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Human Resources and Organizational Behaviour
HROB 3010
Rhonda Gordon

Chapter 5: Evaluating Work – Job Evaluation Job-based Structures: Job Evaluation Job structure-hierarchy of all jobs based on value to the organization; provides the basis for the pay structure Job evaluation- the process of systematically determining the relative worth of jobs to create a job structure for the organization -process of determining and quantifying value -based on combination of job content, skills required, value to organization, organizational culture and external market -potential to blend internal forces and external market forces both a strength and a challenge to job evaluation Defining Job Evaluation: Content, Value, and External Market Links Different Perspectives on Job Evaluation - job content-(skills required for job, duties and responsibilities) - content has innate value outside external market -job value- (relative contribution of skills, duties, and responsibilities of a job to organizations goals) - relevant groups can reach consensus on relative value -external market – job worth cannot be specified without external market information (no intrinsic value), -intrinsic value- job content has intrinsic value that evaluation will uncover -measurement device – honing instruments will provide objective measures , job value can be quantified then job evaluation takes on trappings of measurement (objective, numerical, generalizable, documented, and reliable) and can be judged according to technical standards (researchers view) -negotiation- see as process that helps gain acceptance of pay differences between jobs (people making pay decision), puts face of rationality to social/political process, establishes rules of game, invites participation Major Decisions -major job evaluation decisions include: 1. Establish Purpose -job evaluation is part of process to establish internally aligned pay structure -supports organization strategy- (aligning strategy by stating what it is about a job that adds value) -supports work flow – (aligning each jobs pay with relative contribution to organization and setting pay for new, unique or changing jobs) -fair to employees (can reduce disputes and grievances over pay differences between jobs by establishing a workable, agreed-upon structure that reduces the role that chance, favoritism and bias may play in setting play) -motivates behavior toward organization objectives (explains what organization values, 2. Single vs. Multiple Plans -rarely are all jobs in firm evaluated at same time and instead a group of related jobs are focused on -many employers design different evaluation plans for different types of work (multiple plans) -a single plan may not be acceptable to employees if work covered is highly diverse -some plans (single) that have been successfully applied across wide range of work 3. Benchmark Jobs -to ensure all relevant aspects of work are included in evaluation, firm may start with sample benchmark of jobs benchmark job- contents are well-known, relatively stable over time, and common across different employers (not unique to particular employee), and a reasonable proportion of the workforce is employed in this job -representative sample of benchmark jobs includes entire domain of work being evaluated (office, production, engineering, etc.) and captures the diversity of the work within that domain -diversity in work can be thought of in terms of depth (vertically) and breadth (horizontally) -depth of work ranges from strategic leadership jobs to filling and mail distribution tasks in entry-level office jobs -breadth of work depends on nature of firm (relatively similar work can be found in specialty consulting firms) 4. Choose Between Methods -different job evaluation plans generate different pay structures Ranking -raters examine job description and arrange jobs according to value to company Ranking- job evaluation method that ranks jobs from highest to lowest based on global definition of value -orders job descriptions from highest to lowest based on global definition of relative value or contribution to organizations success -simplest, fasts, easiest method to understand and explain to employees, least expensive (initially) - problems that require difficult and potentially expensive solutions because it doesn’t tell employees specifically what in their jobs is important -*fast, simple, easy to explain -*cumbersome as number of jobs increases, basis for comparisons is not called out -criteria on which jobs are ranked usually poor defined and so ranking becomes subjective and impossible to justify in work-related terms -evaluators using this method must be knowledgeable about every single job under study -in long run, results are difficult to defend and costly solutions may be required to overcome problems created -two ways of ranking that are common are: 1. Alteration ranking method- ranking the highest and lowest valued jobs first, then the next highest and lowest valued jobs, repeating the process until all jobs have been ranked -orders job descriptions alternately at each extreme -agreement is reached among evaluators on which jobs are most and least valuable, then the next most and least valuable, and so on, until all jobs have been ordered 2. Paired comparison method- listing all jobs across columns and down rows of a matrix, comparing the two jobs in each cell and indicating which is of greater value, then ranking jobs based on the total number of times each is ranked as being of greater value -uses matrix to compare all possible pairs of jobs, the higher ranked job is entered in the cell of the matrix and when all comparisons are done, the job most frequently judged ‘more valuable’ becomes highest ranked job and so on Classification -classes or grades are defined to describe group of jobs Classification –job evaluation method based on job class descriptions into which jobs are categorized -can group a wide range of work together in one system -descriptions may leave too much room for manipulation Point Method Point method- job evaluation method that assigns a number of points to each job based on compensable factors that are numerically scaled and weighted -each job’s relative value is determined by total points assigned to it -most commonly used approach to establish pay structures in Canada due to pay equity legislation require
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