Untitled Deck Flashcards
(21 cards)
what is the definition of job evaluation?
It is the systematic and objective process of comparing one job to another to arrive at different job levels/ hierarchy
- grade the job, not the person
what are the 2 stages in the job evaluation process?
1: Job grading: evaluate only the job based on its content, resp + complexities. dont consider the indiv
2: Salary Structure: assign monetary values + pay ranges for the grades est in stage 1.
- external factors + internal factors taken into consideration
what is the need for job evaluations?
- as orgs grow + become more complex
- grow = more structure = sections created
- sections = sectional manager who is in charge of hiring, firing + remuneration
- this decentralisation leads to discrepancies in pay rates between divisions and similar jobs with similar skills
- due to lack of co-ordination
-plays a vital role in legislative compliance, particularly in countries with pay equity or “equal pay for work of equal value” legislation. Having a job evaluation system helps organisations “more easily explain why certain categories of employees earn commensurate amounts of pay.”
what are the key indicators that highlight the need for job evaluation?
-“A variety of pay rates exists for variety of reasons.”
-“Similar jobs are rewarded on different levels.”
-“There are constant demands for parity, and general dissatisfaction.”
-“There is no logical basis for the pay structure.”
-“‘Job values’ are confused with ‘person values’.”
when to use job evaluation?
applied when “discrepancies are seen in interdepartmental hierarchies regarding job values” and “where salaries and wages are not equitably distributed.”
-Addressing existing pay inconsistencies: As highlighted above, it’s crucial when a variety of pay rates exist for unclear reasons and similar jobs are paid differently.
-Demands for parity: When employees are requesting equal pay for what they perceive as equivalent work.
-Lack of coordination and logical basis for pay: When the existing pay structure feels arbitrary or unmanaged.
-Confusion between job value and person value: When compensation is being driven by individual attributes rather than the requirements of the role.
-Organisational structure reviews: The process provides valuable insights into reporting relationships, spans of control, and job design.
-Development of career paths: Job evaluation helps to create a clear hierarchy, making it easier to plot potential career progression routes.
What is job grading?
The ranking of or assigning of levels to jobs as a result of job analysis.
what is job specifications?
The qualifications, experience and personal qualities required by the jobholder (mainly used for recruitment).” This focuses on the requirements for the person filling the role.
what are the benefits of job evaluations?
- Logical graded hierarchy + pay structure: this provides a clear and understandable framework for job levels and their associated pay ranges
- Reduced inequality: by providing a consistent rationale for pay, job evaluations help to minimise perceived unfairness + promotes = work for = pay
- Fair wage + salary admin: this process is objective and transparent - promotes trust
- Compliance with leg: helps in meeting legal requirements regarding pay equity
- Career pathing: a clear hierarchy helps to map out potential progress routes for EEs - promotes skills development
Job evaluation has 2 stages, namely ?
- Job-grading
- Salary structure
what are the key steps in stage 1 of the job evaluation process?
- Selecting a job evaluation system
- Selling the concept + the system
- Designing a J.D form
- Deciding how many J.D are needed
- Training the J.D writers
- Monitoring quality of J.D
- Training the grading committee
- Grading the job
9 Audit the jobs
what are the key steps in stage 2 of the job evaluation process?
- wage + salary structuring, benefits and incentives
- checking conditions of service
- develop a plan to implement
- implement
- designing the maintenance system
- explain the system
- compile procedures manual
key differences between the two stages?
Stage 1 is “Inflexible; the grading rules must be applied
“Stage 2 is “Flexible; individuals can be paid anywhere along the pay scale in line with the organisation pay progression policy.”
why job evaluations systems fail?
- Weak initial implementation: Lack of proper planning, training, or resources during the rollout.
2.Weak top management support: Without clear backing from leadership, the system lacks credibility. - Lack of employee participation and support: If employees don’t understand or trust the process, it will face resistance.
- Lack of communication: Failing to explain the process and its rationale to employees
- System is not managed: The system is not regularly reviewed or updated.
- Lack of transparency: A lack of openness about the process breeds distrust.
what are the comments regarding choosing a job evaluation system?
Virtually all job evaluation methods used world-wide… produce almost identical hierarchies.” Therefore, the choice of a system is less about finding a scientifically superior method (as “There is no such thing as a scientific method of job evaluation”) and more about selecting one that fits the organisation’s context.
what are the key criteria for selecting a job evaluation system?
- Understanding and commitment from the Chief Executive.
- Understanding and acceptance by all employees.
- Defensibility of the system.
- Low administrative burden for updating and maintaining.
- Flexibility to accommodate changes and different grading approaches.
- User-friendliness and alignment with organisational culture.
what are the different types of job evaluation systems?
Ranking, Factor Comparison (like Hay), Points Methods (like Peromnes), and Classification Methods (like Paterson)
Ranking Method – Simple job-to-job comparison.
Point-Factor Method – Scores jobs on factors (e.g., skills, responsibility).
Classification Method – Matches jobs to predefined grades (e.g., Paterson, TASK).
Job evaluation supports numerous HR functions such as ?
recruitment, training, performance management, and career pathing.
success of a job evaluation system depends heavily on ?
strong management support, employee participation, clear communication, and ongoing maintenance
Upgrading jobs without a genuine change in content is a significant threat to ?
the system’s integrity.
What are the popular misconceptions?
- The following misconceptions need to be overcome:
- “Everyone will get a big increase.”
- “The new hierarchy will be very different and difficult to recognise.”
- “There will be many changes in status.”
- “Some people will have their pay reduced.”
- “Job evaluation solves all problems.”
- “We don’t need job descriptions.”
