Professional Documents
Culture Documents
Chapter Topics
Job-Based Structures: Job Evaluation Defining Job Evaluation: Content, Value, and External Market Links How-to: Major Decisions Ranking Classification Point Method
Who Should be Involved? The Final Result: Structure Balancing Chaos and Control
Job content Skills required Value to the organization Organizational culture External market
Value of job content is based on what it can command in the external market
Defining Job Evaluation: Content, Value, and External Market Links (cont.)
How-To: Major decisions
Defining Job Evaluation: Content, Value, and External Market Links (cont.)
How-To: Major decisions (cont.)
Contents are well-known and relatively stable over time Job not unique to one employee A reasonable number of employees are involved in the job
Ranking
Orders job descriptions from highest to lowest based on a global definition of relative value or contribution to the organizations success
Simple,
Two approaches
explain Initially, the least expensive method Can be misleading Alternation ranking Paired comparison method
Classification
Uses class descriptions that serve as the standard for comparing job descriptions
Point Method
Most commonly used approach to establish pay structures in U.S. Differ from other methods by making explicit the criteria for evaluating jobs
factors Factor degrees numerically scaled Weights reflect relative importance of each factor
compensable factors
Conduct job analysis Determine compensable factors Scale the factors Weight the factors according to importance Communicate the plan, train users; prepare manual Apply to nonbenchmark jobs
Compensable factors characteristics in the work that the organization values, that help it pursue its strategy and achieve its objectives
Risk and complexity Impact of decision Time that must pass before evidence of impact
Documentation is important
Issue
Whether to make each degree equidistant from adjacent degrees (interval scaling)
Use
understandable terminology
Anchor
degree definitions with benchmark-job titles and/or work behaviors it apparent how degree applies to job
Make
pay structure
Statistical approach is termed policy capturing to differentiate it from the committee a priori judgment approach Weights also influence pay structure
Weight
50% 30% 12% 8%
1
100 75 24 25
2
200 150 48 51
3
300 225 72 80
4
400 300 96
5
500
120
Factor
1st 2nd 3rd 4th 5th Degree Degree Degree Degree Degree
14 22 14 10 5 5 5 5 5 10 5 28 44 28 20 10 10 10 10 10 20 10 42 66 42 30 15 15 15 15 15 30 15 56 88 56 70 110 70 50 25 25 25 25 25 50 25
Skill 1. Knowledge 2. Experience 3. Initiative and Ingenuity Effort 4. Physical Demand 5. Mental or Visual Demand Responsibility 6. Equipment or Process 7. Material or Product 8. Safety of Others 9. Work of Others Job Conditions 10. Working Conditions 11. Hazards
40 20
20 20 20 20 40 20
Involves training users on total pay system Includes appeals process for employees
Describes job evaluation method Defines compensable factors Provides information to permit users to distinguish varying degrees of each factor
Communication
Tool for managers and HR specialists once plan is developed and accepted Trained evaluators will evaluate new jobs or reevaluate jobs whose work content has changed
Could involve both designers and/or employees trained in applying the plan
Online job evaluation is widely used in larger organizations Becomes part of a Total Compensation Service Center for managers and HR generalists to use
Organizations with unions find including union representatives helps gain acceptance
Can include representatives from key operating functions, including nonmanagerial employees
Appeals/review procedures
Attending to fairness of design process and approach chosen likely to achieve employee and management commitment, trust, and acceptance of results
Inevitable that some jobs are incorrectly evaluated Requires review procedures for handling such cases and helping to ensure procedural fairness
The final result of the job analysis job description job evaluation process is a structure, a hierarchy of work Managerial, technical, manufacturing, and administrative
Exhibit 5.15: Resulting Internal Structures Job, Skill, and Competency Based
Job evaluation changed the legacy of decentralization and uncoordinated wagesetting practices left from the 1930s and 40s It must afford flexibility to adapt to changing conditions
Avoids bureaucracy and increases freedom to manage Reduces control and guidelines, making enforcement of fairness difficult