Similarities and Differences between Market-driven Job Evaluation and Job-worth System of Job Evaluation
Discuss the similarities and differences between market-driven job evaluation and job-worth systems of job evaluation. Describe an example of each approach and provide the rationale for why it is the best approach for the situation described.
Due to the evolution of the contemporary business world, companies are continuously searching for specialised ways for constructing a workforce, which actually helps them to deal with the changing economic perceptions. Edwards (2012) proposed that job creation and inflation related to various goods and services are mainly responsible for developing a climate requiring the useful involvement of a suitable human resource plan in the right place for the majority of corporations of modern day. In this particular scenario, it is constructive for the human resource managers to determine the job worth, which can be performed by conducting a job evaluation based on the current market needs (Day, 2012). It is observed that the certain implication of the process encourages the organization to achieve success along with the other potential contributions from the information documented through the extensive research. In order to achieve the organizational aims productively, the management must need to adopt a market-driven approach for luring the talents from the market, recruiting them to the company, and retaining them with the workforce (Kinyili, Karanja, & Namusonge, 2015). However, there is a significant level of difference between the market-driven job evaluation and job worth system regardless of their mutual connection with the workforce development. Therefore, this paper is formed with the aim of developing a suitable discussion regarding the ‘Market-driven Job Evaluation vs. Job Worth’ for elaborating critical understanding on what the organizations should need to exercise internally or externally.
As dictated by day (2012), companies from the modern day environment are always looking for a sustainable niche, which might contribute to their survival in the respective marketplaces. By the investigation regarding the historical timeframe, it is observed that the organizations are going through an ever changing redesigning process from both internally and externally for countering the risks associated with the market settings (). With reference to the identified fact, often the organizations can be seen designing new jobs, placements, and classifications in accordance to the needs of its customers or organizational strategies. Furthermore, companies may create an entirely innovative division for just in place for addressing the new trends, technologic needs, and development requirements for the corporation.
From the above understanding, it can be assumed that the job evaluation techniques are followed for brewing a more personalised product or service and offering them to the customers for enriching their buying experience (Effort, 2013). Here, Kinyi and Karanja (2015) have indicated the suggestion provided by the talent management experts Susan Cantrell and David Smith to ensure the introduction of a revolutionary new system for managing people within the organization adeptly. The particular system exerted by the experts was known as ‘Workforce of One’ eliminating the generic approaches for responding to the workforce requirements while leveraging more on the development of a highly nuanced and customised system for every employee (Edwards, 2012). The result of the study reflects the formation of a new relationship between the employees and the organizations. Kinyi and Karanja (2015) has further investigated the fundamental outcomes of such process and come up with the findings that the core application of the modified approach lowers the rate of employee turnover, maximiss the productivity, and enhances profit margin across the organizations. The job-worth evaluation sufficiently contributes the the achievement of proposed goals of the identified system.
Example of Each Approach and their Rationale
On the other hand, a market-driven evaluation is principally performed by the team responsible for managing performance of the workforce (Bamberger, Biron, & Meshoulam, 2014). As part of the process, a systematic methodology is organised by the team with the intention of overseeing the primary requirements for each department and unit within the corporation. Effort (2013) has indicated some unique factors regarding the roles played by the performance management team. According to the investigation of the identified literature, performance management system is responsible for creating job reports according to the evaluation standards when they notice the need of another department or position for supporting the alleviation of the assessed burden faced by the other divisions. The same process is applied for engendering resolutions for the complaints raised by the customers as well (Kerzner, 2013). Therefore, the identified scenarios give rise to the job evaluation process by setting the standard criteria, which are ultimately submitted at the annual conference held by the company.
Most importantly, it is worthy enough to mention that job assessment done by following the job worth system deals with the specific worth of an employee’s position while determining quantity of compensations for acquiring the identified position (Ulrich, 2013). Hence, job worth is momentously important for the companies to follow for providing a justifiable position to the employees during the lines of inflation, pay rates, and cost of living. Edwards (2012) has explained that a regular supervision by the performance management department helps them to determine whether there is a need for increase within the hired position of a certain department.
