Remuneration administration

WHAT IS COMPENSATION?

The first learning of the compensation administrator is that compensation is defined differently by different people depending on what each of them represents and based on that perception is how he should approach the issue with each person.

For the employee, the compensation they receive within their organization will never be enough. It may be to satisfy material needs, but for most people, what they earn will never be enough to satisfy security needs and, above all, those of the Ego or Status. It can be said that: "A few earn too much, but no one earns enough."

The employee does not see compensation as a technically defined amount with which it is intended to keep him in a competitive position and reward him for his contribution to the company's results. As much as the above is rationally understood, the reality is that in any human being a kind of egoism predominates based on the laws of least effort and maximum utility.

Compensation allows the employee to meet his basic needs, such as eating, dressing, having a roof under which to protect himself, etc.

It also enables you to meet security needs against risks and the unpredictable future. By saving a part of the compensation and benefits (such as Social Security, life insurance, medical insurance, retirement plans, etc.), the employee gains security in the face of events such as layoffs, death, diseases, etc.

ADMINISTRATION OF REMUNERATION

It allows creating the principles of identity, belonging and participation of all workers for the sake of success, both of the individual and of the organization.

Compensations are essential or important elements both in the competitive degree of the company and in the organization's relations with workers. Compensation is the area related to remuneration, basically it is a relationship of exchange between people and organizations.

Compensations can be direct or indirect; they are direct when the employee receives payment for her work in the form of wages, salaries, bonuses and commissions; and indirect when you receive all kinds of rewards that are included in direct compensation such as vacations, bonuses, overtime, insurance, etc. The sum of the direct salary and the indirect salary, that is, the remuneration constitutes everything the employee receives, directly or indirectly, as a result of the work that an organization carries out is called compensation to the system of incentives and rewards to people who they work on it.

The main objectives of corporate compensation should be aimed at:

Reward the performance of workers to the satisfaction of them and the company

Maintain competitiveness in the labor market

Maintain pay equity among employees

Motivate future employee performance

Attract new employees

Improve the efficiency (productivity and cost control) of the organization and promote strategic guidelines such as quality, teamwork, innovations

Thus, the definition of the compensation administrator could be as follows:

According to WILLIAM M. Mercer (2000), he tells us that “Compensation is the element that allows the company to attract and retain the human resources it needs, and the employee to satisfy their material, security and ego or status needs. " P. 194

This definition raises in a quite obvious way, what the compensation administrator must be clear when exercising his function: He will have to try to offer the maximum level of satisfaction of the needs of the employee trying to make an attractive cost-benefit relationship for the company.

When the employee is dissatisfied with the compensation, the position may be less attractive, which may cause rotation, absenteeism, etc.

RULES FOR EFFECTIVE AND TIMELY ADMINISTRATION OF REMUNERATIONS

The remuneration or compensation must be set and assigned in accordance with:

The job: it is important to consider its complexity, what, how and why it is done.

The person who performs it: basically the levels of performance or contributions of the employee or group of employees are considered, generally taking into account the time and experience that the latter has had in the position, level of knowledge and skills related to the job.

The company: its economic characteristics determine the level of labor costs limited by the profits that can be obtained.

Factors external to the company: the labor market must be studied, as well as other factors such as the government sector through the setting of the minimum wage and legal subsidies.

FUNCTIONS OF THE ORGANIZATION OF THE REMUNERATION UNIT

The remuneration administration has certain functions such as:

Obtain qualified personnel: To achieve this, compensation must be attractive to applicants. Retain current employees: When compensation is not competitive, it can create employee dissatisfaction, so they can leave the organization. Guarantee equality. Encourage proper performance: If compensation is adequate, employees can perform well, experience, loyalty, etc. can be encouraged and strengthened. Control costs: Since the organization may overpay or underpay. the efforts of employees. Comply with legal provisions. Improve administrative efficiency.

In other words, compensation is the global remuneration that the employee receives, according to the importance of his position, his personal efficiency, and his needs, according to the possibilities of the company.

The application of the principles and techniques of salary administration, allows to articulate in such a way the payment in money, with the benefits that the worker receives, and even with the deductions that his work implies, that is achieved, not only to pay fair wages, but also to convince him of that justice.

The importance of this matter derives from the following:

For the worker: it is what substantially directs him to work, although it is not always necessarily what he seeks in the first place. For the company: it is an important element in the cost of production. Not in all kinds of industries is it of equal importance: in some it can reach a very high percentage of the cost, and in others it can be reduced. Usually this reduction depends on the capitalization and mechanization of the company. For society: it is the means of subsistence of a large part of the population. The majority of the population always lives on their salary. For the economic structure of a country: the essential salary in the employment contract, and the employment contract being one of the axes of the current regime, the way they are managed salary systems will determine the very structure of society.For professional practice, in Industrial Relations and Business Administration careers: salary policies and techniques are among those with the widest and most immediate application.

It is important for the administration of wages and salaries that the following steps are respected in their analysis:

Job analysis.

Staff analysis.

Allocation of wages and salaries.

The above is to arrive at salary compensation, which is what the employee receives in exchange for their contributions of time, effort and skills.

There are many factors that can directly or indirectly affect the established salary for individual jobs, for example:

The condition of the labor market.

The prevailing wage levels.

The cost of living.

The company's ability to structure pay and the bargaining power of the union.

The individual power of negotiation.

The value of work.

SUBSYSTEMS

The job, its level of complexity or relative value compared to other positions, is the first subsystem that is considered.

The person: this subsystem is related to the set of abilities, skills, aptitudes, knowledge, experience and training that it possesses.

Work: it gives rise to productivity, efficiency or quality as a quantifiable element in the business sector.

The labor market: takes into account the geographical area, the economic sector, the supply of labor, the technological level and the size of the companies that compete for the labor force, aspects that help to define certain limits or limits in the salary levels.

Taxes: legislative factors that are outside the direct management of the organization, such as: decrees, government laws.

Negotiation: employees - employers

It is important to have a structure of wages and salaries, for which we must follow the following steps:

Technically define the duties and responsibilities of the job (job analysis). Objectively assess the factors that make up the job (job valuation). Technically determine the structure of wages and salaries: It is done with a chart of wages with their corresponding lines of wages. The one found within a geographic area A survey of wages and salaries can be carried out, wages and salaries must be classified.

The policies on administration of wages and salaries consist of the following:

They serve to better manage the salaries of employees, the policies are standards of action for all workers regarding their pay. Workers need to know what these policies are about. Policies must be administered in all areas of the organization.If the policies are well established, the organization will achieve less employee disagreement.

