What determines Pay Level?

Job Evaluation Methods

A. Ranking
B. Classification System
C. Factor Comparison
D. The Point System

Job Evaluation. Determining the inherent value of jobs within the organization; putting
value to it in terms of wages, and in comparison, to value of jobs in the external market

Objectives:

 To establish a systematic and formal structure of jobs based on their worth to the
organization
 To justify or develop a pay structure that provides for internal equity
 To provide a basis for negotiating pay rates with a union
 To develop a basis for merit or pay for performance program

A. Ranking
 Given job descriptions, the evaluator simply ranks jobs from the simplest to the
most complicated
 Paired comparison: one job is compared to another; the job that with the largest
number of better comparisons is the highest ranked
 No equal interval assumptions

B. Classification System

 Grade 1 – Rank and File: simple work, no supervisory responsibility, no public

contact
 Grade 2 – Supervisory: simple work, supervisory responsibility, no public contact
 Grade 3 – Lower Management: work of medium complexity, supervisory
responsibility, no public contact
 Grade 4 – Middle Management: complex work, supervisory responsibility,
minimal public contact
 Grade 5 – Higher Management: complex work, supervisory responsibility, public
contact

D. The Point System

 Most sophisticated; requires evaluators to quantify value of elements of job
 Points are assigned to various compensable factors required to do the job
 Factors include the ff:
 I. Education
Background
A. Educational Degree Attained
B. Additional Degree Training
C. Professional Examination
D. Academic Honors
II. Work Experience
A. Within the School
B. Outside Work Experience (related to current work)
III. Complexities of Duties
A. Working Conditions
B. Duties outside job description
C. Type of Supervision
D. Contact with others
E. Effect of errors
F. Judgement
IV. Performance Evaluation

I. Educational Background. This factor evaluates the job requirements in terms

of the basic education or knowledge which an employee should have acquired to
do the job satisfactorily, however and wherever acquired, whether in school, by
independent study, or by on-the-job training. Evaluate the requirements of the job
and not the employee's education. Trades or vocational training is considered as
a form of Education and should be evaluated under this factor. The following are
the basis for evaluating the educational background of an employee:
A. Educational Degree Attained
Higher education typically follows a 3-tier degree structure – bachelor’s,
master’s and doctoral-level studies. A bachelor’s degree is an
undergraduate academic degree awarded by colleges and universities
upon completion of a course of study lasting three to seven years. A
master’s degree is an advanced academic degree granted to individuals
who have undergone study demonstrating a mastery or high-order
overview of a specific field of study or area of professional practice. A
doctorate degree is the highest level of academic degree in most fields.
B. Additional Degree Training
VMC acknowledges and values the educational achievements of its
employees, including degrees earned in fields that may not be directly
related to their current job responsibilities. This recognition serves to
encourage the pursuit of personal and professional development, and to
foster a culture of continuous learning within the company.
C. Professional Examination
VMC recognizes and values the various examination commission
agencies that an employee may have successfully passed. These
include, but are not limited to, Civil Service Examinations and Licensure
Examinations for Teachers. VMC duly credits employees for their achievements in these
and other related examinations. This recognition reflects VMC's commitment to
supporting the professional development of its employees and to fostering a culture of
excellence within the organization.

D. Academic Honors
Academic honors are distinctions awarded to students by colleges or
universities based on their academic achievements. Some universities
and colleges confer Latin honors to indicate the level of distinction with
which an academic degree has been earned. These honors include cum
laude, magna cum laude, and summa cum laude. The requirements for
each honor vary but generally include being in the top percentage of
one’s class or achieving a certain GPA.

II. Work Experience. This term refers to the practical knowledge and expertise that
an individual acquires through employment or internships. Work experience is a
vital component of job assessment as it provides tangible evidence of an
individual’s proficiency and aptitude in performing the tasks required for a specific
role. In fact, an employee’s work experience is often used as a primary factor in
determining their suitability for a position. It is important to note that work
experience can be gained both within and outside of an organization such as
VMC.

A. Within the school

Experience can be gained by working at VMC, whether as a full-time or
part-time employee. It is measured by the number of years an employee
has worked at VMC.

