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Job evaluation

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job evaluation methods

job evaluation methods

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    Job evaluation Job evaluation Presentation Transcript

    • is a process to determine the job’s level of importance, contribution to the overall corporate strategy & performance complexity in terms of skills, knowledge and supervisory duties.
    • Job Evaluation is crucial to create Equitable Pay Structure and Promotion Strategy
    • & attracting and retaining top talent
    • Compensable factors are the characteristics about jobs that are used to set pay
    • Compensable factors include: 1. Skill (Experience & Education) 2. Responsibility 3. Effort (Mental & Physical) 4. Working conditions (Location, Hazards ,Physical demands Extremes in environment)
    • http://www.haygroup.com/ww/downloads/details.aspx?id=924
    • Rank jobs from highest to lowest based on their relative value to organization c
    • Assigns more value to jobs that require managerial or technical skills and to the complexity in performing them o
    • Jobs at the top of the list have the highest value & the jobs at the bottom of the list will have the lowest value E
    • Easiest and fastest method Easy to communicate to employees Effective in smaller organizations with few job classifications y
    • A But, Very subjective to the evaluator biases
    • Create and maintain pay grades for comparable jobs across the organization c
    • Develop descriptions for a category of jobs --job classes/grade J
    • Develop standards for each category by describing the key characteristics of those jobs in the category o
    • Match jobs to the categories based on the similarity of tasks o
    • Job classes are established , like office, clerical, managerial, & then jobs are assigned to these classifications E
    • Less subjective when compared to the ranking method Easy to explain to all employees Effective for a variety of jobs y
    • Simple --once categories are established New jobs can assigned within the existing system y
    • But, The method is subjective, because jobs can fall into several categories. When combining jobs into a one category, this can oversimplify differences between jobs & can be difficult to write “all-inclusive” descriptions of a job grade. g
    • Express the value of a job in monetary terms c
    • A set of compensable factors are identified J
    • Again the Compensable factors Are: 1. Skill (Experience & Education) 2. Responsibility 3. Effort (Mental & Physical) 4. Working conditions (Location, Hazards ,Physical demands Extremes in environment)
    • Assign points to a these compensable factors based on the perceived importance to the job U
    • Once this is done for all the compensable factors ,evaluate the level to which each of these factors are present in the job and assign points (weights) accordingly. 1
    • The points for each factor are totaled to form a score for the job U
    • If a position requires 7 yrs of exp. Lets assume it would be assigned value of 50 points for this factor And since yrs of experience is one of the most important factors, it might be weighted at 1.5, . So the final value of the experience factor would be 50 points x 1.5 weighting factor = 75
    • Moving to another factor such as education –lets assume it would be assigned 60 points But education is less important for the position, so it might be weighted at a smaller number, such as 0.75 So the final value of the education factor would be 60 points x 0.75 weighting factor = 40
    • Jobs are then grouped by total score and assigned to salary grades so that jobs with the highest points would have the highest pay v
    • Less biased than other methods Easy to evaluate new jobs Easy to recognize the difference between jobs in the company y
    • A But, Subjective decisions about compensable factors and the weights/points assigned
    • Evaluate jobs based on characteristics used in the point method, but without assigning weights c
    • Define a set of compensable factors J
    • One last time… these are the compensable factors 1. Skill (Experience & Education) 2. Responsibility 3. Effort (Mental & Physical) 4. Working conditions (Location, Hazards ,Physical demands Extremes in environment)
    • Select a set of benchmark jobs CJG
    • Are jobs with clear job content,
    • Are jobs with clear job content, Common in many organizations,
    • Are jobs with clear job content, Common in many organizations, Represent the full range of each compensable factor,
    • Are jobs with clear job content, Common in many organizations, Represent the full range of each compensable factor, & their market pay data is available
    • Rank the benchmark jobs on the basis of each compensable factor J
    • For each benchmark job, allocate market pay across the compensable factors J
    • If market pay for a benchmark job is $100, so how much is for effort, how much for skills, etc…. J
    • Determine the pay for each job by adding up the pay from each compensable factor J
    • Pay Range = U
    • Pay Range = pay from skill + U
    • Pay Range = pay from skill + pay from effort + U
    • Pay Range = pay from skill + pay from effort + pay from responsibility + U
    • Pay Range = pay from skill + pay from effort + pay from responsibility + pay from working conditions U
    • Analytical and objective Reliable and valid as each job is compared with all other jobs y
    • But, Its difficult to understand & explain Using the same criteria to assess all jobs is not accurate as jobs differ within organizations as with point method Time consuming and costly
    • That's all!! Thanks
    • Sources Hay Group Job Evaluation: Foundations and Applications http://www.haygroup.com/ww/downloads/details.aspx?id=924 Job Analysis. Chapter 3. Prenhall. http://www.prenhall.com/desslertour/chapter3.pdf Job Evaluation Methods Open Learning World. http://www.openlearningworld.com/books/Job%20Analysis%20and%2 0Evaluation/Job%20Analysis%20and%20Evaluation/Job%20Evaluation% 20Methods.html Job Evaluation Methods . World at Work. http://www.worldatwork.org/pub/N47N8-bck2bscs.pdf Job Evaluation Plan. University of Guelph. https://www.uoguelph.ca/hr/managers/job-design-job- evaluation/job-evaluation-plan Susan M. Heathfield . “Conduct a job evaluation” http://office.microsoft.com/en-us/infopath-help/conduct-a-job- evaluation-HA001189535.aspx
    • Image Credits Flickr Creative Commons Randy Lemoine photostresm Slide 1 http://farm7.staticflickr.com/6228/6358531411_61c3c1bca3.jpg James Vaughan, x-ray delta one photostream Slide 6 , 28 and 41 http://www.flickr.com/photos/x-ray_delta_one/3865887659/ Phil Hearing ,PhotKing PhotoStearm Slide 3 and 4 http://www.flickr.com/photos/philhearing/5310002921/ Carmelo Speltino, pigliapost PhotoStream Slide 16 http://www.flickr.com/photos/pigliapost/238737785/ Tony Hisgett ,ahisgett photostream Slide 25 http://www.flickr.com/photos/hisgett/5129805518/ Fonts: theleagueofmoveabletype.com