To establish salary policies in an organization, the following must be taken into account:

See the level of wages and salaries they have in relation to the market. See how the salaries vary according to the rates established when negotiating with the employee. Determine the level of payment that will be given to new employees..Determine how much merit and seniority influence salary increases

Some of the types of policies to handle classification problems are as follows:

The confidential nature of the payment information. Policies that are below the minimum range: In these, the intention is to increase the range to the minimum so that stability is not lost and thus the organization has a minimum, medium and maximum, since the company must try not to have any rank below the minimum so that there is no mismatch in the salary scale Policies that are above the maximum: The company uses promotions or responsibilities for the position to be worth more points and thus agree with the salary, or you can also freeze the salary. Policy within limits: This is what the organization should try to preserve, so that there is no mismatch in the salary scale and wages.

Below we will mention some special administrative policies:

Training salaries: it is established for inexperienced workers, who are new. Trial salaries: The worker must pass a trial period (3 months generally), to be assigned the position. Hiring salaries for employees with experience: Here the salary is higher because the employee has more experience. Salaries for elderly employees: Here you can make a reduction in workload or working hours, this is as a reward for the seniority you have in the organization.Wages for the physically limited: They may receive a salary less than the minimum when their physical limitation prevents them from adequately performing their work.Wage for special merits: In the organization there are some cases where the employee reaches the maximum and therefore, will remain frozen.At the upper levels there are fewer vacancies, making promotions more difficult. Excessive wages due to a shortage of employees in the labor market: The supply of workers is not always available, so companies compete to retain their workers, so the salary can be very high.Exceptions to the salary structure: The position must be adapted to the salaries and not the salaries to the position.The position must be adapted to the salaries and not the salaries to the position.The position must be adapted to the salaries and not the salaries to the position.

With the above we can realize that the administration of wages and salaries is that part of the administration that studies the principles and techniques to ensure that the worker's compensation is adequate according to the work performed and the possibilities of each company.

PHASES OF THE ADMINISTRATION OF REMUNERATIONS

CONSISTENCY OR INTERNAL EQUITY

EXTERNAL COMPETITIVENESS

Position based subsystem

Subsystem based on Employee Contributions

Analisis and descripcion of impuests

Job Valuation

· Qualitative Valuation Methods

· Quantitative Valuation Methods

Performance evaluation

Labor Market Study (salary survey)

ANALYSIS AND DESCRIPTION OF CHARGES

Charges Description

The description and analysis of positions have to do directly with the productivity and competitiveness of companies, since they imply a direct relationship with human resources, which is ultimately the basis for the development of any organization. They are tools that allow the efficiency of personnel administration, as they are the basis for it. A conscientious and judicious description and analysis of positions results in simplification in other tasks typical of this sector of the organization.

It is very important to be clear that there is a big difference between a job description and job analysis.

The job description is a basic source of information for all human resource planning. It is necessary for selection, training, workload, incentives and salary administration.

The description is a summary of the main responsibilities, functions and / or activities of the position; it is a process that consists of listing the tasks or attributions that make up a position and that differentiate it from the other positions that exist in a company; it is the detailed enumeration of the attributions or tasks of the position (what the occupant does), the periodicity of the execution (when he does it), the methods applied for the execution of the attributions or tasks (how he does it) and the objectives of the position (Why does he do this). Basically it is to make an inventory of the significant aspects of the position and the duties and responsibilities that it comprises. All phases that run on the job constitute the total charge. A charge «is the gathering of all those activities carried out by a single person,that they can be unified in a single concept and occupies a formal place in the organization chart ».

Obviously, job descriptions are helpful, although individual deviations may be allowed. A new employee will want to know what is expected of him, and when the supervisor notices problems of coordination between employees, he will have to know what are the functions that correspond to each one.

The description should, ideally, distinguish between the prescribed and discretionary content of each position. Thus, it may be a requirement that, for example, each vendor submit a weekly report of their visits, while a more experienced and capable vendor can exercise discretion in informing management about changing market conditions, their origins and potential corrective measures in the product line.

The job description is divided into:

Generic description: It is to explain the set of activities of the position. Specific description: Detail the activities of the position. That is, each of the activities that the worker must carry out.

The job description must be written under the following procedure:

CLARITY: With infinitive verbs and specific actions, in order to avoid SIMPLICITY: It must have an accessible language so that everyone who reads it understands what is done in that post. CONCISION: You must use the least number of words. PRECISION: Avoid ambiguous words to avoid confusion. LIVING: The description should arouse the interest of the person who is reading it.

In summary, the description of charges is oriented towards the content of the charges, that is, towards the intrinsic aspects of the charges.

Charge Analysis

The analysis of positions has to do with extrinsic aspects, that is, with the requirements that the position demands of its occupant.

It aims to study and determine all the requirements, the responsibilities included and the conditions that the position requires to be able to perform it properly. This analysis is the basis for the evaluation and classification of the charges for comparison purposes.

Job analysis becomes vitally important because through it: occupational data related to jobs, qualities necessary to occupy jobs and characteristics of the occupant, which are the basis for career guidance, evaluation, are deduced, analyzed and developed. of wages, the use of workers and other personnel practices. It studies positions held in industries, businesses and other organizations and produces descriptions of elements of the positions and the physical and intellectual requirements that the occupant must possess. Define, classify and correlate occupational data; develops means of orientation for inexperienced workers or those who wish to change positions, and prepares interview procedures to facilitate the placement of workers;uses data to develop salary evaluation systems and recommends changes in job classification; prepares organizational charts, prepares monographs (by describing industrial patterns and trends); designs tests to measure workers' occupational knowledge and skills and conducts related occupational searches.

The analysis is a detailed study of the position to determine the degree to which each of the valuation factors occurs.

The job analysis has a structure that refers to four areas of requirements: intellectual, physical, implicit responsibilities, working conditions. Each of these four areas is divided into several specification factors, such as experience, for example, in the area of intellectual requirements. These specification factors are benchmarks that allow a large number of charges to be analyzed objectively; they are true measuring instruments, built according to the nature of the positions existing in the company. If the nature of the charges to be analyzed varies, so will not only the specification factors considered, but also their amplitude of variation and their behavioral characteristics.

There are different ways to group and organize tasks and duties, and there will be variations depending on manual, office, production, and other positions. The main categories of analysis that could be included are:

Procedures, equipment and materials that the employee must know; Typical problems and requests you will receive. Scope of your responsibility; magnitude of discretion; "Control period". Standards on performance and workload. Relationships; cargo interfaces.Supervision; dependency relationships. qualification, testing and training period. working conditions; Dangers. Promotion and career opportunities.

There are several methods of job description and analysis, including: Direct observation of the worker performing the job; questionnaires for workers and their direct managers; direct interview with the employee; mixed methods combining two or more of the above. The latter provide the possibility of counteracting the disadvantages of each of the methods, thus making the study more reliable.

For a good analysis it is important that whoever does it make sure:

Analyze the position based on minimum requirements.

That the position be analyzed according to their responsibilities at the time of the analysis (neither previous nor future).

That the position be analyzed as an organizational work unit, avoiding contamination with the characteristics of who or those who occupy it.

That all the specifications are verified through all possible means, preventing the employee from “inflating” or underestimating his responsibilities.

