Job Evaluation:

Principles and Methods

( M. Zulaybar-Jan. 30, 2014)

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Module One:

Job Evaluation Overview:

Fundamental
Concepts and Principles

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 Compensation Management
Overview
COMPENSATION PHILOSOPHY

JOB DOCUMENTATION

JOB EVALUATION JOB PRICING

(INTERNAL VALUE) (EXTERNAL VALUE)

SALARY STRUCTURE

ADMINISTRATIVE PAY DELIVERY

PROCEDURES SYSTEM

TRAINING AND COMMUNICATION

IMPLEMENTATION
Definition:
A systematic method of appraising the value
of each job relative to other jobs in an
organization.
A basis for determining salary levels

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Underlying principles:
Equal pay for equal work.
More pay for more difficult work.
Similar or substantially similar
positions should receive similar pay.
It is the position which is being evaluated and
not the person.
A position is always evaluated in relation to
other positions.
Objectives of Job Evaluation:
Design and document positions.
Establish a system whereby positions are
properly evaluated.
Develop an equitable classification
and grading system .
Based on established job grades,
use this as basis for developing
salary structures.
 USES OF JOB EVALUATION
Compensation

Establishing Assigning
Career Paths Employees to
Appropriate Jobs

Legal Morale
Considerations Job Evaluation
Building

Recruitment Establishing
Performance
Standards
Organizational
Design
Considerations in Job
Evaluation:
Management Support
Factors for evaluation clearly defined
Use of Committee for objectivity
Employee understanding and acceptance
through proper communication
Module Two:

A. Job Analysis

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 Job Analysis Process

JOB INFORMATION VALIDATION JOB

DATA GATHERING INTERVIEW DESCRIPTION

TOOLS:
Interview
Observation
Questionnaire
Focus Group Discussion
 Job Analysis

Definition of Job Analysis:

The process of identifying and analyzing all
related job information to arrive at an
accurate understanding of the job content.
Tools:
Interview
Observation
Questionnaire
Focus Group Discussion
 Interview
Planned discussion with the employee and
his manager.
The interview process consists of:
Explaining the purpose of the job analysis;
Asking planned questions and appropriate follow-up
questions;
Taking detailed notes;
Reviewing the discussion to ensure a full and accurate
understanding of the job.
 Observation

Is most appropriate for manual and

repetitive production work.
For more complicated and protracted cycles,
it is necessary to observe several cycles or
by piecemeal.
Cycles may occur over days or weeks, thus, it
is important to know if the entire function
or just part of it is being observed.
 Job Questionnaire

The questionnaire is developed to tailor-fit

the design of the Point Rating Plan.
The design of the questionnaire serves to
guide a more structured and formal
interview process.
Very useful tool to complement the Point
Rating System of Job Evaluation.
 Focused Group Discussion

Use of questionnaire
Instead of answering individually, several
incumbents /supervisors are asked to be
part of focused group to answer the
questionnaire
Applicable for jobs with numerous
incumbents
Module Two:

B. Job Documentation

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 Job Documentation

Job documentation is

the process of describing duties, responsibilities,

and other requirements for jobs;

Output is Job Description

JOB DESCRIPTION
A summary of the most important features of a job.

basic purpose of the job (job mission)/summary

key organizational relationships

duties and responsibilities

employee characteristics required for the competent

performance of the job
 Job Description Format
I. Job Identification
Position Title :
Department/Division:
II. Key Organizational Relationships
Reports to :
Supervises :
III. Primary Function/Job Summary
IV. Duties and Responsibilities
V. Job Specifications
Minimum Education:
Minimum Experience:
Special Skills:
VI. Disclaimer
VII. Approvals
I . JOB /POSITION IDENTIFICATION
a. Position Title

- primary descriptive word should proceed the

secondary
Ex. Dean College of Dentistry
- should be brief & as descriptive of all the
phases of job as possible
- should indicate, wherever possible, the skill
level & supervisory level of the job
Ex. Assistant Professor IV
 Guidelines to follow when determining
appropriate job titles:
Consider organizational culture
Use titles which are descriptive of the nature and level of work
Ex. Human Resource Officer, Instructor, Academic Coordinator
Include organizational function in the title, if appropriate
Ex. Asst. to the Dean for Student Affairs
Refrain from inflating titles
Ex. Liaisonman
Consider Human Resource Information Systems (HRIS) limitations
b. Location

- Section
- Department
- Division/College
c. Job Classification

- Teaching
-Academic - Non-Academic
- Non-Teaching ( Administrative)

d. Pay Grade/Salary
II. KEY ORGANIZATIONAL
RELATIONSHIPS

a. Reports to : immediate superior

b. Supervises: job titles and number of

direct reports
 III. PRIMARY FUNCTION

Guidelines to writing the general summary:

- State the general nature, level and purpose of
the job
-Limit length to approximately three ( 3) to
five (5) sentences

Note: It may be easier to write the general summary

after completing other sections of the job description
IV. DUTIES and RESPONSIBILITIES

Major Areas of Responsibility

- Specific job accountability
Ex. Selection, Labor Relations, Compensation &
Benefits etc. for Human Resource Officer

- Use key words only

Specific Duties
- Use one sentence description
- Start with an active verb that reflects actual work
Ex. Analyzes, Collates, Designs, Consolidates vs. Prepares
V. JOB SPECIFICATION

Identify the knowledge, skills, abilities (KSAs)

and competencies to competently perform the
job
Examples:
-Education / special training ,
licenses, etc.
- Work experience
- Basic and Technical Competencies
 Job Description Maintenance

Job descriptions must be kept up to date to make proper

contribution to employee compensation programs
Conduct comprehensive review every two or three years
Use checklist to assure consistency of the format of job
description
Who should write job
descriptions?

Human Resources
Incumbent in job
Supervisor of job holder
Incumbent and Supervisor with HR
concurrence
Module Three:

Job Evaluation
Methodologies

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Job Evaluation
Methodologies
Non-Quantitative
Whole-Job Slotting/Ranking
Classification

Quantitative
Factor Comparison
Point Rating Method
 Whole Job
Slotting/Ranking
Definition:

Classifies jobs into predefined levels.

Shoebox Approach
Process:

-Collect information on jobs

-Establish the grading hierarchy of the organization
-Slot jobs based on perceived value into the
perceived appropriate grade level
-Ranks the job ( whole) not on specific factors
Advantages:

Simple, easy to design and understand

Suitable for small size organization
Less costly
Less time consuming; less work ( no need for Com.)

Disadvantages:

Very subjective; bias from raters

Very open to questions on objectivity of the process
 Whole Job Slotting Sample

Positions Job Grade

Messenger 1
Administrative Associate 2
Finance Associate 3
Librarian 4
Registrar 5
Finance Supervisor 6
Guidance Counsellor 7
Academic Dept. Head 8
Dean 10
 Classification

Definition:

-Assigns jobs to salary grades based on pre-

established criteria
-The criteria may be broken out into compensable
factor definitions
Process:

-Determine number of grades desired in grade

hierarchy
-Choose factors (as applicable)
-For each grade, determine appropriate
criteria/factor definitions
-Slot jobs into grades based on best fit with
criteria/factor definitions
Advantages:
Simple, easy to design and understand
Can be applied to large number or variety of jobs
Easy to integrate new jobs
Less time consuming; less work
More defensible than Ranking Method

Disadvantages:
Description of each grade per factor needs to be done
Not suitable for organizations with large no. of jobs
Very subjective; bias from raters
Very open to questions on objectivity of the process;
maybe criticized for forcing jobs into grades
 Classification Illustration (Administrative)
Grade Level
Factors I II III
Knowledge and Basic Level Skills: Intermediate Level Skills: Broad Range of Clerical
Skill Follows simple written Follows straightforward Skills: Ability to gather,
and oral instructions; written and oral organize verify,
knowledge of defined instructions; knowledge of compose, and/or
work routines; may several work routines; analyze data in the
require typing or reads various references, completion of several
operation of standard extracts information, and defined, multi-step
machines; includes applies basic arithmetic procedures; may require
checking, recording, functions; may require the operation of more
and posting of typing or operation of complicated equipment
information complicated machines

Impact/ Highly Restricted Discernible Impact on the Has Considerable

Accountability Impact: Exerts a Work Unit: Impact is Impact on Work Unit:
noticeable impact on generally confined to the Impacts activities in
immediate work area immediate work area; may other work areas
only; influence is affect closely related occasionally;
indirect and supportive activities in the unit or accountability is indirect;
in nature with no section on a temporary may provide information
accountability beyond basis; influence is indirect to decision-making
the incumbents and supportive in nature; process within the unit
position accountability is restricted
Classification/Grading Method Sample

Positions Job Grade

Messenger 1
Administrative Associate 1
Finance Associate 2
Librarian 3
HR Specialist 3
 Compensable Factors

-A compensable factor is any factor used

to provide a basis for judging job value
in a job-evaluation plan.

-The most commonly employed

compensable factors include skills
required, effort required, responsibility
and working conditions.
 Guidelines in Selecting
Compensable Factors

Factors should be pertinent to positions covered in the study.

Factors should be definable and measurable.
Factors should be common to all the jobs being evaluated under
a given system.
Factors should not be too numerous.
maximum of 15
normal range 8 -12
Factors should not overlap.
Factors should be ratable.
Factors must be acceptable to both workers and management.
 JOB RATING PLAN

Factors
Broadly-defined categories of elements which measure
relative worth among jobs

Set of standards against which each job can be

compared and rated; differentiating job skills and
knowledge required, level of effort and responsibility, the
nature and qualification requirements of the work; and
the conditions under which job holders perform their
work.
 JOB RATING PLAN
Subfactors

Component aspects of job content within factor groups

Degrees

Measurement scales or yardsticks which identify specific

levels of each subfactor
 Three Major Factors in a Job Rating Plan
Skill
Every kind of knowledge or skill, however acquired, for the
satisfactory performance of duties and responsibilities of the
job.
Effort
Characteristics inherent in the job. This can also be treated
as a percentage utilization of know-how.

Responsibility
Accountability of the position for actions, consequences, and
on end results. It is the measured effect of the job on end
results.
Sample Job Rating Factors: Skill

Education
refers to the minimum level of technical knowledge and
skills necessary to perform the job satisfactorily as
required through various levels of formal education and
training.

Experience
refers to the minimum length of work-related experience
required for the satisfactory performance of the duties
and responsibilities of the job.

Interpersonal Skills
refers to the nature of interactional skills used in dealing
with other people inside and outside the organization as
well as the extent of such contact.
 Sample Job Rating Factor: Effort

Complexity of Work
measures the degree of mental effort, analysis and creative
thinking required to solve problems encountered in the
performance of tasks. It also considers the amount of guidance
received while discharging the functions of the position.

Planning and Organizing

considers the degree of complexity and the scope of the plans
made for the satisfactory performance of the basic functions of
the position. This factor excludes responsibility for deciding or
acting on the plans.

Physical Effort
measures the degree and continuity of manual exertion and/or
physical strain required in the performance of the jobs normal
duties.
 Sample Job Rating Factors: Responsibility

For Company Assets and Confidential Information

refers to the worth of company assets or tangible items of value to
the company (e.g., cash, checks, equipment, etc.) which the positions
is directly compensable for; and/or or refers to the level confidentiality
and importance of information, records, and reports prepared,
handled and maintained.

Impact on Operations
pertains to the extent of accountability for end results and the
possible company gains/losses resulting from decisions made within
the positions scope of responsibility.

Safety of Others
measures the degree of responsibility for the safety of others as
determined by the amount of care required in the performance of the
positions functions due to possible injuries to others, and the number
of people which can be affected.
Example of Compensable Factors

Generic Factor Group: Skill

Specific Factor Name: Experience

Description : This factor measures the time

required, on related work and on-the-
job training in the job being evaluated,
for an individual to attain satisfactory
performance standards under normal
supervision.
Degrees 1st Degree Up to and including three (3)
months
2nd Degree Over three (3) months, up to and
including twelve (12)months
3rd Degree Over one (1)year, up to and
including three (3)years
4th Degree Over three (3)years, up to
and including five (5)years
5th Degree Over five (5)years
 Factor Comparison

Definition:

Ranks jobs on various factors by comparing

against other jobs in the organization
 Factor Comparison
Process:

Define factors and JE Plan

Identify JE Com. Members/Train Com.
Distribute Job Description and/or Job Analysis
Questionnaire at least 3 days before the meeting
Call JE Meeting and rank all jobs, one factor at a time
Determine composite rank order
Subdivide into grades
Secure approval from Management
Communicate
Advantages:

System design is time efficient

Relatively uncomplicated process which
requires minimal training
Concept is easy to communicate
More objective than Ranking and Classification

Disadvantages:

Does not measure relative job values

May be difficult to integrate new or unique
jobs
 Factor Comparison-Finance
Job Title Knowledge Problem Impact Total Grade
and Solving Rank*
Skills
Controller 7 7 7 21 5
General Accounting 6 6 6 18 4
Manager
Accounting 5 5 4 14 3
Supervisor
Staff Accountant 3 4 3 11 3
Accounts Payable 4 3 5 12 3
Supervisor
Accounting Clerk 2 2 2 6 2
File Clerk 1 1 1 3 1
Point Ranges
1 5 4 15-18
2 6-10 5 19-21
3 11-14
 Point Rating
Definition:

-Evaluating job relative to factors,

sub-factors and degrees
- Most structured and scientific plan
 Point Rating
Process:
-Develop JE Plan
-Identify JE Com. Members
-Train JE Committee
-Distribute Job Description and/or Job Analysis
Questionnaire at least 3 days before the meeting
-Call JE Meeting
-Assign point values to each job based on comparison
with carefully defined factor levels
-Identify and define factors
-Define factor degree levels
-Assign factor weights
-Com. to review results and agree on final rating
-Secure approval from Management
-Communicate
Advantages:

Analyses jobs per factor ( even degrees); very systematic

System relatively defensible and justifiable; most scientific
Can be applied to large number or variety of jobs
Easy to integrate new jobs
Most widely used

Disadvantages:

System design most difficult and time consuming

Requires JE Committee
Not easy to understand; requires training of Com. Members
Too much time needed ( Training and JE Meetings)
Very expensive; not suitable for small organizations
 Sample (Point Rating Plan)
Weight Point Factors
. 40% Skills and Knowledge I II III IV V

20 a. Education 4 8 12 16 20
10 b. Experience 2 4 6 8 10
10 c. Training 2 4 6 8 10

30% Nature of Work

5 a. Physical 1 2 3 4 5
5 b. Mental Demand 1 2 3 4 5
5 c. Visual Demand 1 2 3 4 5
10 d. Interpersonal Contact 2 4 6 8 10
5 e. Working Conditions/Hazards 1 2 3 4 5

30% Accountability
10 a. Cash, Equipment & other 2 4 6 8 10
Company Assets
10 b. Records/Reports/Information 2 4 6 8 10
5 c. Impact to Operation 1 2 3 4 5
5 d. Consequence of Error 1 2 3 4 5

100%
 Point Ranges
Determine Grade Level using the following points.

Grade 1 200 - 360

2 361 - 520
3 521 - 680
4 681 - 840
5 841 1000
* Formula:
a. Highest Possible Points Lowest Possible Points = factor
b. Lowest points plus factor is highest point in range; do this
for all with no overlap
 Point Rating Sample-Adm.

Positions JE Points Job Grade

Messenger 280 1
Administrative 400 2
Associate
Finance Associate 500 2
Librarian 600 3
Registrar 700 4
Coordinator 850 5
JE Committee Composition

a. Chairman
b. Facilitator
c. Com. Representatives
Job Evaluation Session Process
a. Job Descriptions and JE Plan given in advance
b. Horizontal or vertical rating
c. Com. Representative asks if there are clarifications
on the Job Description
d. Com . Representative gives rating
e. If there are questions, defends; if none
proceed
f. Consensus ; if needed vote; if tie, Chairman
decides
Module Four:

Job Evaluation
Implementation

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 PROJECT ORGANIZATION
Lead Role

High
HR Involvement

Collaborative Role

Over-The-Shoulder Role
Low

Low High
Line Management
 Process
DEVELOPMENT OF JOB CLASSIFICATION FRAMEWORK

Conduct of Development of Rating and

Project Job Evaluation Job Rating
Job Analysis Classification of
Organization Workshop Plan Positions

DESIGN OF COMPENSATION STRUCTURE

Internal and Design of
External Pay Compensation
Analysis Structure

IMPLEMENTATION
Development of Monitoring of
Implementation Implemented JE
Program System
Module Five:

Job Classification

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 The Job Classification System serves two
primary purposes:

The first is to verify and document the value of internal

equity as to the results of Job Evaluation by providing the
hierarchy of jobs in the organization.

The second is to relate the classification system or hierarchy

of jobs to labor market values, and through this linkage,
establish salary structures.
Job Categories
Rank-and-File:

Those employees whose day-to-day duties

and responsibilities are as follows:
Routine and transactional functions
Clerical in nature
Coordination works
Performs simple to moderate execution of work plans and
programs, and technical specifications
 Supervisory:

Those employees who, in the interest of the employer, effectively

recommends such managerial actions if the exercise of such
authority is not merely routine or clerical in nature but requires
the use of independent judgment;

Executes/implements general supervision of one or more

subordinates
 Professional/Technical:

By reason of their positions or nature of work, are required

to assist or act in fiduciary (trust and confidence) manner to
managerial employees and hence, are likewise privy to
sensitive and highly confidential information.
Their work is technical in nature and requires a special
course/ training /license
May or may not supervise other employees but typically
leads teams/projects
 Managerial/Executive:
Their primary duty consists of the management of the
establishment in which they are employed or of a
department or subdivision thereof.
They customarily and regularly direct the work of two or
more employees therein.
They have the authority to hire or fire other employees of
the lower rank, or their suggestions and recommendations
as to the hiring and firing, and as to the promotion or any
change of status of his employees are given particular
weight.
Not entitled to overtime pay nor covered by Labor Code
 Classification Plan
Academic Sector
Academic
- Instructor ