JOB DESCRIPTION

1
Job Evaluation

• Identifying a Rational and Orderly Process for
  Developing Different Rates of Pay.
• We begin by identifying a hierarchy of jobs by
  worth, using a job evaluation methodology. (Ch's
  8 and 9)
• Next we investigate the "market place" to
  identify what other organizations are paying
  workers in comparable jobs. (Ch 10)

2
Job Evaluation

• We will complete the process by combining job
  worth data and market data in some unique manner
  that results in an organizational pay structure.
  (Ch 11)

3
Job Evaluation Defined

• It is the part of the process in which the
  organization finally decides the relative
  internal worth relationships of jobs.
• It is a method that helps establish a justified
  rank order of jobs.

4
Job Evaluation Defined

• It is only one of the starting points for
  establishing the relative differentiation of wage
  rates
• It is a systemic procedure designed to aid in
  establishing pay differentials among jobs within
  a single employer.

5
Job Evaluation Rationale

• To establish an orderly, rational, and systemic
  structure of jobs based on their worth to the
  organization.
• To justify or develop a pay structure that
  provides for internal equity.
• To assist in setting competitive pay rates.

6
Job Evaluation Rationale

• To identify a ladder of progression or direction
  of future movement.
• To comply with equal pay legislation and
  regulations by determining pay differentials
  according to job content.

7
Job Evaluation Methodologies

• Whole Job Ranking
• Position Classification / Predetermined Grading

• Market Pricing
• Maturity Curve
• Compensable Factors

8
Whole Job Ranking

• Comparing the whole job by determining the
  overall worth of jobs or classes as they compare
  with one another.
• Works best when comparing jobs in the same
  occupation or the same organizational unit when
  evaluators are intimately familiar with all jobs
  being ranked.

9
WHOLE JOB RANKING

• Whole Job Ranking Is The Quickest To Perform Of
  All The Methods, But It Has Three Significant
  Disadvantages
• A lack of substantiation data to justify the
  final results.
• It provides no yardstick for measuring the
  relative value of jobs.
• The personalities of incumbents tend to get in
  the way of the evaluators' judgement.

10
Market Pricing

• Organizations recognize that they must offer
  competitive rates of pay if they wish to attract
  and retain competent employees.
• With this in view two basic methods were
  developed to recognize market wage rates.

11
Market Pricing

• Pure Market Pricing
• The organization develops the narratives that
  describe job activities and incumbent
  requirements.
• These narratives are communicated to other
  organizations having employees who perform
  similar work assignments in the same labor
  market.
• This is the least costly method....It is easy to
  explain..and judicially defensible.

12
Market Pricing

• Market Pricing Guide Line Method
• This approach permits the influences of internal
  equity to interact with existing market rates
  when determining the rate of pay for jobs of an
  organization.

13
Market Pricing

• Step One
• Establish a GUIDE LINE SCALE of salary ranges
  that includes a series of salary grades and a
  minimum, mid-point, and maximum rate of pay for
  each using a 5 mid-point differential.

14
Market Pricing

• Step Two
• Develop realistic job descriptions that include
  scope data that identify benchmark jobs. (40 to
  60 of jobs)

15
Market Pricing

• Step Three
• Conduct a comprehensive survey to set market
  pricing matching benchmark jobs to the amount
  paid by other employers for comparable jobs.

16
Market Pricing

• Step Four
• Develop HORIZONAL GUIDE LINE displays that relate
  jobs in various departments where each job
  evaluation group conducted the third step
  independently of the others.

17
Market Pricing

• Step Four
• This process relates two or more vertical guide
  line displays, ensuring internal equity within
  the pay structure.

18
Maturity Curve

• Used principally to establish rates of pay for
  scientists and engineers engaged in technical
  work at the professional level.

19
Maturity Curve

• Maturity curves frequently resemble learning
  curves in that in the early years the curve rises
  rapidly then it flattens out and may even bend
  slightly downward in it latter stages.

20
Compensable Factors

• Paid-for, measurable qualities, features,
  requirements, and/or constructs that are common
  to many different kinds of jobs.

21
Compensable Factors

• These factors normally do not represent
  identifiable job activities, specific observable
  behaviors, or measurable outputs
• They are synthetic.... a composition or
  combination of qualities, features, or
  requirements of a job that, taken together, form
  a coherent whole.

22
Compensable Factors

• The development and description of compensable
  factors is basically an artistic endeavor.

23
Compensable Factors

• The Universal Compensable Factors identified In
  the equal pay act and subsequently adoptedby the
  government are
• SKILL - The experience, training, education, etc,
  required to perform the job under consideration.
• EFFORT - measure of the physical and mental
  exertion needed to perform the job.

24
Compensable Factors

• RESPONSIBILITY - The extent to which the employer
  depends on the employee to perform the job as
  expected.
• WORKING CONDITIONS - The physical surroundings
  and hazards of a job.

25
Groups Of Commonly UsedUniversal Factors

• BASS
• Skill
• Responsibility
• Accountability

• HAY and PURVES
• Know-How
• Problem-Solving
• Working Conditions

26
Groups Of Commonly UsedUniversal Factors

• NEMA - NMTA
• Skill
• Effort
• Responsibility
• Job Conditions

• EQUAL PAY ACT
• Skill
• Effort
• Responsibility
• Working Conditions

27
Groups Of Commonly UsedUniversal Factors
Factor Evaluation System

• Knowledge
• Supervisory Controls
• Guidelines
• Complexity
• Scope and Effect

• Personal Contacts
• Purpose of Contacts
• Physical Demands
• Work Environment

28
Sub-Set Of Compensable Factors

• To facilitate the use of abstract and general
  compensable factors within a job evaluation
  method it is a common practice to classify the
  factors into three major categories

29
Sub-Set Of Compensable Factors

• Universal Factors
• General, relatively abstract, and complex
  qualities and features that relate to all kinds
  of jobs.
• Sub Factors
• Statements that define the specific attributes
  of a particular job more precisely.

30
Sub-Set Of Compensable Factors

• Degrees Or Levels
• Provide a yardstick, or measurement scale, that
  assist in identifying the specific amount of the
  factor required to perform the job.

31
Weighting Compensable Factors

• The point method selected must provide a
  sufficient number of points so that a significant
  difference in points can be awarded to jobs that
  are of different worth.

32
Weighting Compensable Factors

• The total points assigned should accommodate the
  wage spread between the highest and the lowest
  paid employee and provide enough points to permit
  the most important job to receive an evaluation
  that recognizes the full range of jobs in the
  organization.

33
Observable / Perceptible Differences

• When developing factor weights and measurement
  scales for determining job point-score
  differences, the final result is an established
  hierarchy of jobs with different rates or ranges
  of pay for each job.

34
Observable / Perceptible Differences

• In review it appears that there should be at
  least 15 percent difference between any two
  levels of a factor In the compensation area
  before the recognition value is significant.

35
Development Of Rating Scales

• Lott's Point Method
• Benge's Factor Comparison
• Hay's Profile Method
• NEMA Method
• Factor Evaluation System