1. Routes to Internal Equity
Job Analysis
Job Evaluation

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

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

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

5. 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:

6. 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

7. 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

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

9. Routes to Internal Equity
Job Analysis
Job Evaluation

10. 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

11. 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

12. Steps in Point Method Create Job Evaluation Committee
Select Benchmark Jobs
Choose Compensable Factors
Define Factor Degrees
Determine Weight of each Factor
Determine Point Values
Verify Factor Degrees and Point Values
Evaluate All Jobs

13. 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

14. 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

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

16. 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

17. 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

18. 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