Chapter I

INTRODUCTION

1.0 Introduction

Job evaluation is a method for comparing different jobs to provide a basis for grading and pay

structure. It is an assessment of the relative worth of various jobs on the basis of a consistent set of

job and personal factors, such as qualifications and skills required and it aims at determining which

jobs should get more pay than others. Several methods such as job ranking, job grading and factor

comparison are used in job evaluation. Research indicates, however, that each method is nearly as

accurate and reliable as the other in ranking and pricing different jobs. Job evaluation forms the basis

for wage and salary negotiations.

Job evaluation intends to evaluate the job, not the job holder, and to provide relatively objective

means of assessing the demands of a job. It can be beneficial when the existing grading structure is in

need of review and establishing or maintaining the credibility and acceptability of a grading system.

Job evaluation also facilitates the accommodation of new or revised jobs into the grading structure

and can be used by organizations as a basis for job matching and external pay comparisons. It is also

a mechanism for establishing agreed differentials within organizations and is broken down into non-

analytical and analytical schemes.

Under analytical schemes of job evaluation is the point factor method used by most institutions

around the world. Developed in 1921 as the first quantitative technique of evaluation, point factor is

intended to put structure to a job or job class’s value or relative pay worth, from a particular

organization or employer’s point of view. Point factor systems therefore do not evaluate people, they

evaluate positions. The point factor method was thus adopted by the job evaluation committee to

assess/evaluate the job structure of Spurs Telecom Limited, a medium sized telecommunications

company located in Kampala, Uganda; because in this method, the value of the job can easily be

expressed in monetary terms. It is also easy to apply point factor method to a wide range of jobs and

also to newly created jobs and hence the reason why it was preferred by the committee.

1.1 Background

Spurs Telecom Limited is one of the world's leading providers of internet and multimedia

solutions in Uganda, launched on 20th October 2000 located in Wandegeya, a suburb of Kampala.

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Spurs is dedicated to providing high quality digitalized products and services and has since grown

to become a leading telecommunications company in Uganda, providing excellent services and

servicing in excess of 2million subscribers and still growing.

1.1.1 Mission and Vision

The mission of Spurs Telecom is “To create unequalled loyalty by providing customer service

that results in Spurs Telecom becoming the natural choice for telecommunications solutions."

Spurs’ vision is “To delight our customers in every interaction, thereby creating lasting profitable

relationships ".

1.1.2 Objectives

The company practices formal organizational/personnel management practices; and in pursuit of

their mission and vision, Spurs telecom is directed by a number of objectives. Spurs

Telecommunications Company strives to;

a) Be a successful company that is respected in the market place, by our customers, partners,

employees and communities where we deliver services.

b) Be the industry leader as the next generation telecommunications provider

c) Have the highest client retention rate in the telecom industry.

d) Create an environment where our employees will grow, learn and prosper and want to create

a client-centric environment.

1.1.3 Goals

The main goal of Spurs Telecom is to provide cost effective telecommunications services to every

nook and corner of the country.

1.1.4 Values

As part of its core values, Spurs Telecom believes in;

a) Integrity

b) Teamwork

c) Professionalism

d) Customer satisfaction

e) Relationship

f) And Innovation

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1.2 Formation of a job evaluation committee

Spurs Telecom hired the services of an Evaluation Committee to assess the current job and

salary structure of the company. The committee was constituted out of a class UMI discussion

group and it composed of six (6) members as listed below;

1. Atama Perez

2. Yeko Barbra Kisa

3. Kirabo Esther

4. Mukebezi Prossy

5. Muhanguzi Caroline

6. Maiteki Moses

It agreed to evaluate jobs from one of the job families of Spurs Telecom’s organizational

structure (See Appendix), and adopted the point factor method of job evaluation.

1.2.1 Benchmark Jobs

The following jobs were selected for evaluation;

a) General Manager, Sales and distribution

b) Senior Sales and Marketing Manager

c) Sales Supervisor

d) Sales Representative

1.2.2 Time line

The evaluation exercise will take 3 weeks, from 30th April 2014 to 21st May 2014 and duties

will be assigned to the different committee members after which members will participate in

preparing the job evaluation report.

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Chapter II

METHODOLOGY

2.0 Introduction

This chapter discusses the methodology used by the evaluation committee in the job evaluation

process after carrying out a job analysis, including reviewing the job description and person

specifications of the selected jobs (see appendix). It is also in this chapter that compensable factors

were discussed in relation to the sampled jobs from Spurs Telecom’s organizational structure.

