Running head: JOB ANALYSIS 1 JOB ANALYSIS 9 Job analysis Name: Professor: Course: Date Approaches to job analysis In job analysis, the manager in charge seeks to identify the tasks performed under a certain job and the requirements necessary to perform the job. The analysis follows to main approaches that are; the worker-oriented approach and the job-oriented approach. Under the job-oriented approach, focus is put on specific tasks and level of productivity that required for a certain job. The worker-oriented approach focuses on the behavioral aspect of the workers. From his two main approaches, there crops several approaches that are geared to establish the proper job description and job specification. The analysis should be cost effective and save on time and provide information necessary to correct the shortcomings associated with a given job post (Kleynhans, 2006). The approach is meant to find out the reason for the inadequacy in the Customer Service department. The use of diaries is one of the approaches under job-oriented analysis. Workers are required to fill out diaries at specified times of their work shift as directed by the manager. This provides the manager with the information specific to the activities linked to the job. The recording takes period over a period of four weeks then the information is used to tell tasks undertaken. Diaries act as reminders to incidents that would have been forgotten and reduce the anxiety caused by being monitored (Kleynhans, 2006). The other analysis to use is the functional job analysis. This approach is employed to describe the nature of the job and outline the interactions with the job description. Jobs are analyzed using three main domains namely; data, people and things. This approach is time consuming however it give a clear work structure pertaining a certain job. Employees could also be interviewed about the customer service representative jobs. After an employee describes her duties, the supervisor provide additional information to check for accuracy of the information obtained from the interview. Approaches to job design The information obtained from job analysis provides insight on the variables of a job. The conduct of workers determines the approach to be take in job design in a manner that ensures efficiency. The work environment should increase productivity of the stuff under minimum qualifications. The job should also promote the welfare of the staff involved. This is done by having favorable working conditions that cause minimal strain to the workers. There should be conducive working hours that enable the workers deliver services sufficiently and per the set standards. The approaches used in the job design should give a sustainable work model that can deliver on a growing scale of business. Mechanistic approach The mechanistic approach to job design focuses having work done quickly and effectively (Kleynhans, 2006). The nature of the job is usually simple and easy ...

1. Running head: JOB ANALYSIS 1
JOB ANALYSIS 9
Job analysis
Name:
Professor:
Course:
Date
Approaches to job analysis
In job analysis, the manager in charge seeks to identify the
tasks performed under a certain job and the requirements
necessary to perform the job. The analysis follows to main
approaches that are; the worker-oriented approach and the job-
oriented approach. Under the job-oriented approach, focus is
put on specific tasks and level of productivity that required for
a certain job. The worker-oriented approach focuses on the
behavioral aspect of the workers. From his two main
approaches, there crops several approaches that are geared to
establish the proper job description and job specification. The
analysis should be cost effective and save on time and provide
information necessary to correct the shortcomings associated
with a given job post (Kleynhans, 2006).
The approach is meant to find out the reason for the inadequacy

2. in the Customer Service department. The use of diaries is one of
the approaches under job-oriented analysis. Workers are
required to fill out diaries at specified times of their work shift
as directed by the manager. This provides the manager with the
information specific to the activities linked to the job. The
recording takes period over a period of four weeks then the
information is used to tell tasks undertaken. Diaries act as
reminders to incidents that would have been forgotten and
reduce the anxiety caused by being monitored (Kleynhans,
2006).
The other analysis to use is the functional job analysis. This
approach is employed to describe the nature of the job and
outline the interactions with the job description. Jobs are
analyzed using three main domains namely; data, people and
things. This approach is time consuming however it give a clear
work structure pertaining a certain job. Employees could also be
interviewed about the customer service representative jobs.
After an employee describes her duties, the supervisor provide
additional information to check for accuracy of the information
obtained from the interview.
Approaches to job design
The information obtained from job analysis provides insight on
the variables of a job. The conduct of workers determines the
approach to be take in job design in a manner that ensures
efficiency. The work environment should increase productivity
of the stuff under minimum qualifications. The job should also
promote the welfare of the staff involved. This is done by
having favorable working conditions that cause minimal strain
to the workers. There should be conducive working hours that
enable the workers deliver services sufficiently and per the set
standards. The approaches used in the job design should give a
sustainable work model that can deliver on a growing scale of
business.
Mechanistic approach
The mechanistic approach to job design focuses having work
done quickly and effectively (Kleynhans, 2006). The nature of

