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37213C&RM Job Evaluation

Job evaluation is the process of systematically determining the relative worth of jobs to create an internal job structure. It balances internal equity, paying different jobs differently based on their requirements, with external competitiveness by paying jobs what the market pays. Common methods include ranking, classification, factor comparison, and point methods. The point method assigns numerical values to compensable factors like skill, effort, responsibility, and working conditions to quantitatively assess a job's worth.

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Aastha Sharma
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52 views29 pages

37213C&RM Job Evaluation

Job evaluation is the process of systematically determining the relative worth of jobs to create an internal job structure. It balances internal equity, paying different jobs differently based on their requirements, with external competitiveness by paying jobs what the market pays. Common methods include ranking, classification, factor comparison, and point methods. The point method assigns numerical values to compensable factors like skill, effort, responsibility, and working conditions to quantitatively assess a job's worth.

Uploaded by

Aastha Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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What is job evaluation?

Job evaluation can be defined as a systematic procedure designed to aid in establishing pay differentials among jobs

What is job evaluation?


Process of systematically determining the relative worth of jobs to create a job structure for the organization. The evaluation is based on a combination of job content, skills required, value to the organization, organizational culture, and the external market. This potential to blend internal forces and external market forces is both a strength and a challenge to job evaluation.
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What is job evaluation?


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

Determining an Internally Aligned Job Structure


Internal alignment Job analysis Job description Job evaluation Job structure

Work relationships within the organization

Some Major Decisions in Job Evaluation Establish purpose of evaluation Decide whether to use single or multiple plans Choose among alternative approaches Obtain involvement of relevant stakeholders Evaluate plans usefulness
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Aspects of Job Evaluation


Job Evaluation is: A measure of job content A measure of relative value. Assumption Content has an innate value outside of external market. Relevant groups can reach consensus on relative value

Link with external information.


Measurement device Negotiation

Job worth cannot be specified without external market market


Honing instruments will provide objective measures. Puts face of rationality to a social / political process.

Establishes rules of the game.


Invites participation.

Job Evaluation Methods


Job Ranking
Raters examine job description and arrange jobs according to value to company

Job Classification
Classes or grades are defined to describe a group of jobs.

Point Method
Numerical values are assigned to specific job components; sum of values provides quantitative assessment of jobs worth (Hay Guide ChartProfile Method)

factor comparison

Methods of Job Evaluation


Ranking: Ranking simply orders the job descriptions from smallest to largest based on the evaluators perception of relative value or contribution to the organizations success.

Ranking
Only workable for a small organization with very few different jobs.
Depends on evaluator consistency perspectives change over time.

Methods of Job Evaluation


Classification
Job descriptions are slotted into a series of classes that cover the range of jobs. Each class has a definition. These definitions are the standards against which the jobs are compared.

Methods of Job Evaluation


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 other jobs factors. The market pay rate for each job is then allocated among the factors based upon a market pay rate scale.
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Methods of Job Evaluation


Factor Comparison
Very complex and requires total rework each year to determine the market pay rates. Can perpetuate equity issues from the market.

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Methods of Job Evaluation


Point Method
These systems have three common characteristics:
Compensable elements Factor degrees are numerically scaled Weights reflecting the relative importance of each factor
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Methods of Job Evaluation


Point Method Compensable elements are those characteristics in the job (not the person) that the organization values, that help it pursue its strategy and achieve 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 16 these jobs

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 an acceptable manner if the job is to be performed satisfactorily.
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Compensable Factors
In addition to being quantifiable, compensable factors should be relatively easy to describe and document. Those involved in using compensable factors to measure job worth should consistently arrive at similar results.
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Universal Compensable Factors


Skill: the experience, training, ability, and education required to perform a job under consideration - not with the skills an employee may possess

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Universal Factor - Skill


Technical Know-how Specialized Knowledge Organizational Awareness Educational Levels Specialized Training Years of Experience Required Interpersonal Skills Degree of Supervisory Skills
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Universal Compensable Factors


Effort: the measurement of the physical or mental exertion needed for performance of a job
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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
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Universal Compensable Factors


Responsibility: 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
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Universal Compensable Factors


Working Conditions:

hazards physical surroundings of the job.

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Universal Factor - Working Conditions


Potential Hazards Inherent in Job Degree of Danger Which Can be Exposed to Others Impact of Specialized Motor or Concentration Skills Degree of Discomfort, Exposure, or Dirtiness in Doing Job
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Point Method
Example: Software Engineer
Job Description
The Software Engineer designs, develops, tests and maintains one or more of our products or internal applications. The software engineer works as a member of an engineering team developing, designing, and maintaining one or more of our products or internal applications. This position reports to the appropriate Project Manager.

Job Specification
Bachelor's or undergraduate degree in Computer Science, Information Systems, Electrical Engineering or equivalent experience. 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 Decision 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 provide guidance 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 situations require 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.
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