2.1 Compensable factors

Point factors are also called “compensable factors.” A compensable factor is any particular skill,

responsibility, effort or physical demand for which an employer is willing to pay an employee. These

factors are typically attuned to an employer’s vision, mission and goals; and an

employer/organization must first know what they want to pay for in the work they will ask their

employees to perform, or what attributes they value most, so that they can set their compensation

rates.

The jobs below were seen to be in the same job family, however in the organizational structure, they

are rated differently and hence the need to justify the difference amongst them.

General Manager Sales and Distribution

Senior Sales and Marketing Manager

Sales Supervisor

Sales Representative

In analyzing the above jobs, questionnaires were employed as a method of analysis/evaluation (see

appendix). The first step here was to get job descriptions and person specifications of the above jobs

through advertisements and schedules of duties of various jobs and also from direct engagement with

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employees and the employer, after which the committee would identify atleast four (4) compensable

factors in relation to the above jobs.

2.3 Choice of compensable factors

The committee having selected a job family that includes General Manager Sales and Distribution,

Senior Sales and Marketing Manager, Sales Supervisor and Sales Representative, the following were

identified as compensable factors;

Decision Making

This factor is measured in terms of the opportunity for independent action, the level of direction and

supervision received, as well as the variety, type and frequency of decision making. It is concerned

with working outside of established guidelines, working independently and coming up with creative

solutions at a strategic and policy level. It is primarily subjective and the committee sought to explore

the extent to which job holders work independently, without precedence, have to solve problems,

make decisions and contribute to changes in policy and procedure.

Level of contacts

Here, the committee assessed the extent to which the job holder is required to have formal contact

with others within and outside the department/organization. In assessing this factor, the committee

took into consideration the type of contact, level of contact and reason for contact with persons within

and outside the company. Unofficial contacts were excluded and the committee chose appropriate

information that could affect the nature of the business. This might include, for example, dealing with

people who are skeptical, uncooperative, unreceptive, or hostile; or, settling controversial issues or

arriving at compromise solutions with people who have different viewpoints, goals, or objectives.

Complexity of duties

The three parts of this factor consider:

The nature of the assignment;

What the employee considers when deciding what must be done; and

How difficult and original are the employee's actions or responses.

Evaluators characterized the work in terms of the nature and variety of the tasks, methods, functions,

projects, or programs carried out. Some employees have little or no choice about how to perform the

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work. Others may have to develop, analyze, or evaluate information before the work can progress.

The level of difficulty in carrying out the work varies depending on whether the facts or conditions

are clear-cut and apply directly to the problem or issue; vary according to the nature of the subject

matter, phase, or problem handled; or involve unusual circumstances and incomplete or conflicting

data. In some situations the work is mastered easily, and the employee takes the obvious course of

action. The level of difficulty and originality increases as the employee considers differences in

courses of action and refines methods or develops new techniques, concepts, theories, or programs to

solve problems.

Education

This factor identifies the minimum position requirements in terms of formal education which are

required of the position in order for it to be performed satisfactorily. Knowledge may have been

acquired through a formal diploma/degree program, training, or a combination of both. This is a

measure of the level of education for the position and not necessarily a measure of the incumbent's

own level. This factor therefore considered not the actual qualification of the job holder but only the

minimum level of education required for the performance of the job.

The committee was also tasked to determine the relative weights/degrees of each point factor for the

organization. For employers, factors are weighted according to their significance to the organization,

and this allows the pay system to be linked, as has been noted, to the organization’s strategy/mission.

The above factors were therefore broken down as follows;

Degree Decision Making

1 Follows clearly prescribed standards and readily understood rules

2Follows prescribed standards/rules with managerial supervision and exercises relative

independent judgment

3Exercises independent judgment in making decisions involving non routine problems

with general guidance from top management

4 Uses independent judgment in making decisions that are not subject to review

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Degree Contacts

1 Contacts extend to persons in the immediate work unit on l

2 Usual purpose of contacts is to exchange information and settle specific problems and

customer feedback encountered in the course of daily work

3 Usual purpose of contacts is to discuss problems and possible solutions, to secure

corporation/coordination of efforts and get agreement and action

4 Contacts here are vital in reviewing policies and settling business strategies

Degree Complexity of duties/tasks

1 Little or no independent action or judgment. Duties are so standardized and simple

2 Performs duties working from standard procedures or generally understood rules

3 Performs work for which only general methods are available, with relative

independence and minimal guidance from top management

4 Independent action and judgment are required in carrying out tasks

Degree Education

1 The job requires diploma level of education in addition to experience and any other

formal education

2 A degree is required in addition to field experience and market intelligence

3 A degree is a major requirement but post graduate qualification is an added advantage

4 Masters qualification is a prerequisite in addition to extensive managerial experience,

job knowledge and market intelligence

The next step was to divide each factor into levels or degrees and then assign it points. Each job was

rated using the point evaluation method/instrument and the points for each factor were summed to

form a total point score for each job as shown below;

