), like;
vacation leave, sabbatical leave, etc. Most of the employee benefits are employer paid,
while in some, like in social security schemes, employees may also be required to
partly contribute. Both the statutory and voluntary employee benefits increase the
economic security of the employees. Organizational practices on employee benefits
vary widely.
3.8 EMPLOYEE SERVICES

Benefits classified under employment security, include the employee services.
Unemployment allowances or insurance, pay for employees adjustment with the
technological changes, leave pay, overtime pay, pay for holidays, pay for adjustment
with the increased cost of living, lay-off compensation, retrenchment compensation,
provisions for retiring rooms, jobs to the wards of the employees, etc. fall under this
category.
3.9 HEALTH CARE

Benefits for medical and health care include: Accident insurance, disability insurance,
health insurance, hospitalization, life insurance, medical care, sick benefits and sick
leave are classified under this benefit category.
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3.10 LONG-TERM CARE REQUIREMENTS OF Performance Management
AN EFFECTIVE BENEFITS PROGRAMME
Long-term care requirements of an effective benefits programme include – the
benefits classified under deferred income plans, pension, gratuity, provident fund, old
age medical benefits for retired employees, traveling concession to retired employees,
jobs to wards of the deceased employees, etc.
Besides, there are a number of other miscellaneous benefits for the care and benefits
of the employees for personnel identification. Many good organizations offer such
benefits to recognise the employees and to give them a social identity. Birthday gifts,
marriage anniversary awards, attendance bonus, canteen, cooperative credit societies,
educational facilities, beauty parlour services, counseling support, recreational
programmes, stress counseling, safety measures, etc. are classified under
miscellaneous category.
Yet in another way we can classify employee benefits as payment for time not
worked, extra payment for extra timework etc. It is difficult to develop a detailed list
of such benefits. Again from organizational practices, we categorize it as premium
pay, incentive bonus, shift premium, old-age insurance, profit sharing, festival bonus,
food subsidy, housing loan interest subsidy, housing rent subsidy, recreation facilities,
etc.

Fill in the blanks:
1. …………………. are also called fringe benefits, perquisites, or perks.
Wage component of employee benefits are paid in cash, hence it is more
like a normal wages or salaries.
2. Employee’s …………………. should be taken care of in order to protect
the employee against accidents, unhealthy working conditions and to
protect worker’s capacity.
3. Benefits classified under employment security, include the …………
………..
4. There are a number of other …………………. for the care and benefits of
the employees for personnel identification.
3.11 CONCERNS OF MANAGEMENT

There are a number of areas of concern for a management, while implementing
performance management systems and strategies. These include the following:
1. Job evaluation
2. Job design
3. Job assessment
4. Work Measurement
5. Ergonomics
6. Working areas
7. Motion economy
8. Human Engineering
9. Value analysis, etc.
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3.11.1 Job Evaluation
Job Evaluation originated in the United States in 1971. In 1909, Civil Service
Commission in Chicago and the Commonwealth Edison Company of Chicago
pioneered the field. In 1926, Merill R. Lott wrote a book on ‘Wage Scales and Job
Evaluation’, describing methods used in his company, the Sperry Gyroscope Co., Inc.
It is the process of determining the worth of one job in relation to that of another
without regard to the personalities. It analyses and assesses the content of jobs, to
place them in some standard rank order. The end result is used as the basis for a fair
and logical remuneration system.
A properly devised job evaluation scheme provides management with definite,
systematic and reliable data for working out wage and salary scales. Thus, logical
wage negotiation reduces wage grievances and dissatisfaction with wage differentials
and ensures fair treatment for each employee. It also provides a logical basis for
promotion. A survey of British Institute of Management indicated following reasons
for its use:
1) To reduce layout turnover,
2) To increase output,
3) To improve morale,
4) To reduce loss of time due to wage negotiation and disputes,
5) To reduce the complaints regarding wages,
6) To reduce wage and salary anomalies.
Steps in Job Evaluation

1) Through examination of the Job (Job Assessment),
2) Preparation of Job Description (recording its characteristics to suit assessment of
method),
3) Preparation of Job Analysis to set out the requirements of the job under various
factor headings,
4) Comparison of one job with another,
5) Arrangement of jobs in a progression,
6) Relating the progression of jobs to a money scale.
Types of Job Evaluation Schemes

There are four basic types of Job Evaluation, which can be enumerated as follows:
1. Ranking: This is simple system to judge each job as a whole to understand its
relative worth by ranking one whole job against another job. To start with, a job
description is prepared in a narrative form, starting duties, responsibilities and
qualifications, required for the job. Jobs are then ranked in order of relative
difficulty or value to the company and grade levels are then defined and wage
levels are finalised. One of the disadvantages this method has that the degree of
difference between jobs cannot be indicated. Ranking, therefore, may be incorrect
and unduly influenced. Relative value of the employees (currently occupying the
jobs) may be ranked rather than the jobs. The methods may be adequate for the
easily defined jobs of a small number of workmen but it is regarded as
impracticable for complicated jobs and large number of workmen.
2. Classification: This is different from ranking as in this case grade and wage levels 65
are pre-determined before jobs are ranked and descriptions are written defining
the type of job which should fall into each group. Under this method, usually a
committee allocates jobs to each group using job description. The system is
simple but suffers from limitation similar to that of Ranking System.
3. Points Rating: Under this system, to achieve a higher level of accuracy, each job
is broken down into its component factors or characteristics and then evaluated
separately rather than evaluating the job as a whole. A narrative job description is
prepared and supplemented by a statement of the various requirements (present in
the job). Characteristics like experience and training, mental and physical effort,
common to the jobs are selected and a point value for each characteristic or factor
is determined. Factors are defined objectively and points are given to each factors
based on its estimated importance. Consolidated point values are finally converted
into money terms.
4. Factor Comparison: This method is also similar to the Points Rating System as
here also each job is broken into factors. The only difference, here five factors are
used, i.e. mental requirements, skill requirements, physical requirements,
responsibility and working conditions. After job descriptions, key jobs are judged
and related to one another. The jobs are considered one by one and reviewed to
understand how much of the current wage rate for the job is paid for each factor.
Key jobs are arranged in a scale in order of their value for each factor.
Remaining jobs are compared with the key job factors and a comparative money value
is determined for each factor in each individual job. The total of the factor values so
determined for each job represents its rate. This is a complex system, however, higher
degree of accuracy can be attained through this.
Limitations of Job Evaluation

