Job Evaluation

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1
Participants expectation
2
Basics of job evaluation
The same way you would compare fruit such as apples
to oranges…
 Each fruit has certain characteristics that allow you to
compare one to the other, for example:
◦ Texture (smooth to rough)
◦ Calories (minimal to high)
◦ Vitamin content (minimal to high)
◦ Nutritional value (minimal to high)
◦ Size (small to big)

3
How the System Works





Calories (10 points)
Texture (10 points)
Juiciness (10 points)
Storability (10 points)
Weight (8 points)
TOTAL POINTS
7
5
8
9
5
34
9
8
10
6
5
38
4
Training Objectives
1.
What is job evaluation ?
2.
Different methods for conducting JE
3.
Why are the jobs being evaluated?
4.
What is the expected outcome of the exercise
5.
Selection of compensable factors
6.
Selection of JE Committee
7.
What is the role of the committee ?
5
Training Objectives Cont.
8. Tools of JE
9. Validation of JA
10.
Conducting JE
11.
Communicating the outcome/ Responding
to FAQ
12.
Managing the appeals
13.
HR implementation plan
6
What is job evaluation?
Job evaluation is a systematic process for defining
the relative worth (value) or size of jobs within
an organization in order to establish internal
relativities and provide the basis for designing an
equitable grade and pay structure, grading jobs in
the structure and managing relativities.
A means of determining the relative value of jobs
within an organization. Focuses on job content
(―what is done‖) and not individual
performance or seniority (―how well it is
done‖).
Pre- job evaluation
8
Preliquisite for JE exercise
Which jobs are to be evaluated?
Who is to evaluate the jobs?
How much time is required?
What should be the criteria for evaluation?
Which method will be employed?
What is the expected outcome of the exercise?
9
Process of Job evaluation
 Selecting
the method of evaluation.
 Classifying
 Installing
jobs.
the programme.
 Reviewing
periodically.
Why conduct job evaluation?
To determine what positions and job responsibilities are
similar for purposes of Pay , Promotions, Lateral moves,
Transfers, Assignments and Assigned work, and other
Internal parity issues.
To help with the development of job descriptions , job
specifications performance standards, competencies, and
the performance appraisal system.
To assist with employee career paths , career planning or
career path and succession planning.
11
Why J.E. Cont.
To assist the employer recruiting process by having
in place job responsibilities that assist in the
development of job posting
The assessment of applicant qualifications, suitable
compensation and salary negotiation, and other
factors related to recruiting employees.
To determine appropriate pay or salary grades and
decide other compensation issues.
Increases retention and decreases turnover, Reflect
positive external image that increases attraction.
12
Features of Job Evaluation
 It
tries to assess jobs, not people.
 The
standards of job evaluation are relative,
not absolute.
 The
basic information on which job
evaluations are made is obtained from job
analysis.
Features of Job Evaluation Cont.
 Job
evaluations are carried out by groups, not
by individuals.
 Some
degree of subjectivity is always present in
job evaluation.
 Job
evaluation does not fix pay scales, but
merely provides a basis for evaluating a rational
wage structure.
Benefits of job evaluation
 It
tries to link pay with the requirements of the
job.
 It
offers a systematic procedure for determining
the relative worth of jobs.
 An
equitable wage structure is a natural
outcome of job evaluation
 An
unbiased job evaluation tends to eliminate
salary inequalities by placing jobs having similar
requirements in the same salary range.
Benefits of job evaluation Cont.
 Employees
as well as unions participate as
members of job evaluation committee.
 Job
evaluation, when conducted properly and
with care, helps in the evaluation of new jobs.
 It
points out possibilities of more appropriate
use of the organization’s labour force by
indicating jobs that need more or less skilled
workers than those who are manning these
jobs currently.
Features of Job Evaluation
 Analytical
(e.g. points rating , factor
comparison, Patterson, Hay ) analysing the level
at which various defined factors or elements
are presented in a job.
 Non-analytical
(e.g. ranking, grading, paired
comparison and classification) Comparing the
whole jobs to place them in grades . They are
not analysed by reference to their element
factors.
18
Summary of Job evaluation methods
Methods
Hay method
Method uses Know- how, problem
solving and accountability
Point rating
Points are allocated to a job under
identified factors according to the
extent to which it is present in the
job.
Factor Comparison method
involves comparing jobs factor by
factor; used by tribunals
Patterson Method
It analyzes decision-making in job
task performance
Job ranking method
Ranking based on seniority
Peromnes Method
What is done, how complex and
deadlines
19
20
Factor comparison method ( FES)
The Factor Evaluation System) FES differs from the
other point-factor methods in that it contains
three stages of descriptive data not simply a
defined set of universal compensable factors, subfactors, and degrees.
The three stages are:
 Primary standards (9 compensable factors)
 Factor-level descriptions for the series (60+)
 Benchmark jobs that cover the full range of pay
for the jobs in each occupation or series- each
factor is allocated financial value
FES Factor Description Table
FACTOR
POINTS
% TOTAL
Knowledge
50-1850
41.3
Sup/ Control
25-650
14.5
Guidelines
25-650
14.5
Complexity
25-450
10.0
Scope/effect
25-450
10.0
Pers Contact
10-11
2.5
Purp Of Contact
20-220
4.9
Phys Demand
5-5
1.1
Work Environment
5-50
1.1
Total Points
4480
LEVELS
9
5
5
6
6
4
4
3
3
FES Quality Check
 There
is a direct relationship between the
selected level of the knowledge factor and
levels selected of all other factors.
 The
knowledge or skill requirements of a job
drive the evaluation rating, while other
compensable factors provide additional
information to "fine tune" the final rating.
 Review
figure 9-5 "FES knowledge level
conventions" for further explanation or
description of this point.
Sore Thumbing
Reviewing ratings using some
kind of spreadsheet layout
assists in identifying factor
ratings that don't make sense.
This analysis is often called
"sore thumbing" because an
inappropriate rating stands
out like a sore thumb.
Merits/ demerits of FES
Advantages
The value of the job is
expressed in monetary
terms..
Disadvantages
The pay for each factor
is based on judgments
that are subjective.
Can be applied to a wide
range of jobs
Can be applied to newly
created jobs
The standard used for
determining the pay for
each factor may have
build in biases that
would affect certain
groups of employees.
25
26
Ranking Method
 It is the simplest method of job evaluation.
 In this method, jobs are arranged from
highest to lowest, in order of their value or
merit to the organization.
 Jobs can also be arranged according to the
relative difficulty in performing them.
 Jobs are usually ranked in each department and
then the department rankings are combined to
develop an organizational ranking.
Ranking Method cont.
 According to this method, a predetermined
number of job groups or job classes are
established and jobs are assigned to these
classifications.
 This method places groups of jobs into job
classes or job grades.
 Separate classes may include office, clerical,
managerial, personnel, etc.
28
Ranking Method cont.
Following is a brief description of classification in
an office:
 Class 1- Executives: Office manager, deputy
office manager, department supervisor, etc.

