job evaluation research
TRANSCRIPT
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Job Evaluation Research
Strategic Compensation Conference 2001
WorkforceCompensation
and PerformanceService
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Job Evaluation
§ Development of Federal Job Evaluation
§ Strategic Issues Surrounding Job
Evaluation§ Alternative Methods of Job Evaluation
§ Alternative Methods in Federal Agencies
§
Literature Review§ Thought Leader Perspectives
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Job Evaluation
Development of Federal Job Evaluation
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Federal Job Evaluation
• Historical Development
• Goals of the General Schedule
• Structural Changes in the Federal Workforce
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Job Evaluation
Strategic Issues Surrounding Job
Evaluation
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Strategic Issues and Alternative
Courses of ActionIssues Alternative Actions
1. Should job evaluation be used
to determine pay?
2. What is work evaluation?
1. Keep vs. Abolish
2. Job vs. Work
3. Single vs. Multiple vs. Mass
Customization
4. Person or Job vs. Team vs.All
3. Should there be one work
evaluation system or multiple
work evaluation systems?
4. Should work evaluation focus on
the person or the job?
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Strategic Issues and Alternative
Courses of ActionIssues Alternative Actions
5. Centralized vs. Decentralized
vs. Both
6. Manual vs. Automated
7. Who should conduct the work
evaluations?
7. Supervisor vs. Fiscal
Specialist vs. Employee vs.
Jobs Analyst vs. Panel
5. Should the work evaluation systembe centralized or decentralized?
6. Should work evaluation systems bemanual or automated?
8. Should the work evaluation be basedon the current job and job incumbent orbe based on the way the work should
be designed and the type of person
that should be performing the work?
8. Work Currently “is” vs. WhatWork “could be”
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Strategic Issues and Alternative
Courses of ActionIssues Alternative Actions
9. How often should work evaluations
be conducted?9. Timing vs. Approval vs.
Change in work
10.Who should be covered by workevaluation?
10. Some vs. All
11.Should a work evaluation system be
custom-made or should a commercially
available system be used?
11. Make, Buy, Adapt
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Strategic Issues and AlternativeCourses of Action
12.Should the work evaluationsystem lead, lag, or be installed
concurrently with other changes tothe compensation system?
13.How does work evaluation differ from
performance evaluation?13. Work vs. Performance
Issues Alternative Actions
12. Lead vs. Lag vs. Match
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Job Evaluation
Alternative Methods of Job Evaluation
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Alternative Methods of Job Evaluation
• Ranking
• Market Pricing• Banding
• Classification• Single Factor Plans• Competencies
• Point Factor
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With various attributes
number of corners, size, color
RANKING
No explicit criteria,
just “overall value”
Evaluating Diverse Jobs/Work
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With various attributes
number of corners, size, color
MARKET PRICING
$ 1 0 0
$ 7 3
$ 5 0
$ 1 0
Uses cost in
market place
as means of
ranking
Evaluating Diverse Jobs/Work
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Evaluating Diverse Jobs/Work
Banding
• Jobs grouped by common characteristics
• Groups rank-ordered
• Banding: Work Evaluation v. Pay Structure
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Evaluating Diverse Jobs/Work
Level Description Classification Level
Combines factors into overall
descriptions of each classification level
Level 4 Yellow or blue, large,more than 5 corners
Yellow, blue or green, at least
medium, more than 5 cornersLevel 3
Any color, at least medium,
any number of cornersLevel 2
Any color, smallLevel 1
Objects placed in highest level at which they meet all criteria
CLASSIFICATION
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Evaluating Diverse Jobs/WorkWith various attributes
number of corners, size, color
SINGLE FACTOR
Uses only one
feature to
assess value,
e.g., number of corners
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Evaluating Diverse Jobs/WorkCompetencies
• Multiple factors
• KSAs & Other Characteristics
•Observable behaviors
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Evaluating Diverse Jobs/WorkWith various attributes
number of corners, size, color
POINT FACTOR
SIZESmall = 20 pts
Medium = 40 pts
Large = 60 pts
COLORRed = 40 pts
Green = 80 pts
Blue = 120 pts
Yellow = 160 pts
CORNERS0 - 5= 0 pts
6- 9 = 10 pts
10 - 20 = 20 pts
Uses several factors and arrives at overall relative value using point weighting
Red
Gre
Blue
Yell
60
40
40
20
L
M
M
S
40
80
120
160
8
10
0
0
10
20
0
0
110
140
160
180
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Work Evaluation Taxonomy
Single
Multiple
Number of Standards
Number of Standards
ComparisonComparison
Other Jobs Other Jobs Written Standards Written Standards
Ranking
Market Pricing
Banding
Factor
Comparison
Classification
Single Factor Plans
Point Factor System
Competencies
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Alternative Federal Systems
• Simplified Classification
• Factor Systems
• “Whole job” Slotting
• Market Pricing
• Single Factor
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Job Evaluation
Literature Review
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Literature Review
Major Perspectives on Job Work Evaluation
Work Evaluation Framework
Work Evaluation Outcomes
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Literature Review
Major Perspectives
§ Traditionalists
§Realists
§ Market Advocates
§ Strategists
§Organizational Development
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Literature Review
Major Perspectives
§ Social Reality
§Contingency Theory
§ Competencies
§ Cognitive Decision-Making
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Evaluator Characteristics
Work Evaluation Framework: Variables
Identified in the Literature to Date
• Sex
• Experience
• Union Status• Management Status
Evaluatee Characteristics
• Sex
• Salary level• Education
• Experience
• Race
Environment Conditions
• Labor Market
• Laws & Regulations
Work EvaluationProcess
Organizational Conditions• Support systems (Training, dispute
resolution, automation, mass
customization, technical expertise)
• Power and Politics
• Business Strategy
• Structure
Work Evaluation Outcomes
• Reliability
• Validity
• Acceptability
• Organizational Effectiveness
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Literature Review
Work Evaluation Outcomes
§ Reliability
§Validity
§ Acceptability
§ Organizational Effectiveness
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Job Evaluation
Thought Leader Perspectives
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Summary of Future Trends By
Thought Leaders
1. Point-factor systems will continue to be used for workevaluation in the old economy companies.
2. New economy companies will use classificationsystems for work evaluation.
3. Greater emphasis will be placed on variable pay thanbase pay in compensation design and administration.
4. Broadbanding will be used by all organizations, but inconjunction with career development, and with lessbroad bands.
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Summary of Future Trends By
Thought Leaders
5. Market pricing will be used by all organizations, mostin conjunction with work evaluation.
6. Employees will have access to pay data with orwithout company permission.
7. Managers and employees will have more emphasis
in pay decisions than HR analysts.
8. Compensation packages will eventually be tailormade for each employee rather than groups ofemployees.
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Summary of Future Trends By
Thought Leaders
9. A lack of attention to measurement issues in pay
system decisions, especially work evaluation, will
result in many legal challenges by employees thenext time the economy turns down and pay increase
levels are reduced.
10. New forms of “validation” will need to be developed
for pay system decisions to supplement content,
criterion-related, and construct validation design.