37213C&RM Job Evaluation

8/12/2019 37213C&RM Job Evaluation

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What is job evaluation?

Job evaluation can be defined as

asystematic procedure designedto aid in establishing pay

differentials among jobs


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Process of systematically determining therelative worth of jobs to create a job structure forthe organization.

The evaluation is based on a combination of jobcontent, skills required, value to theorganization, organizational culture, and theexternal market.

This potential to blend internal forces andexternal market forces is both a strength and achallenge to job evaluation.


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The process of determining how much a

job should be paid, balancing two goals

Internal Equity: Paying different jobs

differently, based on what the job entails

External Competitiveness:Paying satisfactory

performers what the market is paying


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Aspects of Job Evaluation

Job Evaluation is : Assum pt ion

A measure of job Content has an innate value outside of external market.

content

A measure of relative Relevant groups can reach consensus on relative value

value.

Link with external Job worth cannot be specified without external market market

information.

Measurement device Honing instruments will provide objective measures.

Negotiation Puts face of rationality to a social / political process.Establishes rules of the game.

Invites participation.


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Job Evaluation Methods

Job Ranking Raters examine job description and arrange jobsaccording to value to company

Job Classification

Classes or grades are defined to describe agroup of jobs.

Point Method

Numerical values are assigned to specific jobcomponents; sum of values provides quantitativeassessment of jobs worth (Hay Guide Chart-Profile Method)

factor comparison


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Methods of Job Evaluation

Ranking:Ranking simply orders the job

descriptions from smallest to largest

based on the evaluatorsperception ofrelative value or contribution to the

organizationssuccess.


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Ranking

Only workable for a small organization

with very few different jobs.

Depends on evaluator consistency

perspectives change over time.


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Classification

Job descriptions are slotted into a series of

classes that cover the range of jobs. Eachclass has a definition. These definitions

are the standards against which the jobs

are compared.


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Factor Comparison Jobs are compared against other jobs

on the basis of how much of some

desired factor they possess. Each jobs factors are ranked against

each otherjobsfactors.

The market pay rate for each job is thenallocated among the factors based upon

a market pay rate scale.


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Factor Comparison

Very complex and requires total rework

each year to determine the market payrates.

Can perpetuate equity issues from the

market.


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Point Method

These systems have three common

characteristics:

Compensable elements

Factor degrees are numerically scaled

Weights reflecting the relative importanceof each factor


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Point Method

Compensable elements are those

characteristics in the job (not theperson) that the organization values,that help it pursue its strategy andachieve its objectives.


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The Point Plan Process

Step One: Conduct Job Analysis A representative sample of benchmark jobs

The content of these jobs is basis for compensable

factors

Step Two: Determine Compensable Factors

Based on the work performed (what is done)

Based on strategy and values of the organization

(what is valued)

Acceptable to those affected by resulting pay

structure (what is acceptable)


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The Point Plan Process

Step Three: Scale the Factors

Use examples to anchor

Step Four: Weight the Factors Can reflect judgment of organization leaders,

committee

Can reflect a negotiated structure

Can reflect a market-based structure

Step Five: Apply to Non-benchmark Jobs


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Characteristics of Benchmark

Jobs The contents are well-known, relatively

stable, and agreed upon by the employees

involved

The supply and demand for these jobs are

relatively stable and not subject to recent

shifts

They represent the entire job structure

under study

A majority of the work force is employed in

these jobs


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Compensable Factors

Compensable factors are paid-for,measurable qualities, features,

requirements, or constructs that are

common to many different kinds of jobs.

These factors are qualities intrinsic to the

job and must be addressed in anacceptable manner if the job is to be

performed satisfactorily.


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Compensable Factors

In addition to being quantifiable,

com pensable factorsshould be relatively

easy to describe and document.

Those involved in using compensable

factors to measure job worth shouldconsistently arrive at similar results.


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Universal Compensable

Factors

Skil l :the experience, training, ability, andeducation required to perform a job under

consideration - no t w ith the ski l ls an employee

may possess


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Factors

Effort :the

measurement of

the physical or

mental exertion

needed for

performance of ajob


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Universal Factor - Effort

Diversity of Tasks

Complexity of Tasks

Creativity of Thinking

Analytical Problem Solving

Physical Application of Skills Degree of Assistance Available

C


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Factors

Responsib i l i ty :the extent to which an

employer depends on the employee to

perform the job as expected, with emphasis

on the importance of job obligation.


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Universal Factor -

Responsibility

Decision-making Authority

Scope of the organization under control

Scope of the organization impacted

Degree of integration of work with others

Impact of failure or risk of job Ability to perform tasks without supervision

U i l C bl


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Factors

Work ing Condi tions:

hazards physical surroundings

of the job.


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Point Method

Example: Software Engineer Job Description

The Software Engineer designs, develops, tests andmaintains one or more of our products or internal

applications. The software engineer works as a member ofan engineering team developing, designing, and maintainingone or more of our products or internal applications. Thisposition reports to the appropriate Project Manager.

Job Specification

Bachelor's or undergraduate degree in Computer Science,Information Systems, Electrical Engineering or equivalentexperience. Masters or graduate degree is desirable.Understand Intranet and Internet technologies: http, firewall.


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Point Method

Develop a list of compensable factors

A set of standards the organization uses to

distinguish among jobs for pay purposes

Examples of commonly used compensable factors: Degree of responsibility, supervision

Knowledge needed to perform the job

Discretion in performing the job, independent judgment

Job conditions

Effort Hazard

Consequence of error


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Point Method

Define the degrees of each factor Judgment and Decis ion Making: This factor identifies the

extent to which the job requires judgment and responsibility in

the making of decisions.The importance of the decisions and the

extent to which standard policies and procedures provideguidance in decision making will be considered.

1st Degree: Work requires decision making involving the

analysis of the facts of a situation and the determination of

what actions should be taken within the limits of standard

procedures; only unusual or seldom recurring situationsrequire referral. Judgment could affect the work of others or

cause minor inconvenience. Typical errors are generally

confined to a single team or phase of operations.

37213C&RM Job Evaluation

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