Unit 4.3 - Job Evaluation Methods Flashcards
What is the wage structure decision?
How much each job should be paid relative to other jobs in the organization.
What are the 4 methods of job evaluation?
The systematic approach of determining the relative worth or value of each job in an organization.
Methods -
* Ranking - ranking jobs from the highest to lowest in value; most common
- Classification / Grading - Jobs are classified by comparing them with a pre-determined standard and assigning them to levels that best correspond, as a whole, to their duties and responsibilities (ex. GS system by federal government)
- Point method
- Factor Comparison
^ Guide Chart-Profile / Hay Method
What is the Point Method?
Involves analyzing the content of jobs and allocating points for specific compensable factors.
Process -
1. Identify key jobs.
2. Identify job factors used to determine pay levels.
3. Weight the factors according to their contribution to the overall
worth of the job.
4. Divide each factor into degrees that range from high to low and
assign points to each degree.
5. Analyze the job descriptions and reach a consensus about the
degree assignments.
6. Develop a wage curve using key jobs.
Defensible method
What is the Factor Comparison Method?
Involves identifying key job factors and establishing pay based on those factors.
Process:
1. Identify key (benchmark) jobs (5-8 key jobs)
2. Identify job factors
3. Rank jobs
4. Assign monetary amounts to each job on each factor
5. Compare unique jobs
Complex, not as popular
What is the Guide Chart-Profile Method (Hay Method)?
Compensable Factors:
1. Know-how:
Practical/technical knowledge, planning/organizing knowledge, communication skills
2. Problem Solving:
Thinking environment, thinking challenge
3. Accountability:
Freedom to act, scope, impact
Similar to last 2
