Factors of a Job Evaluation Scheme

Factors of a Job Evaluation Scheme
A job evaluation scheme is ?a method to determine the value of each job in relation to all jobs within the organization.? A job evaluation process is useful because sometimes job titles can be misleading- either unclear or unspecific- and in large organizations it?s impossible for those in HR to know each job in detail. The use of job evaluation techniques depends on individual circumstances.
Job evaluation is often used when: establishing the relative value or size of jobs or roles, providing as objective as possible a basis for placing jobs or roles within a grade structure, making certain that consistent decisions will be made about grading jobs or roles, and certifying that the organization meets legal and ethical equal pay for work of equal value requirements and the legal and ethical requirements not to discriminate on grounds of race, disability, sexual orientation or religion. Businesses should evaluate if certain compromises are necessary, and use a job evaluation method to provide an objective standard from which changes can be made.
There are different aims for job evaluation schemes. First, although there are different job evaluation schemes that can be chosen such as analytical or non-analytical, a job evaluation scheme should be analytical so that sexual discrimination will not be an issue. In its Good Practice Guide on Job Evaluation Schemes Free of Sex Bias the Equal Opportunities Commission (EOC) states that: ?Non-discriminatory job evaluation should lead to a payment system which is transparent and within which work of equal value receives equal pay regardless of sex.? Secondly, a job evaluation scheme should be objective. This suggests that the value of the employee?s pay should be based on work performed, and not the job title. Thirdly, the organization that is doing the job evaluation scheme should compare themselves to other competitors in the industry to be sure that their employees are being treated and compensated equally.
Another factor to consider when implementing a job evaluation scheme is the cost. A company has different options when they are choosing an evaluation scheme, whether it be analytical or non-analytical. Obviously, one of the cheapest methods would be for the organization to design their own job evaluation scheme. Still, other companies may choose to buy a package that describes how to implement a job evaluation scheme. A final option would be for an organization to hire a consultant to build a package that is appropriate for the organization.
The final factor when implementing a job evaluation scheme the nature of the job.
A job evaluation can take the form of: A non-analytical scheme in which whole jobs are compared with each other, without any attempt to break the jobs down and analyze them under their various demands or components. Non-analytical schemes are particularly prone to sex discrimination because where whole jobs are being compared (rather than scores on components of jobs), judgments made by the evaluators can have little objective basis other than the traditional value of the job. Examples of non-analytical schemes include the ordering method (or ranking method), and paired comparisons. These consist almost entirely of drawing up a list of jobs in rank order. A non-analytical job evaluation scheme does not provide a defense against an equal value claim. The rationale for a non-analytical job evaluation scheme is that it produces a hierarchy of jobs that is close to the ?I felt it was fair? ranking of these jobs in the minds of the people working in the organization. But in many cases the fact that the jobholders in a particular job are predominantly male or predominantly female influences the placing of that job within the overall rank order. A non-analytical job evaluation scheme can bring about a situation in which the jobs most frequently performed by women are regarded as having less value than those mostly performed by men. Examples of this would be where different job titles are applied to workers of different sexes who are in fact doing the same work, or where a ?mail? job which has become deskilled is still regarded as skilled, even though it is now equivalent to ?female? semi or unskilled jobs.
Job descriptions should, however, enable jobs to be assessed according to a common standard, and the people responsible for the preparation of the job descriptions should be trained in the importance of ensuring that these do not omit aspects of women?s jobs nor over-emphasize those job characteristics which are missing from jobs typically performed by women. Different job titles should reflect differences in the work being done.
Job evaluation schemes can also take the form of analytical schemes. An analytical scheme in contrast to a non-analytical scheme has a completely different rationale. An analytical scheme breaks a job down into different components based on specific criteria. These criteria are awarded a points value based on a pre-determined weighted value. They are then placed in ranking ordering. This rationale is different than the non-analytical method because this method leaves little room for error. Analytical methods are the most effective of the job evaluation schemes because so much time and effort is put into first breaking down the jobs, and then deciding on a rating scale for each of the criteria. An example of an analytical scheme is the point method. The point method focuses on breaking the jobs down into specific categories such as skills, efforts, and responsibilities. These criteria are given a weighted value and liked stated above they are put into ranking order and given a pay grade.