Class 2- Skilled workers: Purchasing assistant,
cashier, receipts clerk, etc.

Class 3- Semiskilled workers: Stenotypists,
machine operators, switchboard operator, etc.
29
Point Method
 This method is widely used currently.
 In this method jobs are expressed in terms of
key factors.
 Points are assigned to each factor after
prioritizing each factor in order of importance.
 The points are summed up to determine the
wage rate for the job.
 Jobs with similar point totals are placed in similar
pay grades
Merits and demerits
Advantages
It is the simplest method.
Disadvantages
The main demerit of the
ranking method is that there
are no definite standards of
judgment and also there is no
way of measuring the
differences between jobs.
It is quite economical to put it It suffers from its sheer
into effect.
unmanageability when
there are a large number
of jobs.
It is less time consuming and
involves less paperwork
31
32
Hay job grading Method

It is more systematic and scientific method of job
evaluation.

Though it is the most complex method of all, it is
consistent and appreciable.

Under this method, instead of ranking complete
jobs, each job is ranked according to a series of
factors.
Job rating parameters



Know-How
◦ Scope
◦ Depth
◦ Human relations skills
◦ Exhibit 5.12: Hay Guide Chart for Know-how
Problem Solving
◦ Environment
◦ Challenge
Accountability
◦ Freedom to Act
◦ Scope
34
Hay Guide Chart-Profile Method
The Hay Guide chartprofile method uses
three universal factors,
eight subfactors, and
forty-three degrees
and levels to evaluate
jobs. They are as
follows:
Know-How

Practical procedures,
specialized knowledge, And
scientific discipline.
(8 levels)

Managerial (4 levels)

Human relations (3 levels)

Plus 3 degree choices per
grid.
Hay Guide Chart-Profile Method
Accountability
Problem-Solving
Thinking environment
(8 levels)
 Thinking challenge
(5 levels)
 Plus 2 degree choices
per grid

Freedom to act
(7 levels)
 Job impact on end
results (4 levels)
 Magnitude
(4
levels)
 Plus 3 degrees per
grid.

Hay JE Method cont.

The descriptions that form the rows and the
columns of the guide charts provide a measure of
the level of difficulty, or importance, of each
factor.

The KH and AC guide charts provide actual
scores. The PS guide chart provides a percentage
that identifies the amount of KH used in solving
problems.
Hay JE Method Cont.
The Guide Charts have both standardized and
customized features:
◦ The geometric scales use the same values
with each step, reflecting the 15% perceptible
difference in values
◦ The number of rows and columns of each
guide chart can be altered to fit the character
and size of organization
Hay JE Method Cont.
The evaluation process
generally begins with the
highest valued compensable
factor and proceeds in
order to the lowest
weighted factor.
Hay JE Method Cont.
KNOW-HOW

Rows describe depth and breadth of job
knowledge required to perform job
assignments.

Columns describe management breadth
relative to such requirements as planning,
organizing, reviewing, and control.

