A Study On Job Evaluation - Point Factor Analysis in Smes: Article

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A study on job evaluation – Point factor analysis in SMEs
Article · May 2012
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AJRBEM
Volume 2, Issue 5 (May, 2012) ISSN: 2249‐7307

A Peer Reviewed International Journal
of Asian Research Consortium
AJRBEM:
ASIAN JOURNAL OF
RESEARCH IN BUSINESS
ECONOMICS AND
MANAGEMENT
A STUDY ON JOB EVALUATION – POINT FACTOR ANALYSIS IN

SME’S
JATIN PANDEY*; LEELASHREE M**
*M.B.A., MSc-IT, B.E.(C.S. & Engg.), M.B.A., S.J.C.E. Mysore

**B.E.(C.S. & Engg.), M.B.A., S.J.C.E. Mysore
ABSTRACT

Job evaluation developed out of civil service classification practices and some early
employer job and pay classification systems. Whether formal job evaluation began
with the United States Civil Service Commission in 1871 or with Frederick W. Taylor
Journal of Asian Research Consortium 179

in 1881, it is now over 120 years old and still of great value. The first point system
was developed in the 1920s. Employer associations have contributed greatly to the
adoption of certain plans. The spread of unionism has influenced the installation of
job evaluation in that employers gave more attention to rationalized wage structures
as unionism advanced. During World War II, the National War Labour Board
encouraged the expansion of job evaluation as a method of reducing wage inequities.
As organizations became larger and larger and more bureaucratized the need for a
rational system of paying employees became evident. Wage structures became more
http://www.aijsh.org
complex and needed some way to bring order to the chaos perpetuated by
supervisors setting pay rates for their employees on their own. Job evaluation
became a major part of the answer. The techniques and processes of job evaluation
were developed and perfected during this time period of the late 1950s.
With the advent of the Civil Rights movement, job evaluation literally got written into
the law. The Equal Pay Act of 1963 required jobs to be compared on the basis of
skill, effort, and responsibility to determine if they were or were not equal. A 1979
study of job evaluation, as a potential source of and/or a potential solution to sex
discrimination in pay, was made by the National Research Council under a contract

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from the Equal Employment Opportunity Commission. The study suggested that jobs
held predominantly by women and minorities could be undervalued. Such
discrimination resulted from the use of different plans for different employee groups,
from the compensable factors employed, from the weights assigned to factors, and
from the stereotypes associated with jobs. Although the preliminary report failed to
take a position on job evaluation, the final report concluded that job evaluation
holds some potential for solving problems of discrimination.
Job evaluation is used throughout the world. Although recent evidence is not
available, it appears that job evaluation is still more prevalent in the United States
than elsewhere. However, a 1982 International Labour Office publication states that
in centrally controlled economies or in economies where wage or income controls
exist, job evaluation is frequently used. Furthermore, England and Canada are
showing increases in the use of job evaluation at a time when there are declines in
its usage in the U.S.
Holland has had a national job evaluation plan since 1948 as a basis for its national
wages and incomes policy. Sweden and Germany have a number of industry-wide
plans. Great Britain, like the United States, usually employs job evaluation at the
plant or company level. Australia and some Asian countries have installed some
forms of job evaluation. Russia and some of the other Eastern European countries
make wide use of job classification.
______________________________________________________________________________
INTRODUCTION

Job Evaluation is a cultural artifact it is a tangible process that people can see in operation, hear
about, and be affected by. The factors used in analytical job evaluation schemes to assist in
making judgments about relative worth express the beliefs of the organization about what is felt
to be important when valuing jobs and people. They deliver two messages to employees: this is
how we value your contribution; this is what we are paying for.
A fair pay structure is an essential element of the personnel policy of a firm. If the pay
structure is perceived as arbitrary by the members of the staff, it becomes a cause of disturbance
of the working relations. Job evaluation is a traditional tool used by companies to assist in the
process of determining pay structures that can be also useful to detect and combat wage
discrimination, since allow determining whether two jobs are of comparable worth or not.
Although there are many kinds of systems, many authors agree when defining point
factor methods as the most appropriate and fair job evaluation systems.
OBJECTIVES OF THE STUDY
1. To know basic approach to Job Evaluation.

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2. Why Point factor analysis is selected in the organization
3. Role of Job Evaluation in SME’s
4. Job Evaluation - Comparative Case Study on 2 Companies.
METHODOLOGY
The study was Cross-sectional and it is one that takes place at a single point in time. In
effect, it is taking a 'slice' or cross-section of whatever it is observed or measured. The study is
Qualitative and Comparative Case Study Method. The sampling method used is purposive
sampling and data collected through Interviews, Case Study Method i.e it is an in-depth study of
just one person, group or event. This technique is description of individuals/Groups. Secondary
data such as Company Handbooks and Documents has been taken and also focus group method.
The target population in the study was the HR managers of the HR retainer Transcendix,
Bangalore.
JOB EVALUATION: AN INTRODUCTION
The aim of job evaluation is to provide a systematic and consistent approach to defining
the relative worth of jobs within a workplace, single plant or multiple site organization. It is a
process whereby jobs are placed in a rank order according to overall demands placed upon the
job holder. It therefore provides a basis for a fair and orderly grading structure. Job evaluation
does not determine actual pay. It is a technique of job analysis, assessment and comparison and it
is concerned with the demands of the job, such as the experience and the responsibility required
carrying out the job. It is not concerned with the total volume of work, the number of people
required to do it, the scheduling of work, or the ability of the job holder. Several techniques of

job evaluation have developed, varying in approach. Some involve an examination of jobs
according to criteria such as skill, responsibility and working conditions. Others are less
complex.
Job evaluation is a process of determining the relative worth of a job. It is a process

which is helpful even for framing compensation plans by the personnel manager. Job evaluation
as a process is advantageous to a company in many ways:
1. REDUCTION IN INEQUALITIES IN SALARY STRUCTURE - It is found that

people and their motivation is dependent upon how well they are being paid. Therefore
the main objective of job evaluation is to have external and internal consistency in salary
structure so that inequalities in salaries are reduced.
2. SPECIALIZATION - Because of division of labor and thereby specialization, a large

number of enterprises have got hundred jobs and many employees to perform them.
Therefore, an attempt should be made to define a job and thereby fix salaries for it. This
is possible only through job evaluation.

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3. HELPS IN SELECTION OF EMPLOYEES - The job evaluation information can be
helpful at the time of selection of candidates. The factors that are determined for job
evaluation can be taken into account while selecting the employees.
4. HARMONIOUS RELATIONSHIP BETWEEN EMPLOYEES AND MANAGER -

Through job evaluation, harmonious and congenial relations can be maintained between
employees and management, so that all kinds of salaries controversies can be minimized.
5. STANDARDIZATION - The process of determining the salary differentials for different

jobs become standardized through job evaluation. This helps in bringing uniformity into
salary structure.
6. RELEVANCE OF NEW JOBS - Through job evaluation, one can understand the
relative value of new jobs in a concern.
According to Kimball and Kimball, “Job evaluation represents an effort to determine the relative
value of every job in a plant and to determine what the fair basic wage for such a job should be.”
Thus, job evaluation is different from performance appraisal. In job evaluation, worth of a job is
calculated while in performance appraisal, the worth of employee is rated.
WHY INTRODUCE JOB EVALUATION?
1) To gather data and information relating to job description, job specification and employee
specifications for various jobs in an organization.
2) To compare the duties, responsibilities and demands of a job with that of other jobs.

3) To determine the hierarchy and place of various jobs in an organization.
4) To determine the ranks or grades of various jobs.
5) To ensure fair and equitable wages on the basis of relative worth or value of jobs. In other
words equal wages are fixed to the jobs of equal worth or value.
6) To minimize wage discrimination based on sex, age, caste, region, religion etc.
In the past job evaluation has tended to be used more often for white collar, rather than
manual employees. However, there has been a steady increase in the use of job evaluation for all
types of jobs. The concern for unit labour costs makes it vitally important for organizations,
operating in highly competitive markets, to ensure that the grading level of their employees
accurately reflects the relative importance of their jobs to the organization. Properly introduced
and maintained, job evaluation can help lay the foundation of fair and orderly pay structures and
thus improve relationships. Job evaluation may therefore be appropriate in the circumstances.
ANOMALIES IN THE PAY SYSTEM/NEED FOR A PAY STRUCTURE

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Job evaluation can help remove any anomalies or inequities in an organization’s payment
system where the existing grading structure is thought to place jobs in an arbitrary order with no
justifiable or logical reason. Job evaluation would help remedy this by providing a more
structured basis for deciding grading levels.
CHANGES IN THE JOB CONTENT
Work restructuring within organizations may result in companies having fewer manual
employees often with a greater range of duties. In addition, new ‘high tech’ machinery may have
altered traditional roles and blurred the differences between ‘operating’ and ‘craft’ skills. All this
may have the following effects on existing grading systems:
• They may not be able to cope with the introduction of new jobs or new skills, with a likely
increase in the number of grievances about grading.
• They may not be able to cope with any ‘grade drift’, with lower grades having less to do &
while other jobs may have drifted upwards
TECHNOLOGICAL AND ORGANIZATIONAL CHANGE
It is important to ensure that the grading system is appropriate to the needs of an

organization particularly following technological and organizational change.
The introduction of flexibility, multi-skilling, team working and new operational methods
also have important consequences for job design and the way jobs are organised, and will clearly

affect traditional work groupings and pay structures. A further, important advantage of some job
evaluation schemes is that new jobs can be more easily fitted into the existing structure.
OTHER BENEFITS
Some job evaluation techniques require the analysis and description of jobs leading to a
more detailed and accurate knowledge of their content. This in turn may prompt:
• An opportunity to review roles and policies on selection and training
• Improved Human Resource Management through a greater understanding of the skills and
training needed for particular jobs, and
• A review of the organization’s structure and working methods, better designed jobs and the
identification of poor working conditions and job hazards.
JOB EVALUATION TECHNIQUES

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Simple techniques can produce basic grading structures, acceptable to both sides. It does
not follow that complex schemes are better or necessary. What is important is that the technique
should suit the needs of the organization and have credibility with the workforce. Many
organizations may wish to adopt an analytical points rating scheme on the basis that only such
schemes are likely to provide a successful defence against a charge of sex discrimination.
JOB DESCRIPTIONS
It should be borne in mind that job evaluation may necessitate organizations recruiting or
training a job analyst to prepare an accurate analysis of the jobs and to write the job descriptions.
This will be necessary as a basis for the job evaluation exercise. One approach is to ask job
holders to complete a questionnaire with comment and counter-signature by the line manager.
It is important that job descriptions:
• are written to a standard format to enable valid comparisons to be made
• are complete and take account of all major tasks and/or responsibilities
• are suitable in style and content for use in more than one section or department
• cover the range of factors chosen for a job, and are checked and agreed by the job holder and
the job holder’s manager.
TIME AND RESOURCES NEEDED


Job evaluation requires commitment in time and effort. The length of time from introduction to
operation will vary depending on the complexity of the scheme and the size of the job
population. It is best to undertake the job evaluation exercise within an agreed time-scale so that:
• Wherever practicable it does not interfere with the planned pay negotiations• any additional
finance to remedy anomalies in a grading structure can be budgeted for.
WHAT KIND OF JOB EVALUATION SCHEME?
• There are a number of different job evaluation techniques but in broad terms only two
types of scheme – analytical or non analytical
• The choice of a proprietary scheme or of a ‘tailor made’ one designed in-house depends
on the needs of the organization
There are a number of different job evaluation techniques, each with advantages and
disadvantages but there are only two types of scheme, analytical and non analytical.