From the overall analysis, the fundamental similarity between Market-driven and job-worth is improving the capabilities of the organization for satisfying the differing needs of customers as well as employees. However, the major difference between the two systems is that internal equity is maintained by job-worth, where market-driven approach reflects how external environment is affecting the organizational position (Purce, 2014).
The significant rise of job-worth is caused due to the volatility of the current business environment influenced by exchange rate fluctuations or inflation of products or services (Tyson, 2014). Different industries from the global platform may it be retail, information technology, or food and beverage sectors are all continuously devoted to achieving the prominent share of growth from their target market. According to Kerzner (2013), the growth objectives of different firms are largely dependent on considering an evaluation for determining the necessity of employee growth, pay rises, and workforce retention. The rationale behind the process is simply based on defining and developing a balance supply and demand where the prominence is provided to the implementation and development (Goetsch & Davis, 2014).
On the other hand, listening minutely and fulfilling the requirements of consumers should be the foremost priority of a business irrespective of its operations under a small and medium enterprise or the major corporate guidelines. Such a scenario cause the application of a market-driven approach, as the process encourages the company to use a ’Consumer Price Index (CPI)’ for scrutinizing the needs of market consumers and supporting the measurements associated with the different areas of the company (Mathis, et al., 2016). For example, the need for modifications to the specific product, service, or department can be categorised as the market-driven approaches. The overall explanation of the two different concepts can be suitably clarified through an example. In the short run, monetary policy highly influences inflation and the nation-wide demand for the product and service. The given situation raises demand for the capable employees who can deliver quality products and services to the customers while drives the organization to undertake the job-worth evaluation to attract those talents and satisfy the complicated demands for promoting the financial standing of the business (Tyson, 2014).
From the rationale obtained through the typical arguments and comparisons rendered throughout the paper, it can be determined that consumers and employees are two principal factors that the company should leverage upon to ensure the smoothness in whole business functionality. Consumers determine the market-driven approach for the companies whereas employees represent the job-worth evaluation. Consumers are the ones setting the bar for enterprises regarding its future operations like the ways it will induct to hire employees and the type of goods and services produced for consumption. On the other hand, the corporation needs to stress on its internal environment to improve the job positions for its employees for continuously meeting the diverse needs of customers. It is vital for the firms to take suggestions from the performance management experts to satisfy the consumer demands alongside the employee concerns prosperously. The simultaneous presence of both types of job evaluation ultimately leads the organization to provide assistance on analysing and creating jobs.
Bamberger, P. A., Biron, M., & Meshoulam, I. (2014). Human resource strategy: Formulation, implementation, and impact. Routledge.
Day, N. E. (2012). Pay equity as a mediator of the relationships among attitudes and communication about pay level determination and pay secrecy.Journal of Leadership & Organizational Studies, 19(4), 462-476.
Edwards, M. R. (2012). Employer branding: developments and challenges.Managing Human Resources: Human Resource Management in Transition,5.
Effort, D. (2013). Implementing Performance Management and Recognition and Rewards (PMRR) Systems. Human Resource Planning: Solutions to Key Business Issues Selected Articles, 12(3), 169.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. pearson.
Kerzner, H. R. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Kinyili, J. M., Karanja, K., & Namusonge, G. S. (2015). Role of remuneration and career advancement practices on the retention of employees in organizations: evidence from research. International Journal of Advanced Research in Management and Social Sciences, 4(7), 254-279.
Mathis, R. L., Jackson, J. H., Valentine, S. R., & Meglich, P. (2016). Human resource management. Nelson Education.
Purce, J. (2014). The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.
Tyson, S. (2014). Essentials of human resource management. Routledge.
Ulrich, D. (2013). Human resource champions: The next agenda for adding value and delivering results. Harvard Business Press.
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