Job Evaluation
Advantages The value of the job is expressed in monetary terms. Can be applied to a wide range of jobs. Can be applied to newly created jobs. Disadvantages The pay for each factor is based on judgments that are
subjective. The standard used for determining the pay for each factor
may have built-in biases that would affect certain groups of employees (females or minorities).
Point Method
The point system is a quantitative job evaluation procedure that determines a job's relative value by calculating the total points assigned to it. High visibility organization,
publics and private organizations have successfully used it, either big or small.
Three common characteristics of point methods Compensable factors Factor degrees numerically scaled Weights reflect relative
importance of each factor Differ from other methods by making explicit the criteria
for evaluating jobs -- compensable factors
Job Evaluation Factors
Effort
Mental EffortProblem Solving Concentration
Skill
EducationExperience Communication
Responsibility
Financial Responsibility Supervision Freedom to Act Decision-making Contacts with others
Working Conditions
Mental Demand Physical Effort Visual Demand
Job Evaluation Factors
Designing a Point Plan:Six Steps
1. Determine compensable factors.2. Scale the factors & Weight the factors
according to importance3. Give points 4. Calculate the total points5. Transfer points to salaries
Step 1: Conduct Job Analysis
Point plans begin with job analysis
Content of these jobs is basis for
Defining compensable factors
Scaling compensable factors
Weighting compensable factors
The Hay System
1-Know-HowThe total knowledge and skills developed by job experience, education and training, which are required to perform the job
successfully.2-Problem Solving The complexity of thinking required to perform the job when applying Know How. 3-AccountabilityThe impact the job has on the organization (i.e. the end result)
and the extent to which the jobholder acts autonomously in achieving
this
Step 4: Weight the Factors
Different weights reflect differences in importance attached to each factor
Determination of factor weights
Advisory/JE committee
Statistical analysis
Criterion pay structure