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Development of Job Evaluation Tools by Industry: Analyzing Case Studies
Development of Job Evaluation Tools by Industry: Analyzing Case Studies
  • Table of Contents

    Chapter 1. Introduction (Kyetaik Oh)

    Chapter 2. Steel Industry Case Studies (Gyu Chang Yu, Hye Jung Lee)

    Chapter 3. Medical Industry Case Studies (Sang Hoon Lim)

    Chapter 4. Conclusion and Implications (Kyetaik Oh)

     

  • SUMMARY

    Korea’s labor market does not have sufficient infrastructures when companies try to newly introduce a job-based system. One of the most representative infrastructures for job-based HR management is job evaluation tools at the industry level. Although job evaluation is usually performed at the individual firm level, it is difficult to develop job evaluation tool at the firm level unless it is a large company. Thus, these tools are often developed at the industry level and utilized by companies in the related industry. However, since the development of Korea’s labor market was led by institutions rather than job level historically, the existing infrastructure for job-based HR and wage management is relatively weak. In order to overcome this, it would be necessary to develop job evaluation tools at the industry level suitable for Korea’s labor market environment. Given the necessity of research on this subject, previous studies have developed job evaluation tools at the industry level rather than at the enterprise level. Even if job evaluation tools are developed at the industry level, individual firms or organizations need to have knowledge and know-how on how to utilize those tools at the firm level in order to actually use them for job evaluation, and to build and operate job-based personnel and wage management system. Against this backdrop, this study attempted to examine how actual companies performed job evaluation using the job evaluation tools that had already been developed in the healthcare and medical industry and the steel industry, and implemented a pilot operation of job-based personnel management system. The case studies in Chapter 2 analyzed the process of how Company A in the steel industry improved its compensation system using job evaluation tools. Company A was facing challenges in its external business environment such as the stagnation of domestic demand in the steel industry, sluggish exports due to China’s economic deterioration, and a negative outlook for major industries with steel demand (shipbuilding, automobiles and construction), thus needed to make a preemptive response through reorganization of cost structure and personnel management. Although Company A had previously attempted to carry out job-based HR management, it failed to use job evaluation tools in a scientific way. This time, using the job evaluations tools of the steel industry developed through the study of the Korea Labor Institute, it tried to come up with a reasonable job group design and construct a compensation system reflecting the relative value difference between jobs. This was done in a three-step process. The first stage was about developing job evaluation tools suitable for Company A. A review of literature was conducted, a project committee was formed, and the job evaluation tools suitable for Company A were finalized at this stage. The second stage was about executing job evaluation. Using the job evaluation tools confirmed in Step 1, specific data for each job were collected. In the third step, job groups and wage grades were designed using the job evaluation results obtained in Step 2.

    Chapter 3 tries to determine the industrial applicability, feasibility, and appropriateness of the job evaluation tools of the healthcare and medical industry developed by the Korea Labor Institute by closely examined job evaluation tools, its wage system design, and personnel management system design of the Medical Center A. In addition, various issues arising in the actual development and design process were analyzed to draw some implications that could be used in the future when expanding the use of industry-specific job evaluation tools. The job evaluation tool of Medical Center A was developed in two stages. First, the validity of job-based personnel management was derived, and then the first round of expert survey on representative jobs was conducted using the evaluation tool developed by the Korea Labor Institute. As a result of the survey, Medical Center A was able to discover the problems of the evaluation tool, and the management team and the research team derived the final job evaluation tool reflecting the opinions of the labor union and overseas cases. Meanwhile, Medical Center A designed a job-based personnel management system so that its wage system based on job value can be operated smoothly, and ensured internal consistency between different areas. In other words, in all areas starting from manpower planning to job (re)design, evaluation, transfer, and education and career development, it ensured that job orientation is consistently reflected.

    The following implications can be drawn from this study. First, although it is important to develop job evaluation tools that can guarantee objectivity and fairness in the development process, careful management is needed in actual utilization process. Second, various issues can arise in the application process of job evaluation tools. Third, it is necessary to build the needed infrastructure for effective job evaluation. Fourth, there needs to be a process of coordination of compatibility with other personnel management systems related to compensation management. Fifth, in order for an individual firm to utilize the job evaluation tools developed at the industry level, it may be necessary to fine-tune those tools to suit the company’s characteristics.

Kyetaik Oh's other publications : 7
{Research Series} posts
No Title Author Date Attach
7 Policies for Workplace Innovation Kyetaik Oh, Seong-Jae Cho, Dongbae Kim, Yongjin Nho, Joohwan Lim, Moonho Lee, Seung Gook Jung December 28, 2018 Policies for Workplace Innovation
6 Development of Job Evaluation Tools by Industry: Analyzing Case Studies Kyetaik Oh, Gyu Chang Yu, Hye Jung Lee, Sang Hoon Lim December 28, 2018 Development of Job Evaluation Tools by Industry: Analyzing Case Studies
5 Study on a “Fair Wage System” in Korea’s Labor Market Kyetaik Oh, Jeongkoo Yoon, Donghoon Yang December 28, 2018 Study on a “Fair Wage System” in Korea’s Labor Market
4 Developing Industry-level Job Evaluation Tools: Public Service and Social Welfare Service Industries Kyetaik Oh, Gyu Chang Yu, Hye-Jeong Lee, Min-Kyung Ju, Mi-So Yoon December 29, 2017 Developing Industry-level Job Evaluation Tools: Public Service and Social Welfare Service Industries
3 HR Management Practices in Response to Changes in the Labor Market Environments such as Retirement Age Extension Kyetaik Oh, Dong-Gwan Jung, WooSung Park, Sangmin Lee December 30, 2016 HR Management Practices in Response to Changes in the Labor Market Environments such as Retirement Age Extension
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