Module 5

Question 1

What is the focus of Job-Based Pay structures?

Answer 1

> Job Evaluation

Question 2

What is job evaluation?

Answer 2

> Job Evaluation is the process of determining the relative worth of jobs and creates the foundation for the pay structure.

Question 3

What are three components of job evaluations?

Answer 3

1) How to Determine what to value in a Job;

2) How to Quantify this Value;

3) How to Translate the Value into Job Structure (Hierarchy of All Jobs)

Question 4

What is job content?

Answer 4

> Refers to all the skills required for the job, its duties and responsibilities.

Question 5

What is job value?

Answer 5

> Refers to the relative contribution of the job to the organization’s goals.

Question 6

What is the link to the external market?

Answer 6

> If the skills required to do the job content demand high wages in the market, then skill would be a useful way to distinguish between jobs in the evaluation.

Question 7

Researchers have their own perspectives on job evaluation; what is it?

Answer 7

> if job value can be quantified then job evaluation also takes on measurement characteristics such as objective, numerical, documented and reliable.

Question 8

Job evaluation - establishing the purpose involves:

Answer 8

> Supports the organization’s strategy by including what it is about work that adds value contributes to the organization’s objectives.

> Supports the workflow by integrating each job’s pay with its relative contribution to the organization.

> Can reduce disputes and grievances over pay differences that decrease the role that chance, favouritism and bias may play in setting pay.

> Must befair to employees.

Question 9

What is a single plan?

Answer 9

> A single plan uses the same factors to evaluate all job families across the organization.

Question 10

What is multiple plans?

Answer 10

> Multiple plans use different evaluation plans for different job families (ie. clerical vs management vs production).

Question 11

What is ranking? How many ranking methods are there?

Answer 11

> Ranking is a job evaluation method that ranks jobs from highest to lowest based on a global definition of value. There are two common methods: Alternation Ranking and Paired Comparison Methods.

Question 12

The Alternation Ranking method is:

Answer 12

> The Alternation Ranking method ranks the highest and lowest jobs first whereas in the Compared Comparison Method lists all jobs across columns and down rows of a matrix and compares two jobs in each cell and determines which job is of greater value.

> Then jobs are ranked based on the total number of times each job is ranked of being of greater value.

Question 13

What are classification methods?

Answer 13

> Classification methods are widely used in the public sector and based on job class descriptions into which jobs can be categorized.

> General class descriptions are created and benchmarked jobs are slotted into each class.

> Then the written job descriptions are compared to the class description, which are anchored with the benchmark jobs.

Question 14

Benchmark Jobs have contents that are:

Answer 14

> well known and relatively stable over time; the job is common across a number of different employers; it is not unique to a particular employer.

Question 15

Typically a job evaluation plan is developed using:

Answer 15

> using benchmark jobs, and then the plan is applied to the remaining non-benchmark jobs.

Question 16

Point Method Plans (Recommended By Pay Equity) all have the following common characteristics:

Answer 16

1) Compensable factors

2) Numerically scaled factor degrees

3) Weights that reflect the relative importance of each factor

Question 17

What does the point method entail?

Answer 17

> The point method assigns a number of points to each job based on compensable factors that are numerically scaled and weighed. The sum of the points for each job determines its position in the job structure.

Question 18

What are the six steps in the he Design of a Point Plan?

Answer 18

1. Conduct Job Analysis
2. Determine Compensable Factors
3. Scale the Factors
4. Weigh the Factors According to Importance
5. Communicate the Plan and Train Users
6. Apply to Non-benchmark jobs

Question 19

What are compensable factors and what are they based on?

Answer 19

> Compensable Factors are characteristics in the work environment that the organization values that help it pursue its strategy and achieve its objectives.

> Factors are based on the work itself, strategy and values of the organization and acceptable to the stakeholders.

Question 20

What are compensable factors based on / what do they reflect?

Answer 20

> Are based on the strategy and values of the organization: jobs that align more closely to this are evaluated more highly.

> Factors based on the work performed implies that the factors reflect the work performed in the organization

> Acceptable to the stakeholders reflects that all are involved in the process

Question 21

Factors from existing plans demonstrate four generic groups:

Answer 21

> skills, effort, responsibility and working conditions.

Question 22

Scales within the factors need to be enough degrees to do what?

Answer 22

> be enough degrees to adequately distinguish jobs but not so many that it is difficult to determine which degree is appropriate for a given job.

Question 23

What do weights do?

Answer 23

> Weights reflect the importance of that to the organization and can be done either by committee judgement or statistical analysis.

Question 24

What are factor weights applied to?

Answer 24

> Factor weights are assigned to each factor to reflect differences in importance attached to each factor by the employer.

Question 25

What is a criterion pay structure?

Answer 25

> Criterion Pay Structure: The structure may be chosen based on current rates paid for benchmark jobs, market rates for benchmark jobs, rates for predominantly male jobs or union negotiated rates. The Criterion Pay Structure step is key as the weights are based on it.

Question 26

A job evaluation manual should be prepared for use by what groups?

Answer 26

> for use by employees and managers charged with the responsibility to implement job evaluation (usually a committee). > Users must be trained to use the manual.

Question 27

Finally, it is necessary to combine factor scales and weights to translate them to what?

Answer 27

> actual job points.

Question 28

How are factor scales and weights combined and translated into actual job points?

Answer 28

> This is done by dividing maximum points for the system among the factors according to their weights and each degree of a factor is given an equal number of points based on the points for that factor.

Question 29

Who should be involved in job evaluations?

Answer 29

> Those involved should be those who require relevant information and can commit a high degree of involvement in the assessment of the evaluation and structures.

Question 30

What is notable about: evaluation and appeals/review processes?