Within each column there is a third element
that measures human relations skill.
Hay JE Method Cont.
PROBLEM-SOLVING
Rows identify levels of thinking.
 Columns identify thinking challenge.

When the most appropriate grid and
corresponding percentage has been identified, a
point value is determined by multiplying the
selected PS% (x) the previously determined KH
points.
Hay JE Method Cont.
ACCOUNTABILITY

Rows measure freedom to act

Columns measure the magnitude of the
impact of the job on end results

Inside each column is a third element that
measures the job impact on end results (4 per
column)
Hay Method Quality Checks And Patterns
KH and PS are closely linked in the guide charts
and they tend to parallel each other with respect
to their alpha numeric locator codes. As KH
requirements increase for a job PS enjoys a
simultaneous growth.
Hay Method Quality Checks and Patterns
PROFILING

PS and AC also have a relationship that provides
information about the general nature of jobs that
when examined either validates the evaluation or
challenges the results.
Hay Method Quality Checks and Patterns

Jobs higher in PS points than AC points are
typically staff and administrative in nature,
and....

Jobs higher in AC points than PS points are
typically action or line jobs, and....
Hay Method Quality Checks and Patterns
PROFILING

Jobs with essentially the same AC and PS points
tend to have an administrative/action
orientation.

The profile is determined by identifying the step
difference between PS and AC....
Hay Method Quality Checks and Patterns
The step difference is determined
by locating the PS points on the
Step value guide and counting up
or down until you have located
the AC points. The number of
Steps taken in this
procedure establishes
the step difference. The
direction (up +, down -) defines
The nature of the difference.
Hay Method Quality Checks and Patterns Cont.

All to the job profiles lined up in order of point
totals will provide the organization with a profile
pattern that further validates the evaluation effort.

As a rule, KH points as a percentage of the total
tends to decrease as job value increases.

PS and AC points as a percentage of the total tend
to be lowest at the lower valued jobs.
Hay Method Quality Checks and Patterns cont.
Profile patterns are also indicators of job rank
within an organization:
General Mgr
Plant Mgr
Operations Mgr
Office Mgr
KH-PS-AC
41-23-36
44-22-34
56-19-25
60-17-23
50
Patterson J.E Method cont.
It is based on analytical method of Job
Evaluation.
 It was developed over 30 years ago by
professor Patterson while he was studying the
relationship between work and pay


