1. www.BZUpages.com QUANTITATIVE JOB EVELUATION METHODS Presented to: Sir Ahmad Tasman Pasha Presented by: Shah Rukh Class BS(IT) Roll # 07-22 Semester 3 rd Session 2007-2011 Department of Computer Science, B.Z.University MULTAN

2. www.BZUpages.com Contents 1. Job Evaluation → Its 2 Methods i. Factor Comparison ─ An Example ii. The point method

3. www.BZUpages.com Job Evaluation:- “A systematic comparison done in order to determine the worth of one job relative to another.” Methods 1.Factor comparison Method. 2.Point Method.

4. www.BZUpages.com Factor comparison method:- “A widely used method of ranking jobs according to a verity of skill and difficulty of fectors,then adding up these rankings to arrive an overall numerical ratings fro each given job.” It is actually, Refinement of the ranking method. Quantitative job evaluation method. Most accurate. Most complex.

5. www.BZUpages.com Here are the 8 steps of this method, step 1:obtain job information:- 1.Closely analyze the job. 2. job description are written. 3. job specification are developed, preferably in terms of compensable factors. Compensable factors for this method like, (1) Mental requirement (2) Physical requirement (3) Skill requirement (4) Responsibility and (5) Working conditions

6. www.BZUpages.com Sample Definitions of Factors Typically Used in the Factor Comparison Method 1.Mental Requirements Either the possession of and/or the active application of the following: A. (inherent) Mental traits, such as intelligence, memory, reasoning, facility in verbal expression, ability to get along with people, and imagination. B. (acquired) General education, such as grammar and arithmetic; or general information as to sports, world events, etc. C. (acquired) Specialized knowledge such as chemistry, engineering, accounting, advertising, etc. 2. Skill A. (acquired) Facility in muscular coordination, as in operating machines, repetitive movements, careful coordinations, dexterity, assembling, sorting, etc. B. (acquired) Specific job knowledge necessary to the muscular coordination only; acquired by performance of the work and not to be confused with general education or specialized knowledge. It is very largely training in the interpretation of sensory impressions. Examples 1. In operating an adding machine, the knowledge of which key to depress for a subtotal would be skill. 2. In automobile repair, the ability to determine the significance of a knock in the motor would be skill. 3. In hand-firing a boiler, the ability to determine from the appearance of the firebed how coal should be shoveled over the surface would be skill. 3. Physical Requirements A. Physical effort, such as sitting, standing, walking, climbing, pulling, lifting, etc.; both the amount exercised and the degree of the continuity should be taken into account. B. Physical status, such as age, height, weight, sex, strength, and eyesight.

7. www.BZUpages.com Sample Definitions of Five Factors Typically Used in the Factor Comparison Method 4.Responsibilities A. For raw materials, processed materials, tools, equipment, and property. B. For money or negotiable securities. C. For profits or loss, savings or methods’ improvement. D. For public contact. E. For records. F. For supervision. 1. Primarily the complexity of supervision given to subordinates; the number of subordinates is a secondary feature. Planning, direction, coordination, instruction, control, and approval characterize this kind of supervision. 2.Also, the degree of supervision received. If Jobs A and B gave no supervision to subordinates, but A received much closer immediate supervision than B, then B would be entitled to a higher rating than A in the supervision factor. To summarize the four degrees of supervision: Highest degree—gives much—gets little High degree—gives much—gets much Low degree—gives none—gets little Lowest degree—gives none—gets much 5.Working Conditions A. Environmental influences such as atmosphere, ventilation, illumination, noise, congestion, fellow workers, etc. B. Hazards—from the work or its surroundings. C. Hours.

8. www.BZUpages.com Step 2: Select key benchmark Jobs:- 15 to 25 key jobs are selected by the job evaluation committee. These jobs will have to be representative benchmark jobs. Step 3: Rank key Jobs by Factor:- here evaluators are asked to rank the jobs on base of each of the 5 factors, that are discussed. The ranking is based on job description and job specification. Each committee member ranks the jobs individually.

9. www.BZUpages.com Step 4: Distribute Wage Rates By Factors:- This is where this method become more complex. Here the committee members have to divide the wages, they done this by their judgments. e.g. $4.26 hourly rate mental requirements$0.36 Physical requirement 2.20 Skill requirement 0.42 Responsibility 0.28 Working conditions 1.00 Total 4.26

10. www.BZUpages.com Step 5: Rank each job according to wages assigned to each factor:- Here you rank again each job, factor by factor, but the ranking based on the wages assigned to each factor. Step 6: Compeer two sets of rankings to screen out unusable jobs:- you now have two sets of rankings for each key job. one was your original ranking, obtained from step 3. this shows how each job ranks on each of the five compensable factors. The second ranking reflects for each job the wage assigned to each factor. You can now draw a table which shows each of the rankings.

11. www.BZUpages.com Step 7: Construct a job comparison scale:- once you have identified the useable true key jobs the next step is to set up a job comparison table. Which contains each wage against the factor required to a specific job. Step 8: Use the job comparison Scale:- Now all the other jobs to be evaluated can be slotted, factor by factor, into the job comparison scale.

