4 - Evaluating work - Job-evaluation.ppt

job evaluation

1. Gradation done in ONGC
DESIGNATION LEVEL PayScale
Executive Director E-9 Rs.62000-80000
Group General Manager E-8 Rs.51300-73000
General Manager E-7 Rs.51300-73000
Deputy General Manager
E-6
Rs.51300-73000
Geophysicist/Deputy
Superintending Geologist
E-3
Rs.32900-58000
Chief Superintendent/Senior
Foreman
S-IV
Rs.32000-56000
Senior
Superintendent/Senior
Foreman
S-III
Rs.28000-52500
Superintendent/ Foreman
S-II
Rs.24000-48500
Assistant Junior Technician
A-II
Rs.12000-27000
© 2005 Prentice Hall Inc. All rights reserved. 11–1

2. Evaluating Work:
Job Evaluation

3. Motivation Issues in Compensation Design
•Internal Equity: Relationship among jobs within a
single organization
•Job evaluation
•External Equity: Comparisons of similar jobs in
different organizations
•Salary survey
•Individual Equity: Comparisons among individuals in
the same job within the same organization
•Performance appraisal
© 2005 Prentice Hall Inc. All rights reserved. 11–3

4. Job evaluation (JE)
•Formal and systematic process of comparison of jobs to
determine the worth of one job relative to another.
•Basic assumption is..?
•Jobs that require greater qualification, more responsibilities
and complex duties should receive more pay than those of
less requirement
•JE eventually results in wage and salary structure.
© 2005 Prentice Hall Inc. All rights reserved.

5. Establishing Internal Equity
Job Evaluation Methods
•Ranking
•Job Grading or Classification
•Point Method
•Compensable Factors
•Application to Jobs
© 2005 Prentice Hall Inc. All rights reserved. 11–5

6. Ranking
•Orders job descriptions from highest to lowest based
on their relative value or contribution
•Simple, fast, and easy to understand and explain
–Two approaches
Alternation ranking
Paired comparison method

7. Exhibit5.6: Paired Comparison Ranking

9. Classification
•Uses class descriptions that serve as the
standard for comparing job descriptions
•Classes include benchmark jobs
•Outcome: Series of classes with a number of
jobs in each

11. Point Method
•Conduct job analysis
•Determine compensable factors
•Education
•Experience in ‘xyz’ skill
•Scale the factors
•Expert / Average / beginners
•Weight the factors according to importance
•Education –40%
•Experience in ‘xyz’ skill –50%
•Working environment –20%

12. Education
•1
st
Degree (36 points):Plus 2 completion is enough to carry out the
job
•2
nd
Degree (89 points): Diploma or ITI is mandatory
•3
rd
Degree (112 points): A graduation is required
•4
th
Degree (180 points): Post graduation is mandatory
© 2005 Prentice Hall Inc. All rights reserved. 11–12

13. Experience
•1
st
Degree (36 points): No experience is required. Freshers can be
recruited.
•2
nd
Degree (89 points): Minimum one year of experience is required.
•3
rd
Degree (112 points): 2 to 3 years of experience is required
•4
th
Degree (180 points): 4 to 5 years of experience is required
© 2005 Prentice Hall Inc. All rights reserved. 11–13

14. Overview of the Point System
Job FactorWeight 1 2 3 4 5
1. Education50% 100200300400500
2. Respons-
ibility
30% 75150225300
3. Physical
effort
12% 24487296120
4. Working
conditions
8% 255180
Degree of Factor

15. Who Should be Involved?
Managers and employees with a stake in the
results should be involved
The final result of the job evaluation process is
a structure, a hierarchy of work
Final outcome?

16. “Hay” factors in JE
© 2005 Prentice Hall Inc. All rights reserved. 11–16

17. Exhibit 5.11: Factors in Hay Plan

18. ‘Hay factors’ can vary from job to job
© 2005 Prentice Hall Inc. All rights reserved. 11–18

19. Establishing External Equity
•Wage and Salary Surveys
•Self-Surveys
•Online Surveys
•Government Surveys
•Interpreting the Data
•Avoiding Antitrust
•Pay Level Policy (compo ratio)
•Matching the Competition
•Adapting a Lead Policy
•Following a Lag Approach
© 2005 Prentice Hall Inc. All rights reserved. 11–19