Ch. 5

Classification

(BOOKSHELF) a series of classes covers the range of jobs class descriptions are the labels job description is compared to the class description to decide which class is the best fit for that job. each class is described in such a way that the "label" captures sufficient work detail yet is general enough to cause little difficulty in slotting a job description onto its appropriate shelf or class classes may be described further by including titles of benchmark jobs that fall into each class determining the number of classes and the boundaries between each is an art form

Establish a purpose

- Supports organization strategy -helps answer; how does this job add value - Supports work flow- integrates each jobs pay with its relative contributions to the org. helps set pay for new, unique, or changing jobs - Is fair to employees- establishes a workable, agreed-upon structure that reduces the role of chance, favoritism,or bias in setting pay - Motivates behavior toward organization objectives ( what it is about the employees work that the org values, helps establish a network of reward that helps motivate employees)

eight step in design of point plan

1. conduct job analysis 2. determine compensable factors 3. scale the factors 4. weight the factors according to importance 5. select criterion for pay structure 6. communicate plan and train users 7. apply to non benchmark jobs 8. develop online software support

How-To: Major Decisions

1. establish purpose 2. decide on single vs. multiple plans 3. choose among alt. methods 4. obtain involvement 5. evaluate usefulness of result

paired comparison

Job evaluation method in which each job is compared with every other job being evaluated; the job with the largest number of "greater than" rankings is the highest-ranked job, etc. use matrix to compare all possible jobs

Benchmark jobs

Jobs used as reference points when setting up a job classification system and when designing or modifying a pay structure. its contents are well known and stable overtime the job is common across a number of different employers a reasonable proportion of the workforce is employed in this job typically job eval is developed using benchmark jobs and applied to non benchmark jobs number of job eval plans ----> how detailed an eval is required to make pay decisions & how much it will cost current practice: seperate plans for major domains ex: top- exec/ leadership/ manager/ proffessional operational/ technical office/ admin

ranking

Performance appraisal method in which all employees are listed from highest to lowest in performance. simple, fast, easy to understand and explain to employees initially is least expensive, doesn't tell employees and managers what ab their job is important even though ranking seems simple, fast, and inexpensive in the long run results are difficult to defend and costly solutions may be required to overcome problems

compensable factors

The characteristics of jobs that an organization values and chooses to pay for. reinforce the org culture and values as well as its business direction and the nature of work.

common characteristics of point method

compensable factors, factor degrees are numerically scaled, and weights reflecting the relative importance of each factor

Point Method

each jobs value and locatin on the the payscale is determined by total number of points assigned to it most commonly used job eval approach in US and Europe explicit in criteria (compensable factors)

Job Structure

final result the relative pay for different jobs within the organization

interval scaling

making each degree equidistant from the adjacent degrees ensure that this is necessary to distinguish among jobs make it apparent how degree applies to job

Who should be involved?

managers, employees with a stake in results if ppl dont participate, "things could have been better if i were in charge"

scale the factors

most factors consist of 4-8 degrees (more than that give the illusion of accuracy)

Communicate the plan and train users

once job is designed a manual is prepared maual describes method, defines compensable factors, and provides enough info to permit users to distinguish varying degrees of each factor. allows users who were not apart of the development to apply it as intended appeals process is for those who feel their job has been unfairly evaluated

alternative ranking

orders job descriptions at each extreme (most valuable to least valuable then second most then second least ect.) alt and paired are more reliable than simple

content

orders jobs on basis of skill required for the job and the duties and the responsibilities associated with the jobs

value

orders jobs on basis of skills, relative contribution, duties and responsibility of each job to the organizations goals

determine compensable factors

org asks, what about the work adds value? should be based on: strategy and values of the organization work performed acceptance to stakeholders affected by the resulting pay structure employees must be able to understand why pay is different and there are no accusations of pay discrimination don't double value a factor (problem solving is a % of know how) Hay plan recognizes this

select criterion pay structure

pay structure they wish to duplicate with point plan

market pricing

primary form of job eval though technically not a form of job eval, directly matching as many of your own orgs job to jobs described in external pay studies as possible (internal equity deemphasized)

Choose among eval methods

ranking, classification, point method,

single vs. multiple plans

rarely does employer evaluate all jobs at the same time usually just a related group of jobs at a time many employers create different eval plans for different types of work can be applied acreoss the board: Hay Plan and poisition analysis questioinaire

Weight the Factors According to Importance

represent the importance of each individual factor to overall value of the job

job evaluation

the process of determining the relative worth of the various jobs within a firm based on a combination of job context, skills required, value to an org culture, and the external market. perspectives differ on whether job evals are based on job content or job value important tool for orgs that wish to differentiate themselves from competitors. helps gain acceptance of pay differences among jobs.

conduct a job analysis

typically a representative sample of jobs (benchmark jobs) is drawn for analysis

criteria of ranking

usually, ill-defined and usually become subjective opinions evaluators must be knowledgeable of every single job being ranked

Internal Alignment

work relationships within an org ---> job analysis----> job description---> job evaluation----> job structure