Evaluating the Process of Job Evaluation other factors Determining Pay – Part 1

Evaluating the Process of Job Evaluation other factors Determining Pay – Part 1

Human resources department of an organization has to make sure that employees will be rewarded according to the contributions they make. It can be evaluate the process of job evaluation and other factors determining pay as follows.

"Job evaluation is a systematic process for defining the relative worth or size of jobs within an organization in order to establish internal relativities. It provides the basis for designing an equitable grade and pay structure, grading jobs in the structure and managing job and pay relativities" (Armstrong, 2006).

Figure 1 - Job Evaluation Methods (Author Developed)

Job evaluation develops a plan for comparing jobs in terms of those things within the Organization considers important determinants of job worth. This process involves a number of steps that will be briefly stated here and then discussed more fully.

• Job Analysis: The first step is a study of the jobs in the organization. Through job analysis, information on job content is obtained, together with an appreciation of worker requirements for successful performance of the job.
• Developing the Method: The third step in job evaluation is to select a method of appraising the organization's jobs according to the factor(s) chosen. The method should permit consistent placement of the organization's jobs containing more of the factors higher in the job hierarchy, than those jobs lower in the hierarchy.
• Job Structure: The fourth step is comparing jobs to develop a job structure. This involves choosing and assigning decision makers, reaching and recording decisions, and setting up the job hierarchy. Wage Structure. The final step is pricing the job structure to arrive at a wage structure.

Walker (1992) declares, after job analysis preparations of job descriptions comes the essential stage of job evaluation, namely, the systematic comparison of jobs in order to establish a job hierarchy. The techniques which have been commonly used tend to fall into one of the two main categories: Non-analytical or Non-quantitative or summary methods Analytical or Quantitative methods. Qualitative methods are: Job ranking and Job classification or grading. Quantitative methods are Factor Comparison and Point rating or assessment.

According to the Jaffee (2001), the job description is the basis for a job evaluation. The result consists of assigning jobs to salary grades. The job evaluation methodology used to establish relative worth is a market pricing and slotting approach that focuses on the following components:

• External Value: The Organization reviews and analyzes published competitive salary survey information, which has been gathered and prepared by internationally recognized consulting firms. The analysis takes into consideration strength of job match, company size, industry, geography, and ownership.
• Internal Value: The Organization reviews and analyzes the job documentation to determine the position scope, complexity, and potential impact to the specific factors such as skill, effort, responsibility and working conditions required to successfully perform the job.

The Human Resource Services Department will assign the appropriate job title and salary grade and forward the written determination to the Director/Manager who initiated the request. The manager should discuss the determination with the affected employee(s).

*Note: to be continued. Next Article will be the specification of other factors determining pay.

References

Armstrong, P. and Michael K. (2006) A Handbook of Human Resource Management Practice.10th Ed. New York. Oxford University Press.

Jaffee, D. (2001) Organization Theory: Tension and Change. 4th Edition. New York: McGraw-Hill.

Walker, J.W. (1992) Human Resource Strategy. 4th Edition. New York: McGraw-Hill.