focus on compensable factors

1. PRESENTATION
ON
Job Evaluation
&
Job Structure
COMPENSATION MANAGEMENT

2. Prepared for:
Prof. Dr. Md. Mohsin-Ul Islam
Course Instructor
Compensation Management
Institute of Business Administration
University of Rajshahi

3. PREPARED BY:
Group - A
 Kazi Tanvirul Islam. (L) (B040006)
 Shamsia Fahmida Rahman. (B040007)
 Zannatun Mustabi. (B040024)

4. Introduction
• The case deals with a state enjoying economic growth where tax
revenues are up. As well as the workload is high for government
employees. Recently there have been increasing complaints about pay.
Some employees believe that their salaries are out of line. So four new
job analyses, job descriptions and job structures were made.
The jobs are categorized as Job-A, Job-B, Job-C and Job-D.

5. Job ANALYSIS
 Job analysis is the procedure through which one can
determine the duties and skill requirements of these positions
and the characteristics of the people to hire for them.
 In compensation, job analysis has two critical uses:
1. It establishes similarities and differences in the work content
of the jobs, and
2. It helps establish an internally fair and aligned job structure.

6. Outcomes of Job ANALYSIS
Job
Analysis
Job Job
Description Specification

7. Internal
relationships
within the
organization
JOB
ANALYSIS
JOB
DESCRIPTION
JOB
EVALUATION
JOB
STRUCTURE
FIG: DETERMINING THE INTERNAL JOB STRUCTURE

8. Job analysis information
and facts
Job Description Job Specification
Job identification Education
Job summary Experience
Relation to other jobs Training
Supervision Initiative
Machines and equipments Physical effort
Condition of work Responsibility
Hazards Communication skill
Other requirements

9. Job Evaluation
 Job is evaluated on the basis of their content and
is placed in the order of their importance.
* Job Ranking
* Job Classification
* Point Method

10. Using the point method
 Point method is the best & it establishes a
hierarchy of jobs on the basis of three criteria:
 Compensable factors;
 Factor degrees numerically scaled,
 Weights reflecting the relative importance of
each factor.

11. Focus on Compensable Factors
* Skill
* Responsibilities
* Efforts
* Working Condition

12. Factor degrees numerically
scaled
 1ST DEGREE: PRIMARY KNOWLEDGE ON ACCOUNTING AND
FINANCE TO KEEP RECORDS.
 2ND DEGREE: GOOD ANALYTICAL ABILITY IS REQUIRED FOR
PREPARING ANALYTICAL DATA SET.
 3RD DEGREE: ABILITY TO LEAD PEOPLE.
 4TH DEGREE: CAPABILITY TO ACCESSES INFORMATION TO THE
STATEWIDE ACCOUNTING INFORMATION.
 5TH DEGREE: ADVANCE KNOWLEDGE ON ACCOUNTING TO
INVESTIGATE ERRORS OR PROBLEMS IN PROCESSING OF FISCAL
TRANSACTION.

13. JOB-A: DIRECTOR ACCOUNTS
Compensable Factor Degree Weight Total
1 2 3 4 5
Skill (30%)
Mental √ 20% 80
Experience √ 10% 50
Efforts (30%)
Physical √ 10% 30
Mental √ 20% 80
Responsibility (30%)
Effect of Error √ 20% 80
Innovation √ 10% 40
Working Conditions (10%)
Environment √ 5% 20
Hazards √ 5% 15
Total 390
IF 1 POINT IS EQUAL TO 100 THE AMOUNT OF SALARY IS,
390 × 100 = 39,000 TK. FOR THE POST.

14. JOB-B: ASSISTANT DIRECTOR ACCOUNTS
Compensable Factor Degree Weight Total
1 2 3 4 5
Skill (30%)
Mental √ 10% 30
Experience √ 20% 80
Efforts (30%)
Physical √ 10% 20
Mental √ 20% 80
Responsibility (30%)
Effect of Error √ 10% 30
Innovation √ 20% 60
Working Conditions (10%)
Environment √ 5% 20
Hazards √ 5% 10
Total 330
IF 1 POINT IS EQUAL TO 100 THE AMOUNT OF SALARY IS,
330 × 100 = 33,000 TK. FOR THE POST.

15. JOB-C: SENIOR OFFICER ACCOUNTS
Compensable Factor Degree Weight Total
1 2 3 4 5
Skill (30%)
Mental √ 20% 40
Experience √ 20% 80
Efforts (30%)
Physical √ 10% 20
Mental √ 20% 60
Responsibility (30%)
Effect of Error √ 10% 30
Innovation √ 10% 20
Working Conditions (10%)
Environment √ 5% 15
Hazards √ 5% 15
Total 280
IF 1 POINT IS EQUAL TO 100 THE AMOUNT OF SALARY IS,
280× 100 = 28,000 TK. FOR THE POST.

16. JOB-D: OFFICER ACCOUNTS
Compensable Factor Degree Weight Total
1 2 3 4 5
Skill (30%)
Mental √ 10% 10
Experience √ 20% 40
Efforts (30%)
Physical √ 10% 10
Mental √ 20% 40
Responsibility (30%)
Effect of Error √ 10% 20
Innovation √ 20% 40
Working Conditions (10%)
Environment √ 5% 15
Hazards √ 5% 10
Total 185
IF 1 POINT IS EQUAL TO 100 THE AMOUNT OF SALARY IS,
185× 100 = 18,500 TK. FOR THE POST.

17. Job Structure
Job-A Director Accounts
Job-B Assistant Director Accounts
Senior Officer Accounts
Job-C
Officer Accounts
Job-D
FIGURE: JOB STRUCTURE

18. Conclusion
 In the state the government employees complaints about pay
because their workload is increasing
 So we try to analyze the job analysis, job description & job
evaluation
 We assign the job title to each job.
 Evaluate the four jobs and based on it make the Job structure.
 We make hierarchy of the positions & make salary structure similar
to the others.

19. THANK YOU
Have a Nice Day!