3. the job is usually simple and easy to adapt to eliminate
employee dependence. The employee is involved in a small
section of the entire process that does not call for specialized
skills to operate. This approach makes it easy to replace
workers which enhance sustainability because there are hardly
voids left in labor. The job activities are also mundane which
make the employees operate like machines. The job processes
are static and the employees are not engaged in any creative
process. The manner of conduct makes the approach
mechanistic.
A customer care representative job deals with addressing
various concerns of customers concerning the firm. Customers
raise issues that range from feedback to issues experienced
during transactions. The representative's knowledge should be
common and flexible since the nature of the problems addressed
is not unique. The representative should be able to communicate
clearly with the customers and is familiar with the common
issues raised. Since each representative is equipped with the
general procedure of handling customers, the absence of one
does not affect the service offered to the customers. The
customers are also not expected to request for a specific
representative because they all offer similar services. However,
there are times when the customer care representatives need to
raise tickets with the company's technical staff. Such an
instance could be a challenge to fresh employees. A customer
might also report an issue that has never been experienced
before which may require them to seek further assistance. This
slows down the service time, affecting efficiency.
The mechanistic approach fast tracks the operations of the
customer service representatives as it is the main objective.
There is an increased customer satisfaction since the delay time
waiting for service is reduced. The simplified job processes
make the work independent a factor that helps to shield it labor
crisis. There is also less time spent in training and makes
employ replacement easy. However, despite the non-dependence
on a particular employee, a replacement could be costly and

4. might take time. There is also low job satisfaction and
motivation associated with this approach. This approach would
over time, lead to a decline in performance as a result of
attitude change. The redundant nature of the job also affects its
value and make it unattractive to job seekers and leads to
employee turnover.
Perceptual-motor approach
Humans are limited in the capacity to process new information.
The perceptual approach looks at the mental capability and
limitations of humans. There is a limit onto how much
information a person can process and manage to respond to it
rationally. The focus of this approach is to have a job that does
not stretch on this capability. The work conditions put in this
approach allow the least capable individual to cope with the
environment. The information processed should be just enough
for the employee to continue serving without loss of quality.
The activities undertaken involve few precise steps often
repeated and without additional information (Kleynhans, 2006).
The variables that determine quality service delivery are few.
Representative are often required to identify the company to the
client and have a set of solutions for expected issues. Their
work does not expect them to be making decisions on behalf of
the company but rather act on the information gathered to
improve their service delivery. This setting enables the
representative serve for long hours providing efficient and
relevant solutions to customers. Customers might be unable to
express the issue they are experiencing clearly. The lack of
clarity complicates the situation for the representative who give
a solution to a new problem. In such a case, there should be a
format of offering help where various issues are grouped into
categories. This way the representatives can refer to solutions
easily and also have a simpler way to place a new problem. The
various elements used in the system to assist customers should

5. remain consistent to ease navigation and use by the
representatives.
Using the perceptual-motor approach in job design gives several
benefits. It enables employees to focus their roles and give
assistance faster since they are familiar with the job processes.
The use of this approach reduces errors by the employees and
helps reduce time spent on training of new employees. The
approach also allows for the use of system generated assistance.
Computers are fed with the information on the solutions often
offered and specific instructions to get the assistance. This way,
customers still get assistance even when all the representatives
are busy. The problem with the redundant job procedures is the
inability for the staff to grow. There lacks new challenges and
thus deprives their services the quality of spontaneity. The
approach often results in low job satisfaction among the
employees and low motivation.
Criteria for applicant selection
The staffing process entails for intensive screening of the
applicants knowledge, skills and abilities. From the job
analysis, a detailed job description is obtained that outlines the
competencies required for a particular job post. These
competencies should also conform to the job design approaches
to create a conducive work environment. In the job design, the
main objective is usually employed retention and increasing
motivation. The design approaches, also aid to improve
employee performance and job satisfaction. The design also
gives the guidelines to work with in evaluating the
qualifications of applicants to a job so as to have the applicants
with the best set. To make the recruitment process effective and
far-reaching, it should follow external and traditional approach.
The key to a successful recruitment is providing sufficient
information to the applicants (Catano, 2009). This information
helps them in making the right career choices and help them
establish whether they meet the minimum requirements for the
job. When advertising the post for the representatives, the
organization should highlight the academic level, abilities of