Job evaluation alone cannot establish a wage scale. For wage fixation, we need to take
into cognizance statutory requirements, like Minimum Wages Act, 1948. Similarly,
other factors of wage fixation like, capacity to pay, inter-industry wage variation,
inter-regional wage variation, collective bargaining agreement, if any, also need to be
given importance. Job evaluation is highly subjective (being based on judgmental
estimate). Similarly, it cannot take into account the cyclical effect of market value of
occupations. For example, finance jobs were highly priced in the market at one point
of time (now IT and marketing has taken its place). However, with the failure on
NBFC, finance jobs are not that highly priced in the market at least at this point of
time, even though no material change in the job profile of finance professionals have
taken place in between.
Despite such limitations, job evaluation technique is considered very useful for
reasons explained earlier.
3.11.2 Job Design

Every work undergoes constant modification because of the impact of mechanisation
and automation. Some jobs become redundant while others are created and still others
are altered in content. This necessitates different types of education, experience and
other attributes. Also for effecting Job Design, the organisation needs to respect the
unions, who otherwise may stall the move on one ground or the other.
While designing a job, management must also be concerned with the practical
considerations of quantity and quality of available personnel (both within the
organisation and in the labour market). Personality conflict and friction, problem of
human relations, boredom, obsessive thinking, etc. also need to be taken care of.
66 Thus the factors, which are likely to affect job design, can be enumerated as follows:
Systems and Strategies 1) Job specialisation and repetitive operations,
2) Changing technology,
3) Labour-union policies,
4) Abilities of present personnel,
5) Adequate availability of potential personnel,
6) Interaction among jobs with the system, and
7) Psychological and social needs that can be met by the job.
3.11.3 Job Assessment
At this stage information about each job is made available to the assessors. Every job,
whether manual or not, is closely observed and inspected in actual operation by the
assessors. If required, assessors question the operators and their supervisors to collect
further details about the job to clear doubts if any. To keep pace with the changing job
content, due to technological changes, it is necessary to make periodic re-assessment
of the job keeping in view the old job description.
Pricing Job Value

The purpose of job evaluation is to establish the relative job value within the
organisation in terms of points or rankings and in terms of pay levels. The next step is
to translate these data into a pay structure through job-co-relation. This therefore
involves first deciding the pay grades and then developing of pay ranges for each
grade.
Steps in Job Pricing: The initial process of pricing the job and fitting them into a pay
structure calls for translating the points into different job grades. Thereafter jobs have
to be grouped as per different pay grades and then relate the result with comparable
jobs in other companies. However, this may not be possible for jobs, which are unique
in nature. When jobs are properly grouped, it is not difficult to price each such job
group. After pricing each job group, pay structure can be developed on the
mathematical principle that ‘things which are equal to the same things are equal to
each other’.
From the survey report of other companies, base salaries for each pay grade are
established considering the average paid by the companies surveyed.
The next step in job pricing is to develop pay ranges around the base salaries. Once
this is developed, individual compensation based on performance and other
considerations can be worked out. Different pay ranges enable an organisation to
adopt a flexible approach (within the range) in hiring new employees, taking into
cognizance the labour market flexibility.
To illustrate, for a manufacturing organisation, a Fitter may have a pay grade ranging
between Rs. 5-000 – 10,000 per month. This pay grade can be broken into different
ranges, like, Fitter Grade-I – Rs.8,000 – 10,000/- per month, Fitter Grade-II –
Rs. 6,000 – 8,000 per month, Fitter Grade-III – Rs. 5,000 – 6,000 per month.
Other Methods of Job Assessment

