Job Evaluation

What is job evaluation?

Methods of Job Evaluation

Advantages The value of the job is expressed in monetary terms. Can be applied to a wide range of jobs. Can be applied to newly created jobs. Disadvantages The pay for each factor is based on judgments that are

subjective. The standard used for determining the pay for each factor

may have built-in biases that would affect certain groups of employees (females or minorities).

Determining an InternallyAligned Job Structure

Point Method

The point system is a quantitative job evaluation procedure that determines a job's relative value by calculating the total points assigned to it. High visibility organization,

publics and private organizations have successfully used it, either big or small.

Three common characteristics of point methods Compensable factors Factor degrees numerically scaled Weights reflect relative

importance of each factor Differ from other methods by making explicit the criteria

for evaluating jobs -- compensable factors

Job Evaluation Factors

Effort

Mental EffortProblem Solving Concentration

Skill

EducationExperience Communication

Responsibility

Financial Responsibility Supervision Freedom to Act Decision-making Contacts with others

Working Conditions

Mental Demand Physical Effort Visual Demand

Job Evaluation Factors

Designing a Point Plan:Six Steps

1. Determine compensable factors.2. Scale the factors & Weight the factors

according to importance3. Give points 4. Calculate the total points5. Transfer points to salaries

Step 1: Conduct Job Analysis

Point plans begin with job analysis

Content of these jobs is basis for

Defining compensable factors

Scaling compensable factors

Weighting compensable factors

Generic Compensable Factors

Skill Effort

Responsibility

Working conditions

The Hay System

1-Know-HowThe total knowledge and skills developed by job experience, education and training, which are required to perform the job

successfully.2-Problem Solving The complexity of thinking required to perform the job when applying Know How. 3-AccountabilityThe impact the job has on the organization (i.e. the end result)

and the extent to which the jobholder acts autonomously in achieving

this

Step 4: Weight the Factors

Different weights reflect differences in importance attached to each factor

Determination of factor weights

Advisory/JE committee

Statistical analysis

Criterion pay structure

Degree of Factor

Job Factor Weight

1

2

3

4

5

1. Education 50% 100 200 300 400 500

2. Respon -sibility

30% 75 150 225 300

3. Physical effort

12% 24 48 72 96 120

4. Working conditions

8% 25 51 80