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(Chapter 4)
Skill (Chapter 6)
Competencies (Chapter 6)
(Chapter 5)
Assess value
Translate into structure
(Chapter 5)
(Chapter 5)
5-2
Job Evaluation
process of systematically determining the relative worth of jobs to create a job structure for the organization a process that helps gain acceptance of pay differences between jobs job evaluation based on job content and internal job value
Some Major Decisions in Job Evaluation Establish purpose of evaluation Decide whether to use single or multiple plans Choose among alternative approaches Obtain involvement of relevant stakeholders Evaluate plans usefulness
5-4 2010 McGraw Hill Ryerson
Major Decisions
Establish purpose
Supports organization strategy Supports work flow Fair to employees Motivates behavior toward organization objectives
Job Classification
Classes or grades are defined to describe a group of jobs
Point Method
Numerical values are assigned to specific job components; sum of values provides quantitative assessment of the jobs worth
5-6 2010 McGraw Hill Ryerson
Classification
Can group a wide range of work together in one system. Compensable factors give basis for comparisons; communicate what is valued.
Point
Compensable Factors
characteristics in the work that the organization values, that help it pursue its strategy and achieve its objectives Useful factors are:
Based on the strategy and values of the organization Based on the work performed Acceptable to the stakeholders affected by the resulting pay structure
5-11 2010 McGraw Hill Ryerson
Categories of Factors
break down the factors into three major categories:
1. Universal Factors 2. Sub-Factors 3. Degrees or Levels
Sub-Factors: Skill
Educational levels Years of experience required Technical knowledge Specialized knowledge Specialized training Interpersonal skills
Sub-Factors: Effort
Diversity of tasks Complexity of tasks Creativity of thinking Analytical problem solving Physical application of skills Degree of assistance available
Sub-Factors: Responsibility
Decision-making authority
Degrees/Levels of Sub-factors
Description of several different degrees or levels of a sub-factor in jobs A different number of points is associated with each degree/level
293-400
Factor Weights
Weighting assigned to each factor to reflect differences in importance attached to each factor by the employer; for example:
Skill Effort Responsibility Working Conditions 40% 30% 20% 10% 100%
5-24 2010 McGraw Hill Ryerson
Weight
20% 20% 10% 10% 15% 15% 5% 5%
1
4 4 2 2 3 3 1 1
2
8 8 4 4 6 6 2 2
3
12 12 6 6 9 9 3 3
4
16 16 8 8 12 12 4 4
5-25
5
20 20 10 10 15 15 5 5
Effort
Physical Mental
Responsibility
For safety For budget
Working Conditions
Hazards Weather
Head / Chief Scientist Senior Associate Scientist Associate Scientist Scientist Technician
Job Evaluation
Competency- Based
Conclusion
differences in the rates paid for different jobs and skills matter: affects ability of managers to achieve business objectives; influences employees perceptions of fair treatment job evaluation has evolved into many different forms and methods; consequently, wide variations exist in its use and how it is perceived no matter how job evaluation is designed, its ultimate use is to help design and manage work-related, business-focused, and agreedupon pay structure
5-28 2010 McGraw Hill Ryerson