6. the applicants and the procedures to follow while applying. The
applicants should also be informed about when to expect
shortlisting so that they are not kept waiting indefinitely for
selection. The organization should also specify on the particular
roles that are executed in the job post. This information would
encourage individuals with experience in the field to apply
giving the organization an option for minimized training costs.
The organization should go further to specify the number of
application positions available to aid the applicants gauge their
opportunities. In addition to having all the necessary
requirements for the job, there should be contact information in
case an applicant would like to make further inquiries.
The other concern is how to select the best candidate for the
job. Most of the applications made are based on the minimum
requirements. The first step in the selection is to have those
who meet all the minimum requirements. This helps the task
force involved in narrowing down to the required number of
recruits. The organization then informs those who qualify past
this process so that they remain prepared. The process then
proceeds to further evaluation the applications to identify those
who bear extra skills of value to the job. This values could be
such as past job experience. The applicants should also be
examined to find out whether they are ready to comply with the
stipulated terms of employment. The process should be based on
validity in that the certain skill set called for is used to measure
performance in the real work setting. Additional information
about the applicant is better tested during sit in interviews to
ensure that they possess the skills that they profess in their
applications (Schermerhorn, 2011).
Performance measurement
A job analysis provides performance standards that are used to
compare employees' performance against. The employees'
performance is gauged to allow for classification and
reclassification of positions. Their skills, personality and
abilities required to improve job performance are examined.
Based on the employees' duties and tasks, the employees are

7. appraised on their performance according to the set performance
objectives and the standards derived from the job description of
a particular job position (Tapamoy, 2008). The appraisal
provides information about the employee's abilities and skills.
This information helps management in making informed
decisions about the employees regarding how fit they are for the
job.
There exist sets of both traditional and modern methods of
performance analysis evaluation. One way to appraise is
through a method referred as Behaviorally Anchored Rating
Scales. This is a modern method where performance is
evaluated using critical employee behavior. A scale of certain
behaviors used as anchor points is applied to establish
performance effectiveness. One source of information for this
method would be customer feedback, where customers are
requested to rate the quality of the service received on a certain
numerical scale that could range from 1 to 7 (Deb, 2006).
The other method suitable for performance measurement is the
grading method. It is a traditional method of appraisal where
grades of performance are used. The grades are such as
excellent and poor. Employees are placed on these grades
depending on their performance. The final method for appraisal
would be using graphical scale method. In this method, various
factors are used to evaluate performance such as attentiveness,
analytical skills and quality of work (Deb, 2006).
References
Catano, V. (2009). Recruitment and selection in Canada.
Toronto: Nelson Education.
Deb, T. (2006). Strategic approach to human resource
management. New Delhi: Atlantic.
Kleynhans, R. (2006). Human resource management. Cape
Town, South Africa: Pearson/Prentice Hall South Africa.
Schermerhorn, J. (2011). Introduction to management. Hoboken,

8. N.J.: Wiley.
Tapamoy, D. (2008). Performance appraisal and management.
Running head: CATASTROPHE BONDS 1
CATASTROPHE BONDS 2
Catastrophe bonds
Name:
Institute:
Catastrophe bonds also known as “cat bonds” are risk-linked
securities that transfer a specified set of risks from a sponsor to
investors. Catastrophe bonds emerge from a need by insurance
companies to alleviate some of the risk would be faced if a
major catastrophe occurred, which would incur damages that
they could not cover by the premiums, and returns from
investments using the premiums, received. An insurance
company issues bonds through an investment bank, which are
then sold to investors. These bonds are inherently risky, and

9. usually have maturities less than 3 years. If no catastrophe
occurred, the insurance company would pay a coupon to the
investors, who made a healthy return. On the contrary, if a
catastrophe did occur, then the principal would be forgiven and
the insurance company would use this money to pay their claim-
holders. Investors include hedge funds, catastrophe-oriented
funds, and asset managers. They are often structured as
floating-rate bonds whose principal is lost if specified trigger
conditions are met. If triggered the principal is paid to the
sponsor. The triggers are linked to major natural catastrophes.
Catastrophe bonds are typically used by insures as an
alternative to traditional catastrophe reinsurance (Cummins and
Mahul).
The typical catastrophe bond structure sees a special purpose
vehicle or insurer enter into a reinsurance agreement with a
sponsor or counterparty, receiving premiums from the sponsor
in exchange for providing the coverage via the issued securities.
The special purpose vehicle issues the securities to investors
and receives principal amounts in return. The principal is then
deposited into a collateral account, where they are typically
invested in highly rated money market funds.
The investor’s coupon, or interest payments, is made up of
interest the special purpose vehicle makes from the collateral
and the premiums the sponsor pays. If a qualifying event occurs
which meets the trigger conditions to activate a payout, the
special purpose vehicle will liquidate collateral required to
make the payment and reimburse the counterparty according to
the terms of the catastrophe bond transaction. If no trigger event
occurs then the collateral is liquidated at the end of the cat bond
term and investors are repaid (Rasmussen).
One of the key elements of any catastrophe bond is the terms
under which the securities begin to experience a loss.
Catastrophe bonds utilize triggers with defined parameters
which have to be met to start accumulating losses. Only when
these specific conditions are met do investors begin to lose their
investment. Triggers can be structured in many ways from a

10. sliding scale of actual losses experienced by the issuer which is
the indemnity trigger to a trigger which is activated when
industry wide losses from an event hit a certain point which is
known as the industry index loss trigger to an index of weather
or disaster conditions which means actual catastrophe
conditions above a certain severity trigger a loss which is the
parametric index trigger to a trigger which is determined by
inputting actual physical parameters into an escrow model
which then calculates the loss. This trigger is known as the
modeled loss trigger and finally the pure parametric trigger
which is based on the actual reported physical event.
Indemnity is one of the triggers to catastrophe bonds. It forms
the basis of most many insurance contracts. It is triggered by
the issuer's actual losses, so the sponsor is indemnified, as if
they had purchased traditional catastrophe reinsurance. If the
layer specified in the cat bond
In pure parametric trigger, instead of being based on any
claims, the insurer's actual claims, the modeled claims, or the
industry's claims, the trigger is indexed to the natural hazard
caused by nature. So the parameter would be the wind speed for
a hurricane bond, the ground acceleration for an earthquake
bond, or whatever is appropriate for the peril. Data for this
parameter is collected at multiple reporting stations and then
entered into specified formulae.
Modeled lose trigger is another one of the catastrophe bond
triggers. Instead of dealing with the company's actual claims, an
exposure portfolio is constructed for use with catastrophe
modeling software, and then when there is a large event, the
event parameters are run against the exposure database in the
cat model. If the modeled losses are above a specified
threshold, the bond is triggered.
In parametric index trigger is a type of insurance that does not
indemnify the pure loss, but agrees to make a payment upon the
occurrence of a triggering event. The triggering event is often a
catastrophic natural event which may ordinarily precipitate a

11. loss or a series of losses. But parametric insurance principles
are also applied to Agricultural crop insurance and other normal
risks not of the nature of disaster, if the outcome of the risk is
correlated to a parameter or an index of parameters
(Rasmussen).
In Industry index loss trigger, instead of adding up the insurer's
claims, the cat bond is triggered when the insurance industry
loss from a certain peril reaches a specified threshold. The cat
bond will specify who determines the industry loss. Its linked
securities customize the index to a company's own book of
business by weighting the index results for various territories
and lines of business.
In recent years, significant new capital is investing in
reinsurance from sources that barely existed 15 to 20 years ago.
While these alternative capital arrangements have little impact
on the typical policyholder, they have significantly affected the
way reinsurance is being written worldwide. Alternative
reinsurance capital differs in two significant ways from
traditional reinsurance arrangements. First, a new type of
investor is seeking out the reinsurance market—hedge funds,
sovereign wealth funds, pensions and mutual funds. Second, the
deals are structured differently. The new arrangements—
catastrophe bonds, collateralized reinsurance and reinsurance
sidecars—tend to isolate the investment from the rest of the
capital supporting a reinsurer, thereby allowing the capital to
enter and exit the market quickly (Bruggeman)
One common type of event-linked securities, which will
illustrate many of their characteristics, are "catastrophe
bonds"—"cat bonds" for short. If a "sponsor," such as an
insurance company or reinsurance company (a company that
insures insurance companies), wants to transfer some or all of
the risk it assumes in insuring a catastrophe, it can set up a
separate legal structure—commonly known as a special purpose
vehicle (SPV). Foreign governments and private companies also
have sponsored cat bonds as a hedge against natural disasters.
The SPV issues cat bonds and typically invests the proceeds

