Organizations are witnessing major revolutions in the contemporary world. As such, they are looking for ways in which they can develop a workforce that can assist them to cope with the diverse economic issues. Experts stipulate that forces, such as job creation as well as inflation attributed to diverse services and goods lead to an environment that requires the human resource to search for appropriate workforce (WorldatWork, 2007). In such a scenario, the HRM needs to assess job worth, which is possible to perform by undertaking job evaluations based on the existing needs of the market. Such kind of an approach allows organizations to realize success. Additionally, to allow organizations to realize their aims in a productive manner, companies need approaches that depend on market forces to allow them attract the best talent. Nonetheless, major differences prevail between market-drive as well as job-worth systems of job evaluation despite the mutual link they have when it comes to developing the workforce (Kim & Mauborgne, 2015). Therefore, the paper discusses the similarities and differences between market-driven job evaluation and job-worth systems of job evaluation as well as describes an example of each approach while offering a rationale regarding whit it serves as the best approach for the described situation.
Similarities and Differences
When it comes to market-driven job evaluation, it is usually undertaken by a team that is manages workforce performance. The team organizes a systematic approach, which targets overseeing the key requirements for every unit and department in a company. The system of managing performance ensures to develop job reports based on the standards of evaluation. They do this once they realize the requirement for a different position or department in supporting mitigation of the evaluated burden that other divisions encounter. A similar process follows when it comes to creating resolutions to the complaints that clients raise (McKinsey &Company Inc, Koller, Goedhart, & Wessels, 2010). Thus, the identified situations result to a process of job evaluation by instituting a criterion of standards to be followed, which are then availed at the yearly conference, which a company holds.
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In the case of the job worth systems of job evaluation, the approach targets the establishment of a personalized service or product while at the same time availing them to clients to enrich their purchasing experience. In this case, organizations focus on instituting a revolutionary system aimed at managing individuals within an organization in an adept manner. It eradicates the generic strategies for responding to the needs of the workforce while taking advantage of the creation of a highly customized system for each worker. This facilitates in the establishment of a new relationship between corporations and employees. The outcomes of the process are reduced employee turnover, enhanced productivity and increased profitability (WorldatWork, 2007). In this perspective, therefore, the job-worth systems of evaluation facilitate in the realization of supposed goals.
When looking at the job worth system, it targets the worth of the position that an employee holds while assessing the compensations for attaining the specific position. As such, job worth evaluation is vital for companies when it comes to offering employees a justifiable position in areas related to pay rates, inflation, and living costs. (McKinsey & Company Inc, Koller, Goedhart, & Wessels, 2010) When the performance management department embarks on constant supervision of the employees, it is able to determine whether an increase is needed within a particular department’s hired position.
In the event of both market-driven job evaluation and job worth systems of evaluation, the major similarity that prevails is that the two approaches focus on boosting the abilities of organizations in meeting the distinct needs of the workforce and customers (Ulwick, 2015). Nonetheless, the key difference emerges where the market driven approach focuses on the influence of the external environment on organizational position whereas the job-worth approach maintaining internal equity.
Approaches’ Rationale and Examples
The rationale behind market-driven approach is that listening keenly to the needs of the workforce keenly needs to serve as a priority irrespective of the operations that an organization undertakes. The mechanism provides the organization with a means of utilizing a CPI (Customer Price Index) to assess the market needs of consumers and support assessments affiliated with distinct company operations (McKinsey & Company Inc, Koller, Goedhart, & Wessels, 2010). For example, a company might be required to modify a certain service, product, or department in order to meet the needs of the market.
For the job worth concept, its rationale revolves around the volatility attributed to the present business atmosphere based on services or products’ inflation or fluctuations in exchange rates. Distinct sectors worldwide focus on attaining a tremendous growth share from target market. The need for growth revolves around considerations for assessing the requirements for workforce growth, employee retention and pay rises (Ulwick, 2015). The approach focuses on defining and creating a balance between demand and supply.
To clarify the two approaches, an example would be appropriate. During the short run, monetary policy has significant influence on inflation and countrywide demand for services and products. The situation leads to a rise in demand for workforce capable of delivering quality services and products to consumers in line with making sure that corporations embark on job-worth assessments to attracting the required talents in line with satisfying the sophisticated demands for boosting organizational financial performance.
Conclusion
In conclusion, the two evaluation approaches, including market-driven and job worth have facilitated in understanding that the workforce and consumers serve as the major forces that ensure organizations function in a smooth manner. Consumers are associated with market-driven strategy whereas the workforces are representative of job-worth assessments. In this case, organizations should ensure rely on experts from the performance management department to ensure that they meet the needs of consumers and employees successfully, hence boost organizational productivity.
References
Kim, W. C., & Mauborgne, R. (2015). Blue Ocean strategy, expanded edition: how to create uncontested market space and make the competition irrelevant. Boston: Harvard Business Review Press.
McKinsey & Company Inc, Koller, T., Goedhart, M., & Wessels, D. (2010). Valuation: measuring and managing the value of companies, university edition. Hobken: John Wiley and Sons.
Ulwick, A. W. (2015). Jobs to be done: theory to practice. Chicago: Idea Bite Press.
WorldatWork. (2007). The WorldatWork handbook of compensation, benefits and total rewards: a comprehensive guide for HR professionals. Hoboken: John Wiley & Sons.