There are various other methods of job assessment for pricing a job value, which is
essential for compensation designing. At the same time such methods ensure job
simplification and humanisation of jobs. Even though some of these methods do not
directly contribute to job pricing, these are still useful for achieving productivity and
efficiency.
Work Study: Work-study literally implies study of human work. British Standard 67
3138: 1969 defined work-study as:
“A management service based on those techniques, particularly method study and
work measurement, which are used in the examination of human work in all its
contexts and which lead to the systematic investigation of all the resources and factors
which affect the efficiency and economy of the situation being reviewed, in order to
effect improvement”.
Thus it is a generic term for two inter-dependent techniques, i.e., method study and
work measurement. In the said British standard, methods study has been defined as….
“The systematic recording and critical examination of the factors and resources
involved in existing and proposed ways of doing work, as means of developing and
applying easier and more effective methods and reducing costs’. Work measurement
on the other hand as defined by the British standards as “the application of techniques
designed to establish the time for a qualified worker to carry out a specified job at the
defined level of performance”.
Contextual analysis of the agreed definition of work-study given by the British
Standards Institute, therefore, enables us to define the subject as a procedure for
understanding and determining the truth about the activities of the people, plant and
machineries, identifying the factors which affect their efficiency and achieving
economy through their optimum utilisation. Most of the productivity improvement
techniques involve major capital expenditure in plant or equipment. Work-study being
a management technique, on the other hand, ensures productivity by using existing
resources. In work-study, human element is emphasised and importance is given on
operation rather than on the technical process. This, therefore, assists management in
following three major ways, which are actually its primary objectives:
1) Effective use of Plant and Equipment
2) Effective use of Human Effort
3) Evaluation of Human Work
1. Human Context of Work Study – Trade Union’s Response: If work-study
techniques are not properly applied, they are likely to encounter resistance at all
levels. Therefore, it is important to understand the human reactions and design the
programme investigation and implementation accordingly. Most of the unions by
now are aware that work-study provides benefits to the workers by eliminating
drudgery, frustration and unhealthy working environment. So also it gives an
opportunity to the workers to increase their earnings (by micro level and the
nation as a whole at macro level).
However, to satisfy the unions following three points need to be considered:
a) Workers should be consulted before the introduction of any scheme, which is
likely to affect their interest, in one way or the other.
b) There should be a definite policy for those workers who will become
redundant after implementation of the recommendations of the work-study
team.
c) The procedure to deal with the changes in the method of work and for
measurement of work would be laid down and communicated to the workers.
International Labour Organisation (ILO) emphasised on the importance of
such sharing of information with the workers in a resolution concerning
consultation and cooperation between employers and workers at the level of
the undertaking in the 35th session at Geneva in the year 1952.
68 2. Method Study: Method study is a productivity improvement step, which helps to
Systems and Strategies produce same output using less resources or enables to produce more with a
proportionately less increase in the inputs. Thus it reduces, if not eliminates, the
waste. Method Study ensures creativity, innovativeness, optimal decision making
power, good organisational practices and better communication. It is essential to
keep following factors in mind while carrying out a method study:
1) Economic considerations
2) Technical considerations
3) Human reactions
Role of Method Study: Summarising, the above discussions, we can, therefore
enunciate the role of method study as follows:
a) To appraise the purpose and objectives of the organisation
b) To asses the tasks of the organisation
c) To evaluate the communication and control structure of the organisation
d) To optimise the use of resources of the organisation
e) To improve the procedures, methods and processes of the organisation
f) To ensure individual and group effectiveness and at the same time satisfaction of
work in the organisation.
Importance of Method Study: The objective of Method Study is to find better ways of
doing things and to contribute to the improved efficiency by eliminating unnecessary
work, avoidable delays and other forms of waste. Through systematic recording,
analysis and critical examination of methods and movements involved in the
performance of existing or proposed ways of doing work, it achieves the above-stated
objectives. However, importance or objectives of Method Study would be more clear
once we review its contribution that flow from its above role. The contribution of
Method Study could be indicated below:
1. Reorientation of the corporate objectives and mission
2. Review of the plans and programmes
3. Evaluation of the tasks, targets and available resources
4. Balancing the structure of the organisation
5. Introduction of a good communication system in the organisation
6. Better design of plants and equipment
7. Simplification of processes and methods
8. Standardisation of products and procedures
9. Improvement of work flow
10. Planning and Control of work
11. Managing resources, inventory control and replacement of plants and machinery
12. Quality and cost control
13. Improving the layout of the shop floor
14. Betterment of working environment and working conditions
15. Optimum utilisation of resources
16. Higher standards of safety, security and health 69
17. Performance satisfaction.
Basic Procedure, Steps, Process or Mechanism of Method Study: Method Study
technique is flexible enough to accommodate different given situations; however,
simple framework for its application in any given circumstances may be designed as
follows:
Select : the work to be studied
Record : all the relevant facts of the present (or proposed method)
Examine : facts critically and in sequence
Develop : the most practical, economic and effective methods, having due
regard to all contingent circumstances
Install : that method as standard practice
Maintain : that standard practice by regular routine checks
Even though, we have indicated five basic steps in a particular order in actual study, it
does not necessarily follow that sequence or pattern. Selection of the subject of study
may be preceded by the study of possibility of data collection. Similarly, preliminary
critical examination (pilot study) may be needed in order to identify the problem area.
During a pilot study, there may be need for more detailed data. Or, it may be revealed
during preliminary critical examination that the real problem is something other than
the selected one. Thus sticking to a rigid procedure of analysis may often mar the
prospect of getting a productive solution.
In Method Study, there should not be any veil of secrecy. Discussion, exchange of
views and efforts at mutual understanding are part of every basic step of method
study. There are several undefined stages. Before implementation, the final plan has to
be discussed with all concerned. Similarly, installing the new system has to be
preceded by a plan to familiarise all concerned through reorientation programmes.
After installation, the system has to be maintained to ensure that this becomes an
accepted standard.
The steps of Method Study, therefore, may be enumerated as below:
z Initial data collection
z Preliminary/pilot survey and assessment
z Identification of problem areas
z Collection and assembly of data concerning the factors
z Determining their inter-connection
z Finalising the subjects for study
z Defining the problems/subject for study
z Assessment of their impact/reaction
z Evolving alternatives
z Deciding optimal solutions
z Testing the solutions
z Preparation of the report
z Presentation of recommendations
z Decision on implementation
70 z Preparation for implementation
Systems and Strategies z Installation of the newly evolved system
z Maintenance of the newly installed system
z Evaluation of improvements achieved
Detailed Procedures – Steps
Procedures/steps in detail in any method study investigation may be enumerated as
follows:
1. Selection of the job: Once the Method Study idea is conceived, the first step is
orientation and determination of objectives. The problem must be defined. The
method study investigator faces the following types of problem and normally
required to solve:
a) Bottlenecks, which disrupts smooth flow of materials of processes.
b) Products, which may be required to produce economically by application of
cost reducing techniques.
c) Economic utilisation of space, including land and buildings.
d) Economic utilisation of labour, material and plant
e) Elimination of idle item or non-value adding time caused due to problems of
flow, queues and congestion.
While selecting the subjects for study, it is essential to keep in mind that the
ultimate objective of the method study is to improve the achievement by raising
the level of productivity and increasing satisfaction at work. Secondly, the term
‘select’ should not be taken in a narrow sense, i.e., to choose from among others,
but it must include a preliminary survey, which enables the investigator to decide
on the continuity of the study. Similarly, select does not necessarily mean just
selection of the job but also selection of the appropriate techniques to achieve the
end-result.
2. Record the Facts: Before discarding the existing method or procedure, adequate
facts about the present system must be collected. This is required to prepare an
objective record of the way the job is carried out. To eliminate the change of bias,
this record is not compiled from second-hand accounts or on the manager’s
version as to how he thinks the job is done or an operator’s description of how the
job is done but based on direct observation by the concerned investigator.
3. Critically Examine the Facts: It is also an important stage of method study.
Information collected are scrutinised in this stage and each part of the job
critically examined to determine whether any part may be:
a) Eliminated altogether
b) Combined with any other part of the job
c) Changed in sequence
d) Simplified to reduce the content of the work involved.
For effective examination of the facts, following questions are generally asked:
a) What is done and why?
b) What it does and what that person does?
c) Where is it done any why there?
d) When is it done and why then? 71
e) How is it done and why this way?
By rearranging, simplifying, combining, eliminating or modifying the facts or
records, a basis is obtained for an improved method.
4. Develop the New Method: Alternatives selected are used to reshape and develop
the new method, layout or procedure. These may require test runs to determine
their feasibility. Tests of this nature may be preferably carried out at a place, away
from the work site, if possible. To ease the problems of acceptance for the new
method in the department, it is good to involve the department. The end-result
must be an improved method and must be acceptable to the departmental staff and
workers. It must be acceptable to the departmental staff and workers. It must meet
all their practical requirements and technical specifications.
5. Install the Method: To install the method, decision must be taken on ordering of
new plants or material (if any), phasing in changes in production process, deciding
the extent of redeployment, training, introducing new documentation procedures,
setting new quality standards and test procedures. It is good to have a detailed
timetable for effecting such changes. The end-product of the installation stage is
that the new method is in operation at the work site, the line management is in
complete control and finally that all members of the department are fully
conversant with the method.
6. Maintaining the Method: When a method has been installed, it tends to change
slowly for obvious small alterations made by the operators or supervisors. A
reference standard (job instruction sheet is needed against which the job can be
compared to detect any alterations. Similarly, a corresponding document for an
incentive scheme, which also contains details of the standard time for each job,
called a job specification, is prepared. With these data, changes in method can be
detected. If changes are considered to be useful, the instruction sheet can be
amended to incorporate them and if they are thought undesirable, they can be
removed through line management.
3.11.4 Work Measurement