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NON ANALYTICAL
JOB RANKING
Ranking jobs is the easiest, fastest, and least expensive approach to job evaluation. It is
also most effective in smaller organizations with few job classifications. To rank positions, order
jobs from highest to lowest based on their relative value to your organization.
The process of job ranking typically assigns more value to jobs that require managerial or
technical competencies. More value is also assigned to jobs that supervise, exercise decision-
making authority, or rely on independent judgment. For example, a job-ranking system might
rank the job of CEO as the most valued job within the organization and the job of product
assembler as the least valued.
ADVANTAGES: Simplicity is the main advantage in using a ranking system. It is also easy to
communicate the results to employees, and it is easy to understand.
DISADVANTAGES: Ranking jobs is subjective. Jobs are evaluated, and their value and
complexity are often assessed on the basis of opinion. Also, when creating a new job, existing
jobs must be re ranked to accommodate the new position.
PAIRED COMPARISONS
This is also a relatively simple technique. Each job is compared as a whole with each
other job in turn, and points (0, 1 or 2) awarded according to whether its overall importance is
judged to be less than, equal to, or more than the other jobs. Points awarded for each job are then
totalled and a rank order produced. This method has all the advantages of job ranking and is

slightly more systematic. However, it is best limited to organizations with a maximum of 30 jobs
in a particular job population and, like job ranking; it does not involve any analysis of jobs nor
indicate the extent of difference between them.
JOB CLASSIFICATION
This is also a ‘whole job’ evaluation technique. In job classification the number of grades
is decided first and detailed grade definitions produced. Representative (benchmark) jobs are
evaluated to validate the definitions. Other non-benchmark jobs are then slotted in on the basis of
the relevant grade definitions.
This method may be used where groups of jobs can be clearly defined – for example,
clerical and administrative employees. Again it is easy to understand and does allow for some
consideration of skill content. There is, however, a temptation to grade jobs according to how
they have been paid historically rather than according to their definitions, and aspects of
individual jobs may straddle job definitions.
The job evaluation techniques mentioned above may have a limited appeal to organizations
because, being non analytical, they are unlikely to succeed as a defence to an equal value claim.

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ANALYTICAL
POINTS RATING
This is a commonly used job evaluation technique. It is an analytical method which

breaks down each job into a number of factors; for example, skill, responsibility and effort, with
the factors sometimes being further broken down into sub-factors, for example, education,
decision making and dexterity. These sub-factors will be further divided into degrees or levels.
Points are awarded for each factor according to a predetermined scale and the total points decide
a job’s place in the ranking order. The factors should reflect the varying degrees of importance
attached to them. Care must be taken to ensure that the weightings do not result in a sex-biased
scheme –for example, by attaching an unjustified weighting to the physical strength factor at the
expense of manual dexterity.
A points rating scheme has the following advantages:
• It provides a rationale why jobs are ranked differently
• It may be entered as a defence to an equal value claim when factors are selected and weighted
to take no account of sex, and
• It will be seen generally as less subjective than non analytical techniques.
The limitations of points rating are that it is time consuming to introduce and can be complex
and costly to undertake. In addition it can be seen to be inflexible in times of rapid change and
can imply an arithmetical precision which is not justified.

‘Tailor made’ or ‘off the peg’
A prime consideration in deciding which analytical job evaluation scheme to select lies in the
choice of factors and weightings. The benefit of proprietary ‘off the peg’ schemes is that they
normally have been well tried and tested and there is therefore a saving in time. In addition,
many are linked to mechanisms for checking salary levels. The benefit of ‘tailor made’ schemes
is that the factors and definitions more accurately reflect the range of jobs to be evaluated and are
arrived at through consensus; consequently they are more likely to be acceptable to the
workforce. Care, however, has to be taken in designing the scheme and in particular in avoiding
discrimination when weighting the factors.
MAINTENANCE
Job evaluation is not a once and for all exercise and procedures must be devised to keep the
scheme up to date. It is essential for someone in the organization to have a continuing knowledge
of the scheme. If the scheme is not regularly maintained, the initial problems which gave rise to
the need for job evaluation may re-emerge and the scheme will fall into decay and disrepute. If
maintenance is carried out, the scheme will last longer and should continue to be acceptable.

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A prerequisite for setting up a maintenance programme is the provision of a written job
evaluation manual which sets out the background and history, rules and results of the scheme,
allocation of responsibility and details of how the scheme will be kept up to date.
POINT FACTOR ANALYSIS METHOD OF JOB EVALUATION
In the point factor analysis method (also called point method) of job evaluation, the
organization identifies the compensable factors and breaks them down into degrees. The
organization must also weight the factors, determine the number of complexity levels or degrees
for each factor, and assign points. The result is that the evaluator assigns a numeric score to a job
for each factor based on how much of that factor appears in the job. The job's total worth is then
determined by adding up the numeric scores across all factors. This procedure, when conducted
across all jobs, will result in a relative ordering of jobs based on the number of points that each
job earns.
Although the point method allows an organization to develop one job evaluation scheme
for all jobs in the organization, this is rarely done for several pragmatic reasons.
• First, it is difficult to identify one set of compensable factors that is applicable for all jobs.
For example, the use of working conditions may distinguish among shop jobs, but there is
not likely to be any variance among office jobs on that compensable factor.
• Second, creating single definitions of factors in language easily understood by all employees
would be nearly impossible. Different operational definitions would be needed for the same
compensable factor for different clusters of jobs.

• Third, the fact that different job groups are often anchored to different labour markets cannot
be ignored. In an equity sense, comparison with job families (clusters) within an organization
may be less relevant than comparison with a job family in the relevant labour market.
With point methods of job evaluation, organizations usually have a series of job evaluation
plans. For example, there may be one plan for skilled shop jobs, another plan for unskilled
assembly work, and still a third plan for office and clerical. The point method can evaluate all
jobs simultaneously, rather than limiting evaluation to only key jobs.
STEPS IN THE POINT METHOD
STEP1: SELECT THE JOB CLUSTER AND THE JOBS TO BE EVALUATED. This is same
as in other methods of job evaluation.
STEP 2: INPUT JOB INFORMATION.As with all job evaluation approaches, the jobs must be
analyzed and job descriptions/specifications prepared.

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STEP3: SELECT COMPENSABLE FACTORS. Just as with other methods or other job
evaluation methods, the point method generally uses a set of factors that has been developed by
others. It has long been accepted that three to five factors are sufficient to capture a desired
criterion structure." Additional factors may be merely redundant and do not explain unique
variation in the job structure However, it is also important to remember that job evaluation plans
are rationalizations for job relationships and the pay structure.

STEP 4: DEFINE COMPENSABLE FAC TORS
In this step, once factors are chosen, the committee must clearly define what each factor
will mean in the context of the job evaluation plan. The more specific a factor is, the narrower
the definition tends to be, and frequently, the easier the factor is to use. One of the important
criteria in determining whether factors are broadly or narrowly defined is related to the types of
jobs covered.
If the jobs are from a narrow job cluster, the factor might be correspondingly narrow.
However, if the jobs are from a range of job clusters, factors will need to be correspondingly
broader with more sub factors to capture variability in all the As an example of this point,

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suppose an organization is defining the factor of working conditions for a narrow job cluster of
shop jobs. In this case, the sub factor definitions might include only noise and temperature. If the
firm wishes to use one job evaluation plan to cover office workers as well, another sub factor for
working conditions might be necessary, such as visual concentration (to cover staring at video
terminals). Some organizations use factors and sub factors as illustrated below it allocates the
total percent to the factor, whereas Table-1 divides the percent for the factor over several sub
factors. For example, Table-2 shows that the skill factor in the context of job evaluation has three
sub factors: education and job knowledge, experience and training, and initiative and ingenuity.
Each sub factor will have to be operationally defined in specific terms.
TABLE - 1

Total points 1000
STEP 5: DEFINFE FACTOR DEEGREES

The committee must decide how many degrees should be on the scale for a given factor
or sub factor. There should be adequate degrees to make meaningful distinctions among jobs. If
there are too many degrees, the distinctions may be meaningless. Also, if no job falls within the
degree, the steps are probably too narrowly defined. Table - 3 shows one method of defining
factor degrees. All factors or sub factors do not have to use the same number of degrees.
STEP 6: DETERMINTE TOTAL P OINTS IN PLAN.
The process for assigning point values to factors begins with a decision as to how many
total points the job evaluation plan will have. There is no magic number of points that a plan
should have. A general rule is to have enough total points in the plan to differentiate adequately

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among the jobs to be evaluated. Under normal conditions, there should be enough points to
adequately distinguish among the jobs in the organization.
After determining the total number of points that will go into the job evaluation plan, the
committee must determine how the points will be divided among the factors or sub factors.
Points may be assigned to factors based on committee judgment or based on statistics. Statistical
assignment of points is less common partly because of its complexity. The assignment of points
to each of the various factors is equivalent to weighting each factor based on its importance. As
an example, suppose that an organization has a skill factor in its plan and considers it a very
important factor, weighting it at 50 percent. In this case, assuming that the plan carries a
maximum of 1,000 points (see Table - 4), the skill factor is assigned 500 points (1,000 x 0.50 =
500 points). In this same fashion, points are assigned to sub factors. If skill is composed of
several sub factors (such as education and job knowledge; experience and training), then the
points are divided among them. If the organization decides that the education and job knowledge
sub factor should be weighted 60 percent and experience and training should be weighted 40
percent, then these sub factors would receive 300 and 200 points, respectively. When the
organization is not using sub factors, then the total points in the plan (see Table - 5 ) are
multiplied by the factor weight to yield the factor points at their highest degree (for example,
responsibility-1,000 points X 0.25 = 250 points).


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TABLE - 2

JOB KNOWLEDGE
This factor considers the skills necessary to perform the job such as finger dexterity, clerical
skills (typing, dictation, filing), human relations skills, and telecommunication skills.
TRAINING
This factor considers training the worker must have. It is measured by the number of weeks of
on-the-job or formal technical training it will take a worker to be able to perform the job.
WORKING CONDITIONS
This factor considers the requirements of a job concerning the number and severity of unpleasant
work context elements present on the job (for example, ventilation, eye strain, temperature).

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TABLE – 3
Degree Training Time
1 1 month or less
2 More than 1 month but less than 3 months
3 At least 3 months but less than 6 months
4 At least 6 months but less than 1 year
5 1 year or more
STEP 7:ASSIGN POINTS TO DEGREE WITHIN FACTORS OR SUBFACTORS
Once the total number of points and the weight of a factor or sub factor are established,
the next step is to assign points to the degrees within the factors. Table – 4 illustrates one
procedure for assigning points to sub factor degrees. First, the highest degree of a sub factor is
assigned the maximum points for the sub factor. Using the education and job knowledge sub
factor from the example in Step 6, the highest degree of this sub factor is assigned 300 points.
Second, the number of factor degrees is determined, and points are assigned to the lowest degree.
The 30 points is arrived at by multiplying the sub factor weight (0.60) by the factor weight (0.50)
to determine its relative weight in the overall plan (0.60 x 0.50 = 0.30). This percent is then used
as the lowest point value. 'Thus the lowest point value for the first degree for the sub factor
education and job knowledge is 30 points. In the example, the education and job knowledge sub
factor received 300 points; the lowest degree is assigned 30 points. Third, the lowest degree

points are subtracted from the highest degree points (300 points - 30 points = 270 points), and
this quantity is divided by the number of factor degrees minus 1. This value plus the points
assigned to the prior degree (beginning with 30, in this case) gives the number of points to be
allocated to each subsequent factor degree. See Table – 4 for an illustration of when factors and
sub factors are used and Table - 5 of when only factors are used. This procedure assumes that
factor or sub factor degrees are equidistant from each other.
Usually this procedure gives an adequate distinction between jobs. However, if the
committee believes that equidistance’s between degrees are not satisfactory because the
definitions are not equidistant from each other, points can be assigned to factor degrees in a
manner consistent with committee judgments about differences between degrees. Some point
plans use a geometric progression in assigning points to degrees. Points may be assigned on the
basis of 2,4,8,16,32 and 64. When geometric progressions are used, the committee will need to
do log transformations of the point scale to assign degrees. The use of geometric progressions
does not alter the relative rank of jobs; it only creates a perception of greater distances between
jobs .Having developed the weighting scale for factors and degrees within factors, the committee
must then check the validity of the results by evaluating several key jobs to determine whether
the point plan as developed results in the expected job hierarchy. This step is critical if the points
were developed judgmentally.