The committee awarded degrees to each factor depending on its significance or how it applies to the

jobs selected in percentages first, before converting it out of 400 points.

Decision Making 85%

Contacts 100%

Complexity of duties 75%

Education 60%

Total 320%

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And in order to get the percentages out of 100%, the formula below was used;

Decision making 85/320 x 100 = 27%

Contacts 100/320 x 100 = 31%

Complexity of duties 75/320 x 100 = 23%

Education 60/320 x 100 = 9%

Making it a total of 100%

The next step was to award points to each of the factors selected, and in order to do so, the committee

employed the following formula;

Decision making 27/100 x 400points = 108points

Contacts 31/100 x 400points = 124points

Complexity of duties 23/100 x 400points = 92points

Education 19/100 x 400points = 76points

Hence totaling up to 400 points

Last but not least, the points above were divided amongst the four different positions being evaluated

in relation to the compensable factors as will be shown.

The above information represents the difference in points for the different positions as displayed in

the table below;

Position Decision making Contacts Complexity

of duties Education

Total PointsPer position

General Manager Sales and Distribution

108 124 92 76 400

Senior Sales and Marketing Manager

81 93 69 57 300

Sales Supervisor 54 62 46 38 200

Sales Representative 27 31 23 19 100

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2.4 Pay structure

Pay structures, also known as salary structures, set out the different levels of pay for jobs, or groups

of jobs, by reference to their relative internal value, as established by job evaluation, external

relativities, via market rate surveys, where appropriate, negotiated rates for the job.

Below are some of the types of pay structure recommended/proposed by the committee in relation to

the jobs evaluated;

a) Graded pay structure

A sequence of overlapping job grades into which jobs of broadly equivalent size are allocated. Each

grade has a range, the maximum of which is usually 20 to 50% above the minimum.

Shs.

Human Resource Management Michael Armstrong 8th edition pg 665

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b) Broad banded pay structure

Similar to conventional graded structures, but with far fewer and far wider bands. The maximum of

the band can be 100% or more above the minimum.

Human Resource Management Michael Armstrong 8th edition pg 666

c) Job family structures

Each job family has a different graded structure. Jobs are allocated to a job family based on activities

carried out; skills and competencies.

Human Resource Management Michael Armstrong 8th edition pg 668

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6

5

4

3

2

1

5

4

3

2

1

4

3

2

1

1.3 Conclusion

A total point score was added for all the jobs above in order to assign wage/salary grades, and

similarly, all jobs rated together with the above jobs in the organizational structure would be

placed together in the same wage/salary grade with them, and thus the point factor method

managed to effectively rate the jobs selected in relation to their compensable factors.

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Chapter III

FINDINGS, RECOMMENDATIONS AND CONCLUSION

2.0 Introduction

This chapter explains the findings of the job evaluation exercise and offers recommendations

from the view of the job evaluation committee, after which a conclusive remark will be reached.

2.1 Findings

After finding a total point score for all the jobs (job family) selected, the position of General

manager was found to have the highest number of points at 400, followed by Senior Sales and

Marketing Manager at 300, Sales Supervisor at 200 and Sales Representative earned 100 points,

and it is from this point of view that Spurs Telecom can design a pay structure that cuts across

the jobs selected as per the organizational structure in relation/comparison to the prevailing

market prices.

2.2 Recommendations

We have recommended a variety of strategies for improving the job evaluation process and for

addressing broader salary/wage payment and job evaluation issues at Spurs Telecom Ltd. The

Committee believes that these recommendations can lead to significant positive change. There is

also need to re-establish a stable job evaluation benchmark system to guide pay and structural

issues for new jobs.

