Factor Comparison Methods

Factor Comparison A set of factors are identified as determining the worth of jobs. Typically the number of factors is small . Under this method,A few key jobs are selected and compared in terms of common factor.

Examples of factors are:

Skill
Responsibilities
Effort
Working Conditions

Procedure of Factor Comparison Method

1) Select and define the Factor
2) Select Key Jobs.
3)Rank key jobs by Factor.
4)Decide rates for key jobs
5)Apportion the wage Rate.
6)Evaluate the remaining Jobs

Advantage

*The value of the job is expressed in monetary terms.
*Can be applied to a wide range of jobs.
*Can be applied to newly created jobs.
* Money values are assigned in a fair and objective manner.

Disadvantage

*The pay for each factor is based on judgements that are subjective.
*The standard used for determining the pay for each factor may have build in biases that would affect certain groups of employees (females or minorities).
* It is difficult to understand and operate.
*It is time consuming and expensive method

Point Method

Point Method : It is most widely used method of job evaluation.Under it,jobs are divided into component factor.Points or weights are assigned to each factor depending on the degree of its importance in a particular jobs.The total points for a job indicate its relative worth or value.

A set of compensable factors are identified as determining the worth of jobs. Typically the compensable factors include the major categories of:

Skill
Responsibilities
Effort
Working Conditions

The procedure involved is as follows:

1) Determine the jobs to be evaluated.

2) Select the Factor :These factors can then be further defined.

Skill : Experience ,Education ;Ability
Responsibilities: Fiscal, Supervisory
Effort : Mental ,Physical
Working Conditions :Location ,Hazards ,Extremes in Environment

3)Define the factors:The selected factors and sub-factors are defines clearly in Writing

Factor:Skill,Responsibility,Efforts and Working Conditions

Sub Factors:Experience,Education,Ability,Fiscal,Supervisory,Mental ,Physical,Location ,

Hazards ,Extremes in Environment

4)Determine the Degree.

5)Determine relative Values of the job factors.

6)Assign Point Values to Degrees.

7) Find Points value of the jobs.

8) Assign Money Value.

Advantages

*The value of the job is expressed in monetary terms.
*Can be applied to a wide range of jobs.
*Can be applied to newly created jobs.

* Point method is the most comprehensive and accurate methods of jobs evaluation.

*Systematic wage differentials according to content of the job can be determine.

Disadvantages

*The pay for each factor is based on judgments that are subjective.
*The standard used for determining the pay for each factor may have built-in biases that would affect certain groups of employees (females or minorities).

*Point methods is complicated and an average worker can't Understand it easily.

*It is time consuming and expensive.

Job Classification/Grading Method

Classification Jobs are classified into an existing grade/category structure or hierarchy. Each level in the grade/category structure has a description and associated job titles. Each job is assigned to the grade/category providing the closest match to the job. The classification of a position is decided by comparing the whole job with the appropriate job grading standard. To ensure equity in job grading and wage rates, a common set of job grading standards and instructions are used. Because of differences in duties, skills and knowledge, and other aspects of trades and labor jobs, job grading standards are developed mainly along occupational lines.

Job classification (or job grading) is a simple, widely used method in which raters categorize jobs into groups; all the jobs in each group are of roughly the same value for pay purposes. The groups are called classes if they contain similar jobs or grades if they contain jobs that are similar in difficulty but otherwise different. Thus, in the federal government’s pay grade system a “press secretary” and a “fire chief” might both be graded “GS – 10” (GS stands for “General Schedule”) On the other hand, in its job system, the state of Florida might classify all “secretary IIs” in one class, all “maintenance engineers” in another, and so forth.

There are several ways to actually categorize jobs. One is to write class or grade description (similar to job descriptions) and place jobs into classes or grades based on how well they fit these descriptions. Another is to draw up a set of compensable factor based rules for each class, for instance, how much independent judgment, skill, physical effort and so on, does the class of jobs require?

The standards do not attempt to describe every work assignment of each position in the occupation covered. The standards identify and describe those key characteristics of occupations which are significant for distinguishing different levels of work. They define these key characteristics in such a way as to provide a basis for assigning the appropriate grade level to all positions in the occupation to which the standards apply.

Classification Method - This method is the most commonly used in the State Personnel Management System. In the Classification Method, the duties and responsibilities of a position are compared to the Nature of Work and Examples of Work sections of the classification specification in order to determine the classification with the “best fit

Classification is based upon the objective elements of a position and does not consider the status of an incumbent. Information relative to the employee¥s length of service, time spent at the maximum salary level of the position, or the quality of his/her performance is not considered in determining the appropriate classification of a position. Factors that are considered include such elements as the nature, scope and level of the duties and responsibilities; the relationship of the position to other positions in the department; supervision given or received; and exercise of independent judgment.

Classification Cycle Review Process

The classification cycle review process is as follows:

Notification of Review: The Office of Staff Personnel Services shall notify Administrative Services Managers of the schedule for the three-year classification cycle review prior to July 1, each fiscal year.

Employee Position Descriptions: The Administrative Services Managers shall submit current position descriptions for employees in their unit, college or division to the Office of Staff Personnel Services. The Office of Staff Personnel Services will review the position descriptions submitted and may request additional information or clarifying data prior to any on-site audit.

