Many Ways to Create Internal Structure Business and Work-Related Internal Structure Person-based Skill Competencies Job-ba...
Job Evaluation <ul><li>Process of systematically determining the  relative  worth of jobs to create a job structure for th...
Key Decisions in Job Content Evaluation  <ul><li>Do we use a Single Plan or Multiple Plans </li></ul><ul><li>Which Job Eva...
Job Evaluation Methods <ul><li>Job Ranking  </li></ul><ul><ul><li>Raters examine job description and arrange jobs accordin...
Comparison of Job Evaluation Methods Can become bureaucratic and rule-bound (is this a good thing or a bad thing?) Compens...
Common Characteristics of All Benchmark Jobs <ul><li>The job content is well-known, relatively stable, and agreed upon acr...
Compensable (Universal) Factors -  A Definition  <ul><li>Compensable factors  - measurable qualities, features or requirem...
Universal Compensable Factors <ul><li>Skill:  the general education, experience, training and ability required to perform ...
What Makes Up Skill? <ul><li>Technical Know-how </li></ul><ul><li>Specialized Knowledge </li></ul><ul><li>Organizational A...
Effort <ul><li>Effort:   the measurement of the physical or mental actions needed to perform a job </li></ul><ul><ul><li>D...
Responsibility <ul><li>Responsibility:   the extent to which the employer depends on the employee to perform the job as ex...
Working Conditions <ul><li>Working Conditions:   the extent to which the employee encounters various hazards or extremes i...
The Point Factor Plan Process  (1 of 2) <ul><li>Step One: Conduct Job Analysis </li></ul><ul><li>Gather a representative s...
The Point Factor Plan Process  (2 of 2) <ul><li>Step Three: Scale the Factors </li></ul><ul><li>Use examples (skills, task...
Hay Point Factor System Factors <ul><li>Know-How </li></ul><ul><ul><li>Practical, Specialized, &/or Technical  </li></ul><...
Overview of the Point System for ONE Particular Organization Degree of Factor
Who Should Be Involved in the Decision Making? <ul><li>The Design Process Matters  – without a  clear, concise, easy to un...
What is the Product of Job Evaluation…A Job Hierarchy <ul><li>The key product is an ordered listing of jobs based on their...
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  • See Exhibit 5.1, text page 121
  • See Exhibit 5.4, page 126
  • See Exhibit 5.9 on page 132
  • See Exhibit 5.9 on page 132
  • New chap05 1

    1. 1. Many Ways to Create Internal Structure Business and Work-Related Internal Structure Person-based Skill Competencies Job-based Job analysis Job descriptions Job evaluation: classes or compensable factors Factor degrees and weighting Job-based structure PURPOSE Collect, summarize work information Determine what to value Assess value Translate into structure (Chapter 5) (Chapter 5) (Chapter 5) (Chapter 6) (Chapter 6) (Chapter 4)
    2. 2. Job Evaluation <ul><li>Process of systematically determining the relative worth of jobs to create a job structure for the organization </li></ul><ul><li>The evaluation is based on a combination of job content, the skills required, the value to the organization, its culture, and the external market </li></ul><ul><li>This blending of internal and external market forces is both the strength of and a challenge to job evaluation </li></ul>
    3. 3. Key Decisions in Job Content Evaluation <ul><li>Do we use a Single Plan or Multiple Plans </li></ul><ul><li>Which Job Evaluation Method is best </li></ul><ul><li>Which Compensable Factors should be used </li></ul><ul><li>How Many Factors are needed to provide a good job match </li></ul><ul><li>How Many Points should be allowed per factor </li></ul><ul><li>What is the Relative Weight of the Factors </li></ul><ul><li>How are Points Allocated Across Factors and Degrees </li></ul><ul><li>What Benchmark jobs (defined later) should be Evaluated </li></ul><ul><li>Who Evaluates the jobs </li></ul>
    4. 4. Job Evaluation Methods <ul><li>Job Ranking </li></ul><ul><ul><li>Raters examine job description and arrange jobs according to value to company </li></ul></ul><ul><li>Job Classification (stratification) </li></ul><ul><ul><li>Classes or grades are defined to describe a group of jobs that may or may not be in the same job family </li></ul></ul><ul><li>Point Factor Method </li></ul><ul><ul><li>Numerical values are assigned to specific job components with the sum of values providing a quantitative assessment of the job’s worth (example: Hay Guide Chart-Profile Method) </li></ul></ul>
    5. 5. Comparison of Job Evaluation Methods Can become bureaucratic and rule-bound (is this a good thing or a bad thing?) Compensable factors define the basis for comparisons Each factor communicates what is valued to the organization Point Factor Descriptions may leave too much room for manipulation Can group a wide range of work together in one system Classification Cumbersome as number of jobs increase. Basis for comparisons is not defined Fast, simple, easy to explain (is it really easy to explain?) Ranking Disadvantage Advantage
    6. 6. Common Characteristics of All Benchmark Jobs <ul><li>The job content is well-known, relatively stable, and agreed upon across organizations </li></ul><ul><li>The supply and demand for these jobs continue to be relatively stable and not subject to recent increasing or decreasing employment shifts </li></ul><ul><li>These jobs are represented throughout the entire job structure being studied </li></ul><ul><li>These jobs employ the majority of the work force across organizations </li></ul><ul><li>Benchmark examples: Accountant, Engineer, Recruiter, Payroll Clerk, Punch Press Operator, etc </li></ul>