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TABLE-5
TABLE -4
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STEP 8: EVALUATE JOBS


When key jobs are known, key jobs are evaluated first and then the unique jobs are
evaluated and fit between the key jobs. When key jobs are not known, each job is evaluated
using the newly designed point method and then the validity of job evaluation is determined by
whether the resulting job structure mirrors the pay structure ordering of key jobs in the labour
market. Key jobs are identified by comparing all job definitions within the organization with the
definitions of jobs in the survey. If the comparison shows that the key jobs in the organization
are not ordered in the same way as they are in the labour market, then the definitions of the
compensable factors must be examined and the jobs identified as key jobs must also be
examined. Either some of the jobs are not key jobs or the compensable factors are not defined
properly. If the problem is with a key job, you return to Step 1; if it is with a compensable factor,
return to Step 3. This is done to validate the job evaluation; therefore, the wage rate (for
example, mean, median) used for comparison with the hierarchical order is not important. Once
fit between the market rates and key job evaluation rates is established, the job evaluation plan is
validated and should not be changed until the jobs and compensable factors for those jobs are
changed.
STEP 9: WRITE THE JOBS EVALUATION MANUAL

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The results of the committee's activities must be written up in a job evaluation manual.
Without a well documented job evaluation plan, the plan is not usable except by the original
committee .Documentation of the committee's work should include the rationale for the factors
chosen, the rationale for weighting the factors, the rationale and procedures for assigning points
to factor degrees, and, finally, a description of the factors, sub factors, and the degrees assigned
to each. Committee members should remember that other employees who were not involved in
development of the plan may have to use it. The documentation of the committee's work should
be clear enough so that other employees using the job evaluation manual could retrace the
decisions. It is recommended that non committee members review the manual and that the
committee make any necessary revisions based on their comments. Two examples of point-type
plans are the National Position Evaluation Plan (NPEP) and the Hay Guide Chart Profile
Method.
MULTI FACTOR METHODS
The NPEP originated with the National Metal Trades Association (NMTA) and the
National Electrical Manufacturers' Association (NEMA), but it is now known as NPEP. Some
organizations still use the original version. The NEMA originally identified the four general
factors of skill, effort, responsibility, and working conditions. Each of these factors was then
divided into sub factors. NMTA designed a similar method to evaluate jobs. For example,
NMTA defines five factors (training, initiative, responsibility, job conditions, and supervision)
for clerical, technical, and service positions. The sub factors for each factor are as follows:
training (knowledge, experience), initiative (complexity of duties, supervision received),
responsibility (errors, contact with others, confidential data), job conditions (mental/visual
demands, working conditions), and supervision (character of supervision, scope of supervision).
The NPEP has separate plans for these job areas: manufacturing, maintenance, warehousing,

distribution, and service (unit 1); non-exempt clerical, technical, and service (unit 2); exempt
supervisory, professional, sales, and administrative (unit 3); and executive (unit 4). Interested
parties are able to purchase manuals from the NMTA that provide factors, factor definitions, and
factor degree definitions
HAY GUIDE CHART PROFILE METHOD
The Hay method of job evaluation probably has been the most popular proprietary job
evaluation system available. The system was developed for use on predominantly white-collar,
managerial, and professional jobs. It is actually a variation on the factor comparison and point
methods of job evaluation. As developed by Hay and associates, the Hay plan uses three
universal factors to compare all jobs: know-how, problem solving, and accountability. When
appropriate, a fourth factor-working conditions can be added." Know-how is the total of all skills
and knowledge required to do the job; it measures the interrelationship between the three sub
factors of specialized and technical knowledge, managerial relations, and human relations.
Problem solving is the amount of original thinking required to arrive at decisions in the job; it is
composed of the two sub factors of thinking environment and thinking challenge. Accountability
is the answerability for actions taken on the job; it is composed of freedom to act, impact on end-

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results, and magnitude of impact. To use this method, the evaluator needs the Hay guide chart for
each of the three factors. The job is then assigned a point value for each factor/sub factor.
The total of points across all the factors is the point value for the job. Each job evaluated
requires a profile that shows the relative weights of the three compensable factors. The weight
assigned to problem solving cannot be greater than that given to know-how, based on the belief
that you cannot use knowledge that you do not have. The traditional Hay system (guide chart
method) is based on an idea that there are universal compensable factors that are applicable
across industries and companies. Currently, the guide chart method makes up only a small
amount of compensation system design work performed by Hay Management Consultants. Hay
has developed an approach called the Hay Dynamic Pay concept, which is consistent with the
philosophy of this text. The Hay Dynamic Pay concept is based on the fact that organizations
operate in a dynamic world, and therefore they must be adaptable. These organizations need pay
programs that are integrated with the organizational culture, that correspond to the organizational
strategy and structure, and that respect the nature of the organization's employees. In this
approach, greater emphasis is placed on the value of the individual, not just on the value of the
job.
Hay has identified four basic models for classifying organizations. The functional model
focuses primarily on reliability and consistency of operations. Traditional management
hierarchies are established to control and monitor the organization's operations. The process
model is a result of the recent emphasis on quality and Customer satisfaction. It emphasizes
employee empowerment, formal and informal communication, and the integration of planning,
execution, and control to increase the firm's ability to respond to customer needs. The time-based
model "emphasizes the ability to dominate markets in their high profitability phases, and then
move toward a new opportunity as those markets reach a mature, lower-return stage."': These

organizations are generally finance- and manufacturing-driven, The network model emphasizes
flexibility and responsiveness to customer and market needs. Traditional management structures
and long-term alliances are replaced by temporary alliances and a high level of flexibility and
adaptiveness. Hay suggests that the compensation mix between base pay, variable pay, and
benefits varies based on the organizational model under which the organization is operating.
Because most organizations do not fit nicely into one of the four models, it is essential that the
compensation program be tailored uniquely for each organization. More and more experts are
declaring that the view of compensation as a "one dimensional, static, and independent element
of the organization needs to be replaced with a vision that pay is always evolving, fully
integrated, multifaceted, and dynamic."
ADVANTAGES AND DISADVANTAGES OF THE POINT METHOD
9 The greatest single advantage of the point method is that once factors and degrees are
defined, the job evaluation plan is highly stable over time. The compensable factors remain
valid until there is radical change in the way the organization does business.

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9 Second, given the amount of work that goes into a carefully defined job evaluation manual,
the plan is likely to be perceived as valid by the users, thus enhancing employee perceptions
of equitable treatment.
9 Third, because factors and degrees are carefully defined, and if accurate job descriptions or
job specifications are used for job evaluation and evaluators are trained, there is likely to be
high agreement within the committee in assessing jobs.
9 A fourth advantage of the point method is that it provides ample data to explain to employees
why their jobs fall where they do in the overall pay structure or to prepare a case in appeals
that may be brought forward by employees, the union, or governmental agencies.
9 Finally, the point method is easy to use and is acceptable to employees, union officials, and
managers.
The greatest disadvantage to a custom-designed point plan is the time, effort, and money
required to set up the plan. Implementation of the point method requires careful definition and
weighting of factors, careful definition and assignment of degrees to factors, and careful
development and documentation of the evaluation manual. The compensation decision maker
must weigh the benefits of this approach against the costs. Organizations that use point methods
of job evaluation first assign a point value to each job and a range of point values for each job
grade and then place jobs whose points fall between the assigned point ranges for each grade into
that grade.
This is done to simplify administration and also to increase evaluation accuracy.

Theoretically, a one point difference between jobs indicates different value. In practice, however,
such fine job worth distinctions are difficult to justify and to administer. Each job can, however,

be classified into a manageable number of job grades by assigning a range of point values to
each job grade. Thus, in practice, all point methods of job evaluation end up being classification
systems in which jobs with particular point ranges are assigned to a job grade that reflects the
relative value of the jobs in that grade to other jobs in different grades.
COMPANY OVERVIEW
TRANSCENDIX
Transcendix is a Human Resource Solutioning and Consulting organization, with firm

grounding in best in class corporate practices, and consulting experience.
Conceptualized in Feb 2009, and initiated in June ’09, Transcendix is promoted by a team
that has firm grounding in best in class corporate houses, and has now forayed into the Human
Resources consulting & solutioning space. They have specialized in developing and
implementing diverse human capital management initiatives.

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Transcendix is head-quartered in Koramangala, Bangalore, with offices in Chennai &
Mumbai. Transcendix comprises a team of consultants, trainers, strategists, HR managers,
academicians and technologists to enable a 360 - degree perspective.
They are a non-conformist group who believe that true capabilities are uncovered when
boundaries are pushed beyond traditional norms. There services are extended to four broad
verticals – Large Corporate, Small & Medium sized enterprises, Social Enterprise Sector and
Educational Institutions.
JOB EVALUATION IN SME’S WHY?
The importance of SMEs to strengthen the salary management
Salary is generally the main source of income of workers, for the living standards of
workers and their families a great impact. A country's overall salary level of workers is also
reflected in the overall social and economic development is an important indicator. In general,
countries about 60% of GDP reflected some form of compensation. Pay the employee an
important symbol of status and success of, for poor work attitudes and behaviour have an
important impact. Compensation management is to maintain the normal operation of the
conventional business work, but also to achieve corporate strategic objectives is to promote a
powerful tool.
Pay employees for the decision-making and management team building, management and
maintenance of such a great impact on competitive advantage.
SMEs are an important part of the national economy is the economy healthy and stable
development of the important forces; SME market system is an integral part of a large number of

employment opportunities available to ease the social pressures, the stable development of
society provides important protection. However, SMEs in the development process is also faced
with many problems, such as not hire people, unable to retain people. One important reason is
that SMEs lack the concept of compensation management, pay no attention to management. of
many SMEs does not form a reasonable, standard salary system; no scientific job analysis,
compensation design; there is no fixed, and improve the pay framework, generous.
Salary management as an important human resource management functions and work

processes through human resource management services in the overall development strategy,
according to business objectives of the production and operation at different times. Designed to
develop a pay system applicable, the use of effective measures Coordination between different
elements of remuneration, remuneration system through the implementation and the
implementation of the adjustment of internal labour relations, and stable workforce to maintain
and continuously improve the professional quality of staff, inspire staff initiative, enthusiasm and
creativity has played an important role.
Second, SMEs Compensation Management Problems

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The fundamental purpose of pay administration is to help companies achieve their
operational and management objectives. However, some enterprises in the process of
compensation design, compensation management are lagging behind the concept, lack of
strategic thinking compensation design. Knowledge to pay on the pay, did not consider how to
play the salary from the function and role, or only the relevant aspects of investment for the
production of enthusiasm to improve the remuneration levels of staff is very reluctant, do not
recognize the individual employee goals with organizational goals unity of relationship.
At present, many SMEs still do not form a scientific and rational management system of
remuneration, lack of modern management methods and technology pay, pay systems were very
irregular, pay less flexible. Employee wage arbitrary convention or by corporate leadership
identified the various wage employees projects based on the lack of clear accounting and
scientific methods, employees cannot pay systems to understand their own income. Also in the
salary structure of employees of different positions at different levels and the level of low wage
levels, wage system, and employee performance or company effectiveness of projects linked to
smaller wage gap between employees less wages and little fluctuation phenomena, naturally, did
not play a pay incentive. With the gradual growth of enterprises and external competition,
managers face changing complexity of the market, if we adopt the ways and means to divide the
early day’s staff performance levels, payment of staff salaries apparently at random out of date in
urgent need of professionals to provide a modern pay system design.
Performance-related pay is a scientific and reasonable development of the basic

principles of pay systems, pay systems to effectively play its role of motivation must be based on
an equitable basis. Some of the main to the distribution of small and medium wage length of
service, education, job title, administrative level and so on. And not to job content, skill
requirements, contribution to the organization and external markets, based on the work of the

comprehensive evaluation of position.
Such a system may seem very fair, but because the staff did not fully take into account
differences in work and contribution to the achievement of corporate objectives difference
between shadow. Internal pay equity, salary and job performance of the correlation is too low, is
actually a negative value of the work, the result can only be egalitarian "iron rice bowl." While
some SMEs developed performance appraisal system, but in the course of the incorporation of a
lot of subjective factors that go with the staff, very satisfied.
Remuneration paid by an enterprise will no doubt directly affect the level of the
enterprise in the labour market for the ability of labour strength. Pay level survey to understand
the market wage means that the survey of the region, the industry, especially the pay status of
competitors, the results of the survey statistics and analysis, formulation and adjustment of
enterprises to provide an effective basis for pay and benefits policies. It is the solution of foreign
companies pay competitive and one of the ways the issue of fairness. Many small and medium
enterprises only pay cursory inspection the overall market level, pay structure does not take into
account market competitiveness. Operators pay levels for employees in charge of judgments
based on personal and often random changes, to some extent dampened the enthusiasm of staff.