In the Mercer degree method, the most common way of analyzing a position is through an interview with who or those who hold this position. It is important that it is a directed interview, and in these cases, it is very convenient to have a guide or format that facilitates following an order and that prevents us from forgetting an important point:

Therefore, it is suggested:

Explain the purpose of the interview. No more or less information than what needs to be given to understand the purpose of it.

Try to make the interviewee feel comfortable and avoid interruptions.

Start with direct and concrete questions.

Give the interviewee enough time to think about the questions.

Use the most suitable interview techniques at all times (neutral reaction, use of echo, use of interpretation).

Take note of the relevant aspects, but pay attention to the interviewee.

When you have doubts about the information you give us, try to clarify them with direct questions. Do not evaluate the interviewee's answers or make him feel that we do not believe him.

End by thanking the interviewee for their help. Do not offer opinions or forecasts about the eventual result of the valuation. In any case, explain what the next steps will be.

There is no better time to prepare a summary or analysis report than at the end of the interview with the occupant.

At that time you will have all the clear and fresh information in your mind. A few days later they can mean forgetting relevant aspects and our notes can become indecipherable documents.

First, we must start by writing the generic and specific job description (if the analysis includes these two descriptions) taking care, in the first case, of establishing the purpose or central responsibility of the job and clarifying how responsibilities are fulfilled and what is the purpose of the same.

In the case of the specific description, the 6 or 7 main functions or activities should be written in order of importance and indicating what is done, how it is done and what it is done for.

After the description and / or analysis is finished, it is recommended to prepare the summary, indicating in the clearest way possible, the degree to which each of the valuation factors occurs, following the order in which the position will be valued. It is worth mentioning that this will increase the degree of acceptance of the results, in an organization in which there is a Job Valuation System it is necessary to think about its maintenance.

Indeed, the creation of new positions and the changes that the existing positions undergo make it necessary to restart the analysis and valuation process continuously.

In general, people will try to solve many compensation problems through the Analysis and Valuation System. Some of those cases are:

Low wages compared to the market.

People who reach the maximum salary within their tabulator.

People who cannot be promoted to positions of greater responsibility.

Changes in some job activities.

People who acquire new skills to do their job better.

In most of these cases, the analysis and valuation system will not be of any help as it is only useful for: DETERMINING THE RELATIVE IMPORTANCE OF THE POSTS.

So it is convenient to make clear that a valued position should only be re-valued when its content changes in such a way that changes can be assumed in the degree to which one or more factors occur in said position.

In general, it can be said that there is absolutely nothing secret about an analysis and valuation system. However, stating that everything related to the system must be communicated to all the personnel of a company can be a very serious error.

The steps to perform the job analysis are:

MANAGEMENT APPROVAL

The costs of the job analysis are presented to management and this determines if they want it or not, if they have the budget.

OBJECTIVES

In order to see how the job analysis will help us.

INFORMATION TO WORKERS

In order to make them feel important and collaborate better with it. Workers must know what this analysis consists of.

The activities to correctly carry out the analysis are as follows:

HAVE A HEAD: Must have the title in question. Here the number or password of the worker is put, the position must be given, to which area it belongs and where that position is located within the organization. Must have hierarchy, boss and subordinate of the position to be analyzed. The name of the analyst and the superior of the same and date of the analysis must be put. POSITION DESCRIPTION: Preferably it should be done through an interview and it is important to know how to carry it out to obtain the best results.

The writing of the job analysis should try to leave the description in a logical sense, that everyone understands what each job is, look for the essentials, use quantitative terms and avoid vagueness, quantify the time of each activity and start each sentence with a active and functional verb.

The benefits derived from job analysis are as follows:

FOR THE COMPANY

Gaps or problems that the organization may have.Establish and distribute the workloads of each of the positions better. Set responsibilities in the execution of the work. The obligations and responsibilities of each of the positions are defined.

FOR SUPERVISORS

It allows the worker to better explain their activities to be performed on the job. It avoids interference in the command. The organization tells the supervisor about their activities to be carried out and cannot leave them.

FOR THE WORKER

It points out responsibilities to the worker, it tells him how far he can go. It prevents him from invading the activities of another worker. He points out the failures or successes of the worker.

FOR THE STAFF DEPARTMENT

It facilitates the conduct of interviews. It allows to qualify the merits of the worker, it allows us to compare what the worker must do and what he does. It allows to place the worker in the appropriate position.

Basic Information of the Analysis and Description of Charges for the Administration of Wages

To determine the level of remuneration for the performance of a position, its relative value is one of the most important factors. This value is based on what the position requires of the employee in terms of skills, effort and responsibility, as well as the conditions and risks that the work is performed.

When referring to the job in the salary or compensation system, the level of complexity or relative value must be determined compared to other jobs, for this it is a prerequisite to know it in depth, which implies making an analysis and job description. Therefore, for an effective administration of remunerations, the most important instrument must be used, such as The Analysis and Description of Charges.

Equity must reign in an organization and, the analysis of job descriptions has constituted one of the fundamental bases within the Human Resources Administration system; also that it allows to give a fair salary to the work performed, that is, "equal work, equal salary". Said description has become a document that serves as a legal basis for settling workers' wage claims.

This system provides reliable information about the organization, work units and employees.

Job Analysis, which means gathering information about the job, is the tool to assess a job and tries to analyze a job in each of the individual activities that a job performs.

POSITION VALUATION

Valuation Systems help us define the position of our positions, in terms of their value or importance within the organization. In order to carry out the valuation, we need to carry out the job analysis.

The position as a basic remuneration criterion indicates that it is necessary to assign value, without detracting from the importance of merit, incentives, the labor market, taxes established by law and in collective agreements.

The job-based remuneration structure shows the relationship between remuneration and the complexity of the task, for assigning its value. Objectivity, consequence of the analysis and valuation of the position, are the strong points for the administration of remunerations when describing real facts delimited in scope and difficulty. The valuation of the position is the most objective and effective means to fulfill the principle of equity in the remuneration scale, also serving as a support for the promotion system and contribution to the improvement of the work environment, benefiting the staff and the company.

To organize a company it is necessary to establish an appropriate hierarchy, each collaborator must be placed exactly at the level that corresponds to him with respect to the others, who occupies a place, superior or inferior to the one that is due, according to the criterion of efficiency of production, not only gives rise to disorders in it, but implies an injustice that, necessarily, causes discontent and difficulties. The hierarchy of the positions requires the precise determination of the importance of each job in relation to the others.

The importance and / or degree of responsibility of the work must be reflected in the amount of the remuneration, so that they keep order and relative distance proportional to the category or value of the corresponding positions.

Job valuation can be defined as a technical system to determine the importance of each position in relation to the rest of a company, in order to achieve the correct organization and remuneration of personnel. As a technical system, it establishes an ordered set of principles and rules, based, where possible, on objective and scientific elements. This assessment must be carried out based on the description of each position, where the basic functions to be analyzed are determined and then assessed.

