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CHAPTER 5 JOB-BASED STRUCTURES AND JOB EVALUATION (Defining Job…
CHAPTER 5
JOB-BASED STRUCTURES AND JOB EVALUATION
Job-Based Structures: Job Evaluation
Job evaluation
is the process of systematically determining the relative worth of jobs to create a job structure for the organization. The evaluation is based on combination of job content, skills required, value to the organization
Defining Job Evaluation
Linking Content with the
External Market
:<3: Value of job content is based on what it can command in the external market
:<3: Higher skills levels or working closely with customers commands higher wages
:<3: Skills level and nature of customers contact become useful criteria for establishing differences among jobs
Technical and Process Dimensions
:<3: Researches have their own perspective on job evaluation
some believe job evaluation s could be judged according to technical standards.
some say job content has hidden intrinsic value; others say the only fair measure is found in the external market
some say job evaluation practices are just and fair; others say they are just fair.
Content & Value
:<3: Content refers to what work is performed and how it gets done.
:<3: Perspective differ on whether job evaluation is based on job content or job value
structure based on job content orders jobs by skills, duties, and responsibilities.
structure based on job value orders jobs on the basis of the relative contribution of the skills, duties and resposibilities
"How-To" : Major Decisions
Establish the Purposes
:<3: A structure is align if it
supports organization strategy
supports work flow
is fair to employees, and
motivates behavior toward organization objectives
:<3: Establishing a purpose helps ensure the evaluation is a useful systematic process
Single vs Multiple Plans
:<3: Many employers design different evaluation plans for different types of work.
:<3: Firms may start with a sample of benchmark (key) jobs. Characteristics include:
its content are well known and relatively stable.
the job is common across employers, not unique to one employer.
a reasonable proportion of the work force is employed in this job
Job Evaluation Methods
Classification
:<3: A series of classes covers the range of jobs.
:<3: Job description are compared to class descriptions to determine class level.
:<3: Greater specificity of the class definition improves the reliability of the evaluation
:<3: Jobs within each class are considered equal and will be paid equally.
Ranking
:<3: Orders job description from highest to lowest based on relative value
:<3: Advantages:
simple, fast, and easy to understand and explain to employees; least expensive, initially.
:<3: Disadvantages:
ranking criteria becomes subjective as evaluators must be knowledgeable in every job.
results are difficult to defend and costly solutions may be required.
:<3:
Alternation Ranking
orders to descriptions alternately at each extreme
evaluation agree on which jobs are the most and least valuable, then the next, etc.
:<3:
Paired Comparison
uses a matrix to compare all possible pairs of job.
when all comparisons are completed, the job judged "more valuable" becomes the highest ranked job, and so on.
Point Method
:<3: Common characteristics of point methods:
Compensable factors
Factors degrees numerically scaled
Weight reflect the relative importance of each factor.
Step 1
: Conduct Job Analysis
Step 2
: Determine Compensable Factors
Compensable factors are those characteristics in the work that the organization values, that help it pursue its strategy and achieve its objectives.
Step 3
: Scale the Factors
Most factor scales are 4 to 8 degrees, if equidistant, called interval scalling.
Step 4
: Weight the Factors According to Importance
Step 5
: Select Criterion Pay Structure
Step 6
: Communicate the Plan and Train Users.
Prepare and train manual users. An appeal process may be included.
Step 7
: Apply to Non-benchmark Jobs
Step 8
: Develop Online software Support
Who Should Be Involved
:<3: Managers and employees with a stake in the results.
:<3: A common approach is to use committees, task forces, or teams that include representatives from key operating functions.
:<3: Union representatives help gain acceptance
:<3: Compensation analysts may be called in
The Design Process Matters
:<3: Fairness of the design process helps achieve:
employee and management commitment, trust, and acceptance of results.
:<3: Appeals/review procedures are required.
this ensures procedural fairness
procedures should be judged for their susceptibility to political influence
The Final Result: Structure
:<3: The final results of the job analysis - job description - job evaluation process is a:
structure; a hierarchy of work
:<3: Organizations commonly have multiple structures:
derived from different approaches, and applicable to different functional groups or units
