CHRP Job Evaluation

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CERTIFIED HUMAN RESOURCE PRACTITIONERCourse Title: Job Evaluation

Conducted by: Muhammad Usman Zafar Job Evaluation Job evaluaton is a systematic way of determining the value/worth of a job in an organisation.

Contents of PresentationA. Course OverviewOverview:While market-based pay systems continue to replace internally focused pay systems, job evaluation remains an important tool in the field of compensation. We will guide you through the steps of job evaluation, where jobs are classified based on their duties and importance. Upon completion of this course, you will be ready to implement and use a job evaluation program in your own organization.

Learning Objectives:Explain the purpose and various uses of job evaluationChoose a job evaluation methodology that is appropriate for your organization.Design a customized Job Evaluation Scheme by choosing compensable factors to compare jobs.Use job evaluation scores and labor market rates to determine salary structures.B. Introduction to Job EvaluationDefinition

B. Introduction to Job Evaluation

Applications of Job Evaluation

B. Introduction to Job Evaluation

Principals of Job Evaluation

C. Job Evaluation MethodsBasic methods of Job EvaluationC. Job Evaluation MethodsComparison of Job Evaluation Methods

QUALITATIVEvs.QUANTITATIVERanking&ClassificationFactor Comparison&Point FactorJOB-TO-JOBvs.JOB-TO-STANDARDRanking&Factor ComparisonPoint Factor&ClassificationTOTAL JOBvs.SEPARATE FACTOR COMPARISONSRanking&ClassificationFactor Comparison&Point FactorC. Job Evaluation MethodsJob Ranking Method: This method ranks the jobs in an organization from highest to lowest.

Influenced Raters (Pay Rates, Prestige etc.)

10C. Job Evaluation MethodsJob Ranking Method Recommended Implementation StepsInfluenced Raters (Pay Rates, Prestige etc.)

11C. Job Evaluation MethodsJob Ranking Method Example

If a job is considered to be of a higher value than the one with which it is being compared, it receives two points; If it is thought to be equally important, it receives one point; If it is regarded as less important, no points are awarded. The scores are added for each job and a rank order is obtained.


12C. Job Evaluation Methods2. Classification Method: The classification method involves defining a number of classes or grades of jobs and fitting jobs into them. Although classification tends to produce more defensible and acceptable job structures than ranking, it may substitute flexibility for precision.

This means that the factors have equal weight, and a little of one may be balanced by much of another. Terms that express the degree of compensable factors in jobs are depended on to distinguish one grade from another. It is quite possible that a given grade could include some jobs requiring high skill and other jobs requiring little skill but carrying heavy responsibility.

13C. Job Evaluation MethodsClassification Method Recommended Implementation StepsInfluenced Raters (Pay Rates, Prestige etc.)

14C. Job Evaluation Methods 3. Factor Comparison Method The original and now little-used factor comparison method compared jobs factor by factor using a scale of money values to provide a direct indication of the rate for the job.


15C. Job Evaluation MethodsFactor Comparison Method Recommended Implementation StepsInfluenced Raters (Pay Rates, Prestige etc.)

16C. Job Evaluation MethodsFactor Comparison Method Recommended Implementation StepsInfluenced Raters (Pay Rates, Prestige etc.)

17C. Job Evaluation MethodsFactor Comparison Method Example


18C. Job Evaluation Methods4. Point Factor Method: This technique involves rating each job based on several compensable factors. The scores given for each factor are added to obtain a point total for a job. This is also called the point-factor method of job evaluation.


19C. Job Evaluation MethodsPoint Factor Method Recommended Implementation StepsInfluenced Raters (Pay Rates, Prestige etc.)

20C. Job Evaluation Methods Example:Total points possible in the plan = 1,000, Weightage assigned to a factor = 30% Total Degrees of the factor = 5.Maximum value for the concerned factor = 300 points. (0.30 x 1,000 = 300) Minimum assigned points in the plan = 60 points. (300/5 = 60). Max. points assigned for each degree of factor: Degree 1= 60, Degree 2=120, Degree 3: 180, Degree 4=240, Degree 5: 300


21C. Job Evaluation MethodsPoint Factor Method Recommended Implementation StepsInfluenced Raters (Pay Rates, Prestige etc.)

22C. Job Evaluation MethodsPoint Factor Method Example


23C. Job Evaluation MethodsPoint Factor Method Application


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C. Job Evaluation Methods5. Market Pricing MethodThe term market pricing in its extreme form is used to denote a process of directly pricing jobs on the basis of external relativities with no regard to internal relativities. In its crudest form, market pricing simply means fixing the rate for a job at the level necessary to recruit or retain someone.


27C. Job Evaluation Methods5. Market Pricing Method - Example


28C. Job Evaluation Methods

Comparison of JE Methods


29D. Standard Job Evaluation Systems Influenced Raters (Pay Rates, Prestige etc.)

30D. Standard Job Evaluation Systems 1. Hay System of Job Evaluation - Introduction

The Hay method of job evaluation is generally understood to be a point plan. Hays Methodology is the most widely used process in the world used by more than half the Fortune 500 companies in 90 + CountriesApplied by both public and private organisations in all sectors.Can be customizable upto a certain extent.Hays Job Evaluation Methodology values all jobs against three/four factors:Know-HowProblem SolvingAccountabilityWorking Conditions (optional)


31D. Standard Job Evaluation Systems

1. Hay Job Evaluation System Sample Evaluation


32D. Standard Job Evaluation Systems 2. Mercer International Position Evaluation - Introduction

Mercer IPE method is mostly used in US, Europe, South Asia & South East Asia.The major strength of the system lies with its functionality which allows the users to use qualifying statements instead of allocating numbers which in turn reduces biasness.Unlike Hay JE System, the IPE method requires the JE experts to define businesses and determine the size of organization before evaluating jobs. This feature allows better benchmarking.Mercers IPE Methodology values all jobs against four/Five factors:ImpactCommunicationInnovationKnowledgeRisk (Optional)


33D. Standard Job Evaluation Systems

2. Mercer IPE Sample Evaluation


34D. Standard Job Evaluation Systems 3. Patterson Job Evaluation System- Introduction

Patterson JE system is a perfect example of Classification method.The method is most popular in Africa and its acceptability is found considerably higher due to its simplicity.The basic premise of the method is that , the value of any job is depend on the level of its responsibility which is reflected and measured by the Decision making requirements of the job.The Patterson Plan is based on six decision Bands:Band F policy MakingBand E programmingBand D InterpretiveBand C Band RoutineBand B AutomaticBand A Defined


35E. Installation Process of JE in an OrganizationThis means that the factors have equal weight, and a little of one may be balanced by much of another. Terms that express the degree of compensable factors in jobs are depended on to distinguish one grade from another. It is quite possible that a given grade could include some jobs requiring high skill and other jobs requiring little skill but carrying heavy responsibility.

36SummaryThis means that the factors have equal weight, and a little of one may be balanced by much of another. Terms that express the degree of compensable factors in jobs are depended on to distinguish one grade from another. It is quite possible that a given grade could include some jobs requiring high skill and other jobs requiring little skill but carrying heavy responsibility.

37End of Week 4 (Day 1)

CHRP Job Evaluation

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