7/31/2019 HRM Case of Job Analysis

1/2

Question 1: What effects do you think HRM has on the gap between projected and actual profits, if any?

The management of The Black Pearl

had an unexpected encounter with financial losses despite the

project having encouraging prospect. The management report on the situation found everything right and

almost perfect except the human resource department. Though Mr. Sparrow appointed an excellent

manager in the department, the report indicated that there are some aspects in the department that could

be the reason why The Black Pearl

is not performing to its full potential. The HR department had

recruited employees with decorated CVs, provided proper salaries, which satisfied employees. And they

also made job description and believed that the employees had complete knowledge about the jobs.

But the problem lies in the fact that the head of HR department, Mr. Barbossa did not make correct

strategies to manage human resource which include job analysis and the result of it: job evaluation. Job

analysis is the systematic exploration of the activities within a job. It is a technical procedure used to

define a job duties, responsibilities, and accountabilities. This analysis involves the identification and

description of what is happening on the job, accurately and precisely identifying the required task, the

knowledge, and the skill necessary for performing them, and the conditions under which they must be

performed.

Again, job evaluation is the activity to specify the relative value of each job in the organization using the

information from the job analysis. This process seeks to rank all jobs in the organization in a hierarchy

that reflects the relative worth of each.

The Black Pearl

recruited able and professional employees from the market but as they did not do a

proper job analysis which includes proper job description and job specification, employees were not fully

aware of their core and also their secondary responsibilities and objectives. A proper job analysis would

have specified the duties and boundaries of actions for the employees and also made the company clear

about the competencies needed for the job to prepare the right combination of jobs and employees.

The hotel management received complaints about the general cleanliness in hotel. For a 5 star hotel

chain like Pirates Inc. this is a worst-case scenario. But all the employees were very sincere about the job

and have the needed skill. Still they failed to perform on the job. Lack of proper co-ordination in them is

one of the main reasons behind it. They do not have a clear planning on what to do, when to do, and how

to do. So, they lack efficiency in their job even though the skill is there. This inefficiency leads to creating

the gap between the expected profit and the actual profit.

On the other hand, the Company was trying to solve the problem by:

Increasing the number of staff members per floor.

Increasing the number of Administration and Maintenance staff.

Increasing the salary of all employees on a fixed line basis.

7/31/2019 HRM Case of Job Analysis

2/2

The strategy of increasing the number of staff per floor and in the administrative and maintenance jobs

without any sort of refined job analysis will bring even bigger confusion among them. In this case the

recruitment would be made to solve problem with the quantity instead of solving it with the quality and

planning. Adding more employees cannot solve the problem that The Black Pearl

is facing, a clearly

defined job description is needed. This inefficiency leads to creating the gap between the expected profit

and the actual profit.

Using the information from the job analysis, the company makes the evaluation of those jobs. Job

evaluation has direct relation with the compensation and benefit system. If an organization is to have an

equitable compensation program, jobs that have similar demands in terms of skills, knowledge and

abilities should be placed in common compensation group. In short, the job evaluation determines the

payment structure on the basis of the demand for the skills and abilities needed for the jobs.

The Black Pearl

had employees with good salaries comparing with the market. The HRM manager had

set up a traditional organogram of the organization with a proper chain of command, and a compensation

and benefit system based on the chain of command. The compensation and benefits and promotion were

managed on a basis of experience and time spent as a company employee. But still it incurred employee

motivation were low leading to low job output. Not doing a proper job evaluation can be the reason of this.

Job evaluation program would help them establish pay rates or ranges compatible with the ranks,

classification or points. Thus, they would have a complete payment structure. The company's practice to

pay salaries at the best values without judging other factual data (compensation survey in similar industry,

wages curves, wages structure etc.) has made their pay structure disorganized. As a result they have

actually paid more than the job would value or the company could afford. In this process they have lost alarge amount of money.

So the companys third decision to increase the salaries in order to increase the effort from the staffs will

be a failure. But they have planned it without finding out what actually they need to think of to solve the

problem. Increasing spending on employees is not the solution. Rather they should invest to have a

proper Job Analysis and Evaluation process to increase the efficiency of their excellent work force and

bring the company back on track. It is not the staffs that are the problem; the problem lies in how they are

being managed.