Provide 3 Written Pages Of HR Compensation Evaluation Plans/Theories From Provided Textbook

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29 Jan 2021

Abstract

AECOM is a Fortune 500, American based, multinational engineering and construction firm that leads the world in mega projects and infrastructure design/improvements through the use of cutting-edge engineering and design. With AECOM’s relatively short history, which stems from its establishment in 1990, AECOM managed to quickly merge with other like-minded organizations which boosted themselves as an industry leader and as one the world’s leading construction firms. AECOM’s strength in innovation as an industry leader has solidified themselves as a viable contender for the #1 construction company in the world by becoming a publicly traded company on the New York Stock Exchange while also dominating industry.

Through the employment of 56k employees, AECOM performed $13.6B in professional services in 2019. AECOM can be found throughout the global market performing construction services for both public and private markets. Through a further deep dive into AECOM, the role of Project Manager will be explored in depth thus unlocking one of the key factors in the successful project completions that have undoubtedly contributed to catapulting AECOM as a global leader in the construction industry!

Although AECOM is a relatively newer company and was established in 1990, AECOM’s roots can be traced back to the early 1910’s (AECOM, 2021). AECOM roots can be seen as being started from Ashland Inc. which rose from Kentucky through the oil production industry. Owner of Ashland Inc., Fred Miles, started out in Oklahoma under the Swiss Drilling Company but found that due to the low prices being paid for oil in Oklahoma that profits didn’t warrant the efforts required to continue production. Mr. Miles then moved to Kentucky and acquired 200,000 acres of land and started Ashland Inc.

Over the next several decades Mr. Miles developed his company into a conglomerate of organizations that revolved around the oil industry. Ashland Inc facilitated the development of organizations such as oil refineries and chemical and petroleum companies. In the 1960’s Ashland evolved their portfolio to expand outside of oil and acquired a highway construction company. The highway construction company enabled Ashland to exploit the usage of their oil byproducts by expanding into the asphalt production market (Encyclopedia.com, 2021). This transition in industry was a turning point in Ashland Inc and proved to be a sign of things to come over the next few decades.

Although successful year over year, Ashland Inc continually seen restructurings and new organizational strategies being re-aligned. Then in 1984, the organization acquired DMJM Inc which was an engineering and construction firm that focused on military contracts following WWII. This ushered in a new era for Ashland Inc which now included Ashland Technologies Corporation (construction subsidiary). Along with the acquiring of DMJM Inc, Ashland was able to retain Richard Newman, DMJM’s President. A few years later Newman would be named President of Ashland Technologies Corporation.

In 1989 Ashland Inc decided to divest its interest in the construction industry and seek to solely focus on oil production services. This provided President Newman of Ashland Technologies Corp with a unique opportunity to offer Ashland Inc with a proposal of an employee-led buyback program. In 1990 Ashland Inc agreed to an employee buy-back program and received $97M for Ashland Technologies Corp and Ashland would concede with a 58% stake in Ashland Technologies Corp. This started a new chapter and provided the start of AECOM with Richard Newman as its first Chairman and CEO. Over the next several decades AECOM would combine forces with other like-minded companies and firms. Since the inception of AECOM in 1990, AECOM has acquired and merged with 50 other organizations which has shaped and brought them to what we can know them as today (AECOM, 2021).

AECOM’s Mission, Vision and Core Values are to: Safeguard- Operate ethically and with integrity while prioritizing safety and security with everything they do; Collaborate- build diverse teams that connect expertise to create innovative solutions; Inspire- develop and celebrate our people, and elevate the communities we touch; Anticipate- understand the complexity of our clients’ challenges and help them see further; Deliver- grow our business through operational excellence and flawless execution; and to Dream- transcend the industry by reimagining what is possible – and realizing it (AECOM, 2021). AECOM’s core values are recognized as legitimate by the awarding of “ethical business practices” by Ethisphere four years in row in the construction industry, which is explained by Businesswire as increasing industry standards for others to follow (Businesswire, 2021).

Construction Project Manager (CPM) is the position that will be examined in further detail. CPM’s are essential from the design and conceptual development of projects through to the closing/completion of the project. CPM’s manage and coordinate all phases from Initiating, Planning, Executing, Monitor/Controlling and Closing phases (PMI, 2021). Additionally, CPM’s manage communication between engineers, designers and customers ensuring that all designed requirements meet the engineered design to the customers satisfaction. CPM’s also liaison between crew leaders/superintendents on managing scheduling and priorities of efforts. CPM’s are essential in coordinating and managing all required transmittals and submittals relating to the project. Lastly, CPM’s manage the project budget from cradle to grave ensuring the project scope creep does not wreck a budget while ensuring that a change control board/process in place for the customer, engineer, designer and any other stakeholder of interest in the project.