12. from the bond issuance in low-risk securities (the collateral).
The earnings on these low-risk securities, as well as insurance
premiums paid to the sponsor, are used to make periodic,
variable rate interest payments to investors. The interest rate
typically is based on the London Interbank Offered Rate
(LIBOR) plus a promised margin, or "spread," above that.
Because cat bond holders face potentially huge losses, cat bonds
are typically rated BB, or "non-investment grade" by credit
rating agencies such as Fitch, Moody's and S&P. Non-
investment grade bonds are also known as "high yield" or
"junk" bonds. These ratings agencies, as well as sponsors and
underwriters of cat bonds, rely heavily on a handful of firms
that specialize in modeling natural disasters. These "risk
modeling" firms employ meteorologists, seismologists,
statisticians, and other experts who use large databases of
historical or simulated data to estimate the probabilities and
potential financial damage of natural disasters (Weber and
Stöttner).
One particularly attractive feature of catastrophe bonds and
other catastrophe risk securities is that poor performance tends
to be self-correcting. Following a particularly destructive
natural disaster, a number of factors serve to inflate insurance
premiums (and thus the potential returns to catastrophe risk
securities), providing investors with the opportunity to recoup
some, if not all, of their losses within a relatively short time-
frame. These factors include increased demand for insurance, a
reduced ability of insurance and reinsurance companies to take
on risk, and upward revision of the probability models that are
used to price insurance and catastrophe risk securities.
In addition, while investors face the possibility of losing some
or all of their principal investment in the event that a
catastrophe does occur, their risk exposure can be dramatically
reduced by diversifying across many different catastrophe bonds
as the probability of numerous large-scale natural disasters
occurring within the same limited time frame is very low. For
example in 2005, in spite of heavy losses associated with

13. Hurricane Katrina, many catastrophe risk funds still made
money overall.
CAT bonds are a relatively new investment product, having
been in existence for only a couple of decades. Very broadly
speaking, they are risk-linked securities that seek to transfer
risk from a particular sponsor, typically an insurance company,
to capital market investors. The idea is relatively simple—
insurance companies concerned about enormous calamities for
which payouts could exceed premiums transfer a portion of the
risk associated with a particular disaster by selling bonds
through an investment bank to investors. If no disaster occurs,
the investors will reap a healthy return on their investment.
However, should a disaster occur, the investors could lose their
upfront investment as well as any interest accrued to that point.
Insurers will then use the proceeds to pay claims arising out of
the disaster (Bruggeman).
There are a number of advantages to be derived from the use of
CAT bonds. From the insurance company standpoint, the ability
to shift some or all of the risk of a natural disaster to another
group is not only prudent but essential—this is the foundation
that reinsurance was built on. Say, for instance, a particular
organization offers home insurance and their clients are
predominantly located in Florida. It doesn't take a genius to see
that this insurance company could literally face bankruptcy
from a single devastating hurricane in Florida. Not surprisingly,
CAT bonds were born in the aftermath of Hurricane Andrew in
1992. Similar potential CAT bond targets include earthquakes in
California or tornadoes in the Midwest (Weber and Stöttner).
References
Cummins, J. David, and Olivier Mahul. Catastrophe Risk
Financing In Developing Countries. Washington, D.C.: World
Bank, 2009. Print.
Bruggeman, Véronique. Compensating Catastrophe Victims.
Alphen aan den Rijn, The Netherlands: Kluwer Law
International, 2010. Print.

14. Rasmussen, Tobias N. Macroeconomic Implications Of Natural
Disasters In The Caribbean. Washington: International
Monetary Fund, 2004. Print.
Weber, Christoph, and Rainer Stöttner. Insurance Linked
Securities. Wiesbaden: Gabler Verlag, 2011. Print.

16. Catastrophe reinsurance – which protects insurance companies
against the costs of disasters,has proved highly lucrative over
the years.

17. R
unning
head: CATAS
TROPHE BOND
S
1
C
atastrophe
bonds
Name
:
Institute:
Running head: CATASTROPHE BONDS 1

18. Catastrophe bonds
Name:
Institute: