Job Evaluation Supplementary Notes

2009-08-27

Basic Job Evaluation Methods

Basis for comparison

Scope of comparison Whole job

Specific job factors

(non-quantitative)

(quantitative)

Job vs Job Job ranking method

Job vs Standards

Job classification

Factor comparison

Point method

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Job Evaluation Methods: Ranking • Ranking each job relative to all other jobs, usually based on some overall factor factor. • Steps in job ranking: – – – – –

Obtain job information. Select and group jobs. Select compensable factors. Rank jobs. Combine ratings. Managing Performance & Reward

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Job Ranking by Olympia Health Care

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Table 11–3

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Ranking Advantages: q no complicated p administration 1. Requires 2. Easily understood 3. Particularly suitable for fairly homogenous jobs Disadvantages: 1. Results are difficult to defend as based on Impressionistic judg e ts judgments 2. Impracticable in companies if jobs are very varied 3. It does not indicate the spaces between positions in rank order Managing Performance & Reward

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Job Evaluation Methods: Grading • Raters categorize jobs into groups or classes of jobs that are of roughly the same value for pay purposes. – Classes contain similar jobs. – Grades are jobs that are similar in difficulty but otherwise different. – Jobs are classed by the amount or level of compensable factors they contain. Managing Performance & Reward

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Example of A Grade Level Definition

This is a summary chart of the key grade level criteria for the GS-7 level of clerical and assistance work. Do not use this chart alone for classification purposes; additional grade level criteria are in the Webbased chart.

Source: http://www.opm.gov/fedclass. gscler.pdf.Managing August 29, 2001. Performance

& Reward

Figure 11–3

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Grading Advantages: 1. Relatively simple, quick and inexpensive 2. The decisions of the committee can be supported by the definitions of the job grades Disadvantages: 1. Complex job difficult to be fitted as some job have the characteristics of 2 or more grades 2. If this characteristics is decided to sub-divided the grade into smaller grades, making the scheme more difficult to operate

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Job Evaluation Methods: Point System • A quantitative technique that involves: – Identifying Id tif i the th degree d to t which hi h eachh compensable bl factors are present in the job. – Awarding points for each degree of each factor. – Calculating a total point value for the job by adding up the corresponding points for each factor.

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Point System • A no. of factors are first agreed against which jobs can be analyzed y • A very simple set of factors for manual jobs might be: – – – –

Skill Effort Responsibility W ki conditions Working diti

• It is usual to sub-divide each of the main factors into about 3 sub-factors Managing Performance & Reward

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The Point Method of Job Evaluation • Step 1. Determine clusters of jobs to be evaluated • Step 2. Collect job information • Step 3. Select compensable factors • Step 4. Define compensable factors • Step 5. Define factor degrees • Step 6. Determine relative values of factors

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Example of One Factor (Complexity/Problem Solving) in a Point Factor System

Source: Richard W. Beatty and James R. Beatty,“Job Evaluation,” in Ronald A. Berk (ed.), Performance Assessment: Methods and Applications (Baltimore, MD: Johns Hopkins University Press, p. 322. Managing Performance & 1986), Reward

Figure 11–A2

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Evaluation Points Assigned to Factors and Degrees

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Figure 11–A5

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Job Evaluation Methods: Factor System • Each job is ranked several times—once for eachh off severall compensable bl factors. f t • The rankings for each job are combined into an overall numerical rating for the job.

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Factor Comparison • There is no clearly stated and defined scale used • Complex, Complex involving work in stages such as job description, selection of factors, assessment of jobs in terms of factors, and pooling different assessments to arrive at a final value of the • It is common to use five factors • It recognize a need for giving weightage to factors • Can be applied to a wider range of jobs

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Quantitative Job Evaluation Methods • Factor Comparison Job Evaluation Method – – – – –

Step 1. 1 Obtain job information Step 2. Select key benchmark jobs Step 3. Rank key jobs by factor Step 4. Distribute wage rates by factors Step 5. Rank key jobs according to wages assigned to each factor – Step 6. 6 Compare the two sets of rankings to screen out unusable key jobs – Step 7. Construct the job-comparison scale – Step 8. Use the job-comparison scale Managing Performance & Reward

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Sample Definitions of Factors Typically Used in the Factor Comparison Method 1.

Mental Requirements Either the possession of and/or the active application of the following: A. (inherent) Mental traits, such as intelligence, memory, reasoning, facility in verbal expression, ability to get along with people, and imagination. B ((acquired) B. i d) General G l education, d ti suchh as grammar andd arithmetic; ith ti or generall information i f ti as to t sports, world events, etc. C. (acquired) Specialized knowledge such as chemistry, engineering, accounting, advertising, etc.

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Skill A. (acquired) Facility in muscular coordination, as in operating machines, repetitive movements, careful coordinations, dexterity, assembling, sorting, etc. B. (acquired) Specific job knowledge necessary to the muscular coordination only; acquired by performance of the work and not to be confused with general education or specialized knowledge. It is very largely training in the interpretation of sensory impressions. Examples 1. In operating p g an addingg machine,, the knowledge g of which key y to depress p for a subtotal would be skill. 2. In automobile repair, the ability to determine the significance of a knock in the motor would be skill. 3. In hand-firing a boiler, the ability to determine from the appearance of the firebed how coal should be shoveled over the surface would be skill.

3. Physical Requirements A. Physical effort, such as sitting, standing, walking, climbing, pulling, lifting, etc.; both the amount exercised and the degree of the continuity should be taken into account. B. Physical status, such as age, height, weight, sex, strength, and eyesight. Source: Jay L. Otis and Richard H. Leukart, Job Evaluation: A Basis for Sound Wage Administration, p. 181.© 1954, revised 1983. Reprinted by permission of PrenticePerformance Hall, Upper Saddle River, NJ. Managing & Reward

Figure 11–A1

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Sample Definitions of Five Factors Typically Used in the Factor Comparison Method

4. Responsibilities A. For raw materials, processed materials, tools, equipment, and property. B. For money or negotiable securities. C. For profits or loss, savings or methods’ improvement. D F D. For public bli contact. E. For records. F. For supervision. 1. Primarily the complexity of supervision given to subordinates; the number of subordinates is a secondary feature. Planning, direction, coordination, instruction, control, and approval characterize this kind of supervision. 2. Also, the degree of supervision received. If Jobs A and B gave no supervision to subordinates, but A received much closer immediate supervision than B, then B would be entitled to a higher rating than A in the supervision factor. To summarize the four degrees of supervision: Highest degree—gives much—gets little High g degree—gives g g much—gets g much Low degree—gives none—gets little Lowest degree—gives none—gets much 5. Working Conditions A. Environmental influences such as atmosphere, ventilation, illumination, noise, congestion, fellow workers, etc. B. Hazards—from the work or its surroundings. C. Hours. Source: Jay L. Otis and Richard H. Leukart, Job Evaluation: A Basis for Sound Wage Administration, p. 181.© 1954, revised 1983. Reprinted by permission of PrenticePerformance Hall, Upper Saddle River, NJ. Managing & Reward

Figure 11–A1 (cont’d)

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Ranking Key Jobs by Factors1

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Table 11–A1

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