B. Outside Experience (related to work)

Experience can be gained not only within the VMC organization but also
outside of it. Any experience that is related to an individual’s position
within VMC, even if it was gained outside of the organization, will be
taken into account during assessments. This means that individuals have
the opportunity to broaden their skills and knowledge in their field, even if
it is not directly through VMC, and still have it recognized and credited by
the organization.
III.
Complexities of Duties. This factor evaluates
different aspects on how employees conduct their job. This include the ff: working
conditions, duties outside job description, type of supervision, contact with
others, effect of errors, and judgement.

A. Working Conditions
This factor measures the surroundings or physical conditions under which
the job must be done and the extent to which those conditions make the
job disagreeable.  Consider the presence and relative amount of
exposure to dust, dirt, heat, fumes, cold, noise, vibration, etc. When
working condition vary with specific work assignments such as found in
maintenance jobs, the degree selected must represent the weighted
average of all the conditions encountered.
1st Degree Excellent working conditions with absence of
disagreeable conditions.
2nd Degree Good working conditions. May be slightly dirty or
involve occasional exposure to some of the elements listed above.
3rd Degree Fair working conditions due to exposure to one or
more of the elements listed above to the extent of being
objectionable.  May be exposed to one element continuously or
several elements occasionally, but usually not at the same time.
4th Degree Disagreeable working conditions where several of the
above elements are continuously present to the extent of being
objectionable.
5th Degree Continuous and intensive exposure to several
extremely disagreeable elements. Working conditions particularly
disagreeable.

B. Duties outside job description

This aspect refers to tasks that an employee performs beyond their job
description. Such activities demonstrate an employee’s commitment to
VMC’s mission and vision and provide a better understanding of how their
role fits into the company’s overall goals. These activities may include
publishing books, journals, and research; participating in seminars,
symposiums, workshops, and conferences; and engaging in school
activities such as foundation events and quiz bees.

C. Type of Supervision
This factor evaluates the
degree of supervision (type or character) exercised in terms of the level of the
job in the organization.  It should also measure the degree of responsibility for
costs, methods and personnel.
1st Degree Most of time spent performing the same work as members of
the group.  Little or no responsibility of costs, method or personnel.

2nd Degree Immediate supervision over a unit or section, where most of

time is involved assigning, reviewing, checking work, eliminating normal
difficulties under standard procedures.
3rd Degree Direct supervision of a department with responsibility for
results in terms of costs, methods and personnel.  May also involve direct
supervision of a unit where responsibility for results rests primarily with
the next higher level of supervision and the Type of Supervision factor for
the higher-level job is rated at least a Fourth Degree.
4th Degree General supervision of major department with responsibility for
execution of recommendations regarding quantity and quality of work,
costs, methods, maintenance of discipline, interpretation and enforcement
of company rules and regulations, transfers, rate changes, hiring and
separation, etc., where the Complexity of Duties factor has been
evaluated at least a Fourth Degree.
5th Degree Oversee and coordinate multiple departments through
subordinate managers with full supervisory responsibilities. Establish
performance standards, monitor progress, and ensure compliance with
company policies. Lead and coordinate a major function or division. Plan
and organize all activities, set performance benchmarks, provide
recommendations, and clarify company policy.

D. Contact with others

This factor evaluates the responsibility for working with or through other
people to get results.  Consider how the contacts are made, in or out of
the company, how often, whether they involve furnishing or obtaining
information only, whether they involve influencing other, and what could
be the ultimate effect on the company.
1st Degree Little or None. Requires little or no contact, except with
immediate associates and own supervisor.
 2nd
Degree Contact within department. Requires contacts within the
department on routine matters, or occasional contacts with other
department or outside of own firm, supplying or seeking
information, where only ordinary courtesy and tact are needed.
3rd Degree Contact Inter-departments. Requires regular contact
with subordinates and/or other departments, supplying or seeking
information or reports.  Requires tact and discretion in order to
obtain cooperation.  Improper contacts outside of the company
may affect results but the primary responsibility rests with the next
level of management.

