Guide to performing a Job Evaluation

Guide to performing a line of products EvaluationWhat ar the main issues faced by the residents in Portugal? Click on the play button to watch the video. Highlight the issues and look for the solutions. Sh be your opinions in the LMS Forum.MMP Create video screen and embed video as shown in link consultation http//www.youtube.com/watch?v=0vKDyPJmQD0 problem military rating is the process of determining the exp fetch upiture of melodys charge to employees.The expenditure of a line of business is determined by the demand for it in relation to its job description, job specification and the expected outcomes from that job. In some cases, it is found that an employee who conciliates a similar position as his colleague may hold a dissimilar role, and have different responsibilities and accountability. In such cases, he/she should receive different acquit.This chapter discusses the importance of job valuation, basic job evaluation rules, the hay guide chart system, and inputs to refer to when pricing jobs.personal credit line Evaluation and Its Importance rail line evaluation is the process of determining the value of ace job in similarity to the other jobs at heart the organisation so a fair remuneration form flock be established. The job evaluation process is the virtually common method used to provide a rationale for a fee organise and to assign a job to a pay grade.Job evaluation can also be defined as a functional technique for trained and experienced employees to judge the size of one job congenator to others. It does not directly determine the pay levels but establishes the basis for an internal rank of jobs.Among other definitions be as followsJob evaluation is implicated with assessing the congress demands of different jobs indoors the organisation. Its usual purpose is to provide a basis for relating differences in rates of pay to different in-job requirements. It is therefore a shaft which can be used to help determine a pay c omplex body part.(Advisory Conciliation and Arbitration supporter (ACAS), London 1984)A job evaluation system consists of compensable components and a weighting scheme based on the importance of each compensable factor to the organisation. Compensable factors are the characteristics of jobs that an organisation values and haves to pay for. These characteristics may include job complexity, conk outing conditions, required education, required experience and responsibility.(Noe et. al. 2003)Job evaluation is a systematic procedure to determine the relative worth or value of jobs. Although there are several different approaches, each one considers the duties, responsibilities and running(a) conditions of the job. The objective of job evaluation is to see which jobs should be stipendiary much than others.(Schwind et. al. 1999)The objectives of a job evaluation process in an organisation are as followsEstablishes the relative value or size of jobs, i.e. internal relatives.Produces the breeding required to design and maintain equitable and defensible grade and pay structures, critical in any organisation.Provides as a basis for grading jobs within a grade structure, thus enabling consistent decisions to be made about job grading.Ensures that the organisation meets ethical and legal equal pay for work of equal value obligtions.More recently the use of job evaluation is the hinge of nearly equal pay cases. Despite its popularity, it is often mis downstairsstood. So, the following facts about job evaluation must be made clearSELF-CHECKWhat is job evaluation and why is it pregnant?What are the four facts about job evaluation?Job Evaluation MethodsThe human resource management is usually responsible for administering the job evaluation programme. However, actual job evaluation is typically do by a delegation. The committee might include the human resource director as the chairperson and the finance, marketing and production heads.Job Evaluation Committee chai r(Human Resource Director)Head of FinanceHead ofMarketingHead of ProductionFigure 8.1 The job evaluation programme is typically performedby a committee within the organisationSmall and medium sized organisations may elect to use outside consultants as they often lack job evaluation experience. When employing a qualified consultant, management should require the consultant to develop an internal job evaluation programme and train company employees to administer it correctly. This can be done by reviewing information obtained through job analysis regarding the duties, responsibilities and working conditions of the organisation. With this knowledge, the relative worth of jobs is determined and the consultant will be able to shape a job evaluation programme suitable to the company by selecting an appropriate job evaluation method.Figure 8.2 The 10 basic steps in conducting an effectivejob evaluationThere are four basic job evaluation methods commonly used by organisations. They are job ranking, job categorization (or job grading), factor comparison and the point system. Job ranking and job enlightenification are categorised as non quantitative methods while factor comparison and the point system are classified as quantitative methods. A job evaluation committee or an outside consultant needs to choose one method and modify the method to suit the organisations particular need.Figure 8.3 Job evaluation methodsJob Ranking MethodIn the ranking method, jobs are compared to each other and arranged in order consort to their worth to the