12. www.BZUpages.com An Example:- Let consider 4 key jobs, you usually start with 15 to 25 key jobs (i) Welder (ii) Crane operator (iii) Punch press operator (iv) Security guard Step 1: First we analyze the job. Step 2: Here we select 4 key jobs. Step 3: Based on job description and specification we rank key jobs by factor, as in the table

13. www.BZUpages.com Job titleMantel requiremen ts Physical requirements Skill requirem ents Respon sibility Working conditions Welder14112 Crane operator 31344 Punch press operator 23223 Security guard 42431 Ranking Key Jobs By Factor (table 1) 1 is high and 4 is low

14. www.BZUpages.com Job titleHourly wage Mantel requireme nts Physical requireme nts Skill requireme nts Responsi bility Working conditions Welder$ 9.84.00(1)0.40(4)3.00(1)2.00(1)0.40(2) Crane operator 5.601.40(3)2.00(1)1.80(3)0.20(4) Punch press operator 6.001.60(2)1.30(3)2.00(2)0.80(2)0.30(3) Security guard 4.001.20(4)1.40(2)0.40(4)0.40(3)0.60(1) Step 4: here we distribute wage rates and construct a table like Table 2

15. www.BZUpages.com Step 5: Then we rank each key job according to the wage rates assigned to each key factor. These rankings are shown in parentheses in the last table. Step 6: Next we compeer both rankings given in table 1 and table 2. it will make a new table. in each left hand column (marked A) is the job’s ranking from table. In each right hand column (marked $)is the key job’s ranking from table 2. the table will look like this,

16. www.BZUpages.com Job titleMantel requirement s Physical requirement s Skill requirement s Responsibili ty Working conditions A $ Welder14112 Crane operator3134 4 Punch press operator23223 Security guard42431 Comparison of factor and wage ranking

17. www.BZUpages.com Step 7:now construct a job comparison scale step 8:now all other jobs can be slotted through this scale.

18. www.BZUpages.com Job (Factor)-Comparison Scale

19. www.BZUpages.com Pros and Cons Pros:-  It is accurate, systematic, quantifiable method.  Jobs are compeered to one another.  This is a fairly job evaluation method. Cons:-  Complexity of the method.  Not all the organizations have all 5 factors.  It is difficult to show employees, how to build it.

20. www.BZUpages.com The Point Method of Job Evaluation  The point method is widely used.  In this each factor requires some degree of compensable factor.  A different number of points assigned to each factor.  Add each job’s points. Here are the 9 steps used for this method

21. www.BZUpages.com Step1: Determine clusters of jobs to be evaluated:- because jobs vary widely by departments. So the 1 st step is to cluster jobs. Step 2: Collect job information:- (1) analyze the job. (2) write job descriptions. (3) develop job specification.

22. www.BZUpages.com Step 3: Select compensable factors:- here select compensable factors. Like skills problem solving techniques etc. Step 4: Define compensable factors :- Here define carefully each compensable factor. These definition are often draw up by human resource specialist. As below figure’s top part define.

23. www.BZUpages.com Example of One Factor (Complexity/Problem Solving) in a Point Factor System Source: Richard W. Beatty and James R. Beatty,“Job Evaluation,” in Ronald A. Berk (ed.), Performance Assessment: Methods and Applications (Baltimore, MD: Johns Hopkins University Press, 1986), p. 322.

24. www.BZUpages.com Step 5: Define factor degrees:- next define each of several degrees to each factors so that the raters may judge the amount or degree of a factor existing in a gob. For complexity you should choose 5 to 6 degrees. The definition of each degree is defined in above fig. Step 6: Determine relative values of factors:- in this step you decides that how much weight is assigned to each factor. This is important because for each cluster of jobs some factors are bound to be more important than others.

25. www.BZUpages.com Example:- 1 st assign a 100% value to a high ranking factor. Then assign each factor’s ranking comparing to this Decision Making 100% Problem Solving 85% Knowledge 60% next 100%+85%+60%=245% then convert this to 100% system as

26. www.BZUpages.com Decision Making: 100 / 245 = 40.82 = 40.8% Problem Solving: 85 / 245 = 34.69 = 34.7% Knowledge: 60 / 245 = 24.49 = 24.5% Total 100.0%

27. www.BZUpages.com Step 7: Assign point values to factors and degrees:- now assign points to each factor as in the below table. For example it is decided to a total number of 500 points in the point plane. For the factor “decision making” had 48.8% weight so it will get 500 x 40.8% = 204 points. Here we use the degree 5 so 204 / 5 = 41 1 st degree will have a value 41 next 41+41=82, next 82+41 = 123 an d then so forth. As show in the below table

28. www.BZUpages.com Evaluation Points Assigned to Factors and Degrees

29. www.BZUpages.com Step 8: Write job evaluation method:- develop a manual for the job evaluation. Step 9: Rate the Jobs:- once a manual is complete the actual evaluation now begins. Raters use the manual to evaluate the jobs.

30. www.BZUpages.com Pros and Cons :- Pros:-  This is the technique that is easy to explain to employees.  It is easy to use. Cons:-  It is difficult to develop a point plane.  Ready made plans are used by some organizations, but every organization has its own strategies.

31. www.BZUpages.com