Job Analysis

Amitabh Kodwani
 Job Analysis

 Job analysis is the systematic process

of collecting information about the
nature of specific jobs.

Amitabh Kodwani
 Job Analysis

Job analysis involves the identification and

description of what is happening on the job.
Job analysis identifies:
 required tasks
 knowledge and skills
 working conditions

Amitabh Kodwani
 The Process of Job Analysis

Sources of Job
Data Description

Human
Job Data Resources
Functions

Methods of
Collecting
Data Job
Specification

Amitabh Kodwani
 Uses of Job Analysis Information

Human Resource Planning

Recruitment and Selection
Compensation
Performance Appraisal
Training
Discovering Unassigned Duties
Health and Safety
 Performing Job Analysis

Step 1: Select jobs to study

Step 2: Determine information to collect
 Tasks
 Responsibilities
 Skill requirements
Step 3: Identify sources of data
 Employees
 Supervisors/managers
Amitabh Kodwani
 Presentation Slide 3-2B

Performing Job Analysis, contd....

Step 4: Methods of data collection
 Interviews
 Questionnaires Dealt separately
 Observation
 Diaries and Records
Step 5: Evaluate and verify data collection
 Other employees
 Supervisors/managers
Step 6: Write job analysis report

Amitabh Kodwani
Presentation Slide 3-

Amitabh Kodwani
 Popular Approaches to Job Analysis

Functional Computerized
Job Analysis Job Analysis

Position Critical
Analysis Incident
Questionnaire Method

Amitabh Kodwani
 Functional Job Analysis (FJA)
US dept. of labour

Quantitative approach to job analysis that uses a

compiled inventory of the various functions or work
activities that can make up any job. FJA assumes that
each job involves three broad worker functions: (1) data,
(2) people, and (3) things
(Mental, Interpersonal, and Physical resources)

Takes into account the extent to which instructions,

reasoning, judgment, and mathematical and verbal
ability are necessary for performing job tasks.
Amitabh Kodwani
Position Analysis Questionnaire (PAQ)
Ernest J. McCormick’s

Questionnaire covering 194 different tasks

divided in to six categories
seeks to determine the degree
to which different tasks are involved
in performing a particular job

Amitabh Kodwani
 4 - 12

Management Position Description

Questionnaire:

it is a standardised form
designed to analyse managerial
jobs
 4 - 13
Management Position Description Factors

1. Product, marketing and financial strategy planning.

2. Coordination of other organisational units and personnel.
3. Internal business control.
4. Products and services responsibility.
5. Public and customer relations.
6. Advanced consulting.
7. Autonomy of actions.
8. Approval of financial commitments.
9. Staff service.
10. Supervision.
11. Complexity and stress.
12. Advanced financial responsibility.
13. Broad personnel responsibility.
 Critical Incident Method
John Flanagan 1954

 Job analysis method by which important job

tasks are identified for job success

 More suitable for middle and top level jobs.

Amitabh Kodwani
 Job Analysis: Data Related to Job
Job Identification Job Content
 Title  Tasks
 Department in which job  Activities
is located  Constraints on actions
 Number of people who  Performance criteria
hold job  Critical incidents
 Conflicting demands
 Working conditions
 Roles (e.g., negotiator,
monitor, leader)
Amitabh Kodwani
 Job Analysis: Data Related to Employee
Employee Characteristics Internal Relationships
 Professional/technical  Boss & other superiors
knowledge
 Peers
 Manual skills
 Subordinates
 Verbal skills
 Written skills
External Relationships
 Quantitative skills  Suppliers
 Mechanical skills  Customers
 Conceptual skills  Regulatory
 Managerial skills  Professional/Industry
 Leadership skills  Community
 Interpersonal skills  Union/Employee Groups
Amitabh Kodwani
 When is Job Analysis done?

 Every time a new job is designed.

 Every time a job is changed.
 An employee or manager request a re-
classification.
 3-year cycles are considered an ideal span
of time to review positions for an re-
alignment of performance standards.

