Page 125 - DCOM202_COST_ACCOUNTING_I

Unit 6: Labour Cost

6.3 Job Analysis Notes

Job Analysis is a systematic exploration, study and recording the responsibilities, duties, skills,
accountabilities, work environment and ability requirements of a specific job. It also involves
determining the relative importance of the duties, responsibilities and physical and emotional
skills for a given job. All these factors identify what a job demands and what an employee must
possess to perform a job productively.

Uses of Job Analysis

A comprehensive job analysis program can be used as a foundation and as an essential ingredient
for all the functions and areas of personnel management and industrial relations. A brief
description of uses of job analysis is as follows:

1. Employment: Job analysis is useful as a guide in every phase of employment process like
manpower planning, recruitment selections, placement, orientation induction, and in
performance appraisal as it gives the information about duties, tasks and responsibilities
etc.

Example:

Job Grade: Middle Management
Job Title: Credit Manager
Age: Between 35 and 45 years
Sex: Preferably male
Educational Qualification: B.E. (Industrial Engineering) or B.Sc. with post-graduate diploma or
degree in Bank management. Completion of CAIIB is an additional qualification.
Training received: Should undergo training on the job/off the job for a period of one year .
Experience: Experience as credit/field officer in a commercial bank for about five years.
Physical specification: Normal height (above 5.5”)

Social specification: Member of social organizations
Extra-curricular activities: Should have participated in sports/games at the district or inter
university level.

2. Organization Audit: Job information obtained by job analysis often reveals instances
of poor organization in terms of the factors affecting job design. The analysis process,
therefore, constitutes a kind of organization audit.
3. Training and Development Program: Needs of training and developing are identified
with the help of job description. Further the training programs are also evaluated with the
standards of job analysis.
4. Performance Appraisal: Instead of rating an employee on characteristics such as
dependability there is now a tendency towards establishing job goals and appraising
the work done toward those goals. In this type of appraisal, a job description is useful in
defining the areas in which job goals should be established.

5. Wage and Salary Administration: Job analysis is the basis for job evaluation. Basically wage
and salary levels are fixed on the basis of job evaluation which takes into consideration the
content of the job in terms of tasks, duties, responsibilities, risks, hazards, etc.

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