ILO defined Work Measurement “as the application of techniques designed to
establish the work content of a specified task by determining the time required for
carrying it out at a defined standard of performance by a qualified worker”.
Conventionally it is known as time study, which is primarily carried out to determine
the standard time to perform a specific task. Such time standard is used for planning
and scheduling work, for cost estimating or for labour cost control or it may serve as
the basis for a wage incentive plan. But we find it has wide application in deciding a
wage incentive plan.
Techniques of Work Measurement: There are different techniques of work
measurement. However, the following are the principal techniques:
1. Time study
2. Ratio-delay study (Statistical Sampling Technique)
3. Synthesis from Standard data
4. Pre-determined motion time standard
5. Analytic estimating
Out of all these, only time study technique is widely used, others being complicated in
nature. Here also we will discuss in detail the time study only, while simply defining
the other techniques.
72 Time Study: ILO defined time study as ‘a technique for determining as accurately as
Systems and Strategies possible from a limited number of observations the time necessary to carry out a given
activity at a defined standard of performance’. For carrying out a time study,
equipment like; stopwatch, study board, pencils, slide rule, etc. is required. The
stopwatches are of different types, like:
1. Stopwatch, which records one minute per revolution by intervals of 1/5th of a
second with a small hand recording 30 minutes.
2. Stopwatch which records one minute per revolution, calibrated in 1/100th of a
minute with a small hand recording 30 minutes.
3. Decimal-hour stopwatch recording 1/100ths of an hour and a small hand records
up to one hour in 100 divisions.
Following steps are necessary for carrying out a time study for measurement of work:
z To collect and complete all available information about the job, which should also
include surrounding conditions and so also the attribute of the operators, which
are likely to affect the work.
z To record the details of the method and also to break down different operation
into elements.
z To record the time taken by the operators to perform the operation (element-wise)
measuring preferably with timing device like stopwatch.
z To assess the working speed of the operators comparing the same with a
predetermined normal speed.
z To convert the observed time to normal time.
z To decide the rate of allowances which may be given over and above the normal
time of the operation.
z To determine the allowed time for operation.
Other Techniques of Work Measurement: Since carrying out time study for each job
is a time consuming task, statistical techniques, i.e., ratio-delay study is often carried
out. Ratio-delay is a sampling technique. Instead of going for the complete job study
under ratio-delay techniques, a sufficiently large number of readings are taken at
random intervals. Like all other sampling techniques, under this method also there are
bound to be some errors. However, cost of such study being less, many organisations,
which are having the expertise, may prefer this method. Moreover, under this method
as rating is not done the time is recorded directly using a stopwatch; it encounters no
resistance from the workers.
Synthesis from standard data method synthesizes time standard that are built up or
synthesized from element times previously obtained from direct time study. Most of
the organisations that have independent work-study department, build up synthetic
table converting the commoner elements. However, some units also use such time
record of other organisation as standard data. For obvious non-commonality of
technology, skill, process and working environments, this type of synthesis may not
always be correct.
Pre-determined motion time standards have been developed for different job elements
based on elementary movement. Usually, for time measurement, work factor and
basic motion times are recorded in any pre-determined time standards. Work study
analysts use such time-standards as the basis for comparing the observed time of the
present workers. This enables the work-study men to quickly decide the efficiency or
otherwise of the workers and to give decision accordingly.
Analytical estimating is normally used in plant maintenance and repair work. This is a 73
compromise between straight rate fixing and time study. Since maintenance and repair
jobs require adequate planning and also job nature being call for creativity and
innovativeness, it is difficult to enforce straight rate fixing. Analytical estimating is
difficult in nature and also not always fool-proof for inexperience of the work-study
men.
Fill in the blanks:
1. A properly devised ……………… scheme provides management with
definite, systematic and reliable data for working out wage and salary
scales.
2. Every job, whether manual or not, is closely observed and inspected in
actual operation by the ……………….
3. ……………… literally implies study of human work.
4. ……………… is an important stage of method study.
5. ……………… as the application of techniques designed to establish the
work content of a specified task by determining the time required for
carrying it out at a defined standard of performance by a qualified worker.
3.12 ERGONOMICS: CONCEPTS AND DEFINITIONS

