BANGOR TRANSFER ABROAD BANGOR TRANSFER ABROAD PROGRAMMEPROGRAMME
PAYPAY
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Basic Factors in Basic Factors in Determining Pay RatesDetermining Pay Rates
Direct financial payments
Indirect financial payments
Employee Compensation Components
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Legal Considerations in Legal Considerations in CompensationCompensation
Employee Compensation
Equal Pay Act (1963)
Employee Retirement Income Security Act
Age Discrimination in Employment Act
Americans with Disabilities Act
Davis-Bacon Act (1931)
Walsh-Healey Public Contract Act (1936)
Title VII of the 1964 Civil Rights Act
Fair Labor Standards Act (1938)
The Family and Medical Leave Act
The Social Security Act of 1935 (as amended)
National Labor Relations Act of 1935 (Wagner Act)
Workers’ Compensation
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FIGURE 11–1Independent Contractor
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FIGURE 11–2 Some Typical Exempt, Nonexempt Job Titles
EXEMPT
Attorneys
Physicians
Pharmacists
Engineers
Teachers
Scientists
Computer systems analysts
General managers
Personnel directors
Accountants
Purchasing agents
NONEXEMPT
Paralegals
Accounting clerks
Newspaper writers
Working supervisor
Management trainees
Secretaries
Clerical employees
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FIGURE 11–3 Who Is Exempt? Who Is Not Exempt?
Step 2: Exemption Applicability
Step 1: Salary Basis Test
Step 3: Job Analysis
Does the employee perform any of the following types of duties/jobs?
Executive—management is the employee’s primary duty
Administrative—employee performing nonmanual office work
Professional/creative—employee whose work requires highly advanced knowledge/education; creative and artistic professional
Computer professional—employee involved in design or application of computers and related systems
Outside sales—employee making sales or taking orders which influence sales outside of the employer's premises
Is the employee paid at least $455 per week ($23,660 per annum),*not subject to reduction due to variations in quantity/quality of work performed?
*The computer professional exemption has a salary basis test of $455 per week or $27.63 per hour. The outside sales exemption is not subject to the salary basis test.
A thorough analysis of the job duties must be performed to determine exempt status. An exempt position must pass both the salary basis and the duties tests.
Employee is Nonexempt Employee is Nonexempt
Yes Yes
No
No
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Corporate Policies, Competitive Corporate Policies, Competitive Strategy,Strategy,and Compensationand Compensation• Aligned Reward StrategyAligned Reward Strategy
The employer’s basic task:The employer’s basic task:
To create a bundle of rewards—a total reward package—To create a bundle of rewards—a total reward package—that specifically elicits the employee behaviors that the firm that specifically elicits the employee behaviors that the firm needs to support and achieve its competitive strategy.needs to support and achieve its competitive strategy.
The HR or compensation manager along with top management The HR or compensation manager along with top management creates pay policies that are consistent with the firm’s strategic creates pay policies that are consistent with the firm’s strategic aims.aims.
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TABLE 11–1 Developing an Aligned Reward Strategy
Questions to Ask:
1. What must our company do, (for instance in terms of improving customer service), to be successful in fulfilling its mission or achieving its desired competitive position?
2. What are the employee behaviors or actions necessary to successfully implement this competitive strategy?
3. What compensation programs should we use to reinforce those behaviors? What should be the purpose of each program in reinforcing each desired behavior?
4. What measurable requirements should each compensation program meet to be deemed successful in fulfilling its purpose?
5. How well do our current compensation programs match these requirements?
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Compensation Policy IssuesCompensation Policy Issues• Pay for performancePay for performance
• Pay for seniorityPay for seniority
• The pay cycleThe pay cycle
• Salary increases and promotionsSalary increases and promotions
• Overtime and shift payOvertime and shift pay
• Probationary payProbationary pay
• Paid and unpaid leavesPaid and unpaid leaves
• Paid holidaysPaid holidays
• Salary compressionSalary compression
• Geographic costs of living differencesGeographic costs of living differences
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Equity and Its Impact on Pay Equity and Its Impact on Pay RatesRates
External equity
Proceduralequity
Internal equity
Individualequity
Forms of Compensation Equity
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Addressing Equity IssuesAddressing Equity Issues
Area wage and salary surveys
Job analysis and job evaluation
Performance appraisal and incentive pay
Communications, grievance mechanisms, and employees’
participation
Methods to Address
Equity Issues
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Establishing Pay RatesEstablishing Pay Rates
1
2
3
4
5
Steps in Establishing Pay Rates
Determine the worth of each job in your organization through job evaluation (to ensure internal equity).