The method is called the Patterson Plan or the
Decision Bands Method (DBM).
Basic Concepts of Patterson J.E Method
1. The basic premise of the method is that , the
value of any job is depend on the level of its
responsibility.
2. Responsibility is reflected and measured by the
Decision making requirements of the job.
3. Accordingly , decision making is a logical and
equitable basis on which to compare jobs
within an organization.
52
The Decision Bands
The Patterson Plan is based on six decision
Bands:
1. Band F policy Making
2. Band E programming
3. Band D Interpretive
4. Band C Routine
5. Band B Automatic
6. Band A Defined
Patterson job classification
Band
Kind
Title
Band
Kind
Title
E
Policy Making
Top
Management
10
8
Coordinating
Policy
Board
Council/
CEO
D
Programming
Senior
Management
8
7
Coordinating
Programming
MD
GM\Project
Manager
C
Interpretive
Middle
Management
6
5
Coordinating
Interpretive
HODs
B
Routine
Skilled
4
3
Coordinating
Routine
Supervisors
Technicians
A
Automatic
Semi- Skilled
2
1
Coordinating
Automatic
Charge
hand
Team
Leaders
O
Defined
Unskilled
0
Defined
Labourer
54
BAND F-Policy Making Decision
These are decisions that determine the scope,
the direction, and the overall goals of the whole
organization. Band F decisions are the kind
typically made by a Board, Council, or CEO.
55
BAND E Programming Decisions
•These decisions are concerned with formulating
or adjusting programs for the major Functions/
divisions/departments, and allocating resource
among these groups.
56
The executives at Band E are typically in charge
of advising line executives, heading up such
major functions as marketing, administration,
production, and finance in private sector
organizations, and major departments in public
sector organizations. They are similar to MD
,GM and Project Manager
BAND D – Interpretive decisions
At Band D, the incumbents are required to
interpret and carry out the programs or
objectives developed at Band E.
These decisions specify what is to be done in
lower Bands, and how the resources allocated
by Band E are to be deployed. Band D decisions
are typically made by middle managers in
various functions.
57
BAND C – Process Decisions
Decisions in Band C involve determining the
means or process of achieving the objectives,
standards or guidelines established by Band D
decisions.
They are subject to the limits imposed by the
available technology and resources and to the
constraints set by Band D. Selecting the process
is a decision that must precede carrying out the
operations that make up the process. A process
decision specifies what is to be done at Band B.
58
These are typically decisions made by
supervisory personnel and/or senior technical
specialist positions.
BAND B – Operational Decision
These decisions focus on how to carry out the
operations of the process specified by a Band C
decision.
There is, within the limits set by the specific
process, a choice as to how and when the
operations are carried out, but not as to what
operations constitute the process.
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BAND A – Defined Decisions
Band A decisions are confined to the manner and
speed of performing the elements of an operation.
There is, within the limits set by the prescribed
operation, a choice as to how the elements are
performed, but not as to what elements constitute the
operation.
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The Grades within the Bands
All decision bands ,except for Band A are
divided into two grades ,
• HIGHER for those jobs which co-ordinate /
supervise other job or self co-ordinating.
• LOWER for those jobs which are not coordinating.
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The Grades within the Bands
:
62
BAND
GRADE
F
Higher…Coordinating policy decisions
F
Lower…. Making policy decision.
E
Higher… Coordinating programming decisions
E
Lower….Making programming decisions
D
Higher….Coordinating interpretive decision.
D
Lower…Making interpretive decision.
The Grades within the Bands
63
BAND
GRADE
C
C
B
B
Higher….Coordinating routine decision.
A
No Higher or lower grade, just single grade
Lower….Making routine decision.
Higher….Coordinating automatic decision.
Lower…..Making automatic decision.
The Sub-Grades within the Grades
The eleven grades are subdivided into sub-grades.
There should at most be three sub-grades in each
lower grade as well as in A , and two sub-grades in
the higher co-ordinating grade.
The numbers of sub-grades in within the grade can
vary according the needs of each particular
organization.
64
Decision Band layout
BAND
GRADES
SUB-GRADES
Higher F
5
4
Lower F
3
2
1
Higher F
5
4
Lower F
3
2
1
Higher F
5
4
Lower F
3
2
1
F
E
D
65
Decision Band layout
BAND
GRADES
SUB-GRADES
Higher C
5
4
Lower C
3
2
1
Higher B
5
4
Lower B
3
2
1
Higher A
5
4
Lower A
3
2
1
C
B
A
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Designing a Point Plan : Six Steps
1.
Conduct job analysis
2.
Determine compensable factors.
3.
Scale the factors.
4.
Weight the factors according to
importance.
5.
Communicate the plan, train users, prepare
manual.
6.
Apply to non benchmark jobs.
Grading procedure guidelines
Step one: Job Description:
• Well trained staff start describing all the jobs.
• Consideration will be given to reporting system,
detailed information about technical task (hard
factors)done and to job factors in case of stress,
tolerance, activity sequence and variety .(soft
factors)
• Well done job description will lead to perfect
grading.
69
Grading procedure guidelines Cont.
Step Two: slotting jobs into Bands:
• Jobs are to be slotted into the Bands according to
the types of decisions made in the job.
• The guiding rule is that the highest-level tasks in
the job determines the Band into which the job
falls.
70
Grading procedure guidelines Cont.
Step Three : choosing the Grade within the Band:
• Jobs are to be classified within each "Decision
Band" into one of two "Grades" based on the
differential supervisory difficulty and effort
required of the job.
• At this point in the process, jobs will have been
classified into a hierarchy of twelve different
classes of jobs, based on the job's level of
responsibility and supervisory difficulty and effort.
71
Grading procedure guidelines Cont.
72
Step Four: choosing the sub-grade within the grade.
Jobs are moved into sub-grades by considering the
following soft factors:
1. Stress: pressure under which the job is done.
2. Tolerance :degree of accuracy
3. Sequence: length of the cycle or process related
to the job.
4. Variety: number of different elements involved in
the job.
5. Every job is compared with other jobs
according to those factors.
6. Numeric scale can be made for each factor.
Grading procedure guidelines Cont.
Step Five: Grading committee
• The committee composed of well trained staff
supported by the consultants.
• The committee’s main function is to grade the
job ,revise the job description and may call on
the department head whenever necessary to give
more clarification about any job.
• The committee makes its final grading report.
73
Grading procedure guidelines Cont.
Step Six: Result communication
• The grading result will be communicated to the
Senior Management for the purpose of
approving the both side of the grading result as
the job evaluation may need strong
commitment to meet the additional cost in
case of job cut off or salary increase, (ability to
pay)
• Union has to be fully oriented about the result.
74
Grading procedure guidelines Cont.
Step Six: Result Implementation : HR Role.
• Informing the employees by their new grades
• Treating the hard issue of surplus.
• Creating the mechanism of grievance and
appeal procedures.
• Continuous revision and updating to the
system
75
Linking pay to salary bands / Job Pricing
 Union/Management committee will
recommend an appropriate pay structure,
 Jobs are placed in salary Bands only on the
basis of the decision requirements of their
duties.
 Salary data should be collected by making
external salary survey.
 Bench – mark jobs and high flier jobs are to
be put into consideration.
76
Grading procedure guidelines Cont.
Using job evaluation for setting pay:
 Analyse jobs and rank them
 Group jobs into grades/bands
 Link pay to the bands
77
Different methods of conducting JE
Job ranking method
Each job as a whole is compared with other jobs
until all the jobs have been evaluated and ranked.
All jobs are ranked in the order of their
importance from the simplest to the hardest or
from the highest to the lowest.
The importance of order of job is judged in
terms of duties, responsibilities and demands on
the job holder.
78
Job Ranking cont.
1. Analyze and describe jobs, bringing out those
aspects which are to be used for purpose of job
comparison.
2. Identify bench-mark jobs (10 to 20 jobs, which
include all major departments and functions). The
jobs may be the most and least important jobs, a
job midway between the two extremes, and others
at the higher or lower intermediate points.
3. Rank all jobs in the organization around the
bench-mark jobs until all jobs are placed in their
rank order of importance.
79
Job Ranking cont.
4. Finally, divide all the ranked jobs into
appropriate groups or classifications by
considering the common features of jobs such
as similar duties, skills or training requirements.
All the jobs within a particular group or
classification receive the same wage or range of
rates.
80
81
Point rating method
This is the most widely used method of job evaluation.
Under this method, jobs are broke down based on
various identifiable factors such as skill, effort, training,
knowledge, hazards, responsibility, etc. Thereafter,
points are allocated to each of these factors.
Weights are given to factors depending on their
importance to perform the job. Points so allocated to
various factors of a job are then summed. Then, the
jobs with similar total of points are placed in similar
pay grades. The sum of points gives an index of the
relative significance of the jobs that are rated.
82
Procedure for Point rating JE Method
Determine degrees of each factor and assign point
value to each degree.
2. Point values are assigned to different degrees on
the basis of arithmetic progression.
3. Finally, money values are assigned to points. For
this purpose, points are added to give the total
value of a job. Its value is then translated into
money terms with a predetermined formula.
4. Determine the jobs to be evaluated. Jobs should
cover all the major occupational and levels of
responsibility to be covered by the method.
1.
83
Procedure for Point rating JE Method Cont.
Decide on the factors to be used in analyzing and
evaluating the jobs. The number of factors needs
to be restricted because too many factors result
in an over-complex scheme with overlap and
duplication between factors.
6. Define the factors clearly in written. This is
necessary to ensure that different job raters
interpret a particular factor in the same sense.
5.
84
Advantages of point rating method
1.
2.
3.
4.
5.
It is the most comprehensive and accurate
method of job evaluation.
Prejudice and human judgment are minimized,
i.e. the system cannot be easily manipulated.
Being the systematic method, workers of the
organization favour this method.
The scales developed in this method can be
used for long time.
Jobs can be easily placed in distinct
categories.
85
Disadvantages of point rating method
It is both time-consuming and expensive
method.
2. It is difficult to understand for an average
worker.
3. A lot of clerical work is involved in recording
rating scales.
4. It is not suitable for managerial jobs wherein
the work content is not measurable in
quantitative terms
1.
86
Point Method key characteristics
Three common characteristics of point methods
◦ Compensable factors
◦ Factor degrees numerically scaled
◦ Weights reflect relative
importance of each factor

Most commonly used approach
to establish pay structures in U.S.

Differ from other methods by making explicit
the criteria for evaluating jobs -- compensable
factors
Comparison of Job Evaluation Methods
Advantage
Ranking
Classificatio
n
Point
Fast, simple, easy to
explain.
Disadvantage
Cumbersome as number of
jobs increases. Basis for
comparisons is not called
out.
Can group a wide range of
Descriptions may leave too
work together in one system. much room for manipulation.
Compensable factors call
out basis for comparisons.
Compensable factors
communicate what is
valued.
Can become bureaucratic
and rule-bound.
JE simply means………
Studying/ analyzing the value , importance , and
necessity of a particular job
Key factors considered for Job Evaluation are:

Volume of responsibilities

Output / deliverables

General/ specialty

Decision makers / decision followers

Emerging needs of the company
89
Communication
Communication is paramount to a successful job
analysis project, and it is up to the analyst to make
sure all participants are properly informed.
Without proper communication, participants may
be suspicious of the process and may not provide
important information.
Communication to the participants should take
place prior to a job analysis session and again at the
start of a session. The briefing to participants and
other stakeholders should be comprehensive, open
and honest, stressing that their co-operation is
voluntary, but that their assistance and insights are
essential to success.
90
91
Comparison of Job Evaluation Methods
Advantage
Disadvantage
Ranking
Fast, simple, easy to
explain, suitable for
small org, not
expensive.
Not very accurate , not
useful for large org.
least used method
Classification
Can group a wide
range of work together
in one system, simple,
more accurate than
raking method.
Not useful for large
org, time consuming,
not involved detailed
job analysis.
Point
Compensable factors
call out basis for
comparisons.
Compensable factors
communicate what is
valued.
Can become
bureaucratic and rulebound.
Comparison of Job Evaluation Methods
Advantage
Factor comparison
method
Disadvantage
Finds wages for a
Expensive, time
job, wages can be
consuming,
calculated speedily,
greater consistency
in the judgment, size
of jobs can be
measured.
1. Why conduct job evaluation?
2. Uses of J.E
3. Methods of JE
4.
Process of J.E
94
95
Determining an Internally Aligned Job Structure
Internal
alignment
Work
relationships
within
organization
Job analysis
Job
description
Job
evaluation
Job
structure
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 plan’s usefulness
JE Committee
A job evaluation program should be carried out by a
committee.
1. Avoids prejudice or biases
2. Comprised of peers, colleagues and executives
3. Should involve people from different backgrounds
and expertise
4. Train the committee members on the selected JE
method
97
The Steps in Evaluation Process
98
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Steps in Point Method
Create Job Evaluation Committee
Select Benchmark Jobs
Choose Compensable Factors
Define Factor Degrees
Determine Weight of each Factor
Determine Point Values
Verify Factor Degrees and Point Values
Evaluate All Jobs
Result acceptance from the senior Management.
Communication, implementation & application
Anomalies and grievances committees
Updating & revising.
99
100
Point Rating Method
Choose Compensable Factors
―Universal‖ factors:

