Job Evaluation Methods: Ranking • Ranking each job relative to all other jobs, usually based on some overall factor. • Steps in job ranking: 1. Obtain job information. 2. Select and group jobs. 3. Select compensable factors. 4. Rank jobs. 5. Combine ratings. © 2008 Prentice Hall, Inc. All rights reserved. 11–1 TABLE 11–3 Job Ranking by Olympia Health Care Ranking Order 1. Office manager Annual Pay Scale $43,000 2. Chief nurse 42,500 3. Bookkeeper 34,000 4. Nurse 32,500 5. Cook 31,000 6. Nurse’s aide 28,500 7. Orderly 25,500 © 2008 Prentice Hall, Inc. All rights reserved. 11–2 Job Evaluation Methods: Job Classification Raters categorize jobs into groups or classes of jobs that are of roughly the same value for pay purposes. ? Classes contain similar jobs. ? Administrative assistants ? Grades are jobs similar in difficulty but otherwise different. ? Mechanics, welders, electricians, and machinists ? Jobs are classed by the amount or level of compensable factors they contain. © 2008 Prentice Hall, Inc. All rights reserved. 11–3 Job Evaluation Methods: Point Method • A quantitative technique that involves: ? Identifying the degree to which each compensable factor is present in the job. ? Awarding points for each degree of each factor.
Calculating a total point value for the job by adding up the corresponding points for each factor. © 2008 Prentice Hall, Inc. All rights reserved. 11–4 Quantitative Job Evaluation Methods • Factor Comparison Job Evaluation Method Step 1. Obtain job information Step 2. Select key benchmark jobs Step 3. Rank key jobs by factor Step 4. Distribute wage rates by factors Step 5. Rank key jobs according to wages assigned to each factor Step 6. Compare the two sets of rankings to screen out unusable key jobs Step 7. Construct the job-comparison scale Step 8. Use the job-comparison scale © 2008 Prentice Hall, Inc. All rights reserved. 1–5 The Point Method of Job Evaluation Step 1. Determine clusters of jobs to be evaluated Step 2. Collect job information Step 3. Select compensable factors Step 4. Define compensable factors Step 5. Define factor degrees Step 6. Determine relative values of factors © 2008 Prentice Hall, Inc. All rights reserved. 11–6 TABLE 11–A5 Evaluation Points Assigned to Factors and Degrees FirstDegree Points SecondDegree Points ThirdDegree Points FourthDegree Points FifthDegree Points Decision making 41 82 123 164 204 Problem solving 35 70 105 140 174 Knowledge 24 48 72 96 123 © 2008 Prentice Hall, Inc. All rights reserved. 11–7