Amitabh Kodwani
Job Descriptions

Job Title
Job Description

1. Job Title.
title,
2. Job Identification. department,

3. Essential Functions.
Job number of
people
1. XXX
2. XXX
3. XXX
Identification
4. XXX

4. Job Specifications.
1. XXX
2. XXX
3. XXX Essential
4. XXX
Functions

Amitabh Kodwani
 Job description
DDQWAS- Duties & Responsibilities, Designation & Location,
Qualifications, Working Environment, Authority of Incumbent,
Standards of Performance
 A job description is a written record of the duties
and responsibilities of a specific job compiled
through job analysis.

 It consists of statements which identify and

describe the scope and contents of a job.
 4 - 20

Sections of a typical job description

Job identification
Job summary
Responsibilities and duties
Authority of incumbent
Standards of performance
Working conditions
Job specifications
 The Job Specification…

JOB SPECIFICATIONS
 Skills required to perform the job
 Physical demands of the job
 Includes information on individual
characteristics desired; knowledge, skills
and abilities (Competencies); &
experience necessary to perform a job.
 Also forms the basis for the core selection
criteria.
Amitabh Kodwani
 Job Specification…

What would be needed to do job?

 Experience and abilities

 Qualifications

 Skill and Knowledge

 Personal qualities

Amitabh Kodwani
 Other Modern techniques are:

• Job Enlargement
• Flexi time
• Job rotation
• Telecommuting
• Job Sharing
• Condensed work
• Working from home

Amitabh Kodwani
 Recruitment and Selection

Dr. Amitabh Deo Kodwani,

Faculty –IIM Indore
 Current Challenges

• High Attrition Rate

• Bad Hiring –Cost

• Getting Right Talent

• Rising Hiring Cost

• Quick re-filling

• Standardization

• Changing Workforce
 OVERVIEW OF HIRING PROCESS

BUSINESS OBJECTIVES

HR PLANNING

JOB ANALYSIS

JOB DESCRIPTION JOB SPECIFICATION

RECRUITMENT
Recruitment
Recruitment is the generation of an applicant
pool for a position or job in order to provide the
required number of candidates for a subsequent
selection or promotion program.

4
 Selection

Selection is the choice of job candidates from

a previously generated applicant pool in a
way that will meet management goals and
objectives as well as current legal
requirements.

5
RECRUITMENT GOALS

Attract the Qualified Applicants.

Encourage Unqualified Applicants to self-

select themselves out.
 Purpose of Effective Selection

– Increase Retention Rate.

– Increase Job Satisfaction

– Reduce Cost of Filling Jobs.

– Reduce Time of finalization

– Get the right candidates

 Recruitment Yield Pyramid

Offer
Acceptance
20 Offers/Acceptance
(3:2)
Job Offer
30 Interview/Offers (4:3)
Invited for Final
Interview
40
Screening/Invites (5:1)
Invited to Screening
Interview
200
Contacts/Screens
(10:1)
Initial Contacts
2000
 Factors affecting Recruitment

1. Organizational Factors
• Organizational Culture
• Geographical Location
• Resources for Recruitment
• Channel or method used for recruitment
• Emoluments offered
• Job contents
 Factors affecting Recruitment

2. Environmental Factors
• Labour Market
• Social Attitude and Belief in society
• Legal factors
 Internal

Employee Referrals

External Searches

Advertisements

Employment Orgs.

Recruiting Unsolicited Apps.

Sources Cyberspace
Some key metrics for effective recruitment
• Retention Rate first 6 months

• Job satisfaction – 3 months later

• Cost per Job filled

• Time Per job filled

• Number of jobs filled

• Number of candidates applying to no of candidates short

listed to no of candidates selected

• Satisfaction of hiring manager with person recruited

 SELECTION PROCESS
Initial screening
Fail to meet minimum
qualification Passed
Completed application
Failed to complete job
application or failed job Passed
specification
Employment test
Failed Test
Passed
Passed Conditional job
Comprehensive interview
offer
Failed to impress
interviewer and / meet
job expectations
Background Examination
Problem if required
encountered
Passed
Reject Applicant
Medical/physical examination if
Unfit to do essential required (conditional job offer
elements of job Able to perform
essential elements
of job

Permanent job offer

 SELECTION METHODS Cont . . .
1. TESTING
Tests measure knowledge,
skill, and ability, as well as
other characteristics, such as
personality traits.

