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Routes to Internal Equity

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Presentation on theme: "Routes to Internal Equity"— Presentation transcript:

1 Routes to Internal Equity
Job Analysis Job Evaluation

2 The O*Net Approach Don’t worry about all the detail in book
For online tour, visit:

3 Key Job Analysis Steps Identify Performance Foundation
Identify Essential Job Duties/Outcomes Identify Worker Specifications (KSAOs) Summarize in Job Description

4 1. Performance Foundation
What are the purposes of this organization? What are the purposes of this unit? What are the purposes of this job?

5 2. Essential Job Duties Must be only those that are essential
Critical for ADA compliance, as well as Equal Pay Act defenses Also for determining FLSA exemptions:

6 2. Essential Job Duties Must be only those that are essential
Critical for ADA compliance, as well as Equal Pay Act defenses Also for determining FLSA exemptions: Executive Administrative Professional

7 3. Identify Worker Specifications
Knowledge: body of information Skill: Level of proficiency on a task Abilities: General, enduring attributes inherited or acquired in previous situations Capacity to do or to learn Other e.g,, Fit and Risk Factors

8 4. Summarize in Job Description
Title Job Summary Listing/description of Essential Duties Working Conditions Worker Specifications (KSAs)

9 Routes to Internal Equity
Job Analysis Job Evaluation

10 Job Evaluation Methods
Whole Job Approaches Ranking - most basic; used for small firms Uses subjective ratings on single criterion (e.g., job complexity) Simple Paired-comparisons Alternation Classification - mainly for government jobs 18 factors used to score jobs General, Professional and Executive Schedules

11 Job Evaluation Methods
Quantitative Approach: Point Method more complex - uses points assigned to compensable factors, and subfactors More structured, thus easier to defend Hay System most well known and most complex

12 Steps in Point Method Create Job Evaluation Committee
Select Benchmark Jobs Choose Compensable Factors Define Factor Degrees Determine Weight of each Factor Determine Point Values Verify Factor Degrees and Point Values Evaluate All Jobs

13 Steps in Point Method Create Job Evaluation Committee
Advantages of JE Committees Broader job knowledge from different perspectives Increased participation leads to increased understanding and commitment to the Job Evaluations. Selecting members to be on the JE committee Job incumbents, managers, HR expert, union reps Employees who have knowledge of jobs Manageable size

14 Steps in Point Method Select Benchmark Jobs
“Generic” jobs with similar and agreed upon characteristics Relatively stable Represent entire range of jobs in company Generally accepted in the labor market for purposes of setting pay levels

15 Steps in Point Method Choose Compensable Factors “Universal” factors:
Skill Effort Responsibility Working Conditions Custom factors Sub-Factors

16 Steps in Point Method Define Factor Degrees
Provides levels within each factor or subfactor Best to define each level in job-specific terms Fewer degrees required if system only needs to cover a smaller range of jobs Determine Weight of each Factor

17 Steps in Point Method Determine Point Values
Set arbitrary maximum (1000 pts) Determine weighted maximum per factor If responsibility was weighted 10%, it can have maximum score of 100 Divide factor maximum by number of degrees If 4 factors, 25 pts per degree

18 Steps in Point Method Verify Factor Degrees and Point Values
Committee members score random set of jobs Review scores to determine logical consistency and fairness Make sure points are consistent with business strategy of your firm Adjust as necessary


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