The National Productivity Commission of Spain defines the valuation of the position as "a systematic procedure used to study the jobs and determine the importance of each one of them and their merit in relation to the other jobs of the company."

The valuation of the positions should not be a sporadic work, but a dynamic one, it should be constantly updated. It is the basis of any remuneration system, therefore it is a source of permanent consultation.

To carry out this activity, it is important to previously consider the need and whether it is feasible to carry it out or not, since a salary readjustment has financial effects on the company, it is also necessary to consider the objective or objectives of the company, if it is a new system salary or an incentive system, an internal promotion system or is part of a general restructuring or determine the lack of technology, for example.

According to the objectives, a diagnosis of the current salary system should be made, of its situation vis-à-vis the labor market.

An assessment committee or body responsible for planning the process, scheduling, coordinating the collection of information, approving job descriptions, assessing them and attending to the claims that are submitted must be established. This committee must be made up of people who give reliability to the process, both for their personal characteristics and for their knowledge of the jobs and the organization, in terms of strengths, weaknesses, policies, objectives, etc.

The committee must be structured by:

A representative of the company

Permanent members that guarantee unity of judgment, who may well be responsible for each of the affected dependencies and workers' representatives

Occasional members representing each of the units, who will intervene while studying the positions committed in each of these

A secretary

Technical advisers, who are involved in preparing and applying the valuation plan.

In short, this committee must be represented by the different sectors of the company's productive system, including the personnel, who participate in the process, where it is decided how adequate the remuneration system is. The subordinates must be informed and oriented of the project, via bulletin, in billboard, internal newspaper, detailing the project, the end of it, members of the committee, etc.

The important thing about the participation of all the sectors of the company is, when analyzing the content corresponding to each position, with the help of the job description manual, between the middle managers and collaborators, where proposals will come from part to part, to optimize daily tasks.

The methods to choose to value the positions we have:

Qualitative, non-quantitative, non-analytical or global methods that establish a simple order or classification of positions.

They are qualitative since, in order to carry out the valuation, they do not decompose the position into compensable factors, but rather they take it as a whole; they are not quantitative as they do not determine how much or how much one position is more complex than another.

Not analytical or global by not decomposing the position into each of its factors.

As advantages of this method we have:

Simple: due to its general approach and not requiring statistical or mathematical methods Easy to apply: because it is limited to carrying out a classification Economic and serve as a contrast to the quantitative method assessment and does not require a greater investment of time.

Disadvantages:

They are difficult to justify or accept by the staff, since it can be argued that they are part of subjective opinions by the committee It only hierarchizes and it is difficult to determine which position is more complex than another The current location, hierarchy and salaries of the positions can bias the ordering The committee does not consider in detail the different factors that make up the position.

Quantitative or analytical methods, so named since they give the valuation of the positions based on points, starting from the decomposition in the factors or elements and determining the degree of intensity of each one of them.

As advantages of this method we have:

They offer scores for each position Easy to justify to the staff Applicable for any size of company.

Regarding disadvantages:

They can be expensive.

The greatest benefits are for the supervisor, as it allows him to better manage his staff and establish him in the most suitable position.

To organize the personnel of a company, it is essential to establish an appropriate hierarchy within it. Each worker must be placed exactly at the corresponding level with respect to the others.

The hierarchy of positions requires the precise determination of the importance of each job in relation to the others.

The relative importance or value of a job depends on many elements that are difficult to appreciate due to its complexity and subtlety, most of which are related to the influence that work has on production.

The importance of work must be reflected in the salary paid for it, so that the remuneration is in order, and within it, a relative distance proportional to the category or value of the corresponding positions.

More in modern industrial life, by virtue of the length, complexity and mobility of personnel, instead of the salary reflecting the importance of the position, the exact opposite occurs: the position is ranked or valued based on the salary paid.

Some of the following causes unduly raise or lower wages, breaking the hierarchical structure that must exist in the work:

Favoritism - Union pressure to protect certain workers - Lack of accurate knowledge of the importance of jobs - Fixation by calculation of what must be paid in a new job - Shortage of a particular type of worker - The flight imperceptible of duties of a position. The accumulation of loads by a demanding supervision.

That is why a system must be sought that encompasses and covers the needs of our organization, which establishes in a technical way the value or importance of the positions of the same.

We understand by job valuation, a technical system to determine the importance of each position in relation to the rest of a company, in order to achieve the correct organization and remuneration of staff.

A correct hierarchical position, favors the organization and efficiency of companies.

The valuation of positions serves to establish adequate salary systems within an organization, it will give parameters to establish salaries according to the importance of the positions; the valuation is impersonal and what gives value to a position, are the activities that are carried out in said position.

Job valuation does not always determine how much a worker should be paid, but only indicates whether what is paid is properly related to what others receive.

In a valuation the function, responsibility and capacity of the position will be evaluated and not of the person; This will give a correct organization since it helps to determine if the organization chart requires any change, the valuation serves to relocate a position.

POSITION VALUATION NEEDS

Hierarchy of salary. Hierarchy of personnel. See how much the position is worth. A salary structure and policy setting. See newly created positions.

There is a complementary technique to job valuation, salary surveys, whether local or regional, which help locate salaries, bringing them closer to the averages paid in other similar companies.

The salary line, which is built as a result of the valuation of positions, allows to know in a tangible way if they rise rapidly, or, on the contrary, their increase is almost imperceptible when increasing their category, if there is a disproportion in the salaries paid from one department to another, etc.

The valuation of positions allows to face, on objective bases, the salary line, the circumstances that may arise, and solve the problems, with a pre-established technical criterion.

The valuation of positions allows to establish from the beginning, and in a safe way, the placement and the salary to be assigned to a new position. Likewise, it provides indisputable objective elements to set the salary more fairly, such as the skill required by the position, the conditions in which it is carried out, the risks involved, the ability to solve problems, etc., elements that are estimated and ponder within this technique.

The technical value of job valuation systems rests on distinguishing two different things:

What the position is worth, even if this measurement is made with the natural and necessary limitations that exist whenever it is a matter of measuring what is somehow related to the human, what must be paid for the efficiency or performance of each worker.

It should be noted that through the merit rating, a control is carried out on the worker and compares one worker with another to see which one is appropriate for each position.

The qualities that are rated here are the criteria, initiative, quality and quantity of work, responsibility, knowledge, etc.

QUALITATIVE ASSESSMENT METHODS.

Definition:

They are those who take the job description as a whole.

These methods allow the establishment of an arrangement of jobs either individually or in groups within predetermined categories, but without evaluating the numerical differences between each one of them; These are based on a general judgment or estimate of all the characteristics of the position; For this, common and basic factors are considered to the set of positions such as: education and experience for their performance, complexity of functions, levels of responsibility and effort.

Steps for qualitative evaluation.