TESTING TYPES

Persona Integrit Drug Work

Cognitive Physical
Sample
Ability Test lity Test Ability Test y Test Test Testing
Other Selection Techniques
• Background investigations are effective
because they verify factual information and
may uncover criminal records
• Reference checking is harder as several
federal laws give rejected applicant rights to
know the information which might result in
litigation
Employee Testing and Selection
 Selection Process Flow Chart
RECEIPT OF APPLICTIONS

PRELIMINARY INTERVIEW

APPLICATION BLANK

PSYCHOLOGICAL TEST

INTERVIEW

BACKGROUND INVESTIGATION (REFERENCE CHECK)

FINAL SELECTION BY INTERVIEWERS

PHYSICAL EXAMINATION

REJECTION PLACEMENT
 Why Poor Selection Occurs
• Poor analysis of Job/Function/personality-skill profile
• Inadequate initial screening
• Inadequate filtering
• Inadequate interviewing /questioning
• Evaluation Issues of
– Halo Effect
– Stereotyping
– Similar-to-Me Effect
– Contrast Effect
– First Impressions
– Leniency error.
• Poor utilization of second opinions/References
 Shortlisting - Best practices

• Use form
• Set both min and max criteria
• Use multiple people
• Set Basic and Mandatory criteria
• Add additional criteria depending on
volume of response
 Shortlisting - Things To Look For

o Evidence of skills, abilities and achievements

o Consistency of employment
o Qualifications compatible with the dates given?
o Evidence of career development?
o Evidence of industry knowledge?
o Stability of employment within the industry?

o Previous employers.
o General employment stability
o Graphology
 Why Filtering?

• The total number of applicants is reduced to the select

group the employer wishes to carry on to the interview
phase
•Get Additional Factors difficult to check during the
interview
 Different Methods of Filtering

 Knowledge Based Filtering

 Skill Based Filtering

 Attitudinal/Potential Filtering
 Skill Based Filtering
 Entry, Mid-level, Senior Level
 Filtering, Additional Info
 Types
In – trays
Tests of productive thinking
Group Exercises
Presentations
Fact-finding exercises
Role-plays
Social events
Ability Tests
Knowledge Based Filtering
 FilteringTypes
 Academics Based
 Test Based
Behavioral Based Filtering
 Mid, Senior Level
 Additional Info
 Types
 Behavioral Based Assessment centers
 Psychometric Testing
 Projective Tests
 Inventory Based Tests
 Commonly Used Tests
• Projective Tests
– Rorschach Test
– TAT
• Inventory Based Tests
– MBTI – Understanding Personality Type
– 16 PF
– FIRO-B
The Overall Interview Process

Pre-Interview Preparatory Phase

The Interview Itself

The Position Assessment and Decision Phase

 Interview Plan
• Key Requirements Analysis
• Broad Coverage plan
( Interview Evaluation form)
1. Initial Screening 5. Background
Interview/Tests Investigation

2. Application Steps 6. Conditional

Blank Job Offer
of the
Selection
3. Employment 7. Medical or
Tests Process Physical Exam

4. Comprehensive 8. Permanent
Interviews Job Offer

6-9
 Interview
• An interview is a procedure designed to
obtain information from a person through
oral responses to oral inquiries
• A selection interview is a selection
procedure designed to predict future job
performance on the basis of applicants’ oral
responses to oral inquiries
 Interview Structure