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Many small and medium enterprises in the design of compensation programs often only
pay attention to external, not internal staff pay attention to, or even completely ignored. External
monetary compensation based on performance, is seen as the return of Labour to pay employees.
The remuneration of the employee within the spirit of the incentives, including job security,
identity signs, challenging work, promotion, performance recognition, training opportunities.
THIRD, SMES PAY THE CAUSES OF
1. SPECIAL HISTORICAL CONDITIONS HAVE MORE FAMILY TO DETERMINE

THEIR MANAGEMENT
At present, SMEs constituted mainly by private enterprises. Are generally connected by

blood as the major shareholder of the family controlled business, individual owners of a set of
ownership and management, the formation of the family system of corporate governance
structures, attention to enterprise system lack of effective decision-making restraint mechanism,
the size of internal and external affairs of a person by the masters of business owners, which in
the early start to play a better role. When the company embarked on the development, gradually
expand the scale, the paternalistic management model will induce a series of problems.
Therefore, both from the technical or from the management, have to be imported from outside
the family of foreign professional technical and management personnel, it would be difficult to
cope with the situation. However, the family business characteristics of the natural instinct are
closed opposed to the introduction of this human capital.
2. SALARY MANAGEMENT PHILOSOPHY BEHIND
Many SMEs plant, equipment investment enthusiasm is high, raise the level of the staff
was unwilling to pay. The net pay as a business expense, compensation management philosophy

lagging behind. Some managers do not recognize the basic concept of modern compensation
management staff salary levels is one of upgrading and improving the quality of staff interaction
virtuous circle, and this is an important indicator of business prosperity.
3. MODERN MANAGEMENT METHODS AND TECHNOLOGIES INTO PAY LESS
In business start-up phase, when the business start-ups, small-scale, staff, simple
structure, pay a single, as entrepreneurs, the owners can be hands-on, its capability to monitor the
operation of enterprises grasp the ideological trend of each employee, by employee performance
level for the payroll staff are "at will" in the fair and reasonable. However, as gradual growth of
enterprises and external competition, managers have to manage and supervise the staff several
times, the face of ever-changing, complex and elusive market, coupled with things they usually
ridden on management training and prejudice, their quality has been a marked development of
the situation cannot meet the need, especially in the modern management methods and
technology salary grasp even more helpless in urgent need of professionals for advice, providing
a modern pay system design program.

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1. TO PAY A CORPORATE STRATEGY TO ACHIEVE THE LEVERAGE
Strategic business services market will change as it happens accordingly. In the

formulation of strategy, enterprises should take into account the nature of their business,
development, business strengths, weaknesses, opportunities and threats of what the deciding
goals what are the key factors. This is reflected in human resource management is the business
and what kind of people to achieve corporate strategic objectives, how employee attitudes and
behaviour of help to enterprises. At this point in the compensation strategy should consider: the
need to do to businesses need to attract and retain staff, through the establishment of what kind
of remuneration package of employee’s sense of responsibility, communicate corporate strategy.
That salary system is to achieve an important lever of enterprise development strategies, should
consider how the compensation strategy to support the enterprise development strategy.
2. THE INTRODUCTION OF JOB EVALUATION LINK
First of all, through the work of improving job description. SMEs generally lack
professional human resources management, job analysis can therefore be done in two ways:
First, an external consulting firm to help, our country has a lot of consulting companies, which
The company has accumulated a wealth of experience, can help companies analyze the job done
quickly, but the high cost of this approach; the second is an example job description can be
purchased from which to extract useful information, combined with the actual situation of the
enterprise to complete the job analysis.
SMEs in the preparation of job descriptions should be clear responsibilities and critical
tasks, but not perfect. In describing the incumbent should possess the qualifications, be based on
the actual situation, if a job is able to recruit staff graduates, do not set the course. At the same
time to sort out as much as possible, standardize the work flow. On the basis of the work

required on the knowledge and skills, paid work and other elements of the complexity of
evaluation and accurate measurement to determine the value of the paid work standards to ensure
that staff pay levels within the fair.
3 TO MARKET RESEARCH AS THE KEY ELEMENTS OF COMPENSATION

DESIGN
Salary Survey is the enterprise by gathering information to determine the remuneration

paid by other state enterprises such a system process, this information can provide to the
implementation of the investigation of various related companies on the market remuneration
levels paid to employees and pay structure, etc. information. In this way, companies can
implement the survey findings to determine their own under the current pay levels relative to
competitors in a given position on the labour market, which adjust their strategies according to
their own pay levels or pay structure.
Access to information channels, pay, there are two: First, free access to information, such
as the government's corporate average job wages and labour market prices, or social groups in
the labour market position price; the second is paid access to information, such as through

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consultation company. or enterprise to do their own surveys (salary information exchange with
other enterprises, intermediary organizations, salary survey commissioned by telephone
interviews, Internet )
SMEs through market research to determine competitive pay policy, but it does not mean
that enterprises must pay to attract the highest talents. As importance of different positions, the
benefits to the enterprise is not the same, an enterprise should rational allocation of limited
labour costs, give full play to the incentive pay. For important technical personnel, management
personnel, salary levels can be positioned above the market level; for the general work of the
staff, the number of people, alternative, low cost, then pay levels with similar or slightly lower
than the market average in order to ensure that enterprises can afford to staff key positions with
competitive pay levels.
4. Will pay as compensation within the important aspects of innovation

According to Maslow's hierarchy of needs theory, a purely monetary incentives may be the
existence of a trend of diminishing marginal utility, requiring use of monetary incentives and
non-monetary incentives motivate the combination method, to meet the needs of high-level staff
to achieve a more Big incentive purposes. Herzberg two-factor theory is that incentives impact
on staff satisfaction with the main factors. just enough incentive to employee satisfaction, which
stimulate the production of performance, intrinsic motivation factors are remuneration, including
achievement, recognition, promotion, job responsibilities and so on.
5. TO MAKE PAY AND PERFORMANCE ARE MORE CLOSELY
Enterprise organizations have an impact on performance evaluation of production

efficiency and competitiveness indicators for personnel decisions, contribute to the importance of

staff management. It is to protect and promote the orderly operation of the internal management
mechanism, the management of enterprise objectives means to promote personal development is
an important measure. performance evaluation is a conducive to enterprise development, and it
helps a win-win employee career development work. For enterprises, both through
the performance evaluation of employees work in the enterprise guidance and supervision, but
also business management through two-way communication to identify the weak links exist in
the work and management of defects, which effectively determine the direction of improved
corporate governance and measures to further regulate the behaviour of corporate management.
For employees, through the performance assessment can enhance staff capacity to promote the
re-planning of career staff to promote the comprehensive development of career employees.
Only companies with employees on the purpose of performance appraisal have a profound
understanding of win-win situation can be effectively avoided in the assessment of bias and
enhance the assessment results objectivity.

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6. AN APPROPRIATE INCREASE IN THE TRANSPARENCY OF COMPENSATION
MANAGEMENT
The use of transparent remuneration system, in fact, convey a message to employees: the
company's pay system, there is no need to hide, people with high pay its own high-token, people
with low pay its own shortcomings, welcome to all staff supervision pay equity. If you are not
satisfied with their pay, you can comment. Transparency is actually built on fairness and justice
and public foundations. Specific practices are: a simple method as job evaluation, so that easy to
understand; released documents detailed description of the remuneration to the staff development
process; the establishment of employee-mail, at any time to answer people's questions on pay
deal with staff complaints.
Compensation management is an important part of human resource management and the

core content, the current management of most of the importance of SMEs to pay or have some
knowledge, but in practice is far from standardized, small and medium enterprises want to
regulate this compensation can management of some help.
COMPANY PROFILE
G7 – GROUP OF COMPANIES
Vision: To be a global leader in innovating and delivering business solutions to create a

Competitive advantage for our customers through strategic use of technology while providing
professional satisfaction to our employees.
Value: To aid our mission we adopt the values of being a People Centred organization with a
promise to conduct business with Integrity, Commitment to Excellence and above all base it on

Respect to our employees, partner and customer
BRIEF HISTORY
G7 group companies are a fast emerging global group of companies providing innovative
technology solutions and value-added services to enhance our clients’ competitive advantage.
It is a group basically engaged in the multifarious business spheres with revenue over USD 200
Million over 200+ consultants globally .Over 50% consistent years on year revenue growth
operational presence in India and North America.
The Group Companies are:
• G7 InfoTech
• G7 Tech Solutions
• G7 Synergon

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• PITEC Solutions
• OPSBUDS Solutions
• AMEYAS Business Solutions
CULTURE
People are the most important part of the organization. Every G7 employee is very
valuable. They do not have a HRD (Human Resource Department) since they do not consider
employees to be resources. Extending the philosophy of ‘Customer is King’ they believe each of
the employees is no less than that. Thus, they have established ICS (Internal Customer
Satisfaction) to serve the needs of the employees.
ICS is constantly focused on keeping the G7 employees bonded together and adds flavour
to the environment in our professional house
Another key factor of organizational culture is Leadership Development. They strongly

believe in creating leaders at each level of the organization. Constant engagement of team
members in their individual development plans that provide for enhancing leadership skills is
embedded in the organisation culture
It is the duty of every employee to put in his/her efforts to achieve higher productivity
standards:
1. To make optimum utilization of resources at Company’s disposal and to ensure company’s

survival & growth.

