354 Chapter 5

Factor Weight

Measures that indicate the importance of each compensable factor in a job evaluation system. Weights can be derived through either a committee judgement or a statistical analysis.

Point Method

a job evaluation method that employs 1) compensable factors 2) factor degrees numerically scaled, and 3) weights reflecting the relative important of each factor. Once scaled degrees and weights are established for each factor, each job is measured against each compensable factor and a total score is calculated for each job. The total points assigned to a job determine the jobs relative value and hence its location in the pay structure.

Alternation ranking

a job evaluation method that involves ordering the job description alternatively at each extreme. All the jobs are considered. Agreement is reached on which is the most valuable and then the least valuable. Evaluators alternate between the next most valued and next least valued and so on until the jobs have been ordered

Interval Scaling

a particular numerical point difference has the same meaning on all parts of a scale.

Criterion pay structures

a pay structure to be duplicated with a point plan

National Metal Trades Association

a point factor job evaluation plan for production, maintenance, and service personnel.

National Electrical Manufacturers Association (NEMA) Plan

a point factor job evolution system that evolved into the National Positon Evolution plan sponsored by NMTA

Benchmark (key) jobs

a prototypical job, or group of jobs used as a reference point for making pay comparisons within or without the organization. Benchmark jobs have well-known and stable contents, their current pay rates are general acceptable and the pay differentials among them are relatively stable. A group of benchmark jobs, taken together, contains the entire range of compensable factors and is accepted in the external labor market for setting wages.

Paired comparison

a ranking job evaluation method that involves comparing all possible pairs of jobs under study

Ranking

a type of performance appraisal format that requires that the rater compare employees against each other to determine the relative ordering of the group on some performance measure

Cost Containment

an attempt made by organizations to contain benefit costs, such as imposing deductibles and coinsurance on health benefits or replacing defined benefit pension plans with defined contribution plans

Content

what work is performed and how it gets done

Committee a priori judgement

compensable factor importance weights are assigned by a committee based on judgement

Policy capturing

compensable factor importance weights are inferred using statistical methods such as regression analysis

Scaling

determining the intervals on a measurement instrument

Pay Discrimination

discrimination usually defined as including 1) access discrimination which occurs to particular jobs, promotions, or training opportunities, and 2) valuation discrimination, which takes place when minorities or women are paid less than white males for performing substantially equal work. Both types of discrimination are illegal under Title VII of the Civil Rights Act of 1964. Some argue that valuation discrimination can also occur when men and women hold entirely different jobs (in content or results) that are of comparable worth to the employer. Existing federal laws do not support the "equal pay for work of comparable worth" standard

Job evaluation committee

group that may be charged with the responsibility of 1)selecting a job evaluation system, 2) carrying out or at last supervising the process of job evaluation, and 3) evaluating the suceess with which the job evaluation has been conducted. its role ma vary among organizations, but its members usually represent all important constituencies with the organization

Position Analysis Questionnaire

groups work information into seven basic factors- information input, mental processes, work output, relationships with other persons, job context, other job characteristics, and general dimensions

Job content

information that describes a job. May include responsibility assumed and/or the tasks performed

Classification

job evaluation method that involved slotting job descriptions into a series of classes or grades that cover the range of jobs and that serve as a standard against which the job descriptions are compared

Factor Scales

measures that reflect different degrees within each compensable factor. Most commonly five to seven degrees are defined each degree may be anchored by typical skills, tasks, and behaviors, or key job titles.

Appeals process

mechanisms are created to handle pay disagreements. They provide a forum for employees and managers to voice their complaints and receive a hearing

Job evaluation

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

Market pricing

setting pay structures almost exclusively through matching pay for a very large percentage of jobs with the rates paid in the external market

Job-based Structure

structure that relies on work content- tasks, behaviors, and responsibilities

Relative Value

the relative contribution of jobs to organizational goals, to their external market rates, or to some other agreed-upon rates.

Compensable Factors

those characteristics in the work that the organization values, that helps it pursue its strategy and achieve its objectives