Opening - 10% Build Rapport

Collect Information
Body - 70%

Close - 20% Answer questions

 Stages of interview
Re look Behavioral Specifications for the Job

Determine Key factors & Red Flags to probe for

Use an interview plan

Opening Phase or Rapport generation

Verification Phase

Close & Review the Interview

 Skills To Be A Good Interviewer

• Body Language
• Listening
• Questioning Method
• Styles
 The Four Key Elements Of Listening

Physical Mental

Feedback
+ve Gestures Pause
Focus
+ve BL Don’t Interrupt
much

Nodding Reflect
Empathy Emotion
Neutral
Body Language in Business

From -Mind your

Manners John Mole
 Questions

• Avoidable questions
• Open ended Vs closed ended
• Probing
• BEI
 Probing

• Amplification
– Golden Pause
– Neutral Probes
– Example Probes

• Accuracy ( Mirror )
• Completion ( Summary )
BEHAVIORAL EVENT INTERVIEWING
IS CONCERNED WITH :

 Behavior and observations

 Also geared to finding out about the person’s

thinking patterns

Consistent ways of approaching problems

Feelings about things that are happening

it seeks to recreate an account that describes the

characteristics of the person
 Hallmarks of a Good Interviewer

Don’ts
• Not to prove Clever
• Not to catch the person out
• Not to Judge (Make “Judgments”)
• Avoid getting into debates with the candidate
• Being overly impressed with maturity or experience, or overly
unimpressed by youth and immaturity
• Allowing personal biases to influence your assessment
• Most people make up their minds about an applicant within the first
few minutes.
Other Selection Techniques
• Background investigations are effective
because they verify factual information and
may uncover criminal records
• Reference checking is harder as several
federal laws give rejected applicant rights to
know the information which might result in
litigation
Reference Check Form
Performance and Potential
appraisal
 The Appraisal Process
 The evaluation of an employee’s current
and past performance relative to
performance standards

 An appraisal involves:
 Setting work standards
 Assessing actual performance vs. these
standards
 Providing feedback to the employee
 Comparing Performance Appraisal and
Performance Management

 Performance appraisal
 Evaluating an employee’s current and/or past
performance relative to his or her
performance standards.
 Performance management
 The process employers use to make sure
employees are working toward organizational
goals.
An Introduction to Appraising
Performance

Why Appraise Performance?

1 Is basis for pay and promotion decisions.

2 Plays an integral role in performance management.

Helps in correcting deficiencies and reinforcing good

3
performance.

4 Is useful in career planning.

 The Components of an Effective
Performance Management Process

 Direction sharing
 Role clarification
 Goal alignment
 Developmental goal setting
 Ongoing performance monitoring
 Ongoing feedback
 Coaching and support
 Performance assessment (appraisal)
 Rewards, recognition, and compensation
 Workflow and process control and return
 Defining Goals and Work
Efforts
 Guidelines for effective goals
 Assign specific goals

 Assign measurable goals

 Assign challenging but doable goals

 Encourage participation

 SMART goals are:

 Specific, and clearly state the desired results.

 Measurable in answering “how much.”

 Attainable, and not too tough or too easy.

 Relevant to what’s to be achieved.

 Timely in reflecting deadlines and milestones.

 Performance Appraisal
Roles
 Supervisors
 Usually do the actual appraising.
 Must be familiar with basic appraisal
techniques.
 Must understand and avoid problems that
can cripple appraisals.
 Must know how to conduct appraisals fairly.
 Performance Appraisal
Roles (cont’d)
 HR department
 Serves a policy-making and advisory role.
 Provides advice and assistance regarding
the appraisal tool to use.
 Prepares forms and procedures and insists
that all departments use them.
 Responsible for training supervisors to
improve their appraisal skills.
 Responsible for monitoring the system to
ensure that appraisal formats and criteria
comply with EEO laws and are up to date.
Define the Job
Steps in Appraising
Performance
Discuss
progress &
Make sure all
make plans
agree on duties

Compare
Appraise Provide
performance
Performance Feedback
to the standard
 PERFORMANCE APPRAISSAL METHODS

Traditional Modern
a) Graphic Rating (Quality & a) BARS – Behaviour
Qty, Num and Written) b) 360º
b) Alternation Ranking Method
c) Team/Group Appraisal
c) Paired Comparison
d) Balanced Score Card
d) Forced Distribution
e) Assessment Centre
e) Critical Incident
f) MBO
g) Essay Appraisal
 Important Advantages and Disadvantages of Appraisal Tools

Tool Advantages Disadvantages

Graphic rating Simple to use; provides a Standards may be unclear; halo
scale quantitative rating for each effect, central tendency, leniency,
employee. bias can also be problems.

BARS Provides behavioral “anchors.” Difficult to develop.

BARS is very accurate.

Alternation Simple to use (but not as simple Can cause disagreements among
ranking as graphic rating scales). Avoids employees and may be unfair if all
central tendency and other employees are, in fact, excellent.
problems of rating scales.

Forced End up with a predetermined Employees’ appraisal results

distribution number or % of people in each depend on your choice of cutoff
method group. points.

Critical incident Helps specify what is “right” and Difficult to rate or rank employees
method “wrong” about the employee’s relative to one another.
performance; forces supervisor to
evaluate subordinates on an
ongoing basis.

MBO Tied to jointly agreed-upon Time-consuming.

performance objectives.
COMPONENTS OF APPRAISAL/EVALUATION
• Who
• What
• Why
• When
• Where
• How

PROBLEMS OF APPRAISAL
• Halo Effect • Primary Effect
• Leniency or Strictness Tendency
• Similarity Error
• Stereotyping error
• Miscellaneous Biases
• Social Differentiation
• Perceptual Set (over/under rating)
 Appraising Teams
Set tangible targets for Determine intangible
each KRA. Incorporate parameters (like initiative),
Identify KRAs which indicate pockets of
stretch elements for each
critical to business individual excellence with
target. Fix the minimum
during the year the team
acceptable target

Evaluate Communicate Measure the

performance of the the results to performance of the
team against pre- ensure team (actual versus
determined targets transparency targets) every month

Identify individuals who have excelled.

Discount subjective factors by including
assessors from outside the team to
identify outstanding individuals.
 How to Avoid Appraisal
Problems
 Learn and understand the problems
 Use the right appraisal tool
 Train supervisors
 Reduce outside factors: time constraints,
union pressures & turnover
 Keep a diary of critical incidents
 Who Does the Appraising?

Your
Boss You

Peers Subordinates

Rating
Committee
 The Appraisal Interview

Appraisal interview - an interview in

which the supervisor and subordinate
review the appraisal and make plans to
remedy deficiencies and reinforce
strengths. Adequate preparation and
effective implementation are therefore
essential.
 How to Insure
Improved Performance

Set improvement goals

Establish comfort
Allow employee influences
Provide constructive information
Training and Development
 Training vs. Development

• Training: any attempt to improve employee

performance on currently held or similar job
– Present-oriented

• Development: Learning opportunities

designed to help employees grow
– Future-oriented
 When do we need training?

General Purpose:
• Deploy new equipments or new technology
• Change job methods
• New Product Mix
• Unsatisfaction of employee performance
• Employee shortage
• Increase job quality
• Avoid accident events
• Employee promotion or rotation
• ……
Create an efficient and competitive Company
The Five Steps in the Training and
Development Process

1. Needs Analysis
2. Instructional Design
3. Validation
4. Implementation
5. Evaluation and Follow-Up
 Needs Assessment

• Organizational Analysis: Where should

the training emphasis be placed?
• Job Analysis: What should be taught so
that employee can perform the job
satisfactorily
• Person Analysis: Who needs training, and
what specific types of training are needed?
 NEED ASSESSMENT

Organisational Analysis Operational Analysis Individual Analysis

Organisational Objectives Expectations from To Know- Existing A, S, K
Resources employees to met organisation Through- Individual response, Senior’s
objectives response, HRD survey, Performance appraisal

Required optimal performance level from each Current level of performance of employees
employee to meet organisational objectives