2. To offset rising costs to improve Company’s competitiveness and earning capacity.
3. That the concerned employees would also carryout work incidental to their jobs wherever
necessary and possible.
4. Every employee to carryout jobs assigned himself/herself, with additional assistances only
where it is absolutely required.
5. To wholeheartedly support the efforts & endeavours of the company for improvement of
production/productivity
JOB EVALUATION - COMPARATIVE CASE STUDY METHOD
G7 – TECH SOLUTIONS
G7 Tech Solutions, a part of the G7 Group of companies, is a fast growing Business Process and
Knowledge Process organization, centrally located in India’s Silicon Valley, Bangalore.
Managed by a team of leading visionaries, with hundreds of man years of technical and

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functional experience and expertise, they cater to the needs of emerging businesses worldwide,
providing cost effective and result yielding business process solutions.
G7 provides significant and quantifiable business benefits, with strict adherence to

service and quality standards. Their integrated business solutions help customers to align their
performance with corporate strategy by optimizing business efficiency and minimizing IT
investments. As an young organization G7 provides dynamic and flexible BPO services across
Banking and Financial Services, Insurance, Healthcare and Logistics domains.
G7 Tech Solutions is an emerging Business Process Outsourcing Organization, employ

over 100+ highly experienced and skilled executives, providing services and solutions. As a
young and dynamic organization catering to requirements of a global clientele, G7 are pioneering
into IT consultancy across the healthcare, insurance and manufacturing domains.
WORK CULTURE
Industry focus on Insurance, BFS and Healthcare and mainly into BPO and KPO services
At present handling over 500,000 calls p.m.
¾ Welcome Calls
¾ Returned Documents Calls
¾ Reminder Calls
¾ Collection (Appointment) Confirmation Calls


¾ Special Revival Campaign
¾ Capacity: 2million calls p.m.
¾ Multilingual capability
¾ 100% Achievement on timelines for deliveries

¾ 98.5% Achievement on Accuracy
¾ 95% Compliance to Quality Parameters
¾ Only 7 complaints from 4 million calls
¾ Improved the AHT by 75%

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FOCUS ON EMPLOYEES
¾ Continuous investment in people related practices
¾ Mandatory training on customer handling, CRM, Computers & Communication
¾ Agents speaking more than 10 Indian Languages
¾ Professional supervisorial force
¾ Training / Certifications include:
¾ Licentiate of Insurance Institute of India
¾ Six Sigma Black Belt from Indian Statistical Institute
¾ 100 Hours of training in Principles and Practice of Insurance business in India
QUALITY MANAGEMENT SERVICES
¾ Certified with ISO 9001:2008
¾ Compliant to ISO 27001:2005
¾ Process approach
¾ Demonstrated continual improvement


¾ Verified consistency of quality deliverables
¾ Satisfied customers
THE KEY JOB ROLES
G7 BPO and KPO is always customer oriented and lot of measures have been taken to
quickly respond to the customers. They are skill oriented mainly communication and convincing
and problem – solving skills. The employees must be highly responsive and have high Assurance
level and also should always have empathy towards the customers. They are individualistic than
collectivistic they work on individual bases most of the times and are evaluated based on
individual performance and employees are always Result Focused, They always emphasize more
on External marketing and complexity is low . Most of the times the job is routinized and
sometimes it would be similar. The employee’s physical discomfort could come from attending
continuous calls and also continuously speaking.

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SOME OF BASIC SKILLS REQUIRED ARE
1. The basic educational qualification expected now days is a degree in any discipline (arts,
science or commerce). Earlier people with a pass in 12th standard were considered. But now
most of them look for a basic degree completion though some of the domestic call centres may
consider even if the degree is not complete.
2. Good written communications skills in English
3. Good oral communication. You should be able to talk with good pronunciation and
vocabulary.
4. Be able to speak in confidence on any topic - especially in Group discussions.
5. Have good listening skills. You should be able to listen patiently and answer appropriately.
6. Good and pleasing voice.
According to Point Factor Analysis Jobs are evaluated based on Skills, Work
environment, Responsibilities and effort. These are the major compensable factors.G7 – Tech
solutions have considered 3 major criteria’s for keeping it simple. Competency is what are the
skills required in performing the job and also how they would execute it. Responsibility of
employees to make customer happy and satisfied with the services and also be courteous always
and Emotional intelligence of the employee should be high. He / She should be an emotional
labour. Who always thinks ‘Customer is Always Correct ‘.


COMPETENCY, RESPONSIBILITY/ACCOUNTABILITY AND PHYSICAL EFFORT
Point Factor Template (For current roles)

Competency (40 % weight age)
Depth Soft Proble creati
of skills m Use of ve Weight
Educati experie requir solvin discretion/judge thinki Tot ed
on nce ed g ment ng al Score
Trainee 2 1 1 1 1 1 7 2.8
Database
Administr
ator 1 3 2 3 3 2 14 5.6
Team
Lead 2 4 4 3 2 2 17 6.8
Business
Analyst 2 3 3 3 3 3 17 6.8
Sr.
Manager -
BD 3 3 4 3 3 3 19 7.6
BU Head 4 5 4 4 4 3 24 9.6
Network
Engg. -
Voice 2 2 2 2 2 1 11 4.4
Asst. Mgr 3 3 4 3 3 2 18 7.2
System
rnal of Asian Research Consortium 208

Admin 2 2 2 2 2 1 11 4.4
Help Desk
Exec. 1 1 2 2 2 1 9 3.6
Manager -
ICS 3 3 4 3 3 3 19 7.6
Executive
- ICS 3 2 2 2 2 1 12 4.8
Assst.
Mgr -
Admin 1 3 3 3 3 2 15 6

Responsibility/Accountability (50% weight age)

natur extent of
Breadth compl accounta
e of accounta
of exity no of staff Accounta bility Weig
bility for
responsi of staff to to physical bility for for To hted
tor cture performa
nce
1: none
2: no
one
directly
reportin
g, but
mentori
ng resp.
of team
mates 1:
3. team L1
of 1- 5 2:
direct L2 1 being
reports 3: no
1: Own 1 4. team L3 accounta
job, 2: being of 1 - 4: 1 being bility
team the 15 L4 no and 5
member, lowest direct 5: accounta being
3: team and 5 reports/ BU 1 being bility and most
under, being indirect Hea least 5 being accounta
4: client, the reports ds accounta most ble for
5: most 5. Apex and ble and 5 accounta financial

Definitio organiza compl manage abov being ble for performa

n tion ex ment e most customer nce
Trainee 1 1 1 2 2 1 8 4.8
DB
Adminis
trator 2 2 2 1 4 3 1 15 9
Team
Lead 4 3 3 2 3 4 3 22 13.2
Business
Analyst 2 3 2 1 2 4 3 17 10.2
Sr.
Manager
- BD 2 4 4 3 2 4 4 23 13.8
BU

Mgr
Mgr
Help
Asst.
Asst.
Desk
Exec.
Voice
Admin
Admin
e - ICS
System
Network
Executiv
-
Engg. -
3
2
Manager 4
4
2
4
2
2
2
3
1
2
3
2
2
2
3
1
1
3
1
3
1
2
2
2
1
1
1
4
4
4
3
3
4
3
3
4
3
4
1
3
1
1
2
1
2
12
20
11
13
22
13
21
10
11
5.5
6.5
6.5
Physical Effort(10% weight age)
Weighted
Physical discomfort Risk to person Total Score
1 with least amount of
physical activity
involved, 5 with high
amount of physical 1 being least risk and 5
Definition discomfort being very high risk
Database
Administrator 2 1 3 0.3
Network Engg. -
Voice 2 1 3 0.3
Asst. Mgr 1 1 2 0.2
System Admin 2 1 3 0.3
Business Analyst 2 1 3 0.3
Help Desk Exec. 1 1 2 0.2
BU Head 1 1 2 0.2
Manager - ICS 1 1 2 0.2
Executive - ICS 1 1 2 0.2
Asst. Mgr - Admin 2 1 3 0.3

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All Factors Total Score
Trainee 7.6
Database Administrator 14.6
Team Lead 20
Business Analyst 17
Sr. Manager - BD 19
BU Head 24
Network Engg. - Voice 11.2
Asst. Mgr 11.2
System Admin 11.2
Help Desk Exec. 9.3
Manager - ICS 17.8
Executive - ICS 11
Assst. Mgr - Admin 15.8
COMPETENCY FRAMEWORK

G7 Tech Solutions
Competency Framework
Competenc Competency / TeleSale Custome Tech Team Asst BD Manage
y Cluster Designation s r Service Suppor Lead - . Exec r - BD
Executiv Executiv t engg Proces Mgr .
e - Getit e - TLC s
Personal Quality 3 3 3 4 4 3 3
Effectivenes Orientation
s
Communicatio 3 2 2 4 4 3 4
n Excellence
Results 3 3 3 3 3 3 3
Orientation
Planning and 3 3 3 3 3 3 3
Organizing

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Initiative 2 2 2 3 3 2 3
Customer Customer 3 3 3 4 4 3 3
Centric Service
Orientation
People Developing 1 1 1 4 4 1 2
Centric Others
Teamwork and 2 2 2 4 4 2 3
Co-operation
Organizatio Organizational 2 2 2 3 4 2 3
n Centric Commitment
ROBERT KATZ’S THREE-SKILL APPROACH
In this model Katz recognizes three different abilities:
TECHNICAL SKILLS
A technical skill is to have knowledge and be competent and proficient in a specific work
or activity. For example, to use excel and know how to implement macros is an advanced
technical skill. To drive a 300 Ton truck is also an advanced technical skill. Just like these there
are thousands of examples of technical skills in every organization.
HUMAN SKILLS

A human skill is one that enables you to develop the ability to work with people. These
abilities are the ones that we recognize as the ones that helps us to get along with people, to
communicate and work with your team, crew or associates. These are the fundamental abilities in
every human activity, in order to get the most of the groups you work with.
CONCEPTUAL SKILLS
A conceptual skill is one that enables us to understand and better decide the actions and
measures that have to be taken in a particular field of work.
Based on his observations Katz stated that the level of importance of each set of skills
(technical, human and conceptual) was directly correlated with the level that the person has in
the organization.

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We can see the three levels below as shown in the figure below:

L5 : BU HEAD ,
Business Analyst
L4: Sr Manager , Manager , Asst

Manager
L3: Team Lead.Sr Tech

support, Asst Mgr admin
L2: Tech Support Engg, Help Desk Exec, System Admin

L1: Trainee, Database Administrator

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G7 INFOTECH
VISION: To be a global leader in innovating and delivering business solutions to create a

Competitive advantage for our customers through strategic use of technology while providing
professional satisfaction to our employees
VALUE: To aid our mission we adopt the values of being a People Centred organization with a
promise to conduct business with Integrity, Commitment to Excellence and above all base it on
Respect to our employees, partner and customer
BRIEF HISTORY
G7 group companies are a fast emerging global group of companies providing innovative
technology solutions and value-added services to enhance our clients’ competitive advantage.
It is a group basically engaged in the multifarious business spheres with revenue over USD 200
Million over 200+ consultants globally. Over 50% consistent year – on - year revenue growth
operational presence in India and North America.
CULTURE
People are the most important part of our organization. Every G7 employee is very valuable to
us. We do not have a HRD (Human Resource Department) since we do not consider our
employees to be resources. Extending the philosophy of ‘Customer is King’ we believe each of
our employees is no less than that. Thus, we have established ICS (Internal Customer
Satisfaction) to serve the needs of our employees.

ICS is constantly focused on keeping the G7 employees bonded together and adds flavour to the
environment in our professional house.
Another key factor of our organizational culture is Leadership Development. We strongly

believe in creating leaders at each level of the organization. Constant engagement of our team
members in their individual development plans that provide for enhancing leadership skills is
embedded in G7 culture.
It is the duty of every employee to put in his/her efforts to achieve higher productivity standards:
1. To make optimum utilization of resources at Company’s disposal and to ensure

company’s survival & growth.
2. To offset rising costs to improve Company’s competitiveness and earning capacity.
3. That the concerned employees would also carryout work incidental to their jobs
wherever necessary and possible.

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4. Every employee to carryout jobs assigned himself/herself, with additional assistances
only where it is absolutely required.
5. To wholeheartedly support the efforts & endeavours of the company for improvement
of production/productivity
CAREER AT G7
All the team members are closely bound and are very particular about whom they get into
the team. The employee must be F.A.S.T. – Focused, Agile, Self-motivated, Team-player if he
has to be selected for the team. A thirst for success is a constant at G7. Strongly believe that
creativity, vitality and quality is what makes G7 great performers.
G7 ensure that each of FAST members is moving ahead focused on S.P.E.E.D. – Strive to
Perform for Effective & Efficient Delivery. This SPEED helps to bring delight to customers –
prefer to call them extended team since G7 share each other’s professional pains and pleasures.
G7 follows continuous Learning and constant Reward programs which are specifically designed
to ensure that the team is focused.
G7 mainly focuses on Internal Marketing and they have considered customer also as the
participant of the company. It is mainly Team oriented and also people oriented. The employees
work collectively than individually and the teams are mutually dependent on each other.
There is huge involvement of knowledge and also sharing of knowledge among the team
members and team performance is high. The complexity level is high and there is high scope for
the innovation and also performance.

JOB EVALUATION AT INFOTECH
We can see variety of jobs roles from Database Administrator to Manager ICS some the
job roles are company specific hence Point factor analysis is be the best method for the company.
Based on Measurable like Team oriented, Result oriented, Initiative etc as mentioned in the
Table 4 in the Appendix evaluation has done on 3 main criteria’s Competency , Responsibility
and also Physical effort and the weight age associated to it are 40% ,50% and 10% respectively .
Physical comport refers here to physical stress and employee undergoes during work. Ex: Severe
back pain or discomfort in sitting for continuously, Stress in eyes, etc.
As we know there are 3 Levels or functions which are carries out in the organization
Strategic, Tactical/Technical and Operational level and the skills each functional unit needs is
different and this also is one of the factor in job evaluation.

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THE BELOW FIGURE SHOWS THE STRUCTURE OF G7 INFOTECH
L5 : BU Head
L4: Senior Manager , Mgr Business Devp

L3: Team Lead, Sr Web Designe, Analyst , Sr S/w
Engg, DBA, Sr Test Engg
L2: System Engg, Web Designer, S/w Engg,DBA, Test Engg

L1: Trainee , Jr S/w Engg
Based on the criteria s mentioned above the following Point factor analysis is conducted.
Point Factor Evaluation (For current roles)

Competency (40 % weight age)
Depth Soft Proble creati

of skills m Use of ve Weight

Educati experie requir solvin discretion/judge thinki Tot ed
on nce ed g ment ng al Score
Trainee 2 1 1 1 1 1 7 2.8
Jr.
Software
Engg 2 1 2 1 2 1 9 3.6
Software
Engg. 2 2 2 2 2 1 11 4.4
Web
Designer 1 1 2 2 2 3 11 4.4
Sr. Web
Designer 1 2 2 2 2 3 12 4.8
Database
1 3 2 3 3 2 14 5.6
Administr

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ator
Test
engineer 2 1 2 1 2 1 9 3.6
Senior
Test
Engineer 2 2 2 2 2 1 11 4.4
Team
Lead 2 4 4 3 2 2 17 6.8
Business
Analyst 2 3 3 3 3 3 17 6.8
Sr.
Manager -
BD 3 3 4 3 3 3 19 7.6
Program
Manager 3 5 4 4 4 3 23 9.2
BU Head 4 5 4 4 4 3 24 9.6
Network
Engg. 2 2 2 2 2 1 11 4.4
Asst. Mgr
- IT 3 3 4 3 3 2 18 7.2
System
Admin 2 2 2 2 2 1 11 4.4

System
Engg. 2 2 2 2 2 1 11 4.4
Help Desk
Exec. 1 1 2 2 2 1 9 3.6
Manager -
ICS 3 3 4 3 3 3 19 7.6
Executive
- ICS 3 2 2 2 2 1 12 4.8
Asst. Mgr
- Admin 1 3 3 3 3 2 15 6

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Responsibility/Accountability (50% weight age)
natu extent of
re of accounta accounta
Breadth compl staff bility for Account bility for
of exity no of to physical ability financial Weig
responsi of staff to mon infrastru for perform To hted
bility work monitor itor cture customer ance tal Score
1: none
2: no
one
directly
reportin
g, but
mentori
ng resp.
of team
mates 1:
3. team L1
of 1- 5 2:
1: Own direct L2 1 being
job, 2: reports 3: no
team 1 4. team L3 1 being accounta
member being of 1 - 4: no bility
, 3: the 15 L4 accounta and 5
team lowest direct 5: bility being
under, and 5 reports/ BU 1 being and 5 most

4: being indirect Hea least being accounta

client, the reports ds accounta most ble for
5: most 5. Apex and ble and accounta financial
Definiti organiz compl manage abov 5 being ble for perform
on ation ex ment e most customer ance
Trainee 1 1 1 2 2 1 8 4.8
Jr.
Softwar
e Engg 1 2 1 1 2 1 8 4.8
Softwar
e Engg. 2 2 2 1 1 2 1 11 6.6
Web
Designe
r 2 2 1 1 2 1 9 5.4
Sr. Web
Designe
r 2 2 2 1 1 2 1 11 6.6

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Databas
e
Adminis
trator 2 2 2 1 4 3 1 15 9
Test
engineer 1 2 1 1 2 1 8 4.8
Senior
Test
Enginee
r 2 2 2 1 1 2 1 11 6.6
Team
Lead 4 3 3 2 3 4 3 22 13.2
BU
Head 4 4 4 3 3 4 4 26 15.6
Busines
s
Analyst 2 3 2 1 2 4 3 17 10.2
SME 2 4 3 2 2 3 4 20 12
Sr.Mana
ger-
Busines
s
Develop
ment 2 3 3 2 1 4 4 19 11.4
Program
Manage

r 2 4 4 3 2 4 4 23 13.8
Network
Engg. 2 2 1 4 3 1 13 6.5
Asst.
Mgr - IT 4 3 3 2 4 4 2 22 11
System
Admin 2 2 1 4 3 1 13 6.5
System
Engg. 2 2 1 4 3 1 13 6.5
Help
Desk
Exec. 4 1 1 1 3 1 11 5.5
Manage
r - ICS 4 3 3 2 1 4 3 20 10
Executi
ve - ICS 2 2 2 1 1 3 1 12 6
Asst.
Mgr - 3 2 3 2 3 4 2 19 9.5

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Admin
Physical Effort(10% weight age)

Risk to Weighted
Physical discomfort person Total score
1 with least amount of
physical activity 1 being least
involved, 5 with high risk and 5
amount of physical being very
Definition discomfort high risk
Network Engg. 2 1 3 0.3
Asst. Mgr - IT 1 1 2 0.2
System Admin 2 1 3 0.3
System Engg. 2 1 3 0.3
Help Desk Exec. 1 1 2 0.2
BU Head 1 1 2 0.2
Manager - ICS 1 1 2 0.2
Executive - ICS 1 1 2 0.2
Asst. Mgr - Admin 2 1 3 0.3


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All Factors Total Score
Trainee 7.6
Jr. Software Engg 8.4
Software Engg 11
Web Designer 9.8
Sr. Web Designer 11.4
Database Administrator 14.6
Test engineer 8.4
Senior Test Engineer 11
Team Lead 20
Business Analyst 17
Sr. Manager - BD 19
Program Manager 23
BU Head 24
Network Engg 11.2
Asst. Mgr - IT 11.2
System Admin 11.2
System Engg. 11.2

Help Desk Exec. 9.3

Manager - ICS 17.8
Executive - ICS 11
Assst. Mgr - Admin 15.8
These are the final scores based on the final scores the salary is fixed for the each
individual and further any changes can be updated with the help of Job evaluator.
The company will be having standard Manual which consists all the Job roles and required
criteria’s and easily issues of non – equal pay can be removed from the minds of the employees .
This method reduces Bias or favouritism.

G7 Infotech
Competency Framework
Compete Competenc Busin Engg. - Ex Manager Manager Proj Seni Sr. Mgr -
ncy y / ess Data ec - - ect or Program
Cluster Designatio Analy Modell - Marketin Program Lead Exe Manage
n st ing BD g Manage c - ment
Manage ment BD
ment
Personal Initiative 3 2 2 2 2 3 2 3
Effective
Communic
ness
ation 3 2 2 3 3 3 2 3
Excellence
Results
3 2 2 3 3 3 2 3
Orientation
Planning
and 3 2 2 3 3 3 2 3
Organizing
Customer Customer
Centric Service 3 2 3 3 3 3 3 4
Orientation
People Developing
3 1 1 3 3 3 2 3
Centric Others

Teamwork
and Co- 3 1 1 3 3 3 2 3
operation
Organiza Organizati
tion onal
3 2 2 2 2 3 2 3
Centric Commitme
nt
Business Business
Centric and
2 1 2 3 3 2 2 3
Financial
Acumen
From the above 2 companies we can see that there are 3 levels of skills i.e. Technical,
Tactical and operational. The skills of technical level the top management is common for the
company’s i.e. they are focused towards internal and external environment and have high
conceptual skills and are High risk takers.
The middle level though is somewhat common having managerial skills but they are
differing here as the skills are different one has to make employees work for individual goals and
the other focuses on team work. They also form the bridge between Top – Management and the
Bottom level.
The third level which comprises of operational level where the actual operations happens
the skills for the 2 companies differ and hence rating also are differed and hence Point factor as
said earlier it is the Tailor – made process and differs from companies to companies.
The comparison table based on Measurable are shown in Appendix.
DATA FINDINGS
Job evaluation is alive and well. Leading organizations use job evaluation as a source of
competitive advantage by improving the organization’s ability to manage its investment in
human resources with greater credibility, discipline, and fairness.
Job evaluation is not only about maintaining internal equity in the compensation
program. It can facilitate organizational clarity, building capability, and establishing commitment
through culture and rewards. It is a critical management tool, extremely useful in ensuring an
organization’s proper integration of strategy, culture, structure, process, people, and reward.

Although it is complex and may require the participation of management, once completed the
point method of job evaluation is easy to use and is not likely to need frequent updating. External
point evaluations for common jobs are widely available.
Point Factor Evaluation is
¾ Highly stable over time

¾ Perceived as valid by users and employees
¾ Likely to be reliable among committee that assesses the jobs
¾ Provides good data to prepare a response to an appeal
Limitation lies in it needs time, effort and strong dedicated team to build the Manual.
The point method allows us to calculate how valuable the tasks that an employee performs
are to the business. This is useful for a small business because it helps to determine the
employee who performs the job. It is also useful when a standard job includes features that make
more compensation necessary, such as a higher than usual amount of travel.
The benefit of each factor to the business determines the weight of each factor. It is a tailor –
made process i.e. it varies across organisations.
The point method considers the personal factors of the employee that are necessary to
perform the job.
There are other methods also which are expansion of point factor analysis , Hay Evaluation
system is one of them it is a complex system and more concentrates on managerial level job
which would not be possible for the other low level jobs. Though point factor method is simple
and efficient it needs strong commitment from organisation and proper job Evaluators who have
knowledge about market and can understand company’s requirement.
It brings in proper pay structure .Where employees have clear information about what are
they payed for. It reduces bias. Both internal equity and external equity is achieved through this
method.
An organization can develop its own in-house evaluation system; however, if a quantitative
approach is to be used, the task of developing a program can be formidable, unless there is a
program that is available for adoption. If improper assumptions are made when evaluation values
are determined, the results can prove to be unusable. Certainly, an in-house program can be fine
tuned to the organization, but because results have to be validated, developing a custom program
can be time consuming and costly.

