This document discusses various job evaluation methods including ranking, classification, point method, and factor comparison. It provides examples of how each method works and the general steps involved. Key factors that are evaluated include skills, effort, responsibility, and working conditions. Legal considerations for compensation are also reviewed, such as the Equal Pay Act and other anti-discrimination laws. The overall process of job evaluation is outlined as identifying the need, choosing a committee, performing the evaluation, and getting employee cooperation.

1. Welcome toHUMAN RESOURCES
MANAGEMENT
Dyah Pramanik, MM
[ ]JOB EVALUATION METHODS

2. 8–2
CHAPTER 7b
JOB EVALUATION METHODS

3. 8–3
LEARNING OUTCOMES
1. Define and give an example of how
to conduct a job evaluation.

4. Step 2: Job Evaluation
Skills Effort Responsibility
Identifying Compensable Factors
Working
conditions

5. Legal Considerations in Compensation
Employee
Compensation
Equal Pay Act (1963)
Employee Retirement
Income Security Act
Age Discrimination in
Employment Act
Americans with
Disabilities Act
Davis-Bacon Act (1931)
Walsh-Healey Public
Contract Act (1936)
Title VII of the 1964
Civil RightsAct
Fair Labor Standards Act
(1938)
The Family and Medical
LeaveAct
The Social Security Act of
1935 (as amended)
National Labor Relations
Act of 1935 (Wagner Act)
Workers’ Compensation

6. The Job Evaluation Process
1
Performing the actual evaluation
Getting the cooperation of employees
Preparing for the Job Evaluation
Identifying the need for the job evaluation
Choosing an evaluation committee
2
3
4

7. How to Evaluate Jobs
Ranking
Job
classification
Point method
Methods for Evaluating Jobs
Factor
comparison

8. Copyright © 2011 Pearson Education,Inc.publishing as Prentice Hall
Job Evaluation
Methods: Ranking
• Ranking each job relative to
all other jobs, usually based
on some overall factor.
• Steps in job ranking:
1. Obtain job information.
2. Select and group jobs.
3. Select compensable factors.
4. Rank jobs.
5. Combine ratings.

9. TABLE 11–3 Job Ranking by Olympia Health Care
Ranking Order Annual Pay Scale
1. Officemanager $43,000
2. Chief nurse 42,500
3. Bookkeeper 34,000
4. Nurse 32,500
5. Cook 31,000
6. Nurse’s aide 28,500
7. Orderly 25,500

10. Job Evaluation
Methods:
Job Classification
• Raters categorize jobs into
groups or classes of jobs that
are of roughly the same
value for pay purposes.
1. Classes contain similar jobs.
• Administrative assistants
2. Grades are jobs similar in
difficulty but otherwise
different.
• Mechanics, welders,
electricians, and machinists
3. Jobs are classed by the
amount or level of
compensable factors they
contain.

11. Compensation
Policy Issues
• Pay for performance
• Pay for seniority
• The pay cycle
• Salary increases and promotions
• Overtimeand shift pay
• Probationary pay
• Paid and unpaid leaves
• Paid holidays
• Salary compression
• Geographic costs of livingdifferences

12. FIGURE 11–4 Example of a Grade Level Definition
This is a summary chart of the key grade level criteriafor the GS-7 level
of clerical and assistance work. Do not use this chart alone for
classification purposes; additional grade level criteriaare in the Web-
based chart.

13. Job Evaluation
Methods: Point
Method
• A quantitative technique that
involves:
• Identifying the degree to which each
compensable factor is present in the
job.
• Awarding points for each degree of
each factor.
• Calculating a total point valuefor the
job by adding up the corresponding
points for each factor.

14. 8–14
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Printed in the United States of America.
Copyright © 2011 Pearson Education, Inc.
publishing as Prentice Hall