Skill

Effort

Responsibility

Working Conditions

Custom factors

Sub-Factors
101
Compensable factors
Communication and Relationship skills
2. Knowledge, Training and experience
3. Analytical and judgment skills
4. Planning and organization skills
5. Physical skills
6. Policy and Service development implementation
7. Finance responsibility
8. Supervisory role
9. Information resources
10. Freedom to act and decision making
11. Physical Effort
12. Mental Effort
13. Emotional Effort
14. Working Conditions
1.
102
Point Rating Method

Define Factor Degrees:
◦ Provides levels within each factor or subfactor
◦ Best to define each level in job-specific terms
◦ Fewer degrees required if system only needs
to cover a smaller range of jobs

Determine Weight of each Factor
103
Steps in Point Method
Verify Factor Degrees and Point Values
◦ Committee members score random set of
jobs (or all)
◦ Review scores to determine logical
consistency and fairness
◦ Make sure points are consistent with
business strategy of your firm
◦ Adjust as necessary
104
Points Assigned to Factor Degrees
Factor
Skill
1. Knowledge
2. Experience
3. Initiative and Ingenuity
Effort
4. Physical Demand
5. Mental or Visual Demand
Responsibility
6. Equipment or Process
7. Material or Product
8. Safety of Others
9. Work of Others
Job Conditions
10. Working Conditions
11. Hazards
1st
2nd
3rd
4th
5th
Degree Degree Degree Degree Degree
14
22
14
28
44
28
42
66
42
56
88
56
70
110
70
10
5
20
10
30
15
40
20
50
25
5
5
5
5
10
10
10
10
15
15
15
15
20
20
20
20
25
25
25
25
10
5
20
10
30
15
40
20
50
25
Point rating method cont.
106
Point rating method cont.
107
108
Rating Summary
109
Tips On Scheme Design
◦ Simplify.’
◦ Make schemes less wordy and subjective.’
◦ Make sure scheme covers whole
organization.’
◦ Consider factor definitions more carefully.’
110
Tips On Scheme Design cont.
◦ Allow for flexibility and creating new job families.’
◦ Use more meaningful and less generic job
descriptions.’
◦ Define clearer boundaries between bands.’
◦ Move towards job families and wider bands.’
◦ Clarify promotion routes and career paths.’
111
Steps in Point Method
Verify Factor Degrees and Point Values
◦ Committee members score random set of
jobs (or all)
◦ Review scores to determine logical
consistency and fairness
◦ Make sure points are consistent with
business strategy of your firm
◦ Adjust as necessary
112
Factor :knowledge/ skill
This factor measures the minimum level of job
knowledge and preliminary training required to
perform the job. However, informal education and
functional equivalencies should also be considered.
Education and training can include:
 vocational training; apprenticeships;
 course work, certificates, diplomas and degrees
required from educational institutions;
 correspondence courses; seminars and
workshops;
 licensing or certification programs; and other
educational or training requirements.
113
Working Experience
Prior experience measures the minimum amount of
practical experience that an average individual
having the appropriate theoretical knowledge,
specific education and specialized training required
to enter or begin performing the job being rated.
Previous experience includes experience in related
or lower jobs, other relevant work or life
experience necessary to perform the job.
114
Effort
This factor measures job demands requiring
concentration or alertness. It considers the intensity
(level of difficulty or strain) and duration of job tasks.
Characteristics to be considered include:
visual concentration;
 hearing concentration and strain;
other sensory concentration (taste, smell, touch);
 repetitiveness of tasks requiring alertness;
 the need for exact results and precision;
 effect of interruptions;
 time pressures to complete tasks;
 degree of flexibility to control work
pace/schedules
 vigilance and unusual attentiveness.
115
Physical effort
This factor measures job demands requiring physical
effort.
It considers the intensity (level of difficulty or strain) of
job tasks.
Characteristics to be considered include:
 physical exertion and handling (e.g. lifting, carrying,
 pushing, pulling);
 manual dexterity (both gross and fine motor skills);
 body control and reflex requirements;
 the required strength, endurance and stamina;
 body postures and movement (e.g. walking, sitting,