4th Degree Contact Inside and Outside

Requires outside and inside contacts to carry out company policy
and programs.  Improper handling will have considerable effect on
operating results.  Must often deal with persons of substantially
higher rank on matters requiring explanation, persuasion, and
obtaining of approvals.
5th Degree Contact Inside and Outside, negotiating
Requires outside and inside contacts at all organization levels
involving considerable tact, discretion, and persuasion in order to
obtain willing action and consent. Involves difficult negotiations
which call for a well-developed sense of strategy and timing.

E. Effect of errors
This factor evaluates the responsibility for loss to the company from any
single error as a result of actions or decisions which involve items such as
equipment, material, labor, cost estimates, prices, forecasts, purchase
commitments, investments, customer loss, good will, etc. Consider the
probable effect of errors based on the degree to which the work is verified
or checked, either in succeeding operation, by the procedures themselves
or by supervision.

1st Degree Errors can be readily detected, usually by the

employee and, if made, would result only in minor clerical expense
for correction. Little or no monetary responsibility.
2nd Degree Errors are usually discovered in succeeding
operations where most of the work is verified or checked and is
 normally confined to a single department or phase of company
activities.  Limited monetary responsibility.
3rd Degree Errors may be serious, usually not subject to direct
verification or check, causing losses such as improper cost
computation, failure to take discounts, overpayment, improper
utilization of labor, material and equipment. Effect usually confined
to the company itself, Moderate monetary responsibility.
4th Degree Errors are difficult to discover, normally involve
decisions not subject to detailed review, such as recommending
unsuitable equipment resulting in excessive costs or inadequate
production.  May have adverse effect on relationships outside the
company.  Substantial monetary responsibility.
5th Degree Errors may result in significant expenditures for
equipment, materials, or products, as well as the loss of key

customer accounts. These mistakes may also have a continuous

adverse impact on the future operations of the business, including
matters involving important customer commitments and company
liability for products. The duties associated with this role may
involve the preparation of data on which top management bases
important decisions. There is a major financial responsibility
involved in this position.

F. Judgement
This factor evaluates the complexity of the duties in terms of the degree
of independent action, the extent to which the duties are standardized,
the exercise of judgment, the type of decisions the job requires and the
exercise of discretion, resourcefulness, or creative effort in devising
methods, procedures, products, scientific applications, etc.
1st Degree Minimal Judgment. Understand and follow simple
instructions and use simple equipment involving few decisions.
2nd Degree Moderate Judgment. Perform repetitive or routine
duties working from detailed instructions and under standard
procedures.  Requires the making of minor decisions.
3rd Degree Simple Analytical Judgment. Plan and perform
diversified duties requiring an extensive knowledge of a particular
field, and the use of a wide range of procedures.  Involves the
exercise of judgment in the analysis of facts or conditions
regarding individual problems or transactions to determine what
 action should be taken, within the specifications of standard
practice.
4th Degree Complex Analytical Judgment. Plan and perform a
variety of duties requiring general knowledge of company policies
and procedure applicable within areas of responsibilities, and
including their application to cases not previously covered. 
Requires considerable judgment to work independently toward
general results, devising methods, modifying or adapting standard
procedures to meet different conditions, making decisions based
on precedent and company policies.
5th Degree Advanced Analytical Judgment. Plan and execute
complex tasks where only general methods are available,
involving highly technical or involved projects that present new or
constantly changing problems. Outstanding judgment and initiative
are required to deal with complex factors that are not easily
evaluated and to make decisions for which there is little

precedent. Participate in the formulation and implementation of

company policies, objectives, and programs for major divisions or
functions. Considerable ingenuity and exceptional judgment are
required to deal with factors that are not easily evaluated, interpret
results, and make decisions that carry a great deal of
responsibility. Direct and coordinate the work of subordinate
supervisors to achieve objectives.

IV. Performance. Performance measures are used to quantitatively assess the

implementation and outcomes of educational systems. They can provide useful
information on how well schools and programs are performing and whether
educators are meeting their instructional goals. Methods of measuring
performance are categorized with the evaluation of the immediate supervisor,
principal, and co-workers.