Presentation on theme: "Job Evaluation Two Point-Factor Methods"— Presentation transcript:
1 Job Evaluation Two Point-Factor Methods Factor Evaluation SystemDeveloped in 1977 by the Office of Personnel Management for non-supervisory general schedule employees. It incorporates many of the characteristics of the Lott, Benge, and NEMA methods.Hay MethodDates back to the early 50's and is one of the most popular methods in use today. It is particularly popular for evaluating executive, managerial, and professional positions as well as nonexempt clerical, blue collar, and technical jobs.
2 Universal Factors Four Popular Methods BASS NMTASkill Skill(4/0)* (3/15)Working Condition Effort(3/0) (2/10)Responsibility Responsibility(1/0) (4/20) Job Conditions (2/10)* (SUBFACTORS/DEGREES OR LEVELS)
3 Universal Factors Four Popular Methods Hay and Purves Factor Evaluation SystemKnow How Knowledge Personal Contact(3/15) (2/9) Purpose of ContactProblem Solving Supv Control Physical Demands(2/13) (3/5) Work EnvironmentAccountability Guidelines(3/15) (2/5)Complexity(3/6) Scope & Effect (2/6)
4 Combining Point-Factor and Factor-Comparison Methods A critical check of the results of a POINT-FACTOR job evaluation involves the use of FACTOR COMPARISON. It is used to be sure that the factor points assigned to each job makes sense relative to a factor comparison process.
5 Job Evaluation Committee Essential to the success of all job evaluation processes is the presence of expert judgment.
6 Job Evaluation Committee Expert judgment is typically shapedby the level of knowledge shared bythe evaluators of the workenvironment....Their understandingof the nature of the work being performed, and....Their capacityto process informationand data and make soundjudgments.
7 Job Evaluation Committee The quality of the output of any jobevaluation process using pointscored compensation factorsrelates directlyto the quality ofdecisions madeby those doingthe ratings, and....
8 Job Evaluation Committee It is reasonable to assume that given the complex nature of work environments, accuracy in job evaluation requires the knowledge and skill of more than one individual, and....The logical consequence is the job evaluation committee.
9 Job Evaluation Committee A job evaluation committee may consist of one to three permanent members (at least one from the comp department) and rotating members representing the unit(s) whose jobs are being evaluated.
10 Roles Of The Committee Methodology Rank And Rate Jobs Select A Job EvaluationMethodologyChoose Benchmark Jobs
11 Role Of The Compensation Department Provide Committee RepresentationProvide Committee With Staff SpecialistsIdentify Benchmark JobsProvide Training For Committee Members
12 Factor Evaluation System The FES differs from the other point-factor methods in that it contains three stages of descriptive data not simply a defined set of universal compensable factors, subfactors, and degrees.The three stages are:
13 Factor Evaluation System Primary Standards (9)Factor-level Descriptions For The Series (60+)Benchmark Jobs That Cover The Full Range Of Pay For The Jobs In Each Occupation Or Series.
15 FES ExerciseThe FES process is described in detail in the text on pages 257 through 277.Additionally, a job description for a lead programmer taken from chapter 7 has been evaluated on pages 271 through 274 using the FES process and the results have been summarized on a "factor evaluation system position evaluation statement" appearing on page 276.
16 FES Quality CheckThere is a direct relationship between the selected level of the knowledge factor and levels selected of all other factors.The knowledge or skill requirements of a job drive the evaluation rating, while other compensable factors provide additional information to "fine tune" the final rating.Review figure 9-5 "FES knowledge level conventions" for further explanation or description of this point.
17 Sore ThumbingReviewing ratings using some kind of spreadsheet layout assists in identifying factor ratings that don't make sense. This analysis is often called "sore thumbing" because an inappropriate rating stands out like a sore thumb.
18 Hay Guide Chart-Profile Method The Hay Guide chart-profile method uses three universal factors, eight subfactors, and forty-three degrees and levels to evaluate jobs. They are as follows:Know-HowPractical procedures, specialized knowledge, And scientific discipline.(8 levels)Managerial (4 levels)Human relations (3 levels)Plus 3 degree choices per grid.
19 Hay Guide Chart-Profile Method Problem-SolvingThinking environment(8 levels)Thinking challenge(5 levels)Plus 2 degree choices per gridAccountabilityFreedom to act(7 levels)Job impact on end results (4 levels)Magnitude (4 levels)Plus 3 degrees per grid.
20 Hay MethodThe descriptions that form the rows and the columns of the guide charts provide a measure of the level of difficulty, or importance, of each factor.The KH and AC guide charts provide actual scores. The PS guide chart provides a percentage that identifies the amount of KH used in solving problems.
21 Hay MethodThe Guide Charts Have Both Standardized And Customized Features:The geometric scales use the same values with each step, reflecting the 15% perceptible difference in values theory discussed in chapter six.The number of rows and columns of each guide chart can be altered to fit the character and size of the client.
22 Hay MethodThe evaluation process generally begins with the highest valued compensable factor and proceeds in order to the lowest weighted factor.
23 Hay MethodKNOW-HOWRows describe depth and breadth of job knowledge required to perform job assignments.Columns describe management breadth relative to such requirements as planning, organizing, reviewing, and control.Within each column there is a third element that measures human relations skill.
24 Hay Method PROBLEM-SOLVING Rows identify levels of thinking. Columns identify thinking challenge.When the most appropriate grid and corresponding percentage has been identified, a point value is determined by multiplying the selected PS% (x) the previously determined KH points.
25 Hay Method Rows measure freedom to act ACCOUNTABILITYRows measure freedom to actColumns measure the magnitude of the impact of the job on end resultsInside each column is a third element that measures the job impact on end results (4 per column)
26 Hay Method ExampleThe same lead-programmer analyst job evaluated earlier in this chapter using the FES method is re-evaluated in pages using the hay method.Figure 9-10 (pg 284) is a ”Hay Position Evaluation Statement" that contains the evaluation scores for the lead-programmer analyst in accordance with the hay guide chart-profile method.
27 Hay Method Quality Checks And Patterns PROFILINGKH and PS are closely linked in the guide charts and they tend to parallel each other with respect to their alpha numeric locator codes. As KH requirements increase for a job PS enjoys a concomitant growth.
28 Hay Method Quality Checks And Patterns PROFILINGPS and AC also have a relationship that provides information about the general nature of jobs that when examined either validates the evaluation or challenges the results.
29 Hay Method Quality Checks And Patterns PROFILINGJobs higher in PS points than AC points are typically staff and administrative in nature, and....Jobs higher in AC points than PS points are typically action or line jobs, and....
30 Hay Method Quality Checks And Patterns PROFILINGJobs with essentially the same AC and PS points tend to have an administrative/action orientation.The profile is determined by identifying the step difference between PS and AC....
31 Hay Method Quality Checks And Patterns The step difference is determinedBy locating the PS points on theStep value guide and counting upOr down until you have locatedthe AC points. The number ofSteps taken in thisprocedure establishesthe step difference. TheDirection (up +, down -) definesThe nature of the difference.
32 Hay Method Quality Checks And Patterns PROFILINGTo convert all of this data into a profile turn to page 287 in your text and find the PS percentage, identified in the sample problem, in the left hand column (33%) and move across that row until you find the KH points in the first row that correspond with those determined in your sample problem (230).... The number found at this intersection (87) becomes profiling CONTINUED...
33 Hay Method Quality Checks And Patterns PROFILINGThe number you locate in the left hand column of the profile table (figure 9-11b) and match up with the appropriate step level (1 down) located on the horizontal axis.The resulting set of numbers is the job profile ( ). This profile defines the percentage of points assigned to each of the three universal factors.
34 Hay Method Quality Checks And Patterns PROFILINGAll to the job profiles lined up in order of point totals will provide the organization with a profile pattern that further validates the evaluation effort.
35 Hay Method Quality Checks And Patterns PROFILINGAs a rule, KH points as a percentage of the total tends to decrease as job value increases.PS and AC points as a percentage of the total tend to be lowest at the lower valued jobs.
36 Hay Method Quality Checks And Patterns PROFILINGProfile patterns are also indicators of job rank within an organization:KH-PS-ACGeneral MgrPlant MgrOperations MgrOffice Mgr