standing, climbing, bending); and eyestrain.
In jobs with multiple tasks involving physical demands,
each task should be evaluation
116
Responsibility
This factor measures the degrees of job structure
and opportunity to make decisions and influence
change. This factor also measures the variety,
diversity, difficulty and novelty of work as well as
the choice of action required in applying methods,
standard practices, precedents, procedures or
policies to complete tasks. Characteristics to be
considered include:
 freedom to act and degree of control;
 the level of supervision received;
 the variety, diversity and novelty of tasks;
 the difficulty of tasks;
 the degree to which independent action
/judgment is required; and the importance of the
117
decisions required.
Responsibility cont.
The extent of ability required and responsibility for
working with and through other people to achieve
the desired results.
Considers the complexity and frequency of
different contacts and communication behaviours,
the purpose for interaction and the situation in
which contact occurs.
This factor applies only where contacts are
essential to the effective performance of the job.
Some examples of types of contacts and behaviours
118
considered are:
Contacts
General public
Team members
customers
Board members
Special interest groups
Professionals/advisors
Suppliers
Exchanging routine
information ,
listening , helping
monitoring , advising
counseling, persuading
negotiating
Administrators . Clients
Government Representatives
Colleagues ,Suppliers
Interpreting
presenting
selling
buying
interviewing
directing
teaching/instructing
119
Supervisory
This factor includes the direct supervision of full and parttime employees, and measures direct accountability for
managing human resources. It also assesses the character,
complexity and job demands associated with supervising the
work of others
Characteristics to be considered include responsibility for:
hiring and providing orientation for new employees;
assessing performance, providing training, coaching and
 feedback;
 providing on-the-job guidance, direction and assistance;
checking or reviewing work;
scheduling, organizing and coordinating work;
building morale and employee relations;
 counseling employees on work-related matters;
handling discipline problems
120
Accountability
This factor measures the impact or effect of decision
situations on the organization and potential loss of time
and/or resources or impact on the organization from
potential errors in judgment or action. Accountability
should be considered in terms such as:
handling money;
 potential of damage or loss involving mechanical
/office
equipment or supplies;
safeguarding of restricted information;
provision of instruction or concepts to students;
 the seriousness of an error;
 the length of time it would take to correct an error;
 potential embarrassment or loss of esteem to the
organization or department.
121
Environment
This factor measures the likelihood, frequency
and severity of exposure to undesirable features
in the work environment.
The environmental aspects are unavoidable given
the nature and requirements of the job.
Characteristics to be considered include:
122
Classification guide
In the application of the foregoing basic guides, the
following rules shall apply:
(a)It is the position or job that is under
consideration and not the individuals who work
on the job.
(b) Positions or jobs are to be classified without
regard for existing rates of pay.
(c) Positions or jobs are to be rated in the
appropriate degree level in each factor by
considering the specific requirements of each
position or job in relation to the statement of
activities in each factor level, and by using as a guide
the sample Job Descriptions and Classifications.
123
Classification guide cont.
d) Classification of each position or job shall take
into account the kinds of work performed and the
resulting duties, responsibilities and surrounding
circumstances which the employee on the position
or job is performing.
(e) No interruption between factor levels is
contemplated in the use of this Plan. In the
determination of the final job class for a position or
job, total the numerical classification points for the
factor degree levels to which the position or job
is assigned in the ten factors. Compare the total
points to the job classification point scale in the
following chart and assign the job to the
corresponding job
124
Apply method to Non-benchmark Jobs

Final step involves applying plan to remaining
jobs
◦ Benchmark jobs were used
to develop compensable
factors and weights

Trained evaluators will evaluate
new jobs or reevaluate jobs
whose work content has changed
Who Should be Involved?

Committees, task
forces, or teams of key
representations

Appeals/review
procedures
Confidentiality agreement
I, ______________________, promise to respect and
preserve confidentiality in all matters related to the
business of the xyx co Ltd Job Evaluation Program. This
includes any and all information relating to the
responsibilities and functions of the Joint Job Evaluation
Program and the Joint Job Evaluation Appeals. ,,,,,,,,,,,,,,,etc
127
Role of JE Committee
A joint committee appointed by the
Employer and the Union to deal with
appeals lodged by the incumbent(s) and/or
management with respect to the rating of a
job
 Ensures fairness and maintains integrity in
the the Job Evaluation process
 Meets (as required) to review appeals
under the Joint Job Evaluation Program

128
129
Completing the Job Analysis Questionnaire
(JAQ)
130
This is Your Opportunity

To tell us what you do by completing a Job
Analysis Questionnaire (JAQ)

To work together where there are multiincumbents in a single job classification (form a
working group)

People can do their JAQ on work time
◦ Do a bit at a time; not all at once
◦ Should take not more than 3 or 4 hours total
◦ Check with your Supervisor to schedule time
131
The Job Analysis Questionnaire

No right or wrong answers, no extra
points for using ―buzz words‖

Consider completing in two sessions
rather than all at the same time

Keep examples/descriptions concise and
avoid jargon; point form is fine
132
The Job Analysis Questionnaire
Consists of two parts:
 Part A involves describing your job
responsibilities and core job requirements

