Routes to Internal Equity Job Analysis Job Evaluation

The O*Net Approach Don’t worry about all the detail in book For online tour, visit:

Key Job Analysis Steps 1.Identify Performance Foundation 2.Identify Essential Job Duties/Outcomes 3.Identify Worker Specifications (KSAOs) 4.Summarize in Job Description

1. Performance Foundation What are the purposes of this organization? What are the purposes of this unit? What are the purposes of this job?

2. Essential Job Duties Must be only those that are essential Critical for ADA compliance, as well as Equal Pay Act defenses Also for determining FLSA exemptions: –

2. Essential Job Duties Must be only those that are essential Critical for ADA compliance, as well as Equal Pay Act defenses Also for determining FLSA exemptions: –Executive –Administrative –Professional

3. Identify Worker Specifications Knowledge: body of information Skill: Level of proficiency on a task Abilities: General, enduring attributes inherited or acquired in previous situations –Capacity to do or to learn Other –e.g,, Fit and Risk Factors

4. Summarize in Job Description Title Job Summary Listing/description of Essential Duties Working Conditions Worker Specifications (KSAs)

Routes to Internal Equity Job Analysis Job Evaluation

Job Evaluation Methods Whole Job Approaches –Ranking - most basic; used for small firms Uses subjective ratings on single criterion (e.g., job complexity) Simple Paired-comparisons Alternation –Classification - mainly for government jobs 18 factors used to score jobs General, Professional and Executive Schedules

Job Evaluation Methods Quantitative Approach: Point Method –more complex - uses points assigned to compensable factors, and subfactors –More structured, thus easier to defend –Hay System most well known and most complex

Steps in Point Method 1.Create Job Evaluation Committee 2.Select Benchmark Jobs 3.Choose Compensable Factors 4.Define Factor Degrees 5.Determine Weight of each Factor 6.Determine Point Values 7.Verify Factor Degrees and Point Values 8.Evaluate All Jobs

Steps in Point Method Create Job Evaluation Committee –Advantages of JE Committees Broader job knowledge from different perspectives Increased participation leads to increased understanding and commitment to the Job Evaluations. –Selecting members to be on the JE committee Job incumbents, managers, HR expert, union reps Employees who have knowledge of jobs Manageable size

Steps in Point Method Select Benchmark Jobs –“Generic” jobs with similar and agreed upon characteristics –Relatively stable –Represent entire range of jobs in company –Generally accepted in the labor market for purposes of setting pay levels

Steps in Point Method Choose Compensable Factors –“Universal” factors: Skill Effort Responsibility Working Conditions –Custom factors –Sub-Factors

Steps in Point Method Define Factor Degrees –Provides levels within each factor or subfactor –Best to define each level in job-specific terms –Fewer degrees required if system only needs to cover a smaller range of jobs Determine Weight of each Factor

Steps in Point Method Determine Point Values –Set arbitrary maximum (1000 pts) –Determine weighted maximum per factor If responsibility was weighted 10%, it can have maximum score of 100 –Divide factor maximum by number of degrees If 4 factors, 25 pts per degree

Steps in Point Method Verify Factor Degrees and Point Values –Committee members score random set of jobs –Review scores to determine logical consistency and fairness –Make sure points are consistent with business strategy of your firm –Adjust as necessary