Conduct a salary survey of what other employers are paying for comparable jobs (to help ensure external equity).
Group similar jobs into pay grades.
Price each pay grade by using wave curves.
Fine-tune pay rates.
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Step1: The Salary SurveyStep1: The Salary Survey
To price benchmark
jobs
To make decisions
about benefits
Uses for Salary Surveys
To market-price wages
for jobs
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Sources for Salary Sources for Salary SurveysSurveys
Self-Conducted
Surveys
Government Agencies
Consulting Firms
Sources of Wage and Salary Information
Professional
Associations
The Internet
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TABLE 11–2 Some Pay Data Web Sites
Sponsor Internet Address What It Provides Downside
Salary.com Salary.com Salary by job and zip code, plus job and description, for hundreds of jobs
Adapts national averages by applying local cost-of-living differences
Wageweb www.wageweb.com Average salaries for more than 150 clerical, professional, and managerial jobs
Charges for breakdowns by industry, location, etc.
U.S. Office of Personnel Management
www.opm.gov/oca/09Tables/index.asp
Salaries and wages for U.S. government jobs, by location
Limited to U.S. government jobs
Job Smart http://jobstar.org/tools/salary/sal-prof.php
Profession-specific salary surveys
Necessary to review numerous salary surveys for each profession
cnnmoney.com cnnmoney.com Input your current salary and city, and this gives you comparable salary in destination city
Based on national averages adapted to cost-of-living differences
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Step 2: Job EvaluationStep 2: Job Evaluation
Skills EffortResponsibilit
y
Identifying Compensable Factors
Working conditions
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The Job Evaluation ProcessThe Job Evaluation Process
1
Performing the actual evaluation
Getting the cooperation of employees
Preparing for the Job Evaluation
Identifying the need for the job evaluation
Choosing an evaluation committee
2
3
4
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How to Evaluate JobsHow to Evaluate Jobs
RankingJob
classificationPoint
method
Methods for Evaluating Jobs
Factor comparison
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Job Evaluation Methods: RankingJob Evaluation Methods: Ranking• Ranking each job relative to all other jobs, usually Ranking each job relative to all other jobs, usually
based on some overall factor.based on some overall factor.
• Steps in job ranking:Steps in job ranking:
1.1. Obtain job information.Obtain job information.
2.2. Select and group jobs.Select and group jobs.
3.3. Select compensable factors.Select compensable factors.
4.4. Rank jobs.Rank jobs.
5.5. Combine ratings.Combine ratings.
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TABLE 11–3 Job Ranking by Olympia Health Care
Ranking Order Annual Pay Scale
1. Office manager $43,000
2. Chief nurse 42,500
3. Bookkeeper 34,000
4. Nurse 32,500
5. Cook 31,000
6. Nurse’s aide 28,500
7. Orderly 25,500
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Job Evaluation Methods: Job Evaluation Methods: Job ClassificationJob Classification
• Raters categorize jobs into groups or classes of jobs that Raters categorize jobs into groups or classes of jobs that are of roughly the same value for pay purposes.are of roughly the same value for pay purposes. Classes contain similar jobs.Classes contain similar jobs.
Administrative assistantsAdministrative assistants Grades are jobs similar in difficulty but otherwise different.Grades are jobs similar in difficulty but otherwise different.
Mechanics, welders, electricians, and machinistsMechanics, welders, electricians, and machinists Jobs are classed by the amount or level of compensable factors Jobs are classed by the amount or level of compensable factors
they contain.they contain.
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FIGURE 11–4 Example of a Grade Level Definition
This is a summary chart of the key grade level criteria for the GS-7 level of clerical and assistance work. Do not use this chart alone for classification purposes; additional grade level criteria are in the Web-based chart.
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Job Evaluation Methods: Point Job Evaluation Methods: Point MethodMethod• A quantitative technique that involves:A quantitative technique that involves:
Identifying the degree to which each compensable factor is Identifying the degree to which each compensable factor is present in the job.present in the job.
Awarding points for each degree of each factor.Awarding points for each degree of each factor.
Calculating a total point value for the job by adding up the Calculating a total point value for the job by adding up the corresponding points for each factor.corresponding points for each factor.
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Step 3: Grouping JobsStep 3: Grouping Jobs
Point Method
Ranking Method
Classification Methods
Grouping Similar
Jobs into Pay
Grades
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Step 4: Price Each Pay GradeStep 4: Price Each Pay Grade• The Wage Curve The Wage Curve
Shows the pay rates paid for jobs in each pay grade, relative to Shows the pay rates paid for jobs in each pay grade, relative to the points or rankings assigned to each job or grade by the job the points or rankings assigned to each job or grade by the job evaluation.evaluation.
Shows the relationships between the value of the job as Shows the relationships between the value of the job as determined by one of the job evaluation methods and the determined by one of the job evaluation methods and the current average pay rates for your grades.current average pay rates for your grades.
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FIGURE 11–5 Plotting a Wage Curve
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Step 5: Fine-Tune Pay RatesStep 5: Fine-Tune Pay Rates• Developing Pay RangesDeveloping Pay Ranges
Flexibility in meeting external job market ratesFlexibility in meeting external job market rates
Easier for employees to move into higher pay gradesEasier for employees to move into higher pay grades
Allows for rewarding performance differences and seniorityAllows for rewarding performance differences and seniority
• Correcting Out-of-Line RatesCorrecting Out-of-Line Rates
Raising underpaid jobs to the minimum of the rate range Raising underpaid jobs to the minimum of the rate range for their pay gradefor their pay grade
Freezing rates or cutting pay rates for overpaid (“red circle”) Freezing rates or cutting pay rates for overpaid (“red circle”) jobs to maximum in the pay range for their pay gradejobs to maximum in the pay range for their pay grade
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FIGURE 11–6 Wage Structure
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HR in Practice: HR in Practice: Developing a Workable Pay PlanDeveloping a Workable Pay Plan
• Simplified Approach:Simplified Approach: Conduct a wage surveyConduct a wage survey
Conduct a job evaluationConduct a job evaluation
Conduct once-a-year job appraisalsConduct once-a-year job appraisals
Compile the compensation budget Compile the compensation budget for upcoming yearfor upcoming year
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FIGURE 11–7Compensation Administration Checklist
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Pricing Managerial and Pricing Managerial and Professional JobsProfessional Jobs
Base pay
Executive benefits/perk
s
Short-term incentives
Long-term incentives
Compensating Executives and
Managers
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Pricing Managerial and Pricing Managerial and Professional JobsProfessional Jobs• What Determines Executive Pay?What Determines Executive Pay?
CEO pay is set by the board of directors taking into account CEO pay is set by the board of directors taking into account factors such as the business strategy, corporate trends, and factors such as the business strategy, corporate trends, and where they want to be in the short and long term.where they want to be in the short and long term.
CEOs can have considerable influence over the boards that CEOs can have considerable influence over the boards that determine their pay.determine their pay.
Firms pay CEOs based on the complexity of the jobs they fill.Firms pay CEOs based on the complexity of the jobs they fill.
Shareholder activism and government oversight have tightened Shareholder activism and government oversight have tightened the restrictions on what companies pay top executives.the restrictions on what companies pay top executives.
Boards are reducing the relative importance of base salary while Boards are reducing the relative importance of base salary while boosting the emphasis on performance-based pay.boosting the emphasis on performance-based pay.
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Compensating Professional Compensating Professional EmployeesEmployees• Employers can use job evaluation for professional jobs.Employers can use job evaluation for professional jobs.
• Compensable factors focus on problem solving, Compensable factors focus on problem solving, creativity, job scope, and technical knowledge and creativity, job scope, and technical knowledge and expertise. expertise.
• Firms use the point method and factor comparison Firms use the point method and factor comparison methods, although job classification is most popular.methods, although job classification is most popular.
