Talent Development Ch. 5

Step 5: Select criterion pay structure

A pay structure the committee wishes to duplicate with the point method

Classification method

A series of classes covers the range of jobs. Job descriptions are compared to class descriptions to determine class level. Greater specificity of the class definition improves the reliability of the evaluation. It also limits the number of jobs easily classified. Jobs within each class are considered equal and will be paid equally.

Accountability

Job exist to achieve an end result

Step 3: Scale the factors

Most factor scales are 4 to 8 degrees, if equidistant, called interval scaling

Structure based on job value orders jobs:

On the basis of the relative contribution of the skills, duties, and responsibilites

Alternation ranking method

Orders job descriptions alternately at each extreme ; Evalulators agree on which jobs are the most and least valuable, then the next, etc.

Step 6: Communicate the plan and train users

Prepare a manual and train users, and appeals process may be included and employee acceptance is crucial

Content

Refers to what work is performed and how it gets done

Ranking

Simply orders the job descriptions from highest to lowest based on a global definition of relative value or contribution to the organizations success -Is simple, fast, and easy to understand and explains from employees; it is also the least expensive method

Structure based on job content orders jobs by:

Skills, duties, and responsibilites

Another challenge is called ?

Small numbers - If even one job has certain characteristic, it is used in the entire work domanin

Point Method

Step 1) Conduct Job Analysis - a representative sample of benchmark jobs is drawn for analysis Step 2) Determine compensable factors

Know-How, Problem solving, Accountability

The jobholder requires knowledge and experience consistent with the scale and complexity of the result to be achieved

Paired comparison method

Uses a matrix to compare all possible pairs of jobs; When all comparisons are completed, the job judged "more valuable" becomes the highest ranked job, and so on.

Linking Content with the External Market

Value of job content is based on what it can command in the external market. Higher skill levels or working closely with customers commands higher wages. Skill level and nature of customer contacts become useful criteria for establishing differences among jobs.

Managerial Group

Vice presidents Division general managers Managers Project leaders Supervisors = Job evaluation

Step 4: Weight the factors according to importance

Weights are often determined through an advisory committee

Organizations commonly have multiple structures

Derived from different approaches and applicable to different functional groups or units

Job Evaluation

-A process for determining relative value Is the process of systematically determining the relative worth of jobs to create a job structure for the organization. The evaluation is based on a combination of job content, skills required, value to the organization, organizational culture, and the external market. This potential to blend organizational forces and external market forces is both a strength and a challenge of job evaluation.

Balancing Chaos and Control

-Complex procedures and bureaucracy can cause users to lose sight of the objectives. -Allow flexibility to adapt to changing conditions. -Flexibility without guidelines increases chaos. -Balanced guidelines ensure employees are treated fairly.

Who should be involved?

-Managers and employees with a stake in the results. -A common approach is to use committees, task forces, or teams that include: representatives from key operating functions. -Union representatives help gain acceptance. -Compensation analysts may be called in.

Point method: A remaining issue is how many factors should be included in the plan

-Overlapping factor definitions provide the "illusion of validity" - the belief that factors capture divergent aspects of a job

Point method compensable factors should be:

-based on the strategy and values of the organization, -based on the work performed, and -acceptable to the stakeholders affected by the resulting pay structure.

Common characteristics of point methods:

1) Compensable factors based on: - the strategic direction of the business and how the work contributes to the objectives and strategy 2) Factor degrees numerically scaled 3)Weights reflect the relative importance of each factor

8 steps in designing a point plan

1) Conduct job analysis 2) Determine compensable factors 3) Scale the factors 4) Weight factors by importance 5) Select criterion pay structure 6) Communicate and train uses 7) Apply to remaining jobs 8) Develop online supports

Suggested criteria for scaling factors:

1) Ensure the number of degrees is necessary to distinguish among jobs 2) Use understandable terminology 3) Anchor degree definitions with benchmark job titles and/or work behaviors and 4) Make it apparent how the degree applies to the job

Benchmark (key) jobs characteristics:

1) Its contents are well known and relatively stable 2) The job is common across employers, not unique to the employer 3) A reasonable proportion of the work force is employed in this job

A structure is aligned if it:

1) supports organization strategy 2) supports work flow 3) is fair to employees and 4) motivates behavior toward organization objectives Establishing a purpose helps ensure the evaluation is a useful systematic process

Administrative Group

Administrative assistant Principal admin Admin secretary Word Processor Clerk/Messenger = Job evaluation

Step 7 point method:

Apply to nonbenchmark jobs

Compensable Factors

Are those characteristics in the work that the organization values, that help is pursue its strategy and achieve its objectives

Manufacturing Group

Assembler 1 Inspector 1 Packer Materials Handler Inspector II Assembler II Drill press operator rough grinder Machinist I coremaker = Skill based

Step 8 point method:

Develop online software supprt

Fairness of the design process helps achieve:

Employee and management commitment, trust, and acceptance of results

Technical Group

Head/Chief scientist Senior Associate scientist Associate scientist Scientist Technician = Competency based

The final result of the job analysis, job description, and job evaluation process is a:

Structure, a hierarchy of work

The design process: Appeals/review procedures are required

This ensures procedural fairness and procedures should be judged for their susceptibility to political influences

Problem Solving, Accountability

To achieve this end result, jobholders must address problems, create, analyze, and apply judgment