Job Evaluation Methods of Job Evaluation Job Analysis The Hay System Degree of Factor

1. Job Evaluation

2. What is job evaluation?

3. Methods of Job Evaluation

5.  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).

6. Determining an Internally
Aligned Job Structure

7. 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.

8.  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

9. Job Evaluation Factors
Effort
Mental Effort
Problem Solving
Concentration
Skill
Education
Experience
Communication

10. Responsibility
Financial Responsibility
Supervision
Freedom to Act
Decision-making
Contacts with others
Working Conditions
Mental Demand
Physical Effort
Visual Demand
Job Evaluation Factors

11. Designing a Point Plan:
Six Steps
1. Determine compensable factors.
2. Scale the factors & Weight the factors
according to importance
3. Give points
4. Calculate the total points
5. Transfer points to salaries

12. 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

13. Generic Compensable Factors
Skill Effort
Responsibility Working
conditions

14. The Hay System
1-Know-How
The 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-Accountability
The impact the job has on the organization (i.e. the end result) and the
extent to which the jobholder acts autonomously in achieving this

15. 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

16. Degree of Factor
Job Factor Weight 1 2 3 4 5
1. Education 50% 100 200 300 400 500
2. Respon -
sibility
30% 75 150 225 300
3. Physical
effort
12% 24 48 72 96 120
4. Working
conditions
8% 25 51 80