Answer 30

> Evaluation Usefulness of Results: The Design Process Matters. Make sure you attend to the fairness of the overall design and the approach chosen. > Appeals/Review Procedures: No matter the process, some jobs are evaluated incorrectly; a review process to handle such cases and to help ensure procedural justice (fairness) is required.

Question 31

Define job evaluation:

Answer 31

> process of systematically determining the relative worth of jobs to create a job structure within an organization

Question 32

The evaluation is based on:

Answer 32

> on a combination of job content, skills required, value to the organization, organizational culture, and the external market

Question 33

What is considered a strength and a challenge to job evaluation?

Answer 33

> This potential to blend organizational forces and external market forces is both a strength and a challenge of job evaluation.

Question 34

Major Decisions in Job Evaluation:

Answer 34

 Establish purpose of evaluation  Decide whether to use single or multiple plans.  Choose among alternative approaches.  Obtain involvement of relevant stakeholders.  Evaluate the usefulness of the plan.

Question 35

A structure is aligned if it:

Answer 35

 supports organization strategy,  supports work flow,  is fair to employees, and  motivates behavior toward organization objectives.

Question 36

Establishing a purpose helps ensure the evaluation is:

Answer 36

> is a useful systematic process.

Question 37

The number of job evaluation plans hinges on:

Answer 37

> how detailed it needs to be to make pay decisions, and how much it will cost.

Question 38

What is job ranking and what are two types:

Answer 38

> Raters examine job description and arrange jobs according to their value to the company  Types: Simple, Alternation & Paired Comparison

Question 39

What is job classification?

Answer 39

> Classes or grades are defined to describe a group of jobs

Question 40

What is the point method?

Answer 40

> Numerical values (points) are assigned to specific job components; sum of values provides quantitative assessment of the job’s worth

Question 41

What is simple ranking?

Answer 41

> Orders job descriptions from highest to lowest based on relative value

Question 42

What are the advantages and disadvantages to simple ranking?

Answer 42

 Advantages:  Simple, fast, and easy to understand and explain to employees; least expensive, initially.  Disadvantages:  If ranking criteria is poorly defined, evaluations become biased.  Evaluators must be knowledgeable about every job.  Results are difficult to defend and costly solutions may be required.

Question 43

What is alternation ranking?

Answer 43

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

Question 44

What is Paired Comparison?

Answer 44

 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.

Question 45

What is involved in the classification method?

Answer 45

 A series of classes covers the range of jobs.  Class descriptions are the labels which capture general nature of work.  Job descriptions are compared to class descriptions to determine class level.  Greater specificity of the class definition improves the reliability of the evaluation.  To determine the number of classes and to write class descriptions, define boundaries between each class.  The end result is a job structure made up of a series of classes with a number of jobs in each class.

Question 46

What is the point method?

Answer 46

 This method allows the assignment of a numeric score to each job in an organization, through the identification of factors that are valued by the organization.  This procedure results in a relative ordering of jobs based on the number of points that each job “scores”.

Question 47

What is involved in Step 1: Conduct Job Analysis?

Answer 47

> A representative sample of benchmark jobs is drawn for analysis.

Question 48

What are notable things about benchmark jobs?

Answer 48

 Its contents are well known and relatively stable over time.  The job is common across employers.  A reasonable proportion of the work force holds this job.  Should capture the diversity of work

Question 49

What are compensable factors?

Answer 49

> Characteristics in the work that the organization values, that help it pursue its strategy and achieve its objectives.

Question 50

Compensable factors should be:

Answer 50

 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.

Question 51

The four universal compensable factors are:

Answer 51

> Skill, Effort, Responsibility and Working Conditions.

Question 52

Number of Compensable Factors – Challenges

Answer 52

 Some factors may overlap or fail to account for unique criteria.  The belief that factors capture divergent aspects of a job.  Another challenge is called “small numbers”.  If even one job has a certain characteristic, it is used in the entire work domain.

Question 53

What is involved in Step 3: Scale the Factors?

Answer 53

 Factors are scaled for presence  Most factor scales have 4 to 8 degrees

Question 54

What is the criteria for scaling factors?

Answer 54

 ensure the number of degrees is necessary to distinguish jobs,  use understandable terminology,  anchor degree definitions with benchmark job titles and/or work behaviors, and  make it apparent how the degree applies to the job

Question 55

What is involved in Step 4: Weight the Factors?

Answer 55

 Factors are weighted for importance  Factor weights reflect the relative importance of each factor  Weights are often determined through an advisory committee – a priori judgment approach  Statistical modeling techniques determine the weight for each factor – this statistical approach is called policy capturing

Question 56

What is involved in Steps 5 & 6 Communicate, Train & Apply?

Answer 56

 Step 5: Communicate the plan and train users  Prepare a manual and train users.  An appeals process may be included for employee recourse.  Employee acceptance is crucial.  Step 6: Apply to remaining jobs

Question 57

Who Should Be Involved?

Answer 57

> Design should involve managers and employees with a stake in the results > A common approach is to use committees, task forces, or teams that include:  Employees from key operating functions  Union representatives  Compensation professionals  Consultants

Question 58

The Design Process Matters - Why?

Answer 58

 Fairness of the design process helps achieve:  employee and management commitment, trust, and acceptance of results.  Appeals/review procedures are required.  This ensures procedural fairness.  Procedures should be judged for their susceptibility to political influences

Question 59

The final result of the job evaluation process is:

Answer 59

> is a hierarchy of work, or a job structure

Question 60

Although the point method allows an organization to develop one job evaluation plan for all jobs in the organization, most times it is difficult to:

Answer 60

> identify one set of compensable factors that is applicable for all jobs

Question 61

Balancing Chaos and Control:

Answer 61

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