2.2.1 Maintenance

Job evaluation is not a once and for all exercise and procedures must be devised to keep the

scheme up to date. It is essential for someone in the organization to have a continuing knowledge

of the scheme. If the scheme is not regularly maintained, the initial problems which gave rise to

the need for job evaluation may re-emerge and the scheme will fall into decay and disrepute. If

maintenance is carried out, the scheme will last longer and should continue to be acceptable. A

prerequisite for setting up a maintenance program is the provision of a written job evaluation

manual which sets out the background and history, rules and results of the scheme, allocation of

responsibility and details of how the scheme will be kept up to date.

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It is also the committee’s experience that the ongoing maintenance of a scheme requires that:

Responsibility for the job evaluation scheme is clearly allocated.

Job descriptions are prepared for new or altered jobs.

A program for carrying out those reviews should be considered in advance, and

Replacement committee members are identified and trained.

2.2.2 Re-evaluation of jobs

There should be a separate procedure for dealing with the evaluation of new jobs or the re-

evaluation of an existing job which has changed. The following procedure is suggested:

The employee should apply to his or her immediate line manager, using a standard form

which sets out the reasons why the grading is not, or no longer, thought appropriate.

The line manager, after discussion with the employee as necessary, should submit the

application to the Personnel Department, indicating whether or not it is supported.

The Human Resources Department should arrange for a current updated job description

to be prepared and agreed by the employee and line manager, and

The joint evaluation committee should consider the job description and give its decision

within an agreed time-scale

2.3 Conclusion

A number of recommendations have been offered to resolve the structural job issues in Spurs

Telecom Ltd. The Committee believes that these recommendations can lead to significant

positive change in terms of pay issues, structural adjustment among others. Much of this work

necessarily falls to the Human Resources Department of the organization. However, the job

evaluation system cannot function optimally unless all constituent groups; staff members, leaders

and managers across the institution take responsibility for the integrity and effective functioning

of that system.

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APPENDIX A

JOB PROFILES

Job Description

Title: General Manager Sales and Distribution

Reports to: The C.E.O

Salary Scale: SP2

Location: Kampala

Job Purpose: To oversee and coordinate sales operations of the company

Key Result Areas

To review, develop, analyze and recommend strategies that will build a strong sales portfolio.

Strategic planning and policy formulation in regard to the sales of the company.

Oversee the development of the commercial business plans and products/services positioning

in the market.

Provide sales management with testing strategies vs expectations of the business

Have input to the annual sales budget process

Ensure compliance to statutory requirements

Champion the sales team in leadership and successful communication

Person Specifications:

Education

Minimum requirement is a Master’s in Business Administration.

Experience

10 years’ experience, preferably in a managerial position of a sound business oriented organization.

Skills

Leadership

Analytical and conceptual skills

Innovation and creativity

Communication skills

Tolerance and Patience

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Market Intelligence

Job Description

Title: Senior Sales and Marketing Manager

Reports to: The General Manager, Sales and Distribution

Salary scale: SP3

Location: Wandegeya, Kampala.

Job Purpose

To input into the development and implementation of the market strategy and sales plans of the

company.

Key Result Areas

To monitor and evaluate performance targets of the sales department

To develop and lead a strong motivated sales team

To develop, implement and monitor sales budgetary allocations

To conduct market research on customer preferences

Person Specifications

Education

Degree in Business Administration. Post graduate qualification with a bias in marketing will be an

added advantage.

Experience

5 years’ experience in a managerial position preferably in a business oriented organization.

Skills

Leadership and managerial skills

Interpersonal skills

Problem solving and conflict resolution

Team building

Communication skills

Market Intelligence

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Job Description

Title: Sales Supervisor

Reports to: The Senior Sales and Marketing Manager

Salary scale: SP4

Location: Kampala

Job Purpose

To supervise day to day sales activities of the company/department

Key result Areas

To coordinate field sales

To handle customer complaints and feedback

To monitor daily sales targets of the department

To prepare daily sales reports

Person Specifications

Education

A degree in Business Administration or Marketing

Experience

3years experience in sales and marketing; with atleast 1 year at supervisory level

Skills

Interpersonal skills & Communication skills

Team building skills

Customer Relations

Report writing

Market intelligence

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Job Description

Title: Sales Representative

Reports to: The Sales Supervisor

Salary Scale: SP5 and commission

Location: Kampala

Job Purpose

To maximize day to day sales for the department/company

Key Result Areas

To market and sell company products as per daily targets

Promote new products on the market

To collect customer feedback

Prepare daily field sales reports

Any other duties assigned

Person Specifications

Education

A diploma in a business field, preferably marketing. A degree is an added advantage

