JOB EVALUATION

Topics

What is Job Evaluation? Major Decisions in Job Evaluation Job Evaluation Method The Final Result: Pay Structure

What is Job Evaluation

In Job Analysis & description we collect & summarize work information. In job evaluation we determine what to value

What is Job Evaluation cont

Is the process of systematically determining the relative worth of jobs to create a job structure for the organization. The evaluation is based on a combination of job content, skills required, value to the organization, organizational culture & the external market.

The potential to blend organizational forces & external market forces is both a strength & a challenge of job evaluation

What is Job Evaluation cont

Content.

Refers to what work is performed & how it gets done Internal alignment based on content orders jobs on the basis of skills required for the job & duties & responsibilities associated with the job

Value.

The worth of the work Structure based on value orders jobs on the basis of contribution of skills, duties & responsibilities associated with the job to the organizational goal.

What is Job Evaluation cont

Linking Content with External Market

Jobs Value may also include the jobs value in the external market. So job evaluation must also be a process of linking job content & value with external market rates

Major Decisions in Job Evaluation

Major Decisions of Job Evaluation

Decisions involved in designing internal structure:

Establish the purpose:

Support org strategy Support work flow Is fair to employees Motivates behavior toward org objectives

By clearing the ideas related to work

Major Decisions of Job Evaluation contd

Single Vs Multiple Plan

Because diversify of job content One skill is not relevant to other Benchmark jobs Use it to ensure all aspects of work are included in the evaluation. Characteristics: It contents are well known Relatively stable over time Include the entire domain

Major Decisions of Job Evaluation contd

Choosing among Methods

Ranking Orders the job descriptions from highest to lowest based on a global definition of relative value or contribution to the organizations success. Advantage: fast, simple easy to explain Disadvantage: cumbersome as number of jobs increases. Basis for comparison is absent.

Major Decisions of Job Evaluation contd

Classification

A series of classes covers the range of job

Point Method

Has 3 common characteristics.

Compensable factors Factor degrees numerically scaled Weights reflecting the relative importance of each factor.

Point Method

Point Method

It represents a significant change from the other methods : compensable factors Based on strategic direction of business & how the work contributes to obj & strategy. The factors are scaled to reflect their overall importance to the org Points are then attached to each factor weight The total points for each job determine its position in the job structure.

Point Method contd.

The steps of point method:

Conduct Job Analysis Determine Compensable Factors Scale the Factors Weight the factors Communicate the Plan & Train Users Apply to Non benchmark Jobs

Point Method contd.

The steps of point method:

Conduct Job Analysis

Begins with job analysis. Benchmark is drawn The content of these jobs is the basis for defining, scaling & weighing the compensable factors

Point Method contd.

The steps of point method:

Determine Compensable Factors

Compensable factors are those characteristics in the work that the org values, that help it pursue its strategy & achieve its objectives.. CF plays a pivotal role in point plan The flow from the work itself & the strategic direction of the business To select the CF the org asks itself about the value of each work.

Point Method contd.

The steps of point method:

Determine Compensable Factors cont

CF should be :

Based on the strategy & value of the org

Based on the work performed

Acceptable to the stakeholders.

Point Method contd.

The steps of point method:

Scale the Factors

Scales reflects the different degrees within each factor are constructed Each degree may be shaded by typical skills tasks, & behavior taken fro benchmark Most factor scales consists of 4-8 degrees Many add +, -

Point Method contd.

The steps of point method:

Scale the Factors cont..

Next issue is to determine the interval scaling. Following criteria are suggested

Ensure that the number of degrees is necessary to distinguish among jobs Use understandable terminology Anchor degree definitions with bench-mark-job titles Make it apparent how the degree applies to the job.

Point Method contd.

The steps of point method:

Weight the factors according to importance

Different weights reflects differences in importance attached

Weights are often determined through an advisory committee.

The allocates 100% of the value among the factors

Point Method contd.

The steps of point method:

Communicate the Plain & Train User

Once the Job Evaluation plan is prepared, a manual is prepared so that other people can apply the plan Manual describes the methods, defines the compensable factors & provides enough information. Purpose is to involve the employee who are not involved in the planning process

User may require training

Employee acceptance is crucial

Point Method contd.

The steps of point method:

Apply to Nonbenchmark Jobs

Apply the plan to the remaining job which was not included in benchmark Can be done by the people who were not necessarily involved in the design process, but has got adequate training to apply the plan.

The Final Result

Structure the final result of job analysis, job description & job evaluation Structure is a hierarchy of work This hierarchy translates the employers internal alignment policy into practice. Organizations commonly have multiple structures derived through multiple approaches that apply to different function group