organisation. The worth of a job is usually based on judgements of skill, effort (physical and mental), responsibility (supervisory and fiscal), and working conditions.The steps involved in ranking jobs areRank JobsMake an overall comparison between jobs, by focusing on real factors such as, responsibility, skills, effort, and working conditions. It is possible that elements of some jobs may be overlooked or weighed too heavily.Rank jobs from the highest to the lowest. The highest and lowest are ranked first, followed by the undermentioned highest to the next lowest, until all jobs are ranked.Conduct job analysis and write job descriptions.Pay scales are established based on the rankings, where more(prenominal)(prenominal) important jobs are paid more. However, as the ranking of jobs are subjective and lack precision, the pay levels may be inaccurate.The job ranking method is perhaps the simplest method of job evaluation but it is also known to be the least detailed among the four evaluation methods.WEB-SITEFind out the ten worst jobs in the US of 2010. Go tohttp//www.huffingtonpost.com/2010/01/06/worst-jobs-2010-careercas_n_413511.htmlJob ClassificationJob classification is a form of evaluation that assigns jobs to an existing grade/category structure according to their relative worth to the organisation. First, job grades or categories are established and each is disposed a standard description, as shown in Table 8.1.Table 8.1 A Job Classification schedule for use with Job Grading MethodJob GradeStandard DescriptionIWork is simple and highly continual done under oddment supervision requires minimal training and little responsibility, or initiative.IIWork is simple and repetitive done under close supervision requires some training or skill. Employee is only rarely expected to assume responsibility or exhibit initiative.IIIWork is simple, with little magnetic variation done under general supervision training or skill is required. Employee has minimum responsibility and must take some initiative to perform satisfactorily.IVWork is moderately complex, with some variation done under general supervision requires high level skills. Employee is responsible for equipment and safety, and must exhibit initiative regularly.VWork is complex and varied done under general supervision requires advanced level skills. Employee is responsible for equipment and safety, and must show a high pointed ness of initiative.Next, the standard description that most nearly matches a job description determines the grade of that job.Job classification or job grading is slightly more sophisticated than job ranking, but it too is not very precise.Factor ComparisonIn the factor comparison method, each job is ranked according to a series of factors. This method includes five major steps.Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors (as shown in Figure 8.3).Figure 8.4 The five universal job factorsJob evaluators must then identify factors relevant and common in a patient of range of jobs as shown in Table 8.2. A numerical point value is assigned to each job factor. The weights might be different for different job positions. Some organisations use different factors for managerial, professional, sales and other positions.Table 8.2 Factors relevant and common in a broad range of jobsJob psychicalSkillPhysical provinceWorking ConditionS ystem Analyst14213Data Entry shop clerk41141Programmer23324Operator32432NoteIn the mental requirement, systems analyst ranked highest (1), followed by programmer (2), operator (3) and clerk (4).The evaluation allows the committee to determine the relative importance of each job. In this method, pay will be assigned by comparing the weights of the factors required for each job. This method of job evaluation is more systematic. menses SystemThis method evaluates the critical factors of each job. But instead of using net incomes, as the factor comparison method does, it uses points. Under the point rank system, a number of factors such as skill, effort, responsibility and working conditions are identified as being common to all jobs being evaluated. Each factor is then given a weighting indicating its values relative to the others and for each factor there are varying degrees (as shown in Table 8.3).Table 8.3 Point system matrixNo.Critical FactorsLevels or DegreesMinimumILowIIModerat eIIIHighIV1ResponsibilitySafety of others255075centuryEquipment and materials20406080Assisting trainees5206050Product/ Service Quality204060802SkillExperience4590135180Education / Training2550751003EffortPhysical255075100Mental2570105cl4Working ConditionUnpleasant condition20206080Hazards20406080Total Points100A job description is prepared for each job and a committee then considers each description in turn, comparing it factor by factor, with the degree definitions. Points are al set for each factor and the total point value determines the relative worth of each job.A point system is more precise than the factor comparison method because it can handle critical factors in more detail. This method is also used more than the other methods. Some 95% of the major corporations in the US are thought to use some variation of this method to evaluate jobs. responsibilityAccuracyAnalysis and judgmentcomplexnessContact and diplomacyCreativityDecision-makingDexterity (clever, skilful, neatness) EducationEffects of errorsEffortInitiativeJudgmentKnow-howKnowledge and skillMental effortMental exhaustPhysical demandsPhysical skillsPlanning and coordination line of work-solvingResponsibility