The Compensation Assessment Based On Functional Job Analysis

The purpose of this study is to investigate the performance and compensation appraisal system of an organization by using job analysis.The technique of Functional Job Analysis (FJA) is used to calculate the performance score of a job in terms of three indexes: data, people, and things. Regression analysis is conducted, with performance score and years of service as independent variables and salary as dependent variable, to identify the salary structure of an organization. The result shows that years of service is insignificant in this regression model. Our explanation is that the content of a job usually gets more complicated as the job-holder stays in the company longer, and the performance score would have well reflect the complexity of the job. The revised regression model demonstrates very high fitness, which indicates that the compensation appraisal system is fair in our studying case. Our regression model can serve as a prediction tool for companies to appraise and determine the salary of a new employee.