Appointment of the evaluation committee Interview of the evaluation committee with the managerial level Review and analysis of documents Selection of the works to be evaluated.

Qualitative assessment methods.

There are two qualitative valuation methods:

Nesting method

a.1. Ascending-descending hierarchical technique.

a.2. Pair comparison technique.

Default category method or sort by

Nesting method

This method is the oldest (1909). In it, the works are valued by taking them together, that is, without decomposing them into compensable factors, by comparing the different works it is possible to establish an order from the highest value (which will occupy the first rank) to the last, or vice versa, based on a subjective summary estimate of the level of difficulty, effort, responsibility, training, experience required and degree of supervision exercised.

Ascending-descending hierarchical techniques

The procedure to apply this technique is as follows:

Study of the description of each position by each member of the evaluation committee. Selection of the most complex. Selection of the least complex. Comparison and selection of the other positions. Meeting of the evaluation committee. Consensus classification.

The possibility of consensus or of defining by means of averages is given as long as there is an acceptable coefficient of agreement, which can be statistically verified using the Spearman or “Kendall rank correlation” formula.

Advantages of this technique:

Avoid extreme or central scoring mistakes.

It is easy for employees to understand.

It is simple.

Disadvantages:

Low degree of precision.

It does not specify how much more complex a position is compared to another.

The remaining nesting methods have the same mechanics, which makes them analogous.

Hard to sustain before employees.

Pair comparison technique

This technique consists of comparing each position in pairs with each of the others, through a table with two entries, assigning a (+) sign to the most complex position and a (-) sign to the least complex.

Method of predetermined categories or classification by degrees.

This method classifies or classifies each position in one of the grades or categories corresponding to a previously established scale; it is also known as the classification method and constitutes an improvement of the ranking method.

Your application can be implemented in two phases:

Preparation of the manual or classification scale.

Determination of the categories Description or definition of the categories.

Application of the classification manual.

The greatest difficulty of this method lies in making the scale of categories or degrees of jobs. Since the level of difficulty, complexity and other characteristics that configure it cannot be precisely defined, so that the typecasting is easy for the committee.

Determine the categories

Once the type of positions to be valued is known, the number of categories, grades or classes that must constitute the classification scale manual is determined.

For this, the following aspects must be taken into account:

Develop a set of classification rules for each class. For example, how much independent judgment, ability, physical exertion, etc. Is it required to carry out the position? In this way the total range is extended until it covers the ends.

Define a sufficient number of categories, so that the boundaries between them are precisely differentiated and discriminatory, without leaving out any. The determination of the amplitude will depend on the diversity of tasks.

Based on the job descriptions, the most representative positions that cover the entire range of levels in the chosen area are identified and grouped into categories with similar content; their common characteristics are extracted below, which may be presented in different intensity and complexity.

The following factors can be selected:

Complexity at work

Preparation needed

Required experience

Supervision exercised and received

Responsibility

Physical and mental effort

In the case of manual workers, personal qualification, physical effort, and level of responsibility could be factors. And when it comes to positions in the technical, commercial and administrative sector, the complexity and difficulty of each task, the responsibility, the control carried out or to which it is subject, the level of training and experience are taken as factors.

Describe or define categories

To describe or define the categories, the degrees of intensity and complexity for each factor are determined, taking into account the level of presence or relevance, within each group of positions.

General considerations to take into account in determining the categories.

They must be determined in such a way as to accommodate new jobs.

When there are no reasons to the contrary, categories should be tried to match the number of traditional classes or labor groups within the company.

It is convenient to take into account the number of categories, in such a way that there is a clear delimitation of classes, since all jobs in the same category must have similar compensation for equity.

Application of the classification scales manual:

As the scales are made, the different posts are pigeonholed. For this, the following procedure can be applied:

Start with the highest and lowest value positions, or the best known until all are classified. Each function is read by job and it is decided in which category to classify it; subsequently, the final decision for the job is made. As in the ranking system, the evaluation committee must carry out the assessment, harmonizing the different criteria, that is, by consensus.

Advantages of the method

It is easy to explain and understand.

It is easy to apply.

It is inexpensive.

It responds to the natural tendency of dividing jobs into categories.

The vast majority of companies end up classifying positions anyway regardless of the valuation method they use.

Disadvantages:

It is difficult to write the descriptions of the categories.

The valuation may be biased by the current salary earned.

It is not applicable in companies with a large number of charges.

QUANTITATIVE ASSESSMENT METHODS

Quantitative valuation methods consider the job according to the characteristics and essential requirements called factors that are valued separately, so that by adding the points of the different compensable factors, a work score is obtained.

The score of each factor determines with what intensity level each one occurs. The sum of these scores by factor or characteristic leads to a total score or value of the position which, when related to the values of the other positions, allows an ordering, according to the essential and common factors or characteristics that constitute them.

The quantitative methods are as follows:

Point-by-factor methods

Factor comparison methods

Profile methods and Hay scale guides

Hay Points Method

Turner percentage method

As in qualitative systems, the process involves:

Appoint an evaluation or assessment committee

Conduct interviews

Review and analyze documents

Identify problems that may affect the evaluation

Determine the type of work to assess

We will only develop the methods that are considered most important, such as: a) point method and the comparison method.

Point Rating Method

Definition

It is the one that measures the content of the posts according to the importance of the different components or factors of the same reflected in a rating scale.

This system, devised by Merril R. Lot in 1925, is the first analytical method and the one most used by companies. It is one of the most accurate and complete methods, when measuring the content of the posts according to the importance of the different components or factors of the same, reflected on a rating scale. It is a method that provides a minimum subjectivity and high coherence in the decisions issued regarding the level of complexity of the charges.

It allows the valuation of the position by accumulating the scores of each of its main factors or components, and according to the level of intensity or the presence of each of such factors in the position. The point is the relationship value.

The point system is a quantitative procedure for evaluating positions that determines the relative value of the position by calculating the total points assigned to it. The main advantage of the point system is that it provides a refined system to evaluate better than ranking or ranking systems, so it can generate more valid and less manipulable results.

The point system allows a position to be quantitatively evaluated based on the factors or elements - generally called compensable factors - that constitute it. Intellectual, physical requirements, implicit responsibilities and working conditions, which in one position are usually the most common important factors that serve to qualify it as more or less important than another. The number of compensable factors an organization employs depends on the nature of the organization and the positions to be evaluated. Once the compensating factors have been selected, they are assigned specific weights according to the relative importance for the organization. For example, if liability is considered extremely important, it could be assigned a weight of 40%. Then each factor is divided into a number of degrees.These represent the various degrees of difficulty associated with each factor.

The point system requires the use of a point manual, which contains a description of compensable factors and the degrees to which these factors may exist in positions. Likewise, a manual will indicate, generally by means of a table, the number of points that are assigned to each factor and to each of the degrees in which they are divided. The point value assigned to each position represents the sum of the numerical grade values for each compensable factor that the position has.

