Exam 11: Rewarding Human Resources

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An accurate job or position description is essential for any job evaluation system. The job description should detail the tasks and responsibilities of a job and from this information a job evaluation system can determine the relative worth of that job using one of the available job evaluation methods. If the job description is accurate it will identify in detail the individual tasks and responsibilities of a position and provide the needed data for determining how this job differs or is similar to other positions and thus enable an accurate job evaluation to be conducted and from this an appropriate remuneration for the position can be allocated. All job evaluation methods are based on the assumption that jobs can be differentiated by evaluating the information in a job description. They are especially important in traditional job based systems of job evaluation such as ranking, job grading and the points system which require an emphasis on the characteristics of the job outlined in the job description.

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Traditionally, Australian organisations have not linked their remuneration systems to employee performance believing that it strikes at the heart of egalitarianism and worker solidarity and causes employees to compete with each other. However there are three reasons why public and private sector organisations in Australia have been more interested in using forms of incentive remuneration. Firstly, Australians are increasingly coming to appreciate the opportunity to be rewarded for their individual contribution to an organisation's success. Secondly, the onset of enterprise bargaining in Australian workplaces has placed more reliance on productivity gains as a trade-off or requirement of increased remuneration. This has led organisations to review their work practices and to introduce some variable pay components based upon performance. Thirdly, there is an increasing demand for pay structures to provide a more direct link between employee rewards and organisational objectives. Organisations feel there is a need to reward those employees directly who most contribute to the achievement of the organisation's goals. Moreover such incentive schemes, if properly designed, can act as a motivator for improved employee performance.