• Professional jobs are market-priced to establish the Professional jobs are market-priced to establish the values for benchmark jobs.values for benchmark jobs.
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Competency-Based PayCompetency-Based Pay• CompetenciesCompetencies
Demonstrable characteristics of a person, including knowledge, Demonstrable characteristics of a person, including knowledge, skills, and behaviors, that enable performanceskills, and behaviors, that enable performance
• What is Competency-Based Pay?What is Competency-Based Pay? Paying for the employee’s range, depth, and types of skills and Paying for the employee’s range, depth, and types of skills and
knowledge, rather than for the job title he or she holdsknowledge, rather than for the job title he or she holds
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Why Use Competency-Based Why Use Competency-Based Pay?Pay?
High-Performance Work Systems
StrategicAims
Competency-Based Pay Supports
Performance Management
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Competency-Based Pay in PracticeCompetency-Based Pay in Practice• Main elements of skill/competency/knowledge–based Main elements of skill/competency/knowledge–based
pay programs:pay programs:
1.1. A system that defines specific skillsA system that defines specific skills
2.2. A process for tying the person’s pay to his or her skillA process for tying the person’s pay to his or her skill
3.3. A training system that lets employees seek and acquire skillsA training system that lets employees seek and acquire skills
4.4. A formal competency testing systemA formal competency testing system
5.5. A work design that lets employees move among jobs to A work design that lets employees move among jobs to permit work assignment flexibilitypermit work assignment flexibility
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Competency-Based Pay: Pros and Competency-Based Pay: Pros and ConsCons• ProsPros
Higher qualityHigher quality
Lower absenteeismLower absenteeism
Fewer accidentsFewer accidents
• ConsCons Pay program implementation problemsPay program implementation problems
Costs of paying for unused knowledge, skills, and behaviorsCosts of paying for unused knowledge, skills, and behaviors
Complexity of programComplexity of program
Uncertainty that the program improves productivityUncertainty that the program improves productivity
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Special Topics in CompensationSpecial Topics in Compensation• BroadbandingBroadbanding
Consolidating salary grades and ranges into a few wide levels Consolidating salary grades and ranges into a few wide levels or “bands,” each of which contains a relatively wide range of or “bands,” each of which contains a relatively wide range of jobs and salary levels.jobs and salary levels.
Pros and ConsPros and Cons
More flexibility in assigning workers to different job gradesMore flexibility in assigning workers to different job grades
Provides support for flatter hierarchies and teamsProvides support for flatter hierarchies and teams
Promotes skills learning and mobilityPromotes skills learning and mobility
Lack of permanence in job responsibilities can be unsettling Lack of permanence in job responsibilities can be unsettling to new employees.to new employees.
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FIGURE 11–8 Broadbanded Structure and How It Relates to Traditional Pay Grades and Ranges
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Comparable WorthComparable Worth• Concept:Concept:
Employers should be required to pay men and women Employers should be required to pay men and women equal wages for dissimilar jobs that are of equal wages for dissimilar jobs that are of comparablecomparable (rather than strictly (rather than strictly equalequal) value to the employer.) value to the employer.
• Basis:Basis: Seeks to address the issue that women have jobs that Seeks to address the issue that women have jobs that
are dissimilar to those of men and those jobs are often are dissimilar to those of men and those jobs are often consistently valued less than men’s jobs.consistently valued less than men’s jobs.
• Question at Hand:Question at Hand: Who will get to make final decisions on the comparability Who will get to make final decisions on the comparability
of jobs?of jobs? EmployersEmployers CourtsCourts
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The Pay GapThe Pay Gap• Factors Lowering the Earnings of Women:Factors Lowering the Earnings of Women:
1.1. Women’s starting salaries are traditionally lower.Women’s starting salaries are traditionally lower.
2.2. Salary increases for women in professional jobs do not Salary increases for women in professional jobs do not reflect their above-average performance.reflect their above-average performance.
3.3. In white-collar jobs, men change jobs more frequently, In white-collar jobs, men change jobs more frequently, enabling them to be promoted to higher-level jobs over enabling them to be promoted to higher-level jobs over women with more seniority.women with more seniority.
