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Cost Accounting – I

Notes 6. Employee Development: Job Analysis provides the necessary information for employee
development. When considering an employee for promotion, job analysis may facilitate his
easy consideration for the job.

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Caselet Job Analysis at Motorola

hen Motorola decided to shift its focus from simply filling customer orders to
world class quality, managers analyzed the nature of factory jobs under the
Wnew strategy. They found that factory jobs demanded employees who could
read at the ninth grade level and who possessed elementary statistical knowledge. This
analysis helped Motorola incorporate this information into its HRp process. Sadly, many
of Motorola’s current employees were under qualified. Managers had to decide whether to
train existing employees and prepare them fully to meet job demands or to whether to let
them go and replace them with more capable employees who could handle the new quality
control systems and procedures. Finally Motorola decided to train existing employees so
that they can handle their jobs well.

Task One of the common reasons advanced for non conducting job analysis is the
substantial cost that can be associated with such an undertaking. Present a more balanced
perspective by identifying both the various benefits of conducting job analyses and the
incremental costs that may occur if the process is not instigated. Discuss.

6.4 Job Evaluation

In the organisation or industry, there are different types of jobs, each jobs having its own features.
As such, the various jobs in an industry or organisation are required to reviewed and analysed.
Job evaluation helps in the determination of correct grade of labour for each job or operation.
It is the ranking and grading of essential work characteristics of all jobs or job classes in some
systematic way to ascertain the labour worth of each job or job class relative to all others.

Objectives of Job Evaluation
The main objectives of job evaluation are:

(i) To establish a sound wage structure,
(ii) To provide a sound wage for incentive and bonus plan,
(iii) To eliminate wage inequalities,
(iv) To facilitate maintenance of a consistent wage policy, and
(v) To establish sound wage differentials among the jobs.

Advantages of Job Evaluation

Job evaluation is a very useful method. It helps in preventing and removing inter-plant inequities
as well as in reducing inter-plant inequities. It is the basis of scientific system of job rating as
well as developing a sound and satisfactory wage structure. There is a common saying in
business organisations or industries that “we pay for jobs and not for men” are quite true. As

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