Gap between required and current level of performance

YES

NO
Training Needs

No need of Training
Creating Learning Environment
 Training Techniques

 On-the-Job Training
 Apprenticeship Training
 Informal Learning
 Job Instruction Training
 Lectures
 Programmed Learning
 Audiovisual Techniques
 Vestibule or Simulated Training
 Computer-Based Training
 Training Via CD-ROM and the Internet
Training Effects to Measure
KIRKPATRICK MODEL OF EVALUATING TRAINING

Four basic categories of training outcomes can be measured:

Reaction

Learning

Behavior

Results
 Training Effects to Measures
Reaction Like? Worthwhile?

Whether they learned the principles,

Learning skills, facts they were supposed to
learn?
Behavior Whether behavior on the job due to
the program?

Results Most Important!

Customer Complaint? Reject Rate?
Scrappage Cost? Turnover? Production
quotas?
Desired results vs. Goals Achieved?
 Job Rotation

A management training technique that

involves moving a trainee from department
to department to broaden his or her
experience and identify strong and weak
points
Coaching/Understudy Approach

A management training technique that

the trainee works directly with a senior
manager or with the person he or she is to
replace
Compensation Management

1
Basic Factors in Determining
Pay Rates

Employee
Compensation

Direct Financial Indirect Financial

Payments Payments

2
Important Compensation Related Acts in India

• Minimum Wages Act, 1948

• Payment of Wages Act, 1936
• Equal Remuneration Act, 1976
• Companies Act, 1956
• Payment of Bonus Act, 1965
• Payment of Gratuity Act, 1972
• Employee Stock Scheme (ESOS)
• Employee Stock Purchase (ESPS)
3
 Corporate Policies, Competitive Strategy,
and Compensation

• Aligned Reward Strategy

– The employer’s basic task:
• To create a bundle of rewards—a total reward package—that
specifically elicits the employee behaviors that the firm needs to
support and achieve its competitive strategy.

– The HR or compensation manager along with top

management creates pay policies that are consistent with
the firm’s strategic aims.

4
 Compensation Policy Issues
• Pay for performance
• Pay for seniority
• The pay cycle
• Salary increases and promotions
• Overtime and shift pay
• Probationary pay
• Paid and unpaid leaves
• Paid holidays
• Salary compression
• Geographic costs of living differences

5
Determinants of Individual Financial
Compensation

• Organization
• Labor market
• Job
• Employee
 Equity and Its Impact on Pay Rates

Forms of Equity

External Internal Individual Procedural

Equity Equity Equity Equity

7
 Addressing Equity Issues

Salary Surveys

Job Analysis and

Job Evaluation
Methods to
Address Equity
Issues
Performance Appraisal
and Incentive Pay

Communications, Grievance
Mechanisms, and Employees’
Participation

8
 Establishing Pay Rates

Steps in Establishing Pay Rates

1 Conduct a salary survey of what other employers are paying

for comparable jobs (to help ensure external equity).

2 Determine the worth of each job in your organization

through job evaluation (to ensure internal equity).

3 Group similar jobs into pay grades.

4 Price each pay grade by using wage curves.

5 Fine-tune pay rates.

9
 The Salary Survey

Step 1. The Wage Survey:

Uses for Salary Surveys

To make
To price To market-price
decisions about
benchmark jobs wages for jobs
benefits

10
 Sources for Salary Surveys

Sources of Wage and

Salary Information

Employer Self-
Consulting Professional Government The
Conducted
Firms Associations Agencies Internet
Surveys

