Job Evaluation

Job Evaluation - JOB EVALUATION GENERAL Traditional...

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JOB EVALUATION
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GENERAL Traditional approach to establishing the relative worth of jobs Assesses the extent to which compensable factors are present in different jobs Typical compensable factors, based on the EPA, are skill, effort, responsibility, and working conditions
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REASONS FOR JE To establish orderly, rational, and systematic job structures based on relative worth to the organization To justify existing pay structures or to develop new ones that provide for internal equity To set pay rates that are comparable to similar jobs in other companies To provide a rational basis for negotiating pay rates in collective bargaining situations
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MORE REASONS To identify compensation progression ladders To comply with equal pay legislation To provide a rational framework within which to use incentive compensation systems
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GENERAL ISSUES Evaluate the jobs , not the job holders Develop a system for evaluating several jobs at once Combined judgment of several people superior to individual judgment Accuracy of job evaluation determined by the accuracy of job information available Logical to pay more for jobs that contribute more to the organization Internal equity achieved by paying according to relative worth
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COMPENSABLE FACTORS – US DoL Skill : The experience, training, education, and ability required to perform a job under consideration – not the skills an employee may possess Effort : The measurement of the physical or mental exertion needed for performance of a job Responsibility : The extent to which an employer depends on the employee to perform the job as expected, with emphasis on the importance of the job obligation Working Conditions : The physical surroundings and hazards of a job, including dimensions such as inside vs. outside work, excessive heat or cold, fumes and other factors relating to poor ventilation
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METHODS Whole Job Parts of Job Job vs. Job Ranking Factor Comparison Job vs. Scale Job Grading or Classification Point
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ABOUT METHODS The point system is the most common job evaluation method, followed by factor comparison , grading , and ranking , in that order All job evaluation techniques use some variation of the compensable factors discussed in the EPA
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Factor Comparison Method
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General Complex technique, requiring trained evaluators Several steps involved Select key or “benchmark” jobs Rank key jobs by factor/sub-factor Resolve disputes within committee Divide wages for each job across factors** Build master schedule Evaluate other non-key jobs
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This note was uploaded on 03/14/2011 for the course MGMT 4953 taught by Professor Staff during the Spring '11 term at Arkansas.

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Job Evaluation - JOB EVALUATION GENERAL Traditional...

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