Project Managers are aligned by the experience in which they have in their industry. CPM’s can range from levels starting at Assistant all the way up to Senior PM’s. AECOM employs approximately 2.8k CPM’s at any given time (Zippia, 2021). It is imperative that CPM’s are staffed accordingly on large projects in order to effectively manage schedules, budgets, manpower, materials, sub-contractors etc. Additionally, AECOM released FY21 forecasts predicting a 12% increase in operating capacities which directly translates into the need to attract and retain talent (Investor.Aecom, 2021).

For the reasons stated above internal and external influences in attracting and retaining CPM’s is imperative to the success of AECOM’s operations. The forecast from O*Net’s website shows that Construction Project Managers are in need and have a bright outlook (O*Net, 2021). For these reasons coupled with projected industry growth estimates show that competitors are in search of quality CPM’s with critical KSAO’s. Lastly, due to AECOM’s financial goals stated in their FY21 report with an anticipated growth of 12% means that AECOM’s marketing, compensation and benefits must be attractive enough to bring in the talent that they seek in order to maintain their level of success in the global market.

Construction Project Manager: Job Analysis and Description

Job analysis is the representation of the main mechanism by which an organization recognizes and creates the KSAO (knowledge, skill, ability, and other characteristics) necessities for jobs. In addition to the description the job rewards are also designed by which the job will offer. A job analysis will be needed to specify for each job exactly which KSAOs and rewards will be necessary for sought-after employees and in the management of talent (Heneman, 2019). Once all these support activities are in place, the core staffing activities can begin. These core staffing activities focus on recruitment, selection, and employment of the workforce. Since staffing levels have already been established as part of staffing planning, the emphasis shifts to staffing quality to ensure that successful person/ job and person/organization matches will be made. Additionally, job analysis helps determine the job’s essential functions. Therefore, the initial method, job requirements job analysis, is directed by the job requirements matrix, which comprises tasks, KSAOs, and job setting (Heneman III et al.,2019). Subsequently, competency-based job analysis is defined. Such an approach to job analysis begins from the establishment’s mission and goals and then progresses a list of the general KSAOs that will help the organization meet these needs. Attention then turns to job rewards, including both intrinsic and extrinsic rewards that jobs may provide to employees. Finally, legal issues about job analysis are addressed (Heneman, 2019). In this context, we shall carry out a job analysis of the Construction Project Manager position at AECOM and prepare a job description and outlining the task list.

AECOM is the world’s premier infrastructure firm, delivering professional services throughout the project lifecycle. They consist of planners, designers, engineers, consultants, and construction managers driven by a common purpose to deliver a better world. The company deals with improving people’s commute whether by keeping the lights on, offering access to clean water, or renovating skylines, infrastructure powers opportunities to help people and community’s flourish. Across the globe, the clients AECOM in the public and private sectors count on them to take on the most complex challenges and pioneer innovative solutions that push the limits of what’s possible – the world’s longest cable-stayed bridge, record-breaking sports events, the largest greenfield port development megaproject, life-sustaining disaster recovery programs, and the tallest tower in the Western Hemisphere. On projects spanning transportation, buildings, water, governments, energy, and the environment, we partner with our clients to build legacies for generations to come. Therefore, the vacancy position of Construction Project Manager will entail someone passionate and willing to help communities instead of being enticed by the paycheck.

The construction project manager position will be responsible for ensuring the timely and costly completion of construction projects by overseeing and managing all phases of projects. This entails working with a variety of clients with a national geographic footprint, to schedule and plan work, coordinate equipment and materials, and monitor overall progress. The Construction project manager will occasionally at times avail themselves at the construction site. A construction project manager will mostly need to have a Bachelor’s degree in building construction, construction management, civil engineering, or architecture, BSc QS, and registered at SACPMCP plus progress of professional registration. The construction project manager will have to possess five years of prior experience in the role. A construction project manager must be comfortable delegating and have strong leadership skills, problem-solving skills, and inductive reasoning ability for this position. A construction project manager should possess certain knowledge in building and construction, administration, and management plus engineering and technological experience. In dealing with clients, a construction project manager should have personal and customer service abilities to maintain a rapport with clients and fellow workers.

The main purposes of conducting a job analysis process are to use this particular information to create a right fit between job and employee, to assess the performance of an employee, to determine the worth of a particular task, and to analyze the training and development needs of an employee delivering that specific job. Job Analysis plays an important role in recruitment and selection, job evaluation, job designing, deciding compensation and benefits packages, performance appraisal, analyzing training and development needs, assessing the worth of a job, and increasing personnel as well as organizational productivity (Heneman, 2019). Therefore, by conducting job analysis one can keep job descriptions up to date, which helps in: hiring new employees which ensures the best fit for the job, which is only possible if the job description has been analyzed and confirmed to be reflective of the true job requirements. Also, by ensuring ADA requirements are being met the essential job duties will be accurate. Evaluating employees implies evaluation of employees against the items in the job description; hence being sure one is being evaluated against the right criteria—ones that reflect the true requirements and goals of the job. Also, for compensation analysis, because by reviewing pay surveys, the only way to make accurate comparisons is if the job descriptions reflect the real job duties and ensuring employee exempt versus nonexempt classifications are correct.

Though there are several methods of collecting job analysis information yet choosing one or a combination of more than one method depends upon the needs and requirements of the organization and the objectives of the job analysis process. Typically, all the methods focus on collecting the basic job-related information but when used in combination may bring out the hidden or overlooked information and prove to be great tools for creating a perfect job-candidate fit. The first method that I used is prior information whereby I carefully evaluated, scrutinized, and considered the set of requirements that are relevant to the position of a construction project manager in AECOM’s and O*NET website because the nature of work changes since the prior information is old but still relevant (Heneman, 2019). Also, prior information is helpful because organizations that have performed job analysis in the past will have information on the tasks, duties, and responsibilities of the job as well as the corresponding KSAOs. Another method used in the job analysis is by observation whereby I observed an already employed construction project manager at work and learn about the task, KSAOs, and job context (Heneman, 2019). This helps in providing a meticulousness and productivity of information that any other method cannot gather. Also, due to first-hand acquisition of information one can comprehend the essential leadership skills. Another method is interviewing whereby I interviewed job officeholders and others and gather a vast of information. This method helps one to know what exactly an employee thinks about his or her own job and the responsibilities involved in it. It involves the analysis of the job by the employee himself. For gathering honest and true feedback or collecting genuine data, the questions that I asked during the interview were carefully decided to avoid errors.

An example of a job description based on the job analysis carried out is as followed: We are seeking an experienced Construction Project Manager to plan and oversee a wide variety of construction projects from beginning to end. You will be working with clients, engineers, and architects as needed, and keep track of an inventory of equipment and materials. The Construction Project Manager we are looking for should have five years of previous experience in construction management projects and be knowledgeable of regulations and permits required and registered with SACPMCP. The ideal applicant will be highly organized, with the ability to plan ahead and multitask to meet deadlines. The tasks involved in the position are planning, scheduling, or coordinating construction project activities to meet deadlines. Preparing and submitting budget estimates, progress reports, or cost tracking reports. Interpreting and explaining plans and contract terms to representatives of the owner or developer, including administrative staff, workers, or clients. Directing and supervising construction or related workers. Preparing contracts or negotiating revisions to contractual agreements with architects, consultants, clients, suppliers, or subcontractors. The desirable skills should be coordination, time management, monitoring, project management software, and graphics or photo imaging software. The Construction Project Manager should be knowledgeable in building and construction information, administration and management, engineering and technology, and customer and personal services especially in dealing with clients. The ideal candidate should be capable of information order, problem sensitivity, and inductive reasoning. If this sounds like you, get in touch with us.

The process of job analysis helps in identifying the worth of a specific job, utilizing human talent in the best possible manner, eliminating unneeded jobs, and setting realistic performance measurement standards. Therefore, after one conducts an analysis, they acquire a better understanding of the kind of employee required to ease the process of recruitment. Thus, job analysis is the epitome of equipping employees and employers with information for job vacancies and identifying with specific job fields.

Compensation Evaluation

(In 3 pages of writing, develop an evaluation plan utilizing the theories discussed in the textbook, including identification of an appropriate external market and benchmarks for salary comparison data and analysis. Provide 3 citations with page #’s from textbook provided).

References AECOM. (2021, 01 12). AECOM. Retrieved from AECOM ABOUT US: https://aecom.com/about-aecom/ Businesswire. (2021, 01 12). Businesswire. Retrieved from Businesswire: https://www.businesswire.com/news/home/20140320005239/en/AECOM-named-one-of-the-%E2%80%9CWorld%E2%80%99s-Most-Ethical-Companies%E2%80%9D-for-fourth-consecutive-year Encyclopedia.com. (2021, 01 12). Enclyclopedia.com/aecom. Retrieved from Encyclopedia: https://www.encyclopedia.com/books/politics-and-business-magazines/aecom-technology-corporation Heneman, H. G.-M. (2019). Staffing Organizations. Columbus, OH: Pangloss Industries. Investor.Aecom. (2021, 01 12). Investor. Retrieved from AECOM: https://investors.aecom.com/news-releases/news-release-details/aecom-unveils-fiscal-2021-and-long-term-financial-targets-its O*Net. (2021, 01 12). O*Net. Retrieved from O*Net: https://www.onetonline.org/find/quick?s=construction+project+manager PMI. (2021, 01 12). PMI.ORG. Retrieved from PMI.ORG: https://www.pmi.org/ Zippia. (2021, 01 12). Zippia. Retrieved from Zippia: https://www.zippia.com/aecom-careers-249/

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