Job Evaluation Method
Job Evaluation Methods: Ranking
• Ranking each job relative to all other jobs, usually based on some overall factor.
• Steps in job ranking:
1. Obtain job information.
2. Select and group jobs.
3. Select compensable factors.
4. Rank jobs.
5. Combine ratings.
© 2008 Prentice Hall, Inc. All rights reserved.
11–1
TABLE 11–3
Job Ranking by Olympia Health Care
Ranking Order
1. Office manager
Annual Pay Scale
$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
© 2008 Prentice Hall, Inc. All rights reserved.
11–2
Job Evaluation Methods:
Job Classification
• Raters categorize jobs into groups or classes of jobs that are of roughly the same value for pay purposes. Classes contain similar jobs.
Administrative assistants
Grades are jobs similar in difficulty but otherwise
different.
Mechanics, welders, electricians, and machinists
Jobs are classed by the amount or level of
compensable factors they contain.
© 2008 Prentice Hall, Inc. All rights reserved.
11–3
Job Evaluation Methods: Point Method
• A quantitative technique that involves:
Identifying the degree to which each compensable
factor is present in the job.
Awarding points for each degree of each factor.
Calculating a total point value for the job by adding
up the corresponding points for each factor.
© 2008 Prentice Hall, Inc. All rights reserved.
11–4
Quantitative Job Evaluation Methods
• Factor Comparison Job Evaluation Method
Step 1. Obtain job information
Step 2. Select key benchmark jobs
Step 3. Rank key jobs by factor
Step 4. Distribute wage rates by factors
Step 5. Rank key jobs according to wages assigned to each factor
Step 6. Compare the two sets of rankings to screen out unusable key jobs
Step 7. Construct the job-comparison scale
Step 8. Use the job-comparison scale
© 2008
• Ranking each job relative to all other jobs, usually based on some overall factor.
• Steps in job ranking:
1. Obtain job information.
2. Select and group jobs.
3. Select compensable factors.
4. Rank jobs.
5. Combine ratings.
© 2008 Prentice Hall, Inc. All rights reserved.
11–1
TABLE 11–3
Job Ranking by Olympia Health Care
Ranking Order
1. Office manager
Annual Pay Scale
$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
© 2008 Prentice Hall, Inc. All rights reserved.
11–2
Job Evaluation Methods:
Job Classification
• Raters categorize jobs into groups or classes of jobs that are of roughly the same value for pay purposes. Classes contain similar jobs.
Administrative assistants
Grades are jobs similar in difficulty but otherwise
different.
Mechanics, welders, electricians, and machinists
Jobs are classed by the amount or level of
compensable factors they contain.
© 2008 Prentice Hall, Inc. All rights reserved.
11–3
Job Evaluation Methods: Point Method
• A quantitative technique that involves:
Identifying the degree to which each compensable
factor is present in the job.
Awarding points for each degree of each factor.
Calculating a total point value for the job by adding
up the corresponding points for each factor.
© 2008 Prentice Hall, Inc. All rights reserved.
11–4
Quantitative Job Evaluation Methods
• Factor Comparison Job Evaluation Method
Step 1. Obtain job information
Step 2. Select key benchmark jobs
Step 3. Rank key jobs by factor
Step 4. Distribute wage rates by factors
Step 5. Rank key jobs according to wages assigned to each factor
Step 6. Compare the two sets of rankings to screen out unusable key jobs
Step 7. Construct the job-comparison scale
Step 8. Use the job-comparison scale
© 2008