Module 6--Quantitative Job Evaluation Methods Flashcards
What are the two Quantitative (or Factor) Job Content Evaluation Methods?
Job Component
Point Factor
What is the major difference between non-quantitative and quantitative methods?
The major difference between nonquantitative and quantitative job evaluation is that the quantitative method assigns a specific
total point score to each job being evaluated.
What are Compensable Factors when using Job Component (or point factor) methods of Job Evaluation?
■ A compensable factor may be described as:
* Any criterion used to provide a basis for judging job value in order to create a job worth hierarchy
* The elements used to measure job worth
* Intrinsic elements in jobs that add value to the organization and for which it wants to pay
What are the “generic” Compensable Factors?
skill, effort, responsibility and working conditions.
What is the process for selecting Compensable Factors used in Quantitative Job Evaluation?
■ Identify the organization’s internal values
* Formal documentation – mission statement, business strategy, HR philosophy
* Discussions with senior management
■ Review the job content of the work group to be covered by the plan
* Common characteristics
* Diverse characteristics
* Industry-specific considerations
* Unique aspects
■ Identify five to 12 potential factors for consideration by management
* Committee process
* Individual interviews with key managers or employees
* Statistical analysis
* Combination of the above
■ Obtain key management’s support and stakeholder acceptance
■ Determine factors to be used
* Select effective factors – Factors should:
– Differentiate job value; avoid measuring the same or similar job characteristics more than once
– Have a logical relationship to overall job value
– Be common to all jobs being evaluated
– Cover all major aspects of job requirements for which the organization is willing to pay
– Be manageable; limit factors used to a reasonable number
Failure to do the above increases administrative time without adding meaningful information and may create systematic bias for or against certain jobs.
* Include all important factors – Failure to do this may inadvertently discriminate for or against certain jobs, or may produce a job worth hierarchy inconsistent with internal values.
How do you Define Compensable Factors?
■ Develop a clear and comprehensive definition for each factor
■ Define the highest and lowest levels of each factor present in the work group to be covered by the plan
■ Create intermediate levels from lowest to highest by defining a logical progression that reflects reasonable differences
What should you consider when Defining Compensable Factors
■ Create a job worth hierarchy consistent with management’s perception of relative job worth
■ Establish proper number of levels
* Too many levels
– Forces artificial distinctions between degree levels
– Requires highly detailed job documentation
– Increases administrative time
– Encourages requests for re-evaluation which results in “grade creep”
- Too few levels
– Does not adequately differentiate important aspects of job value
– May not fully cover the range of work performed - Overlapping levels
– Difficult to select the appropriate level
– Adjacent level descriptions are too similar
How should the “Weighting” Compensable Factors be based on?
■ Consider the nature of the work performed by job group(s) covered under the plan
■ Rank the factors selected in order of priority for the organization
■ Develop initial factor weights as a percentage, derived by statistical analysis, management judgment, or a combination of the two
■ Review with key management and other stakeholders, as appropriate
What is the Job Component Method of Job Evaluation method?
■ Statistically developed – As opposed to the simpler ranking methods described earlier, the job component method uses statistical analysis to determine job value.
■ Identifies factors / factor weights that explain market levels – The job component method is used to identify the specific factors and factor weights that help to explain the market pay levels of benchmark jobs.
■ May be used to evaluate nonbenchmark jobs – Once a statistical model has been developed under the job component method, nonbenchmark jobs can then be evaluated using the model.
What are the advantages of using the Job Component Method?
■ Objective
■ Comprehensive
■ More Statistically Accurate
■ Involves Management in selection of compensable factors
■ Streamlines Administration
■ Results in database of information
■ Ease of reporting
What are the Disadvantages of using the Job Component Method?
■ Time-Consuming for front end question development
■ Complex, therefore difficult to communicate to employees
■ Often perceived as a “black box”
■ Expensive
What is the Point Factor Method of Job Evaluation?
■ The point factor method of job evaluation uses defined factors and degrees to establish job value.
■ Job descriptions are compared to the definitions of degrees in order to determine the most appropriate level.
■ The corresponding points for that level are then awarded to the job and combined for all factors to derive a total score.
What is the Method for Point Factor Method?
Overview
Step 1 Select compensable factors to be used to evaluate the jobs
Step 2 Define factors and degree levels within each factor – weight each factor as a percent of 100
Step 3 Assign points to each degree level
Step 4 Analyze and describe jobs in terms of the compensable factors
Step 5 Determine which degree level of each factor best fits the job and assign respective point values
Step 6 Total points for each job and arrange a job worth hierarchy based on total points
What are the Advantages of the Point-Factor Method?
Advantages
■ Relatively reliable
■ Relatively objective
■ Easy to evaluate new or revised jobs
■ Compensable factors can be tailored to company
■ The degree of difference between jobs is apparent
■ Responsive to pay equity laws and comparable worth parameters
What are the Dis Advantages of the Point-Factor Method?
Disadvantages
■ Expensive to develop or purchase
■ Time-consuming to design and implement
■ Cumbersome if many jobs are to be evaluated
■ Creates inflexible hierarchy
■ Ability to evaluate and score the job to achieve a specific level
