Job Evaluation

Question 1

Purposes of Job Evaluation

Answer 1

Supports organizational strategy
Supports workflow
Fair to employees
Motivates behaviour toward organization objectives

Question 2

Job Evaluation

Answer 2

process of systematically determining the relative worth of jobs to create a job structure for the organization
- Hierarchy of all jobs to provide the basis for the pay structure
- based on job content and internal job value

Question 3

Evaluation Methods

Answer 3

Job Ranking
Job Classification
Point Method

Question 4

Job Ranking

Answer 4

raters examine job description and arrange jobs according to their value to the company

Question 5

Job Classification

Answer 5

classes or grades are defined to describe a group of jobs

Question 6

Point Method

Answer 6

numerical values are assigned to specific job components
(sum of points provides assessment of jobs worth)

Question 7

Classification

Answer 7

series of classes covers the range of jobs

Question 8

Class Descriptions

Answer 8

the labels which capture general nature of work

Question 9

Point Method

Answer 9

allows the assignment of a numeric score to each job in an organization
through factors that are valued
results in ordering of jobs based on point system

Question 10

Order the steps in Designing a Point Plan
A) Scale the Factors
B) Communicate and Train Users
C) Conduct job analysis
D) Apply to Remaining Jobs
E) Determine Compensable Factors
F) Weight factors by Importance

Answer 10

C) Conduct job analysis
E) Determine Compensable Factors
A) Scale the Factors
F) Weight factors by Importance
B) Communicate and Train Users
D) Apply to Remaining Jobs

Question 11

Conduct job analysis

Answer 11

• Representative sample of benchmark jobs
• Contents are known and stable
• Job is common across employers
• Reasonable portion of workforce is employed
• Should be representative of job families and levels
  *Based on compensable factors

Question 12

Step 2 in designing a point plan

Answer 12

Based on strategy, values of organization, and work performed
Four Universal Compensable Factors

Question 13

Four Compensable Factors and Descriptions

Answer 13

1. Skill
   - Experience, training, ability, education required to perform a job
2. Effort
   - Measurement of the physical, mental, emotional exertion needed for performance of a job
3. Responsibility
   - Extent which an employer depends on employee to perform job as expected
4. Working Conditions
   - In which the work is being carried out
   - Degree of discomfort, exposure, dirtiness

Question 14

Scale the Factors

Answer 14

Factors are scaled for presence
Criteria for scaling;
- Ensure number of degrees is necessary to distinguish jobs
- Understandable terminology
- apparent how the degree applies to job

Question 15

Weigh the Factors

Answer 15

Weighed on importance
Reflecting relative importance of each factor
Determine through advisory committee
% for each compensable factor equal 100%

Question 16

Communicate the Plan and Train Users

Answer 16

Prepare manual and train users
Appeals process must be included
*Employee acceptance is crucial

Question 17

Evaluating and Pricing Jobs

Answer 17

Determine number of points each job would score
Find market pay for job
Run a regression to establish best fit for pay

Question 18

Who is involved in Job Evaluation?

Answer 18

Managers, and employees with a stake in the results

Question 19

What is a common approach when determining who is involved in the job evaluation process?

Answer 19

Using committees, task forces, or teams that include;
Employees from key operating functions
Union Representatives
Compensation Professionals
Consultants

Question 20

True or False
Organizations have multiple job structures

Answer 20

True!
Organizations commonly have more than one structure applicable to different groups or units
It is difficult to identify one set of compensable factors for all jobs under an organization