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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 Internally
Aligned 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 Effort
Problem Solving
Concentration
Skill
Education
Experience
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 importance
3. Give points
4. Calculate the total points
5. 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-How
The 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-Accountability
The 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

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Job evaluation

  • 2. What is job evaluation?
  • 3. Methods of Job Evaluation
  • 4.
  • 5.  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).
  • 7. 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.
  • 8.  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
  • 9. Job Evaluation Factors Effort Mental Effort Problem Solving Concentration Skill Education Experience Communication
  • 10. Responsibility Financial Responsibility Supervision Freedom to Act Decision-making Contacts with others Working Conditions Mental Demand Physical Effort Visual Demand Job Evaluation Factors
  • 11. Designing a Point Plan: Six Steps 1. Determine compensable factors. 2. Scale the factors & Weight the factors according to importance 3. Give points 4. Calculate the total points 5. Transfer points to salaries
  • 12. 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
  • 13. Generic Compensable Factors Skill Effort Responsibility Working conditions
  • 14. The Hay System 1-Know-How The 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-Accountability The impact the job has on the organization (i.e. the end result) and the extent to which the jobholder acts autonomously in achieving this
  • 15. 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
  • 16. 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