for cash/material/confidentialInformation equipment, process, record and reportsSocial skillsSupervision given/receivedTask cessationTraining and experienceWork conditionWork pressureFigure 8.5 A list of factors used most frequently in the point paygrade methodas prepared by the International Labour Organisation (ILO)SELF-CHECKDescribe how each of the four job evaluation methods below determine the worth of a job to an organisation.a) Job rankingb) Job classificationc) Factor comparisond) Point systemHay Guide ChartThe job evaluation process is enormously time consuming, complex and often a frustrating task as it is subjected to political pressures and biases that is natural among committee members who represent different useful areas. It has been proven that the job evaluation process is easier to do if the committee compares factors common to all jobs (compensable factors).For evaluating management jobs, the Hay Guide Chart Profile Method is the most popular method. This method provides a common language, an organised framework and the criteria to ensure that judgements applied can be tested and defended in an objective, consistent and equitable manner. This method is based on assessing three main factors, which areknow howproblem solvingaccountabilityINPUTPROCESSCONTRIBUTIONKNOW-HOWPROBLEM SOLVINGanswerabilityFigure 8.6 The Hay Guide Chart Method(a) Know HowKnowledge, skills and experience needed for acceptable job performance. It consists of three dimensions which areScientific disciplines, specialised techniques, and practical proceduresThe depth and range of specialised knowledge required to perform the job. It requires a deep authoritative knowledge in areas of considerable significance to the organisation disciplines or general knowledge required to deal w ith strategic issues at the most senior level within the organisation.Managerial know-howRequirements needed in the job to plan, supervise, line up and integrate different activities, resources or parts of the organisation.Human relation skillsSkills needed to communicate with and influence individuals and groups within and outside the organisation to achieve the necessary results.(b) Problem SolvingThe span, complexity and level of analytical, evaluative and innovative thought required in the job. The problem solving factor has two components. They are cerebration environsThe environment in which thinking takes place. Identifies and addresses problems that arise. Depends on the absence or presence of policy, procedure, supervision as well as other guidance.Thinking challengeThinking done to assess the complexity of problems encountered, ranging from simple to complex situations. Also involves the extent of original thinking needed to arrive at conclusions.(c) AccountabilityDiscre tion given to the job holder to influence or determine the course of events and his/her answerability for the consequences of his/her decisions and satisfys. Accountability has three dimensions which areFreedom to ActAssesses the degree of freedom of action given to a job by the organisation.MagnitudeGauges how much of the organisation is effected by the job holders accomplishment of the job.Job impact on end resultsConcerned with how directly the job affects end results in that area.SELF-CHECKExplain the three factors that the Hay Guide Chart method considers in evaluating the worth of a job to the organisation.Pricing JobsPricing jobs are divided into two activitiesEstablishing the appropriate pay level for each job.Grouping the different pay levels into a structure that can be managed effectively.It would not be unusual, for instance, for the personnel manager of Motorola to regularly share wage data on key positions. Firms in the community like Hewlett Packard identify job posi tions such as maintenance engineer, electrical engineer, key punch operators or clerk-typists and give comprehensive descriptions of these jobs.During the wage survey, various information can be requested (as shown in Figure 8.7).Figure 8.7 Information that can be requestedwhen conducting a wage survey(a) Pay LevelThe appropriate pay level for any job reflects its relative and absolute worth. A jobs relative internal worth is determined by its ranking through the job evaluation process. The absolute worth of the job is controlled by what the labour market pays for similar jobs.Figure 8.8 Pay levelSource http//www.nursingtimes.net/whats-new-in-nursing/acute-care/pay-levels-confirm-lower-status-of-nurses/5008226.article(b) ScattergramIn order to set the skillful pay level, the job evaluation ranking and the survey wage rates (the going rates in the industry) are combined through the use of a graph called the scattergram.GD Insert image of scattergramFigure 8.9 Scattergram(c) Wage- tu rn out lineThrough the dots that represent key jobs, a wage-trend line is drawn as close to as some(prenominal) points as possible (the line can be drawn freehand). Most importantly, this method can be used to identify jobs whose pay is out of the trend line. When a jobs pay rate is too high, it should be identified as a red circle rate. Undervalued rates (wage rate is too low) carry a green circle and attempts should be made to grant these jobs an average pay increase.Figure 8.10 Wage-trend line(d) Pay structureJobs that are similar, in terms of class grades and points, are grouped together. For instance, pay grade 1 may cover 0-100 points, pay grade 2 from 1-200 points, and so on. The result is a hierarchy of wages. The more important jobs