The description can be done in a quantitative or qualitative way. As its name indicates, quantitative factors are those whose diverse intensity can be defined with variables such as number of years or months or number of dependents, monetary values, etc.

Example: Experience Factor

DEGREE	DESCRIPTION
I	One month
II	Three months
III	Six months
IV	One year

Also quantitative factors can be graded by intervals or strata.

Example: responsibility for value factor

DEGREE	DESCRIPTION
I	You are not in charge of money or securities management
II	He is responsible for average monthly money and value management between $ 1 - $ 100,000
III	He is responsible for average monthly money and value management between $ 100,000 - $ 1,000,000
IV	He is in charge of monthly average handling in money and values between $ 1,000,001 and $ 30,000.00

Choice of evaluation factors. In general, the evaluation factors are classified into four groups: Intellectual requirements, that is, demands of the positions in terms of the intellectual characteristics of the occupants. Physical requirements. Demands of the charges regarding the physical characteristics of the occupant. Implicit responsibilities. Requirements of the positions in terms of what the occupant must answer for. Work conditions, this in terms of the physical conditions under which the occupant performs his / her job.

These four in turn involve the following evaluation factors:

Intellectual requirements:

Basic instruction

Experience

Initiative and ingenuity

Physical requirements

Effort

Mental or visual concentration

Responsibility for:

Person supervision

Material or equipment

Methods or processes

Confidential information

Working conditions

Work environment

Risks

Weighting of the evaluation factors: This consists in attributing to each evaluation factor its relative weight in the comparisons between the positions. It is made according to their relative importance, since these are not identical and require compensatory adjustments. Mounting of the scale of points. This step consists in attributing the numerical values (points) to the different degrees of each factor. The lowest degree of each factor corresponds to the percentage weight value that will serve as a reference to establish the other numerical values. It is about establishing a progression of points throughout the various degrees of each factor. Arithmetic, geometric, or arbitrary progressions can be used. Assembling the charge evaluation manual. In which the meaning of each of the evaluation factors is defined.The charge evaluation manual is a kind of guide or comparison standard between the different degrees of each factor and their respective point values. Evaluation of charges using the evaluation manual. A turn factor is taken and they will be compared with all the positions, writing down the grade and he will number the points of each position in that factor. Normally a double entry form is used: in the rows the positions are written and in the columns, the evaluation factors. Plot of the salary curve. It consists of converting the point values into monetary values which is accomplished by a series of steps.A turn factor is taken and they will be compared with all the positions, writing down the grade and he will number the points of each position in that factor. Normally a double entry form is used: in the rows the positions are written and in the columns, the evaluation factors. Plot of the salary curve. It consists of converting the point values into monetary values which is accomplished by a series of steps.A turn factor is taken and they will be compared with all the positions, writing down the grade and he will number the points of each position in that factor. Normally a double entry form is used: in the rows the positions are written and in the columns, the evaluation factors. Plot of the salary curve. It consists of converting the point values into monetary values which is accomplished by a series of steps.

The first step requires correlating the value of each position in points and the salary of its occupant or the average salary in case of multiple occupants. Once they are expressed in points and in wages currently paid by the organization, a graph can be drawn where the point values are indicated on the abscissa axis, and the wage values on the ordinate axis. To configure the values of each one, a frequency distribution graph is constructed to indicate the evaluation values of the positions and their respective salaries. The median line or the trend trend line can be drawn.

This line can be calculated with greater accuracy using the statistical method of least squares or similar techniques to obtain a line or parabola that identifies the correlation between points and wages, although the least squares method is the most widely used method, which consists of in the mathematical process used to calculate the single line along a series of scattered specific points.

When taking the results of the evaluation of the charges, the points (x) and (Y), from then on each argo was seen dimensioned through these two variables.

Definition of salary bands. It consists of verifying that along the line of wages, each value in points corresponds to a single value of wages. For which it is necessary to transform the trend line into a salary band, applying a higher and lower accommodation along the line (percentage.

The classes of positions are mutually exclusive, so that the salaries of one band may be similar to those of other bands that are higher or lower.

Factor Comparison Method

It is an analytical technique in that the charges are compared using evaluation factors. Eugene Benge proposed five generic factors:

Intellectual requirements

Required skills

Physical requirements

Responsibility

Working conditions

The comparison method requires the following stages, which must be developed after the charge analysis:

Choice of evaluation factors. The comparison factors, true comparison instruments that will allow staggering the positions being evaluated. The choice of evaluation factors will depend on the types and characteristics of the positions to be evaluated. The basic idea of this method is to identify few but broader factors. Definition of the meaning of each of the evaluation factors. Choice of the reference positions, which are chosen to facilitate the management of the evaluation factors. evaluation factors. Each reference position is evaluated by ranking the evaluation factors

Example:

Nesting Order	Groomer	Receptionist
one	Physical requirements	Required skills
two	Working conditions	Responsibility
3	Required skills	Intellectual requirements
4	Responsibility	Physical requirements
5	Intellectual requirements	Working conditions

Evaluation of factors in reference charges. When basing reference charges, factors should be evaluated and weighted in terms of their individual contribution to the total, the total sum of salary earned for a reference charge can be divided and considered in absolute terms for each factor.

Example:

Assessment factors	Receptionist ($)	Cleaner ($)
Intellectual requirements	60,000	10,000
Required skills	100,000	30,000
Physical requirements	40,000	50,000
Responsibility	80,000	20,000
Working conditions	20,000	40,000
	$ 300,000	$ 150,000

Factor evaluation is part of the job that assigns monetary values to each factor. If the salary is known, each factor must have its value and the total sum of these values constitutes 100%. For each of the factors of the reference charges, the value of each factor must be decided, which can be done in percentage or in money.

Assembling the hierarchy and factor evaluation matrix. The task now is to match the results of the factor evaluation with those obtained in the original factor ranking. The simplest method is to assemble a factor hierarchy matrix in which each evaluation factor is divided and staggered according to its importance in the reference charges. Comparison scale of charges. It consists of transforming this hierarchical matrix of factor evaluation into a comparative scale of positions.

With the comparative scale of charges, the instrument for evaluating charges is ready using the factor comparison method. In this scale, each position is classified in each one of the factors by means of the comparison of factors; then the values in pesos are added to have the global evaluation of the position.

This technique is less exact than the evaluation by points, but it is the one that offers greater reliability among all the techniques of evaluation of positions, from the global point of view of the position. This technique is less exact than the evaluation by points, but it is the one that offers greater reliability among all the techniques of evaluation of positions, from the global point of view of the evaluations.

VALUES IN $	INTELLECTUAL REQUIREMENTS	REQUIRED SKILLS	PHYSICAL REQUIREMENTS	RESPONSIBILITY	WORKING CONDITIONS
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
120,000
130,000
140,000

PERFORMANCE ASSESSMENT

It can be defined as a procedure that allows collecting, checking, sharing, offering and using information obtained about people at work in order to improve their performance in it. It must be a systematic, proactive, dynamic, continuous and objective process of appreciation of the performance of the individual's potential development.

