Job Evaluation

I recently completed the Human Resources for Competitive Advantage class and want to share some notes/ cheat sheets on various topics. Hope these notes will help other students.


Job evaluation:
 
What
-Job evaluation is a systematic process of arranging jobs in a hierarchy of relative worth to the organization.
-Provides the basis for pay differentials among jobs

Objectives:
-Establish internal equity
-Employees understand basis for pay
-Setting pays for new jobs
-Rationalize pay setting process
-Basis for resolving disputes over pay

4 methods: grade, ranking, point-factor, factor companion of job evaluation.
Point factor: (hay plan)
-Yields job evaluation points for each compensable factor
-Generate scores for each compensable factor on each job
-Apply weighting scheme
    Aprior weight
    Empiric/ weights

Based on: Know-how, Problem solving, accountability

Advantages:
Stable over time, high agreement with ratings if jobs are carefully defined, documented process

Disadvantages:
-Time consuming and costly to establish
-Subjective assessment needed to establish point range
-Typically relies on key jobs within the org.