Module 7: Selection and Implementation Issues Flashcards
Selecting a Job Evaluation Strategy
Business Environment: the key HR and business factors that contribute to the success of the organization including:
- labor supply
- union influence
- ability to offer competitive pay
Organizational Culture: the structure, processes, style, and history of an organization including:
- decision making mode (centralized or decentralized)
- demand for quick re-evaluation due to changes in job content
- management style
- level of overall support for the HR function and compensation specifically
- degree of openness in compensation communication
Organizational Design: the way work is structured.
- job based or team based, or a combination
- flat (broadbanded) or hierarchical management structure
- relatively stable or rapidly changing
Top management approval and support: senior management decisions and direction
- budget for staffing and training in job analysis, job documentation, and job evaluation
- use of outside instead of inside consultants
- level of commitment to final results
- communication style
Compensation function - the structure, size, and competency
- centralized versus decentralized
- size of compensation staff
- technical competence in job analysis, job documentation, and evaluation
- availability of labor market data
Market pricing
- market data emphasis
- cannot be used in isolation in “pay equity” or “comparable worth” jurisdictions
- market determines organization pay philosophy
- easy to communicate
Ranking
- job content emphasis
- NONQUANTITATIVE or WHOLE JOB
- little training required
- evaluators may bring different judgment criteria to exercise
- no detail / documentation to justify evaluation
Classification
- job content emphasis
- NONQUANTITATIVE or WHOLE JOB
- little training required
- job descriptions can be inflated to fit a classification
- generally not practical for companies with numerous, diverse job families
Job Component
- job content emphasis
- QUANTITATIVE or FACTOR
- statistically accurate and relatively objective
- management oriented
- often perceived as “black box”
Point Factor
- job content emphasis
- QUANTITATIVE or FACTOR
- easy to evaluate new or revised jobs
- relatively objective
- compensable factors can be tailored to company
Slotting
- a technique used within some already established job evaluation method
- involves placing a job into a category or classification
Implementation Issues
Committee vs Non-committee approach
-a job evaluation committee may be used to assist the HR dept in evaluating some or all jobs to be covered by the plan.
Cost of Development
- limited budgets may preclude complicated systems
- cost of lost productivity may be prohibitive
- cost of gathering data for evaluation
Communicating job evaluation results
- implementing a new job evaluation plan requires decisions on how the results will be communicated throughout the organization. plan administrators must be able to address the following issues
- level of detail regarding individual evaluation
- appeals process when employee challenges evaluation result
- procedures established to evaluate new and revised jobs in the future
Centralized or Decentralized
- determine whether there is a greater need for standardized results or divisional flexibility
- complicated or highly complex systems are difficult to decentralize
- for organizations with multiple locations, will implementation be handled by the corporate office or be delegated to each division location?
Effect on jobs and individuals
- consider how resulting changes in the pay hierarchy will affect the pay rate for specific jobs
- consider how individual pay will be adjusted based on changes to job hierarchy and base pay structure
Job Evaluation Committee Members
successful committee includes who:
- represent major functional areas throughout the organization
- are well respected and perceived as knowledgeable about the jobs to be evaluated
- represent comparable levels of power and influence
- understand the importance of the job evaluation process and are committee to making it work
- will be open minded and respect the opinions of others on the committee
- will work to support the integrity and credibility of the system, as opposed to potential “horse trading”
Advantages and Disadvantages of Job Evaluation Committees
Advantages:
- they can clarify job content information found in job documentation
- they can improve the accuracy of job evaluation ratings
- they can substantially enhance the credibility of job evaluation results
Disadvantages:
- it may be difficult to gain the commitment of time necessary to complete evaluations withing a reasonable time frame
- turf issues and territorial bias can be difficult and time consuming to resolve
- judgments may be more incumbent biased
Tips for Success
- confirm final evaluation results with senior managers
- utilize communication tools such as manager information kits and FAQs
- anticipate concerns by identifying jobs and incumbents most impacted by the new program before announcing the results
- create a feedback loop in the process to uncover issues as quickly as possible
Introducing a New Job Evaluation Plan
- fit with organization, culture, strategy
- selection of appropriate benchmark positions
- education and communication about job evaluation to employees and management
- how the new plan supports company strategy
- how the plan works and how it supports the business objectives of line management
- how the plan helps the company determine pay and manage pay programs fairly and consistently
- involvement of management and employees in design and implementation
- appropriate selection and weighting of compensable factors - what you value and for which you want to pay
Q: Identify and describe some of the factors that should be considered when selecting a job evaluation strategy
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Q: Identify the characteristics that may be used to assess the suitability of different job evaluation methods and differentiate between methods based on these characteristics
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Q: Explain the implementation issues related to job evaluation
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