are paid more, and as individuals assume jobs of greater importance, they rise within the wages structure.Figure 8.11 Pay structureSource http//skorcareer.com.my/images/salary-survey-asia.jpgRate ranges are simply pay ranges for each job class. For example, the wage-trend line indicates that $8.00 is the average hourly rate for a particular job class. With a rate range of $1 for each class, a marginal performer is placed at a midpoint or $8.00. When performer appraisals indicate above-average performance, the employee may be given a merit rise of, say 25 cents per hour. Once the employee reaches the top of the wage range, no more wage increase will be forthcoming. Either a promotion or a general across-the-board pay raise needs to occur for this worker to exceed $8.50 an across-the-board increase moves the entire wage trend line upward.As new jobs are created, the wage and salary section of the personnel department performs a job evaluation. For this evaluation, the new job is assigned to an appropriate job class. If rate ranges are used, the new incumbent will start at the bottom of the range and receive raises, where appropriate, to the top of the rate range.SELF-CHECKWhat are the inputs that can be requested when condu cting a wage survey to damage jobs?Case StudyThe Tai Silk Company, Ltd.Source http//www.retireearlylifestyle.com/ThaiSilk.html(a) Thai Silk IndustryThe production of Thai silk involves a number of stages. The earliest fiber production, was carried out by approximately 500,000 individual peasant families primarily in the economically-depressed northern portion of the country. Several cytosine family firms located in the larger provincial towns and in Bangkok undertook intermediate stages dyeing, spinning and weaving. The final stages printing, converting and retailing were dominated by fewer than 100 enterprises located in Bangkok.(b) Finishing and ConvertingThai silk moved directly from weavers into retail channels to be sold as fabric. However, a portion was finished (e.g. printed with a design) and/or converted (e.g. made into a pillow case, garment, window drape, etc.) before reaching retail. There were seven finishing establishments in the country, all located in Bangkok. The largest of these was a 51%-owned joint venture of Thai Silk Company Ltd. (TSC). It operateed 16 hand painting tables compared to only 10 by its next largest competitor. It was the only finisher in the country specialising in silk to own an automatic printing machine.(c) Proposed New Weaving MillOn top of these changes, an important new development is currently under consideration. It involves a proposed 51-owned weaving joint venture, the Thai Silk Handweaving Co. Ltd. (TSHC). The plant was to be located at Pakthongchai in Korat Province about 100 miles northeast of Bangkok. It would initially contain 120 hand looms of the tradiational variety with capacity to supply about 20% of TSCs fabric needs. Currently, there are plans for an increase in the number of looms to 600 over a 6 year period. TSCs share of initial capitalisation would amount to 2.4 million Baht.SELF-CHECKThe silk production involves many processes and stages, from dyeing to printing and retailing. As the Human R esource manager, how would you price the pay for employees working in the different stages of the silk production?SummaryThis chapter introduced you to job evaluation, its methods, the hay guide chart method, and inputs to refer to when pricing jobs. We have learned thatJob evaluation is the process of determining the value of one job in comparison to the other jobs within the organisation so a fair salary system can be established. It is the most common method used to provide a rationale for a pay structure and to assign a job to a pay grade.Job evaluation is usually administered by the human resource manager. However, it is typically performed by either a committee within the organisation or by outside consultants.The four basic job evaluation methods commonly used by organisations areJob rankingJob classification (or job grading)Factor comparisonThe point systemThe hay guide chart method of evaluating jobs assesses three main factorsKnow-howProblem solvingAccountabilityWhen perfo rming a job survey to price jobs, the following information can be requestedPay levelScattergramWage-trend linePay structureGlossaryTermsDefinitionFactor comparisonEach job is ranked according to a series of factors, namely mental requirement, skill, physical requirement, responsibilities and working conditions.Hay guide chart methodA job evaluation method that considers know-how, problem solving and accountability.Job classification/Job gradingA form of evaluation that assigns jobs to an existing grade/category structure according to their relative worth to the organisation.Job evaluationThe process of determining the value of one job in comparison to the other jobs within the organisation so a fair salary system can be established.Job rankingJobs are compared to each other and arranged in order according to their worth to the organisation.Pay levelWhat the labour market pays for similar jobs.Pay structureJobs that are similar, in terms of class grades and points, are grouped toget her.Point system methodEvaluates the critical factors of each job. But instead of using wages, as the factor comparison method does, it uses points.ScattergramA graph that uses plotted points to represent a set of data.Wage-trend lineA line drawn as nearly as possible to as many points representing key jobs in a graph.