Job Rotation or Cross

8/2/2019 Job Rotation or Cross

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Job Rotation or Cross-training the periodic shifting of an employee from one

task to another.

Job Enlargement increasing the number and variety of tasks. The horizontal

expansion of jobs.

Job Enrichment increasing the degree to which the worker controls the

planning, execution and evaluation of the work. The vertical expansion of jobs.

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What to pay

Need to establish a pay structure

Balance between:

Internal equity the worth of the job to the organization

External equity the external competitiveness of an organizations pay relative to pay elsewhere in its

industry

A strategic decision with trade-offs

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What to Pay Pay Structure

Internal equity

The worth of the job to the organization

Determined by job evaluations

External equity

The competitiveness of the companys

pay relative to pay elsewhere in the industry

Determined through pay surveys

Choose organizational position

Pay leaders

Greater employee loyalty

Attracts better-quality employees

Pay laggards

accept high turnover for low hourly costs

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laggards


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. How to Pay - Variable Pay Programs

Types ofVariable Pay Programs

A portion of an employees pay is based on some individualand/or organizational measure of performance

Piece Rate:

Workers are paid a fixed sum for each unit of

production completed

Weakness: not feasible for many jobs

Merit-Based:

Based on performance appraisal ratings

Gap increasing between average and top-

performers

Weaknesses: may be subjective, validity of

system based on annual appraisals, pay pool can

be small, unions strongly resist

Bonuses:

Rewards recent performance

Weakness: employees consider this a pay

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How to pay: Variable-Pay Programs

Bases a portion of the pay on some individual and/or organizational

measure of performance

Piece-Rate Pay workers are paid a fixed sum for each unit of production

completed

Merit-Based Pay pay is based on individual performance appraisal ratings

Bonuses rewards employees for recent performance

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M

ore Types of

Variable-Pay Programs

More Variable Pay Programs

Skill-Based Pay

Pays based on the number of skills employees have or the number of jobs they

can do.


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Profit-Sharing Plans

Pays out a portion of the organizations profitability. It is an organization-wide

program and is based on a predetermined formula.

Gainsharing

Pays for improvements in group productivity from one period to another. It is a

group incentive plan.

Employee Stock Ownership Plans (ESOP)

Provides each employee with the opportunity to acquire stock as part of theirbenefit package.

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Gainsharing . .

)ESOP( .

Variable Pay Programs (cont.)

Profit-Sharing Plans organization-wide programs that distribute compensation based on an

established formula designed around profitability

Gain Sharing compensation based on sharing of gains from improved productivity

Employee Stock Ownership Plans (ESOPs) plans in which employees acquire stock, often at

below-market prices


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)cont(. -

- )ESOPs(-

How to pay: Skill-Based Pay Plans

Pay is based on skills acquired instead of job title or rank

Doesnt address the level of performance, only ability to perform skill

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Employee Recognition Programs

Are in addition to extrinsic compensation systems

Are intrinsic rewards

Can be as simple as a spontaneous comment

Can be formalized in a program

Recognition is the most powerful workplace motivator

. How to Build Recognition Programs

Intrinsic Rewards: Stimulate Intrinsic Motivation


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Personal attention given to employee

Approval and appreciation for a job well done

Growing in popularity and usage

Benefits ofPrograms

Fulfill employees desire for recognition

Inexpensive to implement

Encourage repetition ofdesired behaviors

Drawbacks ofPrograms

Susceptible to manipulation by management

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Documents

Job Rotation or Cross