Lecture 2b Evaluation - SPC 104: Organisational Psychology...

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Unformatted text preview: SPC 104: Organisational Psychology Department of Psychology School of Health and Natural Sciences Sunway University College Year 1 Semester 3 Lecture 2b: Job Evaluation Job Evaluation • A procedure for assessing the relative value of jobs in an organisation for the purpose of establishing levels of compensation (Muchinsky 2006) • The process of determining the monetary worth of a job (Aamodt 2007) The Ideal Compensation System • Will attract and retain desired employees • Will motivate current employees while also providing security • Is equitable • Is in compliance with legal guidelines Determining Pay Equity • Internal: employees within an organisation are paid fairly compared with other employees within the same organisation • External: employees within an organisation are paid fairly compared with other employees in other organization Determining Internal Pay Equity Step 1: Determining Compensable Factors • Compensable Factors: dimension of work used to determine the value of a job • Examples – responsibility – Education/ training/ experience – Physical/ mental demands – work environment Step 2: Determine Levels for Each Compensable Factor Responsibility Makes no decisions Makes decisions for self Makes decisions for 1-5 employees Makes decisions for > 5 employees 1 Step 3: Determine Factor Weights Factor Weight Responsibility 30 Education 20 Physical demands 15 Safety 10 Experience 25 Total 100% Points 300 200 150 100 250 1000 Step 4: Assign Points to Each Level Responsibility Points Makes no decisions Makes decisions for self Makes decisions for 1-5 employees Makes decisions for > 5 employees Total 75 150 225 300 300 Step 5: Assign Points to Each Job Position: Production Supervisor Factor Education Responsibility Physical demands Safety Experience Total Points 200 300 150 100 250 1000 Determining External Pay Equity • Based on external market • Determined through salary surveys • Information obtained – Salary range – Starting salary – Actual salaries paid – Benefits • Other Compensations • Pay for time not worked (holidays, sick days) • Deferred income (EPF) • Health protection (medical insurance) • Perquisites or “Perks” (company car) • Allowances 2 ...
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