11
Establishing Pay Rates (continued)

Skills

Effort
Step 2. Job Evaluation:
Identifying Compensable
Factors
Responsibility

Working Conditions

12
Establishing Pay Rates (continued)

Preparing for the Job Evaluation

1 Identifying the need for the job evaluation

2 Getting the cooperation of employees

3 Choosing an evaluation committee

4 Performing the actual evaluation

13
 Establishing Pay Rates (continued)

Methods for
Evaluating Jobs

Job Point Factor

Ranking
Classification Method Comparison

14
 Compensable Factors
• Salient job characteristics by which a company establishes
pay rates

Universal compensable factors

– Education
– Experience
– Scope of Responsibility
– Supervision Exercised
– Consequences of Errors
– Mental, Physical, and Social Demands
– Working Conditions
 Key & Unique Jobs
• Key or Benchmark Jobs – jobs whose pay can
be compared to corresponding external jobs

• Unique Jobs – jobs that have no external

comparison
 Job Evaluation Methods: Ranking

• Ranking each job relative to all other jobs, usually

based on some overall factor.
• Steps in job ranking:
1. Obtain job information.
2. Select and group jobs.
3. Select compensable factors.
4. Rank jobs.
5. Combine ratings.

17
Job Ranking : Array of Jobs according to the Ranking Method

Rank Monthly salaries

1. Accountant Rs. 3,000

2. Accounts clerk Rs. 1,800

3. Purchase assistant Rs. 1,700

4. Machine-operator Rs. 1,400

5. Typist Rs. 900

6. Office boy Rs. 600

18
 Job Evaluation Methods:
Job Classification

• Raters categorize jobs into groups or classes of jobs

that are of roughly the same value for pay purposes.
– Classes contain similar jobs.
• Administrative assistants
– Grades are jobs similar in difficulty but otherwise
different.
• Mechanics, welders, electricians, and machinists
– Jobs are classed by the amount or level of
compensable factors they contain.

19
 Example of a Job classification on the basis of Class

(a) Class I - Executives: Further classification under this category may

be Office manager, Deputy office manager, Office superintendent,
Departmental supervisor, etc.

(b) Class II - Skilled workers: Under this category may come the
Purchasing assistant, Cashier, Receipts clerk, etc.

(c) Class III - Semiskilled workers: Under this category may come
Stenotypists, Machine-operators, Switchboard operators, etc.

(d) Class IV - Semiskilled workers: This category comprises Daftaris,

File clerks, Office boys, etc.
20
 Quantitative Job Evaluation Methods

Job Evaluation Methods: Point Method

• A quantitative technique that involves:
– Identifying the degree to which each compensable
factor is present in the job.
– Awarding points for each degree of each factor.
– Calculating a total point value for the job by
adding up the corresponding points for each
factor.

21
 The Point Method of Job Evaluation

Step 1. Determine clusters of jobs to be evaluated

Step 2. Collect job information
Step 3. Select compensable factors
Step 4. Define compensable factors
Step 5. Define factor degrees
Step 6. Determine relative values of factors
Step 7. Assign point value to factors and degrees
Step 8. Write the job evaluation manual
Step 9. Rate the jobs
22
 Factor Comparison Job Evaluation Method

Step 1. Obtain job information

Step 2. Select key benchmark jobs (15-25)

Step 3. Rank key jobs by factor (on all five factors)

Step 4. Distribute wage rates by factors

Step 5. Rank key jobs according to wages assigned to each factor

Step 6. Compare the two sets of rankings to screen out unusable key jobs

Step 7. Construct the job-comparison scale

Step 8. Use the job-comparison scale

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 Sample Definitions of Five Factors Typically Used in Factor Comparison Method

1. Mental Requirements
Either the possession of and/or the active application of the following:
A. (inherent) Mental traits, such as intelligence, memory, reasoning, facility in verbal expression,
ability to get along with people, and imagination.
B. (acquired) General education, such as grammar and arithmetic; or general information as to sports, world
events, etc.
C. (acquired) Specialized knowledge such as chemistry, engineering, accounting, advertising, etc.

2. Skill Requirements
A. (acquired) Facility in muscular coordination, as in operating machines, repetitive movements, careful
coordinations, dexterity, assembling, sorting, etc.
B. (acquired) Specific job knowledge necessary to the muscular coordination only; acquired by performance of
the work and not to be confused with general education or specialized knowledge.
It is very largely training in the interpretation of sensory impressions.
Examples
1. In operating an adding machine, the knowledge of which key to depress for a subtotal would be skill.
2. In automobile repair, the ability to determine the significance of a knock in the motor would be skill.
3. In hand-firing a boiler, the ability to determine from the appearance of the firebed how coal should be
shoveled over the surface would be skill.

