Routes to Internal Equity

Job Analysis
Job Evaluation
 The O*Net Approach
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 Key Job Analysis Steps
1. Identify Performance Foundation
2. Identify Essential Job Duties/Outcomes
3. Identify Worker Specifications (KSAOs)
4. Summarize in Job Description
1. Performance Foundation
• What are the purposes of this
organization?
• What are the purposes of this unit?
• What are the purposes of this job?
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:
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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
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
4. Summarize in Job Description
• Title
• Job Summary
• Listing/description of Essential Duties
• Working Conditions
• Worker Specifications (KSAs)
Routes to Internal Equity

Job Analysis
Job Evaluation
 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
 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
 Steps in Point Method
1. Create Job Evaluation Committee
2. Select Benchmark Jobs
3. Choose Compensable Factors
4. Define Factor Degrees
5. Determine Weight of each Factor
6. Determine Point Values
7. Verify Factor Degrees and Point Values
8. Evaluate All Jobs
 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
 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
 Steps in Point Method
• Choose Compensable Factors
– “Universal” factors:
• Skill
• Effort
• Responsibility
• Working Conditions
– Custom factors
– Sub-Factors
 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

 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
 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