c8 job evaluation[1]

8/6/2019 c8 Job Evaluation[1].

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JOB EVALUATION-CHPT-8-PRT-2


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Job Evaluation

Job Evaluation

The systematic process of determining the

relative worth of jobs in order to establish

which jobs should be paid more than others

within an organization.


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Job Evaluation

Identifying a hierarchy of jobs byworth, using different availablemethods of evaluation (like hay points,IPE system etc.)

Investigating the market place compensation in other companies ofmarket for the jobs.

Combining job worth data to createan organizational structure for thecompensation ( grades/ levels etc)


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Purpose of Job

Evaluation Objective of job evaluation is to eliminate subjectivity and

promote objectivity.

Number of methodologies to establish value / worth of jobs.

Job Evaluation is to identify various methodologies that

provide a hierarchy or ordering of jobs according to someconcept of value or worth to the employer .

To establish an orderly rational , systematic structure of jobsbased on their worth in the organization.

To justify an existing pay rate structure or to develop one.

To assist in setting pay rates comparable to similar jobs inthe market.

To provide rational basis for negotiating pay rates with union.

To identify ladder of progression.

To comply with legislation.

To develop a base for merit / pay for performance .


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Compensable Factors

Factors considered for fixation of

compensation level :- like Qualification,

Experience , knowledge, Geographicallocation, nature of job assignment,

availability of required skills, market range



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Development & Use of

Compensable Factors

The method is used to measure job difference and job worthdifference & to develop pay rates .

Factors considered for measuring a job value are qualities,features or requirements of jobs.

In 1920s five factors were identified for this method i.E Mental requirements, Physical requirements,

Responsibility, working conditions.These factors wereused to determine base wage difference.

Hay later countered with know how, mental activity andaccountability. These factors were known as universal

compensable factors.


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Development & Use of

Compensable Factors

Mental requirement- inherent mental traits, education and specific job

knowledge.

Skill:

Acquired facility in muscular coordination and requiredspecific job knowledge. Education, experience, initiative and ingenuity.

Knowledge The nature and extent of information or facts to do

acceptable work and the nature and extent of the skills

needed to apply the knowledge. Working conditions premium pay in lieu of working conditions.


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Weighting Compensable

Factors The normalizing procedure- A mathematical method-a job evaluation committee

first review compensable factors and than establish arank order for the factors.

Determining number of points for the method points are used to establish degree / level of factor

and then the numbers are totaled up.(Example-haypoints method).

Observable /perceptible differences. Total points establish hierarchy of jobs with different

rates and ranges of pay.


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Weighting Compensable

Factors Lotts POINTS METHOD-15 COMPENSABLE

FACTORS. He used benchmark jobs to establish a 10 points interval scale-5

steps.

Benge factor comparison method a wage rate scale for each factor.

Hays profile methodfactors comparison approach-nopre-established scale-know how guide chart.

The NEMA method-simple job evaluation method-used

universal compensable factors. Factor evaluation systemnine factor job evaluation-FES differs with point factors-use primary standars,factorlevel descriptions & benchmark jobs.

Multiple regression based job evaluation-12 steps


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Job Ranking

Job Evaluation Systems

Point System

Job Classification

FactorComparison

CommonMethods ofJobComparison


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Job Ranking System

Simplest and oldest system of job

evaluation by which jobs are arrayedon the basis of their relative worth


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Job Classification System

System of job evaluation by which jobs

are classified and grouped accordingto a series of predetermined wage grades


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Point System

Quantitative job evaluation procedure

that determines the relative value of a jobby the total points assigned to it


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Factor Comparison System

Job evaluation system that permits the

evaluation process to be accomplishedon a factor-by-factor basis by developing

a factor comparison scale


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Hay Profile Method

Job evaluation technique using three

factors knowledge, mental activity,and accountability to evaluate

executive and managerial positions


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Skill-Based Pay

Pay based on how many skills employees have

or how many jobs they can perform


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Job EvaluationPoint Chart

Figure 1211


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Example of Pay Grades & Pay Ranges

Figure 1216


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ompensation Administration Process


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JOB EVALUATION-CHPT-8-PRT-

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Pay Structures

Market Line.

The line on a graph showing the relationship

between the job value, as determined by job

evaluation points, and pay survey rates.

Common Pay Structures

Hourly and salaried

Office, plant, technical, professional,managerial

Clerical, information technology, professional,

supervisory, management, and executive


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Pay Structures

Pay Grades. A grouping of individual jobs having approximately the same job

worth.

Broad banding. The practice of using fewer pay grades having broader pay

ranges that in traditional systems.

Benefits. Encourages horizontal movement of employees

Is consistent with trend towards flatter organizations Creates a more flexible organization

Encourages competency development

Emphasizes career development


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Pay Rate Issues

Rates Out of Range

Red-Circled Employees An incumbent (current jobholder) who is paid above the

range set for the job.

Green-Circled Employees

An incumbent who is paid below the range set for the job.

Pay Compression A situation in which pay differences among individuals withdifferent levels of experience and performance in the

organization becomes small.


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Pay Increase Issues

Seniority

Time spent in an organization or on a

particular job.

Used to determine eligibility for organizational

rewards and benefits.

Maturity Curve

A curve that depicts the relationship betweenexperience and pay rates.

Assumption is that as experience increases,

proficiency and performance increase.


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Thank you


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c8 job evaluation[1]

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