Ergonomics is derived from two Greek words; ergon, meaning work and enomos,
meaning laws. It is the study of the effects of work system on workers and it aims at
fitting the work to the mean to increase their efficiency, comfort and satisfaction. ILO
defined ergonomics as:
“The application of human biological sciences in conjunction with engineering
sciences to the worker and his working environment, so as to obtain maximum
satisfaction for the work which, at the same time, enhances productivity.”
Contextual analysis of ILO definition, therefore, provides more meaningful basis of
understanding ergonomics. An ergonomist for effective accomplishment of work tries
to integrate the work system (which broadly includes the tasks, working equipment,
working conditions and working space) with the capabilities and requirements of
work. In this process, he therefore, tries to ensure job satisfaction for the workers,
which, inter-alia, increases their productivity.
In all schemes of human activity, ergonomics can be applied be it in offices, factories,
shops, ships, air and even in the space. Some of the areas where ergonomics has been
successfully applied are as under:
1. Design of equipment, power and hand tools.
2. Design of displays and warning systems.
3. Design of furniture, seats, rests and steps for operators.
4. Design of tools, jigs and fixtures.
5. Plant layout
6. Improvement in working conditions and environments.
7. Computation of relaxation allowances for workers.
8. Selection, training and placement of personnel.
9. Motivation of workers.
74 However, for better understanding, the areas of ergonomic investigation of a work
Systems and Strategies system may be grouped as below:
1. Human Characteristics: Health, physique, anthropometric data, personal
background, education, training, experience, age, sex, intelligence, aptitude,
reaction time, interest, personality characteristics, temperament, attitude towards
work, motivation, etc.
2. Work: Physical loads, perceptual loads, mental loads, displays and warning
systems, controls, compatibility of inputs and outputs.
3. Working Conditions: Workplace layout, postures, motion and movements,
fatigue, monotony and relaxation allowances, comfort, safety and health, working
hours and shift work conditions.
4. Environment: Illumination, ventilation, temperature and humidity, colour
dynamics, fumes, dust, odor and smoke, landscape, scenery and garden,
cleanliness and sanitation.
Many alternative terms like; human engineering, human factors in engineering,
engineering psychology, applied experimental psychology, applied and human
engineering research, man-machine system analysis, etc., are used to designate the
discipline. This subject has developed during World War II with the coordinated
efforts of physiologist, psychologists and the design engineer. Its earliest
application can be traced to Frederick Winslow Taylour (1856-1915). Taylor’s
experiments were mainly to arrive at the optimum design of equipment for
specific types of work and so also to train the workers to suit them for each type
of task. Frank Bunker Gilberth (1869-1924) and his wife Lillian elaborated the
principles of motion economy and introduced the rest pauses and spacing out of
work to reduce the fatigue and eliminate stresses. Since then, with the
advancement of experimental physiology, psychology and method study, the
subject delved deeper into the human make-up for better and scientific
understanding of the efforts of working conditions and environment on human
body and mind.
5. Impact of Ergonomics on Work Study: Work study, which aims at scientific
analysis of a work system to increase productivity and satisfaction at work, is
dependent on ergonomics for the research data on many facets of human reaction
to a given work situation. Such input information makes the task of work-study
practitioner more scientific and result-oriented. These input information/data
mostly relate to the following areas:
a) Limits of sustained physical endurance, normal speeds of movement and
optimum method of handling of controls.
b) Receptivity to sensory inputs and time required for perception of deviations.
c) Reaction time for motion output and time required for evaluation and
decision-making.
d) Anthropometric data to guide the design and layout of equipment, work place
and furniture.
e) Effects of different types of environmental conditions on the human being in
order to generate improvements.
f) Effects of working conditions so as to raise the standards of comfort, safety
and health.
g) Qualitative and quantitative analysis of factors contributing to industrial
fatigue for computations of ‘relaxation allowances’
Ergonomics and Management 75
Ergonomics is a discipline at the service of management from the very planning and
design stage of a work system. In the organisation and control of human effort
directed to specific ends, management needs to have an appreciation of the human
factors involved in a work system.
The findings of ergonomic research, particularly in the field of perceptual and mental
loading have a special bearing on the work situation confronting managerial
performance in an organisation. The aim here will be to eliminate all perceptual and
mental loading that may arise from the perusal and evaluation of reports on the normal
activities of the organisation, thereby highlighting only the deviations from the
equilibrium state. This will permit more effective application of the managerial talent
to really important problems over wide span. In other words, ergonomics can help in
increasing the productivity of managerial brainpower. This single improvement, by
itself, without any changes in the methods on the shop floor will lead to spectacular
increase in overall productivity of the organisations.
3.12.1 Working Areas

The working area of an operator may be categorized into three groups: normal,
immediate and maximum working areas. The normal working area is one that can be
reached by the operator using any movement upto and inclusive of, class three movem
This area is bounded by two arcs, and is made by the fingers using the elbow as the
pivot. The immediate working area is the surface immediately in front of the operator
where the two arcs of the normal working area overlap. The maximum working area is
one that can be reached by the operator using arcs made by the fingers with the
shoulders as the pivot.
The space between the normal and the maximum working areas is accessible through
a class 4 movement. Anything beyond the maximum working area may be reached
only through a class 5 movement, including body bending or stretching.
The immediate working area is most suitable for bi-manual operation. If the various
equipment, materials and tools are replaced within the normal working area, they can
be reached without using the upper arm and shoulder muscles. It is not desirable to
place anything outside the maximum working area.
The field of vision should also be taken into account while considering working areas.
The normal cone of vision, without head movement, is restricted. Covering the whole
perimeter of the normal working area would impose undue eyestrain and sometimes
involves excessive head movements. Due care must therefore be taken to position all
the materials well within his cone of vision. In inspection work, as much of the work
as possible, must take place directly in front of the operator.
For better understanding, classes of movements can be grouped under the following
five categories, based on the pivots around which the body members move:
Class Pivot Body Member Movement