Employee Position Review: The employee position review process will include an analysis of the written description by a classification analyst; an on-site audit of the employee's position, when necessary; and a classification conference with the appropriate administrator.Following completion of review, the Classification Manager will meet with the appropriate administrator and Administrative Services Manager to discuss the findings of the review. Reclassification documents will be processed by the Office of Staff Personnel Services.

Notification and Effective Dates: Staff Personnel Services will notify employees of a classification decision, in writing, following completion of the classification review. Reclassifications, if any, shall be effective the first day of the pay period following completion of review.

Job evaluation or classification is the basis for determining the salary for a position, and for maintaining equitable salaries. The job evaluation process determines the appropriate job classification and title for each position.

The correct classification of a staff member's position is determined by many factors, including the following:

a. Basic duties and responsibilities
b. Knowledge, skills and abilities required (experience, education and training)
c. Scope and degree of judgement required and consequences of errors in judgement
d. Scope and degree of supervision received
e. Scope and degree of supervision exercised
f. Decision-making responsibility (if any)
g. Working conditions (if applicable)
h. Special licenses or certificates required (if any)

Examples: Description of Job Grades

Grade :Unskilled

Description : Jobs in this grade involve manual work.No formal education is required.

Grade : Skilled

Description : Jobs in this grade are clerical in nature.High School certificate is essestial.

Grade : Supervisory

Description: Jobs in this grade require ability to apply established procedures and to guide others.Graduate degree is required.

Grade : Executive

Description: Jobs in this grade involve decision making and administrative work. Professional qualifications are necessary.

Advantage

This method is easy to understand and simple to operate

It is more accurate and systematic than the ranking method.

It provides an opportunity to develop a systematic organisation structure.

This method is used in goverment offices.

Disadvantages

Classification judgments are subjective.

The standard used for comparison (the grade/category structure) may have built in biases that would affect certain groups of employees (females or minorities).

Some jobs may appear to fit within more than one grade/category.

It is very difficult to write accurate and precise description of job grades.

Ranking Method

The simplest job evaluation method ranks each job relative to all other jobs, usually based on some overall factor like “job difficulty”. There are several steps in the job ranking method.

Obtain job information: Job analysis is the first step: Job descriptions for each job are prepared and the information they contain about the job’s duties is usually the basis for rankings jobs. Sometimes job specifications are also prepared. However, the ranking method usually ranks jobs according to the whole job, rather than a number of compensable factors. Therefore, job specifications which list the job’s demand in terms of problem solving, decision making skills, for instance are not as necessary with this method as they are for other job evaluation methods.

"Ranking This method is one of the simplest to administer. Jobs are compared to each other based on the overall worth of the job to the organization. The 'worth' of a job is usually based on judgements of skill, effort (physical and mental), responsibility (supervisory and fiscal), and working conditions".

Three Technique can be used for ranking jobs. These techniques are as follows:

1) Job Description: In this technique , a written jobs description is prepared for every jobs.The job Description are then studied and analysed.The diffrences between them in terms of duties, skills requirements, etc.Each job is assigned a rank depending upon its relative significance. Several raters may independently rank job.The average of these ratings is calculated to determine the final ranking.

2) Paired Comparisons: In this technique each job is paired with every job in the series.The most difficult job in each pair is identified.Rank is assigned on the basis of the no. of times a job is reted more difficult

3) Rank jobs: For example, give each rater a set of index cards, each of which contains a brief description of a job. Then they rank these cards from lowest to highest. Some managers use an “alternation ranking method” for making the procedure more accurate. Here you take the cards, first choosing the highest and the lowest, then the next highest and next lowest, and so forth until you’ve ranked all the cards. Jobs in this small health facility are ranked from orderly up to office manager. The corresponding pay scales are on the right. After ranking, it is possible to slot additional jobs between those already ranked and to assign an appropriate wage rate.

Advantages

It is simplest and oldest method.
Very effective when there are relatively few jobs to be evaluated (less than 30).

It is very economical and less time consuming.

It involves little papper work.

Disadvantages

Difficult to administer as the number of jobs increases.

Rank judgements are subjective.

Since there is no standard used for comparison, new jobs would have to be compared with the existing jobs to determine its appropriate rank. In essence, the ranking process would have to be repeated each time a new job is added to the organization.

It does not indicate the degree of difference between diffrent jobs.

Job Evaluation Methods

Job evaluation is a practical technique, designed to enable trained and experienced staff to judge the size of one job relative to others. It does not directly determine pay levels, but will establish the basis for an internal ranking of jobs.

The two most common methods of job evaluation that have been used are first, whole job ranking, where jobs are taken as a whole and ranked against each other. The second method is one of awarding points for various aspects of the job. In the points system various aspects or parts of the job such as education and experience required to perform the job are assessed and a points value awarded - the higher the educational requirements of the job the higher the points scored. The most well known points scheme was introduced by Hay management consultants in 1951. This scheme evaluates job responsibilities in the light of three major factors - know how, problem solving and accountability.

Job Evaluation methods: Various methods of job evaluation may be group as under

1. Non-Quantitative Methods

•Ranking or Job comparison
•Grading or Job Classification

2.Quantitative Methods

•Factor Comparison
•Point Method