4.4. In blue-collar jobs, women tend to be placed in In blue-collar jobs, women tend to be placed in departments with lower-paying jobs.departments with lower-paying jobs.
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Board Oversight of Executive PayBoard Oversight of Executive Pay• Factors Influencing Executive CompensationFactors Influencing Executive Compensation
FASB requirements for expensing of stock options FASB requirements for expensing of stock options at fair market value.at fair market value.
U.S. government’s “pay czar” overseeing certain pay U.S. government’s “pay czar” overseeing certain pay awards in firms which had U.S. treasury loans.awards in firms which had U.S. treasury loans.
Increased SEC reporting requirements for Increased SEC reporting requirements for compensation-related information.compensation-related information.
Increased executive liability for accuracy in corporate Increased executive liability for accuracy in corporate financial reporting under the Sarbanes Oxley Act.financial reporting under the Sarbanes Oxley Act.
Shareholder activism protesting excessive executive Shareholder activism protesting excessive executive compensation due to lack of independence by compensation due to lack of independence by executive board compensation committees.executive board compensation committees.
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Improving Productivity Through Improving Productivity Through HRIS: Automating Compensation HRIS: Automating Compensation AdministrationAdministration• Benefits of Compensation Automation:Benefits of Compensation Automation:
Allows for quick updating of compensation programsAllows for quick updating of compensation programs
Eliminates costs of formerly manual processesEliminates costs of formerly manual processes
Coordinates centralized compensation budgets to prevent Coordinates centralized compensation budgets to prevent overages in compensation and raisesoverages in compensation and raises
Can integrate and automatically administer other pay actionsCan integrate and automatically administer other pay actions
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K E Y T E R M Semployee compensation
direct financial payments
indirect financial payments
Davis-Bacon Act (1931)
Walsh-Healey Public Contract Act (1936)
Title VII of the 1964 Civil Rights Act
Fair Labor Standards Act (1938)
Equal Pay Act (1963)
Employee Retirement Income Security Act (ERISA)
salary compression
salary survey
benchmark job
job evaluation
compensable factor
ranking method
job classification (or grading) method
classes
grades
grade definition
point method
factor comparison method
pay grade
wage curve
pay ranges
competency-based pay
competencies
broadbanding
comparable worth
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Chapter 11AppendixChapter 11Appendix
11–45
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Quantitative Job Evaluation Quantitative Job Evaluation MethodsMethods• Factor Comparison Job Evaluation MethodFactor Comparison Job Evaluation Method
Step 1.Step 1. Obtain job informationObtain job information
Step 2.Step 2. Select key benchmark jobsSelect key benchmark jobs
Step 3.Step 3. Rank key jobs by factorRank key jobs by factor
Step 4.Step 4. Distribute wage rates by factorDistribute wage rates by factor
Step 5.Step 5. Rank key jobs according to wagesRank key jobs according to wagesassigned to each factorassigned to each factor
Step 6.Step 6. Compare the two sets of rankings to Compare the two sets of rankings to screen out unusable key jobsscreen out unusable key jobs
Step 7.Step 7. Construct the job-comparison scaleConstruct the job-comparison scale
Step 8.Step 8. Use the job-comparison scaleUse the job-comparison scale
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FIGURE 11–A1 Sample Definitions of Five Factors Typically Used in the Factor Comparison Method
1. Mental RequirementsEither 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 RequirementsA. (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 RequirementsA. 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.
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FIGURE 11–A1 Sample Definitions of Five Factors Typically Used in the Factor Comparison Method (cont’d)
4. ResponsibilitiesA. 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 ConditionsA. Environmental influences such as atmosphere, ventilation, illumination, noise, congestion,
fellow workers, etc.
B. Hazards—from the work or its surroundings
C. Hours
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TABLE 11–A1 Ranking Key Jobs by Factors1
11 is high, 4 is low.
Mental Requirements
Physical Requirements
Skill Requirements Responsibility
Working Conditions
Welder 1 4 1 1 2
Crane operator 3 1 3 4 4
Punch press operator 2 3 2 2 3
Security guard 4 2 4 3 1
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TABLE 11–A2 Ranking Key Jobs by Wage Rates1
11 is high, 4 is low.
HourlyWage
Requirements
WorkingConditions Mental Physical Skill Responsibility
Welder $9.80 4.00 (1) 0.40 (4) 3.00 (1) 2.00 (1) 0.40 (2)
Crane operator $5.60 1.40 (3) 2.00 (1) 1.80 (3) 0.20 (4) 0.20 (4)
Punch press operator $6.00 1.60 (2) 1.30 (3) 2.00 (2) 0.80 (2) 0.30 (3)
Security guard $4.00 1.20 (4) 1.40 (2) 0.40 (4) 0.40 (3) 0.60 (1)
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TABLE 11–A3 Comparison of Factor and Wage Rankings
Mental Requirements
Physical Requirements
Skill Requirements Responsibility
Working Conditions
A1 $2 A1 $2 A1 $2 A1 $2 A1 $2
Welder 1 1 4 4 1 1 1 1 2 2
Crane operator 3 3 1 1 3 3 4 4 4 4
Punch press operator 2 2 3 3 2 2 2 2 3 3
Security guard 4 4 2 2 4 4 3 3 1 1
1Amount of each factor based on step 3.
2Ratings based on distribution of wages to each factor from step 5.
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TABLE 11–A4 Job (Factor)-Comparison Scale
ValueMental
RequirementsPhysical
RequirementsSkill
Requirements ResponsibilityWorking
Conditions
0.20 Crane Operator Crane Operator
0.30 Punch Press Operator
0.40 Welder Sec. Guard Sec. Guard Welder
0.60 Sec. Guard
0.80 Punch Press Operator
1.00 (Plater)
1.20 Sec. Guard
1.30 Punch Press Operator
1.40 Crane Operator Sec. Guard (Inspector) (Plater)
1.50 (Inspector) (Inspector)
1.60 Punch Press Operator
1.70 (Plater)
1.80 Crane Operator (Inspector)
2.00 Crane Operator Punch Press Operator Welder
2.20 (Plater)
2.40 (Inspector) (Plater)
3.00 Welder
4.00 Welder
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The Point Method of Job EvaluationThe Point Method of Job Evaluation
Step 1.Step 1. Determine clusters of jobs to be evaluatedDetermine clusters of jobs to be evaluated
Step 2.Step 2. Collect job informationCollect job information
Step 3.Step 3. Select compensable factorsSelect compensable factors
Step 4.Step 4. Define compensable factorsDefine compensable factors
Step 5.Step 5. Define factor degreesDefine factor degrees
Step 6.Step 6. Determine relative values of factorsDetermine relative values of factors
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FIGURE 11–A2 Example of One Factor (Complexity/Problem Solving)in a Point Factor System
Level Point Value Description of Characteristics and Measures
0 0 Seldom confronts problems not covered by job routine or organizational policy; analysis of data is negligible. Benchmark: Telephone operator/ receptionist.
1 40 Follows clearly prescribed standard practice and demonstrates straightforward application of readily understood rules and procedures. Analyzes noncomplicated data by established routine. Benchmark: Statistical clerk, billing clerk.
2 80 Frequently confronts problems not covered by job routine. Independent judgment exercised in making minor decisions where alternatives are limited and standard policies established. Analysis of standardized data for information of or use by others. Benchmark: Social worker, executive secretary.
3 120 Exercises independent judgment in making decisions involving nonroutine problems with general guidance only from higher supervision. Analyzes and evaluates data pertaining to nonroutine problems for solution in conjunction with others. Benchmark: Nurse, accountant, team leader.
4 160 Uses independent judgment in making decisions that are subject to review in the final stages only. Analyzes and solves nonroutine problems involving evaluation of a wide variety of data as a regular part of job duties. Makes decisions involving procedures. Benchmark: Associate director, business manager, park services director.
5 200 Uses independent judgment in making decisions that are not subject to review. Regularly exercises developmental or creative abilities in policy development. Benchmark: Executive director.
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TABLE 11–A5 Evaluation Points Assigned to Factors and Degrees
First-Degree Points
Second-Degree Points
Third-Degree Points
Fourth-Degree Points
Fifth-Degree Points
Decision making 41 82 123 164 204
Problem solving 35 70 105 140 174
Knowledge 24 48 72 96 123
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