1. Knuckle Finger(s)
(finger joint)
2. Wrist Hand and Fingers
3. Elbow Forearm, hand and fingers
4. Shoulder Upper arm, forearm, hand and
fingers
5. Trunk (body apart from limbs) Torso, upper arm, fore-arm,
hand and fingers
76 A similar classification is available of the movements of corresponding members of
Systems and Strategies the leg. For economy of motion, the movement should be of the lowest classification
possible, compatible with the normal capacity of the body member affected.
Motion Economy
Motion Economy is the process of minimising the physical and perceptual loads
imposed on people engaged in any type of work; whether it be in the office, the shop
floor, the kitchen or at the driving wheel. It leads to better design of equipment, jigs
and fixtures, hand tools, furniture and labour saving devices. Also it facilitates better
layout of offices, warehouses, plants and operating areas like office desk, work bench,
aircraft, cockpit and crew compartments of armoured fighting vehicles. Application of
the principles of motion economy eliminates or minimises wasteful and fatiguing
movements and increases the productivity of the workers. It considers to minimise
movements in respect of:
1. Number of movements
2. Length of movements
3. Classification
4. Number of parts of body used
5. Necessity for control
6. Muscular force
7. Complexity of movements
8. Distances between eye fixation
9. Time required for eye fixation
For achieving Motion Economy, following principles have been evolved by different
specialists:
1. Principle of minimum movement
2. Principle of natural movement
3. Principle of simultaneous movement
4. Principle of rhythmic movement
5. Principle of habitual movement
6. Principle of continuous movement
Simultaneous movements reduce fatigue and increase the rate of output. More fatigue
is caused when only one hand is working, and the other is idle. Simultaneous
movement includes the movements of the feet while both the hands are operating as in
driving a car. Application of this principle leads to the better design of jigs, fixtures
and duplication of tools, so that both hands work at similar tasks simultaneously.
The principle of symmetrical movements should be applied in conjunction with
simultaneous movements. Proper balance is achieved only when the movement of one
hand is the ‘mirror image’ or eliminates fumbling. When movements of the hands are
asymmetrical, there is a tendency on the part of the operators to interpolate additional,
but non-productive, movements in order to achieve balance.
Rhythm is the regular repetition of a movement pattern. It often incorporates the
accentuation of a specific part of a cycle. Rhythm contributes to speed, elimination of
fumbling and reduction in fatigue. Examples of rhythmic movements are; boat
rowing, hammering at the smithy and drawing water from a well using a see-saw lift.
The pattern of movement should be so designed as to facilitate habituation. When a 77
cycle of activities is performed habitually, the movements are executed almost as a
reflex action. Habitual movements eliminate hesitations and increase speed of
performance. Rhythm helps in speed habit formation. Tools, materials, displays and
controls must always be located in the same position. The pattern must be
standardized for similar types of panels, work places and equipment. Continuous
movements, which are smooth and curved, are superior to jerky straight-line
movements, which involve sudden changes of direction and loss of momentum.
Materials, tools and jigs must be so positioned as to incorporate smooth, curved and
continuous movements and eliminate undue changes of direction.
The above principles should be treated merely as guides and not rigid rules. Quite
often, one principle would be in conflict with another and a proper evaluation of the
principles, in their totality, would be needed for optimization. Conditions differ from
job to job. It may sometimes be necessary to compromise load over the various
muscles or to give due weightage to the principle of continuous movement. It is,
therefore, essential that the principles are applied with flexibility.
Human Engineering
Method study seeks to determine the effective combination of the man, the machine
and the working environment. In doing so, it is necessary to determine which
functions are better performed by man and which functions are better performed by
machine. Both man and machine can surpass each other in certain ways. The question
of economy again influences man-machine combination. The term human engineering
is more appropriately used to solve man-machine problems in design, operation and
maintenance of plants and machineries and in fact it broadly comes under the purview
of ergonomics. It is therefore, not appropriate to designate human engineering as an
independent discipline, separating it from ergonomics. However, to understand the
context and meaning of human engineering, it is considered necessary to define it in
the context and meaning of human engineering, in line with Ernest J. McCormick.
McCormick defined it as the mechanism for ‘the adaptation of human tasks and
working environment to sensory, perceptual, mental, physical and other attributes of
people. This adaptation for human use applies to such functions as the design of
equipment, instruments, man-machine systems and consumer products and to
development of optimum work methods and work environment.
Human Engineering and Machine Design: The designer of the machine should
know the way the human being functions, his body dimensions, his physical
limitations and so also the conditions under which a person performs perfectly. For
performing a task, a person normally does following three things:
1. Receiving the information (through different sense organs.)
2. Making decisions (acting on perceived information)
3. Taking action (which results from decision)
Thus the basic control cycle for the human being consists of these parts – sense,
decide and act. Power to reason inductively, exercise judgment, develop concepts,
decide and create methods is unique to human being. While quick performing of
repetitive routine tasks, power to perform rapid computations, apply great force,
simultaneous performance of many different functions etc. are characteristic features
of machine.
The designer of the machine, therefore, is required to consider all the above details
before developing a better-designed machine for productive use. Most of the
Computer Numerically Controlled (CNC) machining centres developed by large
industrial organizations in India are not performing well as they have been designed
without considering the human factor. In fact the sophisticated machine centers,
78 whenever introduced, have become instrumental for perpetual industrial relations
Systems and Strategies problem as these in other way adversely affects workers pay packets as cycle time
printed in the machine literature is considerably less than the actual time taken by the
workers. This complicates job co-relation with the workers’ payment, as technically
they are supposed to get payment as per the printed cycle time.
Since, a badly designed machine may be responsible for poor performance of the
workers, application of ergonomics/human engineering techniques is necessary to
design the machine. Modern machines are ergonomically designed to prevent stress
and fatigue of the workers, to make them work at ease and at the same time to gain
increased rate of production. We also find application of human engineering/
ergonomic techniques even in designing consumer products, kitchen gadgets,
furniture’s etc. Recently, Blow Plast Ltd., under technical collaboration with Klober
of Germany, ergonomically designed office-chairs.
3.12.2 Value Analysis