Part B involves completing a structured
questionnaire designed to provide specific
information needed for evaluation purposes
133
Part A: Job Description

The first part of the package focuses on key
responsibilities and core requirements
associated with your job

Intended to summarize the requirements of
the job, not describe every activity or task
carried out

Existing job descriptions will help in
completing this section
134
Part A: Job Description

Key responsibilities to be documented using
a specific format:
◦ First, identify the output(s) – actions taken,
results
◦ Second, summarize how the responsibility
(process) is carried out
135
Part A: Job Description
Focus on current responsibilities as of
May 31, 2005 – changes that may occur in
the future will be handled through the
maintenance process
 Most jobs have between 4 and 8 key
responsibilities
 An example is included in the package to
illustrate the form and level of detail
when describing key responsibilities

136
Part A: Job Description

Scope Data is not directly evaluated but helps to
put the job into context
Purpose of Job – why does it exist and how
does is support the work the unit/team
Direct and indirect supervision – job titles and
numbers of employees
Budget – most interested in discretionary
portion of total budget
Other Scope – acting as a media spokesperson,
spending limits, etc.
137
The Job Analysis Questionnaire

Core Job Requirements
◦ Technical/functional knowledge related to an
occupation, field of work, discipline. Most typically
acquired through formal education, training and
experience in the field of work
◦ Supplementary Knowledge required in addition to
the technical/functional knowledge
◦ Education/Experience – is not directly evaluated but
helps to put core job requirements in context;
include any credentials/licenses that are mandatory,
not preferred
138
Part B: Job Analysis Questionnaire
10 specific question areas with response areas
 Focus on typical ongoing job requirements (not
unusual circumstances)
 Response levels describe general
characteristics that can be applied to different
kinds of jobs—look for the closest match to
the job and provide a brief example that
illustrates same

139
Part B: Job Analysis Questionnaire





If none of the response statements appear to
describe your job, answer the question in your own
words
If a question does not apply to your job, record
N/A in the blank space provided.
Always provide a brief example or explanation,
where requested. Space has been provided
Deadline – xxxxxx – submit to Supervisor
(Manager/Supervisor)
Deadline – xxxxxxx – due in HR
140
What Next?

Trained Compensation Specialists evaluate
jobs as per Manual of Procedures
141
What will happen?
RELEASE OF
RESULTS
ACCEPT
APPEAL
(30 Calendar days to appeal)
142
What will happen?
Jobs
 Jobs
 Jobs


=

Green Circled
(Unchanged)
Red circles
(Salary
protection
formula)
143
Salary Protection Formula

Maintain current salary if present hourly rate is
higher than proposed job rate as follows:

3 weeks per year of service up to a maximum
of 18 months

Then placed at job rate in lower salary range
to minimize financial impact
144
Myths About JE







JE is a way to control salary costs
Not True: JE simply ranks jobs based on relative
value
JE will reduce the number of jobs
Not True: Management decides the size of the
workforce to deliver service to the public
The Collective Agreement provides a process
for deleting jobs, layoffs, etc.
JE is a reward for good performance
Not True: JE measures the job not the person
145
Joint Reconsideration Committee (JRC)

Union and employer representatives across
the organization will be trained in job
evaluation

Members will be called upon to review
Appeals as required
146
Appeals

Appeals will be reviewed by a Joint
Reconsideration Committee (JRC) consisting of
two Union and two Employer Representatives

If JRC is unable to arrive at a decision, the
matter shall be referred to a sole Arbitrator.
147
Correcting Inconsistencies

Matching or evaluating jobs in family or
equivalent groups eg all finance jobs, all unique
specialist jobs from an occupational group) as
this allows for ongoing comparisons and
provides some immediate internal consistency
checks.

Avoiding being influenced by current or
anticipated pay levels.
148
After an evaluation……..
Check individual factor matching and evaluation
against jobs with similar features during the
process (not necessarily similar jobs eg the
physical skills demands of an IT job requiring
keyboard skills could be checked against clerical
and secretarial jobs on this factor.
 After the evaluation exercise the committee
should check:
- Internal consistency checks
- Check evaluations on a factor by factor basis by
ranking the batch ( usually a batch can be 10
jobs)
149

After an evaluation……..
Check
total weighted score rank order, identifying
and reviewing any apparent oddities

Do manager and supervisor jobs match or evaluate
higher than the jobs they manage
or supervise on those factors where this is to be
expected eg responsibility for policy
 Do specialist jobs match or evaluate higher than the
relevant practitioner jobs on those factors where
this is to be expected eg knowledge, analytical and
judgmental skills, responsibility for human resources150
After an evaluation……..
Do practical manual jobs match or evaluate
higher than managerial or other jobs where
hands-on activity is limited on those factors
where this is to be expected e.g physical skills,
physical effort, working conditions?
 Over-evaluation of jobs
 Under- rated jobs

151
152
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