OBJECTIVE

Performance appraisal has the general objective of perfecting people and organizations using information about their behavior in the workplace.

PURPOSES

Fit the worker in charge.

Define entertainment or training needs.

Detect potential candidates for promotions

Distribute salary incentives.

Allow the improvement of company-employee relationships.

Publicize performance patterns

Establish controls on people's behavior or cause changes in their behavior.

Improve boss-junior job relationships.

Evaluate the recruitment and selection process

Create succession or career plans.

Motivate staff

Check the efficiency of personnel procedures and practices.

Make layoff decisions

THIS PURPOSE CAN BE CLASSIFIED IN THREE OBJECTIVES

Improve performance: That is, improve the performance of the employee and the teams that make up the company and in general that of the entire organization, identifying the knowledge, skills and attitudes that need to be corrected. Serve as one of the factors to estimate the potential of the human factor of the organization. Distribute rewards: Means the allocation and distribution of the fruits of the company's activity, such as financial compensation, power, category and personal fulfillment.

EVALUATE

Performance is the primary objective of the evaluation, therefore, it is not intended to evaluate virtues or defects as a human being, nor is it to qualify personal characteristics.

WHO SHOULD BE INVOLVED IN THE EVALUATIONS?

The range of evaluators is multiple, as follows:

The direct boss: He is the traditional or habitual evaluator, because he often works closely with subordinates.

Clients: Some employers consider it appropriate that employees be evaluated by clients, whether internal or external. Either a buyer or another employee of the organization that receives the products or services of the evaluated in their international labor.

The employee: In traditional methods, he only listens and comments on what his boss says, in self-evaluation the employee is increasingly used as the basis of improvement systems: it is about stimulating individuals to discover what they should do to be better.

ADVANTAGES OF SELF-ASSESSMENT

It is carried out almost permanently.

Create greater employee commitment.

Minimizes the possibility of conflict

It presents a permanent search for improvement.

Employee behavior is less defensive when self-evaluating, and subsequent performance is less likely to be less than expected.

FREQUENCY OF THE EVALUATION

It depends on the objectives. Needs and administrative capacity of the organization; As a general principle, it is stated that the more frequent the evaluation, the greater benefits it will bring to the organization and the employee.

PERFORMANCE EVALUATION METHODS

These methods can be classified into three groups:

GRAPHICAL SCALE METHOD: This is to evaluate performance through factors, traits or characteristics previously defined and graduated on a scale on which the qualifier indicates the level that the employee has of said trait or characteristic.

* Continuous scale: it consists of a line that is generally arranged next to and after the name of the characteristics they can be.

Numeric: _________________________

20 40 60 80 100

Percentiles: _________________________

0. 100

Alphabetical: ____________________

DCBA

Adjectives: ________________________________________________

Bad Regular Normal Good Very Good

Discontinuous scales: Grade descriptions are specified.

The selection of factors or traits depend on the type of employees or category to which it has to be applied.

Compensatory factor selection: The most commonly used factors in performance evaluation or merit rating can be divided into three groups:

Group I Performance Objective: Quantity of work and quality of work.

Group II Knowledge and Performance of the Position: Knowledge of the position: Frequency, punctuality, safety habits, good time management.

Group III Characteristics of the individual: Spirit of cooperation, trustworthy, initiative, intelligence, accuracy, adaptability, attitude, personality, reasoning, discipline, leadership, conduct, talent, enthusiasm, potential.

ADVANTAGE

It provides evaluators with an evaluation instrument that is easy to understand and easy to apply.

Enables an integrated and summarized view of the evaluation factors

It requires little work from the evaluator in the evaluation record.

DISADVANTAGES

It does not allow the evaluator much flexibility.

It is subject to personal distortions and interference from evaluators who tend to generalize their appreciation of subordinates for all evaluation factors.

PAIR COMPARISON METHOD

It is a performance evaluation method that compares employees two by two.

CHECK METHOD:

It consists of the use of a series of questions, affirmations or descriptive phrases about the way in which an employee can carry out his work.

THE LABOR MARKET

The salary system is a fundamental factor of the human resources strategy, which in turn is designed to support the mission, vision, values, strategic plans and corporate objectives. In this order of ideas, the basic policies for structuring the system include the concepts of internal equity and external competitiveness.

External equity is achieved through:

The assessment of the relative level of complexity of each job compared to others in the organization; the result of which is an ordering of the positions that go from the least to the most complex and whose performance will require different skills.

Controlling external competitiveness requires knowledge of the labor market that can be reached through surveys; in this way, the company has a source of information that measures the salary practices of other companies competing for human talent, not only how much they pay but the method they use at different occupational levels: manager, executive, advisor, professional, technical or auxiliary.

Through job valuation, performance reward, and knowledge of the labor market, organizations have the basic information necessary to develop an efficient and consistent salary structure and the employee will be sure that their salary compensation is equitable compared to that of their employees. colleagues and other employees in the economic sector, region and industry.

The vision of how competitive an organization is by salary is obtained by comparing itself with other companies; the remuneration system should be attractive enough to retain and attract labor, and above all improve its performance.

THE LABOR MARKET MODEL

One of the multiple theories that try to explain the factors that define salary levels is that of labor demand and supply.

Generally speaking, it tells us that the less companies want to pay (low labor demand) and the lower the salary that workers are willing to accept (high labor supply) for a given job, the more Your salary will be low.

It is mandatory to mention the theory of efficiency based on wages, which assumes that the employer is free to pay, not the wages equivalent to those determined by the labor market, but above the market line. This can induce people to be more efficient, because high-quality workers are attracted and the need for supervision is reduced.

FACTORS WITH WHICH AN ORGANIZATION HAS TO BE MORE COMPETITIVE IN THE LABOR MARKET

Money is a universal criterion as a measure of value and achievement, constituting the most explicit mechanism of the link between the organization and the worker; it therefore includes basic salaries, incentives, benefits or benefits which can be measured in a well defined way; Other additional elements that make a company more attractive as a workplace are its management style, career opportunities or overall organizational climate.

HOW TO DEFINE THE LABOR MARKET IN WHICH THE COMPANY COMPETES?

The first step is to identify the organizations that compete for the same workforce that the company employs; For this, the following factors must be taken into account:

Geographical scope. It is necessary to specify the geographical coverage of the labor market. For large companies, it is often broader as it reflects the size of the business and staff are generally recruited from various locations. Smaller companies have less coverage in this regard. Types of products or services. Companies that compete with the same products or services have the greatest difficulty in carrying out the survey, but they are essential, especially when it comes to positions with specialized profiles. Organization size. In most cases, it has been established that the larger the company, the better the salary and benefits conditions, especially for management positions. Recruitment sources.You have to where people are recruited and where they tend to go when they leave the organization. Corporate image. The positioning or image projected by the company is also important as a reason for individuals to seek links, sometimes not permanently but as a training center.