Henry Erlicher of General Electric Company, in 1947, drawing lessons from World
War-II, observed that substitution of materials (as manufacturers were then compelled
to go for substitution to encounter shortage of original materials often led to cost
reduction and better functionality. This has prompted further research in the field of
alternative materials and processes and in fact L.D. Miles, another top executive of the
company, was directed by him to go into the details which was later called as Value
Analysis. By 1949, this approach in more institutionalised form was used in General
Electric Company and gradually in US department of defence. By 1970, gradually
value-engineering concept received international attention.
Value engineering is an organised creative technique to analyse functions of a product
or service or a system to achieve the required functions at the lowest cost ensuring its
performance reliability and maintainability. It is also known as value analysis or value
management.
Literally, value is the worth of an article/product/service. In terms of cost and
function, value is determined. Value of product can be improved by:
1. Improving function (keeping function constant)
2. Reducing Cost (keeping function constant)
3. Both by improving function as well as by reducing cost.
There are different types of values of an industrial product, which may be classified as
follows:
1. Use Value: The properties and qualities which are useful and which enable to
accomplish the work. Use Value again may be either for primary use, secondary
use or for auxiliary use.
2. Esteem Value: Aesthetic features or properties which attract a customer to own it.
3. Cost Value: The cost required to produce the item.
4. Exchange Value: The properties, which enable the owner to exchange it for
anything else, if, he so desires in future.
However, for all practical purposes, in industrial situation, we are primarily concerned
with Use Value and Esteem Value only.
In the backdrop of the above discussion, value analysis, therefore, can be defined as a
‘method of search, a systematic procedure resulting in the orderly utilisation of
alternative materials and processes. It focuses on engineering, manufacturing and
purchasing with attention on one objective, that of obtaining equivalent or even better
performance for lower cost.
Steps in Value Analysis 79
Following steps are followed for Value Analysis:
1. Collection of full facts and information about the product
2. Get the details of the cost break-up
3. Determine the function
4. Think creatively
5. Compare and evaluate the alternatives
To succeed in each step, it is necessary to take following line of action:
1. Eliminate the redundant parts
2. Initiate action of cheaper substitutes without impairing the use value
3. Standardise the parts
4. Develop alternative methods
5. Re-design, if necessary.
Advantages
We can get following advantages from Value Analysis:
1. Lowering of cost
2. Better quality of product
3. Increased efficiency
4. High level of morale and team spirit
5. Increased customer’s satisfaction
6. Optimum resource utilisation
7. Improved methods of production
8. Increased job satisfaction and motivation to workers through use of their creative
ability.
The term value analysis has now been replaced by value engineering in corporate
circle. In most of the organisations, value-engineering practices are followed forming
value engineering team of workers (a small group activity like quality circles, etc.).
This, therefore, provides opportunity to workers to derive creative satisfaction and
also to fulfill their intrinsic needs. At the same time, organisation also gets active
services from the workers.
State whether the following statements are true or false:

1. For performance management in organization, effective information and
documentation on job analysis, job description and job evaluation are
important pre-requisite.
2. In performance management, job description and job analysis are critical
inputs to decide bout the job importance and the performance standard
requirements.
3. Job information provides input about the jobs, as per which jobs are
documented.
Contd….
80 4. Job analysis provides inputs for the job contents, job description
Systems and Strategies facilitates in grouping identical jobs in job families and names it and
finally job evaluation decides the relative worth of a job.
5. Job information is one essential input for effective performance
management.
Case Study
Goodearth Financial Services
Goodearth Financial Services Limited, has grown considerably during the last
5 years. Mr. Jashpal Bhatti started the company with two employees and business
for Rs.6,00,000/- in gross sales. The company now employs 200 people and is
expected to have business for Rs.6, 00,00,000/- this year. During the early years,
it was always clear what was expected from each employee. Everyone knew how
to do everything and was often called upon to do exactly that. This is no longer
true and it is apparent to Mr. Jashpal Bhatti that each employee must be given a
clear set of general guidelines as to what duties the employee must perform.
A number of new players are now in financial services who are the arch
competitors for Mr. Bhatti’s company. The service-mix for Goodearth also has
significantly changed to keep pace with the changing customers’ expectation.
The company, therefore, had to change its operation strategy.
In addition, it is becoming increasingly difficult to hire employees without
having a clear understanding of exactly what the individual will be doing.
Applicants seem reluctant to join the firm without some information about their
probable job profile and it is difficult to know exactly what skills, prospective
applicants should have without knowing in some details what they will be doing.
Mr. Jashpal Bhatti decided to write job descriptions and job specifications for his
employees. It is his belief that such documents will clear any misunderstandings
among employees regarding responsibilities, help to organise better the work that
must be done, to inform prospective employees about their probable job duties,
orient new employees and help to make better selection decisions.
You have been retained by Mr. Bhatti to determine whose responsibility it will be
to gather the data and write the descriptions and specifications, how the data will
be gathered (observation, questionnaire or interview) and how detailed
descriptions and specifications should be.
Mr. Bhatti is currently considering these job analysis issues but has a number of
questions about how each will affect the final results.
3.13 LET US SUM UP

For performance management, critical inputs related to a job are necessary. It helps in
identifying the skill sets while hiring and on the other hand also helps in compensation
designing. Although job analysis and job evaluation are considered as important
techniques for such purpose, we have discussed other important areas too for
understanding a job from the holistic point of view.
3.14 LESSON END ACTIVITY

Write on the concepts of job analysis, job evaluation and job assessment.
81
3.15 KEYWORDS Performance Management
Value Engineering: It is an organised creative technique to analyse functions of a

product or service or a system.
Use Value: The properties and qualities which are useful and which enable to
accomplish the work. Use Value again may be either for primary use, secondary use
or for auxiliary use.
Esteem Value: Aesthetic features or properties which attract a customer to own it.
Cost Value: The cost required to produce the item.
Exchange Value: The properties, which enable the owner to exchange it for anything
else, if, he so desires in future.
Job Description: This process helps to give a title to a job, considering the conditions,
tasks and responsibilities involved and qualities required for a job.
Job Assessment: To keep pace with the changing job content, due to technological
changes, it is necessary to make periodic re-assessment of the job keeping in view the
old Job Description.
Job Analysis: This process helps to examine the facts about some specific job and
determine the essential job factors.
3.16 QUESTIONS FOR DISCUSSION

1. What recommendations would you make to him regarding the most appropriate
individuals and methods to be used for data collection?
2. What approach to the design of jobs should be considered by you and why?
3. Keeping in mind the recent trends in financial services company, design the job of
different hierarchical levels for at least four operational areas with supporting
background information, like; job analysis, job description etc.
4. What are the purposes of job evaluation? Discuss the steps involved in job
evaluation.
5. Discuss different types of job evaluation technique. Which type do you consider
more suitable and why?
6. In what way are job analysis and job assessment different? Select any job and
analyse its individual content.
7. Define job analysis and its role in HRP Process. Explain briefly the elements that
constitute the job analysis process.
8. How is compensation structure linked with job evaluation?
a) Define Work-study. What are its important objectives? Why trade unions
react to work study programme? In what way can you combat such a
reaction?
b) What are the important roles of method study? Identify the important
contributions of method study and discuss at least five such contributions in
details.
c) Elaborately discuss the steps involved in a Method Study Programme.
d) Define Work Measurement. What are its different techniques? Discuss at least
three techniques elaborately.
e) What are the steps involved in a time study programme? How does it help
work measurement programme in an industrial unit?
82 f) What is Ergonomics? How does it help to increase productivity? Discuss with
Systems and Strategies examples.
g) What are the basic principles of motion economy? Discuss these principles in
relation to a work area with which you are familiar.
h) Explain how human engineering techniques influence machine design. Select
an advertisement of a furniture item and discuss its ergonomic features.
i) What are the steps involved in value analysis? What course of action can you
suggest for a successful value analysis study? Elaborate your answer.
j) For HRP why it is so important for us to study different job measurement
techniques?
Check Your Progress: Model Answers