Experience

One year experience in field sales

Skills

Communication skills and Interpersonal skills

Sales sensitization and mobilization

Knowledge of atleast 2 local languages

Team player

Must be aggressive and self-driven

Must be able to work under pressure

Report writing

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APPENDIX B

JOB ANALYSIS QUESTIONNAIRE

SPURS TELECOM COMPANY LIMITED

NAME ……………………………………………………… JOB TITLE ………………………

DEPARTMENT ………………………………………… JOB NUMBER ……………………

SUPERVISOR ……………………………… SUPERVISORS TITLE ………………

1. SUMMARY OF DUTIES: State in your own words briefly your main duties if you are

responsible for filling out/ records also complete section B

………………………………………………………………………………………………………

………………………………………………………………………..................……...………

2. EDUCATIONAL QUALIFICATIONS: List any licenses, permit, certificate etc required to

perform duties assigned to your position.

…………………………………………………………………………………………….

………………………………………………………………………………….......………….……

3. REGULAR DUTIES; in general term, describes duties you regularly perform. Please list theses

duties in descending order of important and percent of time spent per month. List as many duties

as possible and attach additional sheet if necessary.

………………………………………………………………………………………………………

………………………………………………………………………………………………………

……………………………………………………………………………...............................

4. CONTACTS: Does your job require any contact with other person department personnel, other

departments, outside companies or agencies? If yes , please define the duties requiring contacts

and how often

………………………………………………………………………………………………………

…………………………………………………………………………………………............…

5. SUPERVISION: Does your position have supervisory responsibilities? ( ) yes ( )No if yes please

fill out a supplemental position Description Questionnaire for superiors and attach it to this form

if you have responsibility for the work of other but do not directly supervise them please explain

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…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

6. DECISION MAKING: Please explain the decisions you make while performing the regular

duties of you job.

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

a. What would the probable result of you making (a) poor judgment (s) or decision (s) or (b)

improper action?

………………………………………………………………………………………………

………………………………………………………………………………………………

7. RESPONSIBILITY FOR RECORDS: List the reports and files are required to prepare or

maintain state, in general, for whom each report is intended.

a. REPORT INTENDED FOR………………………………….................……………

................................................................................................................

b. ………………………………………………………………………………………………

c. FILE MAINTAINED

…………………………………………………………………………………………………

…………………………………………………………………………………………………

8. FREQUENCY of SUPERVISON: How frequently must you confer with supervisor or other

personnel in making decision in determining the proper course of action

( 1) frequently (2 ) occasionally ( 3) Seldom (4 ) Never

9. WORKING CONDITIONS: Please describe the conditions under which you work – inside,

outside, air conditioned area etc. Be sure to list any disagreeable, complex or unusual working

conditions

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

10. Job requirement please indicate the minimum requirements you believe are necessary to

perform satisfactory in your position.

a. education

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Minimum schooling ………………………………………………………....…………

Number of years …………………………………………………………...……………

Specialization or major ………………………………………………..………………

b. Experience :

Type ……………………………………………………………………………………..…

Number of Years ………………………………………………………………………..

c. Special training

Type .........................................................................................................

Number of years ..............................................................……………………

11. ADDITONAL INFORMATION Please provide additional, not included in any of the

previous items, which you feel would be important in description of your position.

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

EMPLOYEE’S SIGNATURE: ...........................................………………………

DATE: ……….........................................................…………………………..

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REFRENCES

Armstrong, M. (2002). Employee reward (3rd ed)

London, CIPD.

Armstrong, M & Baron, A. (1995). The job evaluation handbook

London, CIPD.

Armstrong, M & Murlis, H. (1998). Reward management: a handbook of remuneration strategy and

practice

(4th ed). London, Kogan Page.

Armstrong M. (2001). Pay Structures: a handbook of Human Resource Management Practice

(8th ed.) London

http://www.acas.org.uk/media/pdf/4/0/B01_1.pdf

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SPURS TELECOM LIMITEDORGANIZATIONAL STRUCTURE

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GM

Customer Experience

Chief Technical Officer

Chief Financial Officer

GM

Sales and Distribution

C. E. O

GM

Human Resource

Senior Manager Sales and Marketing

Departmental Supervisors/Line Managers

Senior Manager Finance

Senior Technical Manager

Senior Manager Customer

Experience

Senior Manager Human

Resources

Operations