Classification Method

Job evaluation methods are methods used to help determine the relative worth of every job position in an organization. It is a tool that helps organizations to identify the responsibilities and functions of each job and how it compares to other jobs in the organization. By placing jobs into categories, organizations are able to construct pay scales that will help to reflect the worth of the job to the organization. This helps to create fairness to employees based on particular jobs and the jobs required skills, responsibilities, duties, and level of required knowledge. One particular job evaluation method used by organizations is the classification method. The classification method is a method that involves defining a number of types of jobs based on common factors such as: skills, knowledge, or responsibilities, and comparing the different job types with other jobs. Once the various types of jobs are defined, they are placed into different categories in which they are ?best suited?. After jobs are defined and placed into categories, the categories are then placed in a hierarchy based on the level of importance to the organization. When an organization is using the classification method, it is important for organizations to consider the difficulty of work as well as the performance standards that are involved in a particular job before placing it into a category. The most important factor to consider when using the classification method is to be sure to use well defined job categories so that each job will fit into a category based on specific criteria. Examples of the criteria in which jobs are placed may include: skills, knowledge, working conditions, amount of supervision or lack of supervision required, decision making responsibilities, and college degrees or licenses that are required to do the job.
The classification method would be useful to implement into S plc manufacturing company for several reasons. One great benefit is that the classification method is very inexpensive and easy to use because it can be created by supervisors in a very short period of time and it can be implemented into the company immediately. S plc has three main manufacturing units which employ about 200 employees each. S plc also has 250 clerical staff members. Because S plc has so many employees with many different job categories including labor workers, purchasing agents, sales agents, accountants, and administrators; it would be relatively easy and effective to create categories for each of these jobs based on criteria such as skills and level of knowledge or specific degree requirements. The classification method is an easy way to break down jobs into specific categories and place them into a hierarchy based on the level of importance or the degree of difficulty within the organization. By implementing a classification job evaluation system within S plc manufacturing, employees will have a clear picture of how every job in the organization is rated and classified to help ensure a fair and equal pay system.

Ordering Method
Ordering Method or Ranking Method is one of the simplest methods to administer. The Ordering Method requires that a committee first be established in order for this technique to be exercised properly. The committee consists of management and employee representatives. In this process the responsibilities of the managers and employee representatives is to compare jobs based on the overall worth of the job from highest to lowest. The responsibility of the committee is to take one job and compare it to another and evaluate which job has more complexity to perform. From then on the same tactics should be used throughout the process when using this system. The worth of a job is based on judgments of skill, effort (physical and mentally), responsibility (supervisory and fiscal) and working conditions.
The benefits, that S plc would receive from using this system is; it is easy to perform and the concept of it is easy to absorb. This process is effective when there is a small quantity of jobs to be evaluated. S plc desires to exercise equal opportunity (fairness) to all employees. This system would be useful for S plc because it would fulfill the company?s desires toward its employees.

Point Method
Of the three basic methods used for job evaluation, the point method is the mostly widely used method. The point method breaks down jobs based on compensable factors and assigns points to each factor.
There are many compensable factors an organization may determine to be of importance. Knowledge required by the position is one which includes the kind of skills needed to perform a jog and how these skills are used to perform the job. A supervisory control is another factor that includes how the work is assigned, the employee?s responsibility for carrying out the assignment, and how the work is reviewed. Guidelines are another factor that includes the nature of the rules for completing the assignment and judgment needed to apply those rules or develop new ones. Complexity is another factor that includes the nature and difficulty of performing an assignment. Scope and effect is a factor that involves the purpose and impact of the product or service produced from the assignment. Personal contacts and purpose of contacts are two factors that involve people and/or businesses and the conditions in which each are contacted. Physical Demands is another factor and measures the nature, frequency, and intensity of the physical activity needed to perform a duty. Lastly, work environment includes the disks and discomforts associated with the physical surroundings of the job. Each of these factors can be broken down into levels or degrees which are then also assigned a points value. Fair weights are given to factors, based on the importance of each factor in overall job performance, points are tallied, and jobs with similar point totals are placed in similar pay grades.
The point method is the most uniform of the methods described. Jobs may change over time, but the factors in which the point system was established will remain consistent. With the employment issues at hand, it would be in the best interest of our company to select a job evaluation method that is stable, consistent and justifiable to employees. The point method is almost error proof, and it can effectively address the comparable worth issues of our employees.
Our company employs specialized laborers, which makes it difficult to classify our employees and since all jobs are equally important to the success of our business it would be difficult to rank jobs in order of importance. The point method system can be expensive and time-consuming, but even more so is hiring and training new employees and settling disputes among current employees. As long as our point evaluation system is clearly documented, with easily recognizable factors, established weights and clear point values we should be able to eliminate most if not all wage dissatisfaction amongst our employees by providing wages based on comparable worth. By using a predetermined set of standards we can eliminate bias and justify our decisions in wage selection to our employees.
These factors should be assigned points in relation to their importance of overall job performance and the evaluation method should be communicated with all employees. It is our goal as employer to design a cost-effective pay scale that is attractive and motivating to our employees and that is free from bias. It would be in the best interest of S plc to incorporate the point method into their evaluation system to help elevate disputes, grievances and employee turnovers.

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