CYP 1
1. T, 2. T, 3. T, 4. F
CYP 2
1. Employee benefits 2. Safety and health 3. Employee services
4. Miscellaneous benefits
CYP 3
1. Job evaluation, 2. Assessors, 3. Work study,
4. Critically examine the facts, 5. Work Measurement
CYP 4
1. T, 2. F, 3. T, 4, T, 5. T
3.17 SUGGESTED READINGS

Suri, Venkata Ratnam & Gupt (ed.), Performance Measurement and Management, Excel
Books, New Delhi, 2004.
R. K. Sahu, Performance Management System, Excel Books, New Delhi, 2006.
Rao and Rao, (ed.), 360 Degree Feedback and Performance Management System, Excel
Books, New Delhi, 2000.
B. D. Singh, Compensation and Reward Management, Excel Books, New Delhi,
2007.
Appendix 3.1 83
JOB ANALYSIS DATA SHEET
Job Title CODE:
Other Titles
Suggested Title
Department Dept. No. Dept. Head
No. on Job Range Supervised By
PERSONS INTERVIEWED
ANALYSIS DATE LOCATION OF JOB
OTHER IDENTIFICATION
JOB SUMMARY (Key phrases that cover job):
RELATION TO OTHERS JOBS:
PROMOTION FROM :
PROMOTION TO :
TRANSFER TO AND FROM :
WORK PERFORMED: WHAT – HOW – WHY (Use additional sheets if required)
MAJOR DUTIES:
OTHER TASKS:
EQUIPMENT, MACHINES:
SKILLS INVOLVED-PHYSICAL DEMANDS :

Experience (Type and Amount) :
Education and Training (Specific skills required) :
Responsibility for Product and Material :
Responsibility for Equipment and Machinery :
Responsibility for Work of others :
Other Jobs directly affected :
Resourcefulness :
Monetary :
Visual Efforts :
Physical Efforts :
Surroundings :
Hazards :
84 Appendix 3.2
JOB DESCRIPTION
FORM NO.2
JOB IDENTIFICATION DATA :

PRESENT JOB TITLE :
DEPARTMENT/SECTION :
SUGGESTED JOB TITLE : DATE:
JOB CODE :
EMPLOYEES INTERVIEWED :
JOB SUMMARY
(A) REGULAR TASKS:
1.
2.
3.
4.
(B) CASUAL TASKS:
1.
2.
3.
(C) EQUIPMENT OR MACHINE USED:
(D) WORKING CONDITIONS AND HAZARD:
FORM NO.3
JOB SPECIFICATIONS
JOB TITLE (Existing): JOB CODE NO.:

JOB TITLE (Suggested):
DEPARTMENT/SEC TOTAL POINTS CLASSIFICATION
1. Education Points
2. Experience Points
3. Responsibility for Product or Materials Points
4. Responsibility for Machinery & Equipment Points
5. Responsibility for Works of Others Points
6. Responsibility for Safety of Others Points
7. Manual Skill Points
8. Physical Effort Points
9. Working Condition including Hazards Points
Setting Performance Standards (KRA/KPAs)

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53

3.2 JOB INFORMATION

3.3 OBJECTIVE OF JOB INFORMATION

3.4 JOB ANALYSIS

3.4.1 What should be Analysed?

3.4.2 What Methods of Analysis should be Used?

3.4.3 Job Questionaire

Check Your Progress 1

3.5 JOB DESCRIPTION

3.5.1 Job Specifications

Should Employees see their Job Descriptions?

Use of Job Description

Figure 3.1: A Central Peripheral Relational Model of Job Analysis

3.6 JOB EMPLOYEE BENEFITS REQUIRED BY LAWS

3.6.1 Statutory Employee Benefits in India

3.7 DISCRETIONARY MAJOR EMPLOYEE BENEFITS

3.8 EMPLOYEE SERVICES

3.9 HEALTH CARE

Check Your Progress 2

3.11 CONCERNS OF MANAGEMENT

Steps in Job Evaluation

Types of Job Evaluation Schemes

Limitations of Job Evaluation

3.11.2 Job Design

3.11.3 Job Assessment

Pricing Job Value

Other Methods of Job Assessment

3.11.4 Work Measurement

3.12 ERGONOMICS: CONCEPTS AND DEFINITIONS

3.12.1 Working Areas

Class Pivot Body Member Movement

3.12.2 Value Analysis

State whether the following statements are true or false:

3.13 LET US SUM UP

3.14 LESSON END ACTIVITY

Value Engineering: It is an organised creative technique to analyse functions of a

3.16 QUESTIONS FOR DISCUSSION

Check Your Progress: Model Answers

3.17 SUGGESTED READINGS

JOB ANALYSIS DATA SHEET

Job Title CODE:

Department Dept. No. Dept. Head

No. on Job Range Supervised By

ANALYSIS DATE LOCATION OF JOB

JOB SUMMARY (Key phrases that cover job):

RELATION TO OTHERS JOBS:

WORK PERFORMED: WHAT – HOW – WHY (Use additional sheets if required)

SKILLS INVOLVED-PHYSICAL DEMANDS :

JOB IDENTIFICATION DATA :

(A) REGULAR TASKS:

(B) CASUAL TASKS:

(C) EQUIPMENT OR MACHINE USED:

(D) WORKING CONDITIONS AND HAZARD:

JOB TITLE (Existing): JOB CODE NO.:

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