THE WAGE SURVEY

The determination of the compensation policies and their application through comprehensive and integrated salary administration programs are based on an exact evaluation of the organization's position in the salary market; For this, the salary survey is usually used. The person responsible for the survey must take into account the accuracy, completeness, opportunity, cost and applicability of the data available from the surveys and will select the most appropriate ones for comparison purposes.

WHO SHOULD BE RESPONSIBLE FOR THE SURVEY IN SURVEYS IN THE ORGANIZATION?

Whenever possible, the highest level employee, responsible for proposing compensatory policies to senior management, obviously who knows the organization and the jobs to be surveyed and who has participated in the analysis, description and evaluation of current positions; supported by a team of trained interviewers.

THE PREPARATION OF THE SURVEY

After determining the need to run a survey because no information is available, time should be spent determining its purpose and scope; To do this, the data must be carefully planned and carried out in such a way that it is meaningful, comprehensive, timely and at the lowest possible cost.

The company that will carry out the survey must previously resolve the following important questions:

What is the objective of the survey? What information should be obtained? From whom will we obtain it? What positions will be studied? How to make positions comparable? What methodology will be used?

USUALLY WE HAVE THE FOLLOWING SURVEY CATEGORIES

General survey: Useful for defining the organization's salary policies; they include a wide variety of positions and concepts. They commonly define a sample of representative positions and companies.

Surveys with specific objectives: This type of survey investigates special aspects of workers' compensation, which play a less important role in establishing the company's general salary policies.

CONFIDENTIALITY

A fundamental principle when conducting a salary survey is confidentiality, which means that under no circumstances can the information collected be disclosed without the consent of the company surveyed.

DEVELOPMENT OF THE SURVEY INSTRUMENT

The design of the information collection instrument should respond to the purpose of the survey. The population that is reached both in number of jobs and companies and the regions it covers, and the data collection method used. It must be balanced in terms of length and depth; long surveys do not ensure that they are answered accurately. The questionnaire must be duly validated by experts in the field, and tested by a person who is not a professional in the field.

CONCLUSIONS

Gone are the days when the worker was considered and treated in companies as a simple machine. The times when man's work was the subject of studies have even been overcome, solely with the aim of increasing his mechanical productivity.

Today the man prevails and dominates the company. Work has become human again. Today, man is recognized as the core of the company, around which all other functions revolve and becomes his main and constant concern.

To the current advance that Human Resources have had, sociologists, psychologists, economists and administrators have contributed. The research and contributions of these professionals have shaped modern techniques and systems that are currently applied in the most efficient and progressive companies.

Workers, supervisors, technicians and executives contribute to the survival and progress of the same social organism. The work of some affects the well-being of others.

If the machines stop, the organism is in danger; if sales decline, the company suffers; if the management stumbles, the entire organization suffers: all this depends, after all, on the work of man.

Any organization that has the best machinery, the most open and easy markets, the most ample supplies, but whose staff works discontentedly, without motivation, or, what is worse, intentionally trying to use only part of the company's facilities, and another where the elements of capital, equipment, markets are less good, but in which there is an enthusiastically interested, motivated, capable and eager for full collaboration, let us not for a moment hesitate to predict the primacy of success to this second. Because machines are moved by men; systems are made or developed by men; sales, purchases, etc., are made by men. Therefore, the state of mind and their coordination will largely depend on whether the company succeeds, vegetates only, or even fails.

All the changes that the whole society is undergoing influence the company, that is why we must keep ourselves constantly learning the new methods and techniques of administration that we can operate and apply in our organization.

The employment contract consists of two essential parts; one of them is the salary or remuneration of work, and the other is the service provided by the worker in exchange for it. Consequently, among the techniques that govern personnel management within Human Resources, all those that refer to the payment of wages and salaries occupy a primary place.

The social-economic system is based on the concept of private initiative, in which the fundamental thing is the employment contract, which establishes the rights and duties of the employer-employee. Precisely said contract is so vital that it induces the worker to provide their services and receive adequate remuneration for it. Therefore, the purpose of this work has been to examine the different valuation principles, rules and techniques that are linked to that remuneration in order to obtain an organic vision that allows the correct classification and evaluation of the positions that exist within an organization.

All aspects of personnel management are important to refer to the best ordering of the factor that is basic in the company, because they constitute a common denominator that either multiplies the effectiveness of all other factors, or decreases it, when it is poorly managed.

A company with great facilities, machinery, equipment, capital, or worse, against the company, will perform much less than another in which all these essential elements may be of lower quality, but in which the personnel, for being well directed, motivated, etc., he works with enthusiasm, trying to take advantage of the material elements at his disposal, replacing the limitations of those elements with care and care.

In this work we were able to observe that within Human Resources, more time by many authors and teachers tends to be devoted to the systems of valuation of positions, administration of wages and salaries, qualification of merits, etc., that is, to all those that they are in some way linked to the adequate remuneration that the worker must receive in exchange for their effort and service.

The importance of the above derives due to what is studied in the theory of the function of personnel, position and functions of the Human Resources department, etc., is vital, there is no doubt that what directly moves to go to work at a company, and what often determines that the staff is happy or unhappy in it, is largely the remuneration it receives from that company and the possibilities for improvement it offers for the future, depending on the importance and value give the job performed by the worker.

It is important to note how the various aspects of remuneration are supported and complemented, to make it, on the one hand, fair, and on the other, that this justice can be appreciated by the worker: it would be useless if it were just remunerated, if he believes otherwise, and very often, the aspects that demonstrate the justice of that remuneration are not easy to appreciate, without the help of a set of policies and techniques that form a unit: the Administration of Wages and Salaries.

It is also important within an organization to frequently use motivational factors in order to make employees feel satisfied in their work, which will be reflected in the success of the organization, allowing it to have initiative but within the limits that sets the supervisor.

If we have a well-defined valuation system, which allows us to identify the functions of the positions according to their value and importance within the organization, we will be able to maintain internal equity as well as external competitiveness, through good administration of Wages and salaries.

This will be achieved through a good job analysis, to ensure that the hierarchical importance of the jobs is consistent with their contribution to the company's results through the application of a job valuation system that achieves equity and elaboration of a general alignment of positions.

BIBLIOGRAPHY

ANZOLA ROJAS, Sérvulo, Small Business Administration. Mexico. Ed. Mc.Graw-Hill.CHIAVENATO, Idalberto, Human Resources Administration. Colombia. Ed Mac. Graw HillMORALES, Juan. VELANDIA, Néstor. Salaries - Strategy and salary or compensation systemORUETA, Lucas, Valuation of Tasks and Salary Structures. Mexico. Ed. Limusa.REYES PONCE, Agustín, Personnel Administration: Human Relations. Mexico. Ed. Limusa.WILLIAM M., Mercer, Compensation Workshop. Mexico.

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