    7. 7. Compensable (Universal) Factors - A Definition <ul><li>Compensable factors - measurable qualities, features or requirements (attributes) that are common to many different kinds of jobs. They are: </li></ul><ul><ul><li>qualities required to accomplish the job </li></ul></ul><ul><ul><li>easy to describe and document </li></ul></ul><ul><ul><li>must be addressed in an acceptable manner if the job is to be performed satisfactorily </li></ul></ul><ul><ul><li>should yield consistently similar results, regardless of the evaluator </li></ul></ul>
    8. 8. Universal Compensable Factors <ul><li>Skill: the general education, experience, training and ability required to perform the job under consideration not those the incumbent employee may possess </li></ul>
    9. 9. What Makes Up Skill? <ul><li>Technical Know-how </li></ul><ul><li>Specialized Knowledge </li></ul><ul><li>Organizational Awareness </li></ul><ul><li>Educational Levels </li></ul><ul><li>Specialized Training </li></ul><ul><li>Years of Experience Required </li></ul><ul><li>Interpersonal Skills </li></ul><ul><li>Degree of Supervisory Skills </li></ul>
    10. 10. Effort <ul><li>Effort: the measurement of the physical or mental actions needed to perform a job </li></ul><ul><ul><li>Diversity of Tasks </li></ul></ul><ul><ul><li>Complexity of Tasks </li></ul></ul><ul><ul><li>Creativity of Thinking </li></ul></ul><ul><ul><li>Analytical Problem Solving </li></ul></ul><ul><ul><li>Physical Application of Skills </li></ul></ul><ul><ul><li>Degree of Assistance Available </li></ul></ul>
    11. 11. Responsibility <ul><li>Responsibility: the extent to which the employer depends on the employee to perform the job as expected…with emphasis on the importance of doing it every day </li></ul><ul><ul><li>Decision-making Authority </li></ul></ul><ul><ul><li>Scope of the organization under control </li></ul></ul><ul><ul><li>Scope of the organization impacted </li></ul></ul><ul><ul><li>Degree of integration of work with others </li></ul></ul><ul><ul><li>Impact of failure or risk of job </li></ul></ul><ul><ul><li>Ability to perform tasks without supervision </li></ul></ul>
    12. 12. Working Conditions <ul><li>Working Conditions: the extent to which the employee encounters various hazards or extremes in temperature, etc while performing the job in its physical surroundings </li></ul><ul><ul><li>Potential Hazards Inherent in Job </li></ul></ul><ul><ul><li>Degree of Danger Which Can be Exposed to Others </li></ul></ul><ul><ul><li>Impact of Specialized Motor or Concentration Skills </li></ul></ul><ul><ul><li>Degree of Discomfort, Exposure, or Dirtiness in Doing Job </li></ul></ul>
    13. 13. The Point Factor Plan Process (1 of 2) <ul><li>Step One: Conduct Job Analysis </li></ul><ul><li>Gather a representative sample of benchmark jobs and use their content as the basis for defining compensable factors </li></ul><ul><li>Step Two: Determine the Compensable Factors based on: </li></ul><ul><li>The work performed </li></ul><ul><li>The organizations’ strategy and values </li></ul><ul><li>The acceptability to those affected by the resulting pay structure </li></ul>
    14. 14. The Point Factor Plan Process (2 of 2) <ul><li>Step Three: Scale the Factors </li></ul><ul><li>Use examples (skills, tasks, behaviors) to define (anchor) the scales (level) differences </li></ul><ul><li>Step Four: Weight each of the Factors According to Importance Within the Organization </li></ul><ul><li>Can reflect judgment of organization leaders, committee </li></ul><ul><li>Can reflect a negotiated structure </li></ul><ul><li>Can reflect a market-based structure </li></ul><ul><li>Step Five: Application of the Point Plan to Non-benchmark Jobs </li></ul>
    15. 15. Hay Point Factor System Factors <ul><li>Know-How </li></ul><ul><ul><li>Practical, Specialized, &/or Technical </li></ul></ul><ul><ul><li>Management Scope </li></ul></ul><ul><ul><li>Human Relations Involvement </li></ul></ul><ul><li>Problem Solving </li></ul><ul><ul><li>Thinking Environment </li></ul></ul><ul><ul><li>Thinking Challenge </li></ul></ul><ul><ul><li>Thinking Creativity </li></ul></ul><ul><li>Accountability </li></ul><ul><ul><li>Freedom to Act </li></ul></ul><ul><ul><li>Magnitude </li></ul></ul><ul><ul><li>Impact </li></ul></ul><ul><ul><ul><li>Primary b) Shared c) Contributory d) Remote </li></ul></ul></ul>
    16. 16. Overview of the Point System for ONE Particular Organization Degree of Factor
    17. 17. Who Should Be Involved in the Decision Making? <ul><li>The Design Process Matters – without a clear, concise, easy to understand design , the plan will fail </li></ul><ul><li>Appeals / Review Procedures are Critical for Acceptance – Without it, employees feel as if they have no voice in the process </li></ul>
    18. 18. What is the Product of Job Evaluation…A Job Hierarchy <ul><li>The key product is an ordered listing of jobs based on their value to that particular organization </li></ul><ul><li>The hierarchy provides information about which jobs are most and least valued, as well as information about the relative difference between jobs within a particular organization </li></ul>

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