3. Physical Requirements
A. Physical effort, such as sitting, standing, walking, climbing, pulling, lifting, etc.; both the amount
exercised and the degree of the continuity should be taken into account.
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B. Physical status, such as age, height, weight, sex, strength, and eyesight.
 Sample Definitions of Five Factors (continued)
4. Responsibilities
A. For raw materials, processed materials, tools, equipment, and property.
B. For money or negotiable securities.
C. For profits or loss, savings or methods’ improvement.
D. For public contact.
E. For records.
F. For supervision.
1. Primarily the complexity of supervision given to subordinates; the number of subordinates is a secondary
feature. Planning, direction, coordination, instruction, control, and approval characterize this kind of
supervision.
2. Also, the degree of supervision received. If Jobs A and B gave no supervision to subordinates,
but A received much closer immediate supervision than B, then B would be entitled to a higher rating than A
in the supervision factor.
To summarize the four degrees of supervision:
Highest degree—gives much—gets little
High degree—gives much—gets much
Low degree—gives none—gets little
Lowest degree—gives none—gets much

5. Working Conditions
A. Environmental influences such as atmosphere, ventilation, illumination, noise, congestion,
fellow workers, etc.
B. Hazards—from the work or its surroundings. 25
C. Hours.
Ranking Key Jobs by Factors

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 Comparison of Factor and Wage Rankings

Mental Physical Skill Working

Requirements Requirements Requirements Responsibility Conditions

A1 $2 A1 $2 A1 $2 A1 $2 A1 $2

Welder 1 1 4 4 1 1 1 1 2 2

Crane operator 3 3 1 1 3 3 4 4 4 4

Punch press
operator 2 2 3 3 2 2 2 2 3 3

Security guard 4 4 2 2 4 4 3 3 1 1

1Amount of each factor based on step 3.

2Ratings based on distribution of wages to each factor from step 5.

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Job (Factor)-Comparison Scale
Establishing Pay Rates (continued)

Point Method

Step 3. Group
Similar Jobs into Ranking Method
Pay Grades

Classification Methods

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Establishing Pay Rates (continued)
• Step 4. Price Each Pay Grade—Wage Curve
– Shows the pay rates paid for jobs in each pay
grade, relative to the points or rankings assigned
to each job or grade by the job evaluation.
– Shows the relationships between the value of the
job as determined by one of the job evaluation
methods and the current average pay rates for
your grades.

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Plotting a Wage
Curve

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 Establishing Pay Rates (continued)
• Step 5. Fine-Tune Pay Rates
– Developing pay ranges
• Flexibility in meeting external job market rates.
• Easier for employees to move into higher pay grades.
• Allows for rewarding performance differences and seniority.
– Correcting out-of-line rates
• Raising underpaid jobs to the minimum of the rate range for
their pay grade.
• Freezing rates or cutting pay rates for overpaid (“red circle”)
jobs to maximum in the pay range for their pay grade.

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Pricing Managerial and Professional Jobs

Compensating Executives and

Managers

Executive
Base Short-term Long-Term
Benefits and
Pay Incentives Incentives
Perks

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 Competency-Based Pay

Why Use Competency-Based

Pay?

Support High- Support

Support
Performance Performance
Strategic Aims
Work Systems Management

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 Other Compensation Trends
• Broadbanding
– Consolidating salary grades and ranges into just a few
wide levels or “bands,” each of which contains a
relatively wide range of jobs and salary levels.
– Pro and Cons
• More flexibility in assigning workers to different job grades.
• Provides support for flatter hierarchies and teams.
• Promotes skills learning and mobility.
• Lack of permanence in job responsibilities can be unsettling
to new employees.

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