To avoid these difficulties, many an organization either recruits trained compensation

specialists as part of its human relations department or retains a compensation consultant to set
up a program and train its staff to maintain the system after installation. In the short as well as
long run, retaining an experienced consultant is usually the most cost effective method if the
consultant will train the organization's staff and then turn the system over to them.
CONCLUSION
Many organizations have turned to market pricing techniques as a relatively low cost way
of valuing jobs. Typically, such organizations will benchmark 25% -50% of their jobs in the
market and then set the pay of other jobs relative to these benchmarks.
They may not call it job evaluation but that's what they are doing; when we say if job X is
worth 80,000 and job Y is worth 60,000, then job Z, which is generally between these two, must
be worth 70,000-this is job evaluation using a whole job comparison method. The problem with
this approach is that you determine a market price and nothing else. The only analysis done is the
job to answer a single question-what is a fair rate of pay for this job relative to the market?
Recent research conducted by Hay Group indicates a clear difference in how leading
organizations view job evaluation. While many still use job evaluation in a narrow (pay only)
context, others take a much broader view. The narrow view, called as emerging approach ‘work
measurement.’ It is organizations who take a work measurement approach that report the highest
levels of satisfaction with the process, the highest credibility of outcomes and the highest levels
of senior management engagement in the process. The future for work measurement is as the
platform that enables and integrates multiple human capital processes and empowers the HR
function to perform.
The three primary areas where work measurement adds value:
• Aligning jobs to structures to achieve organization effectiveness;
• Fitting people to jobs to improve talent management
• Valuing work against internal and external benchmarks.
There are thousands of different job evaluation systems now in use. Each entirely or mainly
uses one of about a dozen primary technical approaches, such as the factor comparison, point-
factor, and job component, definition, ranking and slotting methods.
It depends upon the organisation to select the best method which best suits their strategy.
BIBLIOGRAPHY
¾ King, K. & McGrath S. (2002) Globalisation, Enterprise and Knowledge: Educational


Training and Development, International Review of Education, Vol. 50(1), 74-76(3)
¾ Longenecker, J. G., Petty, C. W., Moore, J. W. and Palich, L. E. (2006). Small Business
Management, An entrepreneurial emphasis. London: Thomson South Western.
¾ Mead, D. C. (1998). Micro and Small Businesses tackle poverty and growth (but in
different proportions). Paper presented at the conference on Enterprises in Africa:
between poverty and growth. Centre for African Studies, University of Edinburgh,
¾ National Baseline Survey. (1999). National Micro and Small Enterprise Baseline Survey.
Nairobi: ICEG and K-REP.
¾ National Baseline Survey. (1993, 1995). National Micro and Small Enterprise Baseline
Survey. Nairobi: GEMINI Studies.
¾ Ghorpade, Jai. A Handbook for the Human Resource Director. (Englewood Cliffs, NJ):
Prentice Hall, 1988.
¾ Hackett, Thomas J. and Valerie C. Williams. "Documenting Job Content, An Approach
to Job and Work Analysis."American Compensation Association Monograph, 1993.
¾ Henderson, Richard. Compensation Management...Rewarding Performance. (Englewood

Cliffs, NJ). Prentice Hall, 1989.
¾ Lister, Brenda J. and Andree Mercier. "Evaluating Job Content, An Approach to

Establishing a Job-Worth Hierarchy." American Compensation Association Monograph,
1993.
¾ Michael, Hartmann and O'Farrell (Editors). Pay Equity, Empirical Inquiries.

(Washington, DC): National Academy Press, 1989.
¾ Pritchard, Kenneth. "Introduction to Work (Job) Analysis." SHRM White Paper, August
1997.
¾ Pritchard, Kenneth. "Job Descriptions--An Overview." SHRM White Paper, April 1995.
¾ Job Evaluation: A Guide to Achieving Equal Pay By Michael Armstrong, Ann Cummins,
Sue Hastings, Willie Wood
APPENDIX
Comparative Table of Organisation culture of G7 Infotech and G7 Tech Solutions

BPO IT

External Marketing Internal Marketing

Control Oriented Team Oriented
Individual centric Customer and Team centric
Low Complexity High Complexity
High Formalisation Low Formalisation

High Centralisation Low Centralisation
Skill Oriented(Communication) Knowledge Oriented
Organisation Structure Organisation Structure

L5 : BU Head ,
Business Analyst L5 : BU Head
L4: Sr Manager
, Manager , Asst
Manager L4: Sr Manager , Mgr
L3: Team Lead.Sr Tech Business Devp
support, Asst Mgr L3: Team Lead, Sr Web
admin Designe, Analyst , Sr S/w
Engg, DBA, Sr Test
Engg
L2: Tech Support Engg, Help Desk

Exec, System Admin L2: System Engg, Web Designer, S/w
L1: Trainee, Database Administrator Engg,DBA, Test Engg
L1: Trainee , Jr S/w Engg
Competency - Definitions
Factor Level 1 Level 2 Level 3 Level 4 Level 5
Compone
nt

Education Graduation Professional Post Graduation Post Premier

level - (relevant to job) Graduation / certification
Graduation Graduation over and
(Btech, from above post-
BCA, etc) premier graduation
institutes (relevant to
(IIT, IIM, job)
IISc, etc)
Depth of 0 to 1 years 1 - 4 years 4 - 9 years 9 - 13 years 13+ years
relevant
experience
Soft skills Communicatio Interperson Communication and Commn. and Soft skills to
required n skills to al skills to interpersonal skills interpersonal influence and
excel in one's influence to influence the skills to lead inspire at the
own job and immediate client and manage organization
able to
manage all
stake holders
Problem 1. Able to 1. Ability to 1. Is able to identify 1. Can 1. Can

Solving disaggregate analyze the and communicate identify and organize,
problems at possible solutions to solve sequence and
the basic level, causes and stakeholders problems analyze
and establish all 2. Source outside one's extremely
understand the the information/resourc domain complex and
basic context contributory es to solve problems 2. High interdepende
factors 3. Identify alternate degree of nt problems;
2. Able to solutions and analytical 2. Can solve
offer simple prioritize solutions skills problems
solutions demonstrate which are
for logical d business
problems 3. critical and of
Communicat long term
e and enlist impact;
consensus 3. Can
for solutions communicate
, enlist
support and
drive change
across

organization
to resolve
problems
Competency - Definitions
Factor Component Level 1 Level 2 Level 3 Level 4 Level 5
Use of 1. Use of 1. Use of 1. Able to take 1. Use of 1. Should be

discretion/judgmen discretion judgment in decisions judgment to able to make
t and understandin regarding take judgments
judgment g the short- Finance and decisions based on
limited to term People within long - minimal
tasks implications the purview of impact information
related to of decisions own job given decisions 2. Use of
one's own 2. all required regarding discretion in
job, and Understand information own team understandin
where how own job 2. To be in g the long -
relevant is tied to the a position term
informatio others in the to implications
n is same understand of job -
provided department/ direct related
team correlations decisions
of own
decisions
and impact
on the
organizatio
n

Creative thinking 1. thinks 1. Initiates 1. Champion 1. 1. Initiate

creatively activities and creative Integrates strategic
to bring in projects at thinking at creative planning and
changes peer level; team level; thinking activities that
and new thinks and complete new into the can
initiatives devices projects from natural contribute to
within the creative inception to working positive long
boundaries approaches to implementatio style of the - term growth

of own job problem n team; of the
and tasks solving encourages organization
and rewards
the team for
thinking out
of the box
AJRBEM

COMPARATIVE TABLE OF JOB SKILLS OF G7 INFOTECH AND G7 TECH
SOLUTIONS
G7 G7
MEASURABLES BPO IT
Level 1 Graduation(Bsc, BA,PUC) Graduation(Btech, B.E)
Professional level - Professional level -
Level 2 Graduation (BSc, BCA, etc) Graduation (Btech, B.E
etc)
Post Graduation (relevant to Post Graduation (relevant
Level 3
job) to job, Certifications)
Post Graduation / Post Graduation /
Education
Graduation from premier Graduation from premier
Level 4
institutes (IIT, IIM, IISc, institutes (IIT, IIM, IISc,
etc) etc)
Premier certification over Premier certification over
and above post- graduation and above post-
Level 5
(relevant to job) graduation (relevant to
job)
Level 1 0 to 1 years 0 to 1 years
Depth of Relevant Level 2 1 - 4 years 1 - 4 years

Experience Level 3 4 - 9 years 4 - 9 years
Level 4 9 - 13 years 9 - 13 years
Level 5 13+ years 13+ years

Communication skills to Communication skills to

Level 1 excel in one's own job and excel in one's own job and
tasks tasks
Interpersonal skills to Interpersonal skills to
Level 2
influence customers influence immediate team
Communication and Communication and
interpersonal skills to interpersonal skills to
Level 3
influence the client influence the client and

Soft Skills Required team
Communication. and Communication. and
Level 4 interpersonal skills to lead interpersonal skills to lead
and manage a team and manage a team
Soft skills to influence and Soft skills to influence
inspire at the organization and inspire at the
Level 5 level - to be able to manage organization level - to be
all stake holders able to manage all stake
holders

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MEASURABLES BPO IT
1. Able to disaggregate 1. Able to disaggregate

problems at the basic level, problems at the basic
Level 1
and understand the basic level, and understand the
context basic context
1. Ability to analyse the 1. Ability to analyse and
possible causes and offer simple solutions for
Level 2
establish all the logical problems
contributory factors
1. Is able to identify and 1. Is able to identify and
communicate solutions to communicate solutions to
stakeholders team members
2. Source 2. Source
Level 3 information/resources to information/resources to
solve problems solve problems
3. Identify alternate 3. Identify alternate
solutions and prioritize solutions and prioritize
solutions solutions
1. Can identify and solve 1. Can identify and solve
problems outside one's problems outside one's
Problem Solving
domain domain
2. High degree of 2. High degree of

Level 4 communication skills analytical skills

demonstrated demonstrated
3. Communicate and enlist 3. Communicate and
consensus for solutions enlist consensus for
solutions
1. Can organize, sequence 1. Can organize, sequence
and analyze extremely and analyze extremely
complex and interdependent complex and

problems; interdependent problems;
2. Can solve problems 2. Can solve problems
which are business critical which are business critical
Level 5
and of long term impact; and of long term impact;
3. Can communicate, enlist 3. Can communicate,
support and drive change enlist support and drive
across organization to change across
resolve problems organization to resolve
problems

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1. Use of discretion and 1. Use of discretion and
judgement limited to tasks judgement limited to tasks
Level 1 related to one's own job, related to one's own job,
and where relevant and where relevant
information is provided information is provided
1. Use of judgement in 1. Understand how own
understanding the short- job is tied to the others in
Level 2
term implications of the same department/
decisions team
1. Able to take decisions 1. Able to take decisions
regarding Finance and regarding Finance and
Use of
Level 3 People within the purview People within the purview
Discretion/Judgement
of own job given all of own job given all
required information required information
1. Use of judgement to take 1. Use of judgement to
decisions long - impact take decisions long -
decisions regarding own impact decisions
team regarding own team
Level 4 2. To be in a position to 2. To be in a position to
understand direct understand direct
correlations of own correlations of own
decisions and impact on the decisions and impact on
organization the organization
1. Should be able to make 1. Should be able to make
judgements based on judgements based on
minimal information minimal information

Level 5 2. Use of discretion in 2. Use of discretion in

understanding the long - understanding the long -
term implications of job - term implications of job -
related decisions related decisions
1. thinks creatively to bring

1. thinks creatively to
in changes and new bring in changes and new
Level 1 initiatives within the
initiatives within the
boundaries of own job and boundaries of own job and

tasks within team
1. thinks and devices 1. Initiates activities and
Creative Thinking creative approaches to projects at peer level;
Level 2 problem solving thinks and devices
creative approaches to
problem solving
1. Champion creative 1. Champion creative
Level 3 thinking; complete new thinking; complete new
projects from inception to projects from inception to

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implementation implementation
1. rewards the team for 1. Integrates creative

thinking out of the box thinking into the natural
working style of the team;
Level 4
encourages and rewards
the team for thinking out
of the box
1. Initiate strategic planning 1. Initiate strategic
and activities that can planning and activities
Level 5 contribute to positive long - that can contribute to
term growth of the positive long - term
organization growth of the organization
Works Independently, Works in Team, High

Minimal Supervision, Supervision, Submits
Level 1
Submits assigned work assigned work within
within timelines timelines
1.Takes extra effort to 1.Takes extra effort to
complete work complete work
2.Thinks, learns and 2.Thinks, learns and
implements new and implements new and
efficient methods to efficient methods to
Level 2 complete work complete work
3.Manages constraints and 3.Manages constraints and

problems without assistance problems without

4.Due diligence to escalate assistance
problems beyond 4.Due diligence to
Initiative escalate problems beyond
Takes on extra work and Is able to take on
Level 3 goes above and beyond the seamlessly the work of
assigned jobs peers too.
Shows innovative 1. Initiates and executes
solutioning capability new initiatives/projects.

Level 4 2.researches and
recommends new
/improved methodologies
1. Sets extraordinary 1. Sets extraordinary
benchmarks on new benchmarks on new
initiatives. 2.Can take risks initiatives. 2.Can take
Level 5
and reinvent the rules for risks and reinvent the
the benefit of the rules for the benefit of the
organization organization

AJRBEM

1. Demonstrates clarity in 1. Seek and understand
communication. 2. Is others view points.
Level 1 confident in putting forth 2.Ability to impartially
ideas/opinions/views consider another’s view
point
1. Demsontrates confidence 1. Demsontrates
in communicating with confidence in
customers. 2.Demonstrates communicating with team
good persuasion skills to members. 2. Can share
bring others to one's own knowledge in a formal
Level 2
viewpoint setting. 3.Demonstrates
good persuasion skills to
bring others to one's own
viewpoint and team
members
1. Displays adaptability in 1. Is able to understand
communication to and respond to signs and
environment and situation. symbols.2. Can design a
2.Can design a communication
communication framework framework with
Level 3
with customer etc.3.Ensures team/customer
Communication
the audience is receptive etc.3.demonstrates,
Excellence
and is understanding the clarifying, summarizing
communication and paraphrasing
capability
1. Lead, conduct and 1. Manages intra team

manage meetings and share communication with

Level 4 appropriate information. openness to send and
2.negotiates win-win receive feedback. 2.
negotiates win-win
1.Can Inspire and motivate 1.Can Inspire and
with communication motivate with
2.Communicate and communication
champion organizational 2.Communicate and
vision, mission , goals champion organizational

3.Demsontrates influencing vision, mission , goals
Level 5 capability in turning around 3.Demsontrates
situation with clients/teams influencing capability in
etc turning around situation
4.Can negotiate and large with clients/teams etc
and complex issues and 4.Can negotiate and large
reach agreements and complex issues and
reach agreements

AJRBEM

1.Completes tasks of self on 1. Completes tasks of self
time.2.Can plan and on time. 2.Can plan and
Level 1
allocate time to complete allocate time to complete
assigned tasks assigned tasks
1. Demonstrates initiative. 1.Demonstrates
2.Efficiently uses time and initiative.2.Efficiently
Level 2
hence can take on new tasks uses time and hence can
take on new tasks
Can demonstrate 1. Demsonstrates ability
consistently higher to multitask. 2. Capable of
Level 3 productivity compared to driving the team towards
peers as a result of effective achieving targets on time
time management
Demonstrates ability use 1. Can multitask across
Planning and
judgement in absence of initiatives beyond the
Organising
data to resolve deadlocks scope of self, team and
Level 4
and complete tasks function. 2.Can mentor
and coach peers on time
management skills
1.Move beyond concrete 1.Move beyond concrete
analysis of factual analysis of factual
information to develop information to develop
abstract, conceptual abstract, conceptual
understanding of the understanding of the
Level 5
meaning of an array of meaning of an array of
information.2.Can information.2.Can

anticipate and plan for anticipate and plan for

exigencies at an exigencies at an
organizational level organizational level
Follows through on client

inquiries, requests, Keeps clients up-to-date
complaints. about progress of projects
Level 1
Keeps clients up-to-date (but does not probe
about progress of projects . client's underlying issues

Customer Service
or problems.
Orientation
Corrects customer service Self oriented to solve
problems promptly and un problems and working in
Level 2 defensively by taking team taking
personal responsibility and responsibilities
ownership.

AJRBEM

Seeks information about the Seeks information about
real, underlying needs of the real, underlying needs
the client. of the client, beyond those
Level 3 expressed initially, and
matches these to available
(or customized) products
or services.
1. Builds an independent 1. Acts on this opinion
opinion on client needs, (e.g. recommends
problems / opportunities, appropriate approaches
and possibilities for that are new and different
Level 4 implementation. from those requested by
2. Becomes intimately the client).
involved in client's decision 2. Becomes intimately
- making process. involved in client's
decision - making process.
1. Takes client's side versus 1. Takes client's side
own organization with long versus own organization
- term benefit to own with long - term benefit to
organization.2. Pushes own own organization. 2.
management to resolve Pushes own management
Level 5 customer - related to resolve customer -
problems. Takes client's related problems. 3. Takes
side in well-founded client's side in well-
complaints regarding own founded complaints
company's treatment of regarding own company's

client. treatment of client.
Is able to work with people Demonstrates ability to

Level 1
of differing abilities informally teach
Gives Detailed instructions, Tells how to do the task,
Level 2 and /or on-the-job makes specific helpful
demonstrations. suggestions.
Level 3
Developing others
1. Demonstrates ability to 1. Demonstrates ability to
evaluate learning capability. give positive and negative
2.Is able to develop feedback. 2.Can put
Level 4
individualized suggestions together a personal
and improvements to enable development plan for
learning team members

AJRBEM

1. Is able to define career 1. Is able to define career
progression for team progression for team
members. 2. Can define members.2.Can define
design and content and design and content and
anchor training.3.Shows anchor training. 3. Shows
Level 5 mentoring and coaching mentoring and coaching
skills for diverse set of skills for diverse set of
employees. 4.Can define a employees. 4.Can define a
reward mechanism to reward mechanism to
enable training and learning enable training and
desire learning desire
Demonstrates co-operation Demonstrates co-

operation and Is able to
Level 1 respond to team
requirements
appropriately
Is able to work with all the Can have collaborative
team members communication and
Level 2
expectation sharing with
team members
1. Open to feedback from 1. Open to learning from
all team members including all. 2.Builds collaborative
Level 3 those lower in hierarchy. decision making within
Team Work and Co-
2.Open to learning from all the team by soliciting
operation
everyone's opinion

1.Is able to provide both 1.is able to encourage

negative and positive other to take leadership
feedback and yet retain roles.2.Publicly gives
Level 4
commitment.2.Encourages credit to others
and empowers others to
take initiative
1. Demonstrates conflict 1.Demonstrates conflict
resolution skills. 2.Can resolution skills.2.Can
Level 5 facilitate discussions negotiate with team

regarding both team success members and draw
and failure consensus
1. Works toward implicit 1.Is able to identify

standards of excellence. 2.Is inefficiencies.2.Works
Level 1
able to identify toward implicit standards
Results Orientation inefficiencies of excellence of team
1. Shows initiative to drive 1. Shows initiative to
Level 2 results of self and others. drive results of self and

AJRBEM

2.Demonstrates others. 2.Demonstrates
commitment to deliver commitment to deliver
results results
1. Can define standards of 1. Can consistently raise
performance independent of the benchmark for self
Level 3 organizational standards. and team. 2.Demsontrates
ability to inspire team to
reach for higher goals
1. Takes initiative above 1. Can consistently deliver
and beyond the scope of results which are above
Level 4 current assignment. 2.Can average. 2.Raises the bar
consistently deliver results and gets the team to meet
which are above average the higher benchmark
1. Can consistently deliver 1. Can consistently deliver
on stretch goals. 2.Can on stretch goals. 2.Can
Level 5 significantly improve significantly improve
performance of self and performance of self and
team team
1. Understands practical 1. Understands practical
business functions in the business functions in the
organizational environment organizational
and incorporates them into environment and
Level 1 decision-making. incorporates them into
2. Learns about the business decision-making.
and external customers. 2. Analyzes and
comprehends work-unit

goals and strategies.

1. Develops work plans that 1. Develops work plans
prioritize work in alignment that prioritize work in
with business goals. alignment with business
Business and Understands and applies goals.
Financial Accumen commercial principles to Understands and applies
Level 2 own area of business. commercial principles to
2. Knows marketing own area of business.
process, from assessing 2. Understands legal and

market needs to marketing commercial frameworks
products and services. required in a business
team.
1. Operates successfully in 1.Develops and
a commercial environment. establishes broad scale,
Applies sound commercial longer-term objectives,
Level 3
principles to all areas of goals, or projects
responsibility.
2. Confident in negotiating

AJRBEM

with all stakeholders.
1. Builds contingencies to 1. Recognises when and

reduce financial risk to the how to apply principles of
organization. commercialisation in
Predicts changes that may planning and decision
impact upon long term making.
Level 4
financial issues through 2. Builds contingencies to
analysis of trends. reduce financial risk to the
Understands market trends organization.
and applies principles to
areas of responsibility.
1. Assesses and links
1. Anticipates possible short-term tasks in the
responses to different context of long-term
initiatives. business strategies or
2. Understands the perspectives.
projected direction of the 2. Reviews own actions
Level 5 business and political against the organization's
environment and how strategic plan;
changes might impact the Understands the projected
organization. direction of the business
and political environment

and how changes might

impact the organization.

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A study on job evaluation – Point factor analysis in SMEs

Article · May 2012

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A STUDY ON JOB EVALUATION – POINT FACTOR ANALYSIS IN

JATIN PANDEY*; LEELASHREE M**

*M.B.A., MSc-IT, B.E.(C.S. & Engg.), M.B.A., S.J.C.E. Mysore

OBJECTIVES OF THE STUDY

1. To know basic approach to Job Evaluation.

3. Role of Job Evaluation in SME’s

4. Job Evaluation - Comparative Case Study on 2 Companies.

JOB EVALUATION: AN INTRODUCTION

Job evaluation is a process of determining the relative worth of a job. It is a process

1. REDUCTION IN INEQUALITIES IN SALARY STRUCTURE - It is found that

2. SPECIALIZATION - Because of division of labor and thereby specialization, a large

4. HARMONIOUS RELATIONSHIP BETWEEN EMPLOYEES AND MANAGER -

5. STANDARDIZATION - The process of determining the salary differentials for different

WHY INTRODUCE JOB EVALUATION?

3) To determine the hierarchy and place of various jobs in an organization.

4) To determine the ranks or grades of various jobs.

ANOMALIES IN THE PAY SYSTEM/NEED FOR A PAY STRUCTURE

CHANGES IN THE JOB CONTENT

TECHNOLOGICAL AND ORGANIZATIONAL CHANGE

It is important to ensure that the grading system is appropriate to the needs of an

• An opportunity to review roles and policies on selection and training

JOB EVALUATION TECHNIQUES

It is important that job descriptions:

• are written to a standard format to enable valid comparisons to be made

TIME AND RESOURCES NEEDED

WHAT KIND OF JOB EVALUATION SCHEME?

This is a commonly used job evaluation technique. It is an analytical method which

A points rating scheme has the following advantages:

• It provides a rationale why jobs are ranked differently

• It will be seen generally as less subjective than non analytical techniques.

‘Tailor made’ or ‘off the peg’

POINT FACTOR ANALYSIS METHOD OF JOB EVALUATION

jobs simultaneously, rather than limiting evaluation to only key jobs.

STEPS IN THE POINT METHOD

STEP 4: DEFINE COMPENSABLE FAC TORS

Total points 1000

STEP 5: DEFINFE FACTOR DEEGREES

STEP 6: DETERMINTE TOTAL P OINTS IN PLAN.

Degree Training Time

2 More than 1 month but less than 3 months

3 At least 3 months but less than 6 months

4 At least 6 months but less than 1 year

STEP 7:ASSIGN POINTS TO DEGREE WITHIN FACTORS OR SUBFACTORS

STEP 8: EVALUATE JOBS

STEP 9: WRITE THE JOBS EVALUATION MANUAL

MULTI FACTOR METHODS

HAY GUIDE CHART PROFILE METHOD

ADVANTAGES AND DISADVANTAGES OF THE POINT METHOD

This is done to simplify administration and also to increase evaluation accuracy.

Transcendix is a Human Resource Solutioning and Consulting organization, with firm

JOB EVALUATION IN SME’S WHY?

The importance of SMEs to strengthen the salary management

Salary management as an important human resource management functions and work

Second, SMEs Compensation Management Problems

Performance-related pay is a scientific and reasonable development of the basic

comprehensive evaluation of position.

THIRD, SMES PAY THE CAUSES OF

1. SPECIAL HISTORICAL CONDITIONS HAVE MORE FAMILY TO DETERMINE

At present, SMEs constituted mainly by private enterprises. Are generally connected by