What Is Job Evaluation?

Transcription

1 Job Evaluation

2 What Is Job Evaluation? process of systematically determining relative worth of jobs to create a job structure for the organization. The evaluation is based on a combination of job content, skills [competencies] required, value to the organization. (Newman, Gerhart, & Milkovich, 2017, p. 141)

3 Ex. 5.3: Determining the Internal Job Structure Internal relationships in organization Job analysis Job descriptions Job evaluation Job structure Comparison of jobs within an organization (adapted from Milkovich, Newman, & Gerhart, 2014, p. 138)

4 Major Decisions Establish purpose Supports organization strategy Supports work flow Fair to employees Motivates behavior toward organization objectives Single vs. multiple plans Choose a method/technique (Newman, Gerhart, & Milkovich, 2017)

5 Characteristics of a Benchmark Job Contents well-known and relatively stable over time Job is common across several different employers Sizable proportion of work force employed in job (Newman, Gerhart, & Milkovich, 2017)

6 Benchmark Jobs (Newman, Gerhart, & Milkovich, 2017, p. 145)

7 Methods: Ranking Orders job descriptions from highest to lowest based on a global definition of relative value or contribution to organization s success Two variations Alternation ranking Paired comparison method (Newman, Gerhart, & Milkovich, 2017)

8 Exhibit 5.7: Paired Comparison Ranking (Newman, Gerhart, & Milkovich, 2017, p. 148)

9 Methods: Classification Uses class descriptions that serve as standard for comparing jobs Classes include benchmark jobs Outcome Series of classes with a number of jobs in each See Exhibit 5.8 (Newman, Gerhart, & Milkovich, 2017)

10 Point Method Most commonly used approach to establish pay structures in U.S. (NOT including market pricing ) Differ from other methods by making explicit the criteria for evaluating jobs -- compensable factors Three common characteristics of point methods Compensable factors Factor degrees numerically scaled Weights reflect relative importance of each factor (Newman, Gerhart, & Milkovich, 2017)

11 Designing a Point Plan: Eight Steps 1. Conduct job analysis 2. Determine compensable factors. 3. Scale the factors. 4. Weight the factors according to importance. 5. Select criterion pay structure. 6. Communicate the plan, train users, prepare manual. 7. Apply to non-benchmark jobs. 8. Develop online software support. (Newman, Gerhart, & Milkovich, 2017)

12 Example: Generic Compensable Factors Skill Effort Responsibility Working conditions (Milkovich & Newman, 2008)

13 Example: Generic Factor - Skill Technical know-how Specialized knowledge Organizational awareness Educational levels Specialized training Years of experience required Interpersonal skills Degree of supervisory skills (Milkovich & Newman, 2008)

14 Exhibit 5.5: Comparison of Job Evaluation Methods Ranking Advantage Fast, simple, easy to explain. Disadvantage Cumbersome as number of jobs increases. Basis for comparisons may not be clear. Classification Can group wide range of work in one system. Descriptions may leave too much room for manipulation. Point Compensable factors call out basis for comparisons and communicate what is valued. Can become bureaucratic and rule-bound. (Newman, Gerhart, & Milkovich, 2017, p. 146)

15 Final Result: Structure Information provided by structure and hierarchy: Which jobs are most and least valued Relative amount of difference between jobs (Newman, Gerhart, & Milkovich, 2017)