Job Evaluation Two Point-Factor Methods

1
Job EvaluationTwo Point-Factor Methods

• Factor Evaluation System
• Developed 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 Method
• Dates 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.

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Universal Factors Four Popular Methods

• BASS NMTA
• Skill 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)

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Universal Factors Four Popular Methods

• Hay and Purves Factor Evaluation System
• Know How Knowledge Personal
  Contact
• (3/15) (2/9) Purpose of Contact
• Problem Solving Supv Control
  Physical Demands
• (2/13) (3/5) Work Environment
• Accountability Guidelines
• (3/15) (2/5)
• Complexity
• (3/6) Scope
  Effect (2/6)

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Combining Point-Factorand 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.

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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 shaped
• by the level of knowledge shared by
• the evaluators of the work
• environment....Their understanding
• of the nature of the work being
  performed, and....Their capacity
• to process information
• and data and make sound
• judgments.

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Job Evaluation Committee

• The quality of the output of any job
• evaluation process using point
• scored compensation factors
• relates directly
• to the quality of
• decisions made
• by those doing
• the 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.

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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.

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Roles Of The Committee

• Rank And Rate Jobs
• Select A Job Evaluation
• Methodology
• Choose Benchmark Jobs

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Role Of The CompensationDepartment

• Provide Committee Representation
• Provide Committee With Staff Specialists
• Identify Benchmark Jobs
• Provide Training For Committee Members

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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

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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.

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FES Factor Description Table

• FACTOR POINTS TOTAL
• LEVELS
• Knowledge 50-1850 41.3 9
• Supv Control 25-650 14.5 5
• Guidelines 25-650 14.5 5
• Complexity 25-450 10.0 6
• Scope/effect 25-450 10.0 6
• Pers Contact 10-110 2.5
  4
• Purp Of Contact 20-220 4.9 4
• Phys Demand 5-50 1.1
  3
• Work Environment 5-50
  1.1 3
• Total Points 4480

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FES Exercise

• The 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.

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FES Quality Check

• There 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.

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Sore Thumbing

• Reviewing 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.

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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-How
• Practical procedures, specialized knowledge, And
  scientific discipline.
• (8 levels)
• Managerial (4 levels)
• Human relations (3 levels)
• Plus 3 degree choices per grid.

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Hay Guide Chart-Profile Method

• Problem-Solving
• Thinking environment
• (8 levels)
• Thinking challenge
• (5 levels)
• Plus 2 degree choices per grid

• Accountability
• Freedom to act
• (7 levels)
• Job impact on end results (4 levels)
• Magnitude (4 levels)
• Plus 3 degrees per grid.

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Hay Method

• The 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.

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Hay Method

• The 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.

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Hay Method

• The evaluation process generally begins with
  the highest valued compensable factor and
  proceeds in order to the lowest weighted factor.

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Hay Method

• KNOW-HOW
• Rows 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.

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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.

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Hay Method

• ACCOUNTABILITY
• Rows measure freedom to act
• Columns measure the magnitude of the impact of
  the job on end results
• Inside each column is a third element that
  measures the job impact on end results (4 per
  column)

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Hay Method Example

• The same lead-programmer analyst job evaluated
  earlier in this chapter using the FES method is
  re-evaluated in pages 282-294 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.

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Hay MethodQuality Checks And Patterns

• PROFILING
• KH 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.

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Hay MethodQuality Checks And Patterns

• PROFILING
• PS 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.

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Hay MethodQuality Checks And Patterns

• PROFILING
• Jobs 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....

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Hay MethodQuality Checks And Patterns

• PROFILING
• Jobs 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....

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Hay MethodQuality Checks And Patterns

• The step difference is determined
• By locating the PS points on the
• Step value guide and counting up
• Or down until you have located
• the AC points. The number of
• Steps taken in this
• procedure establishes
• the step difference. The
• Direction (up , down -) defines
• The nature of the difference.

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Hay MethodQuality Checks And Patterns

• PROFILING
• To 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...

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Hay MethodQuality Checks And Patterns

• PROFILING
• The 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
  (38 33 29). This profile defines the percentage
  of points assigned to each of the three universal
  factors.

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Hay MethodQuality Checks And Patterns

• PROFILING
• All 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.

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Hay MethodQuality Checks And Patterns

• PROFILING
• As 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.

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Hay MethodQuality Checks And Patterns

• PROFILING
• Profile patterns are also indicators of job rank
  within an organization
• KH-PS-AC
• General Mgr 41-23-36
• Plant Mgr 44-22-34
• Operations Mgr 56-19-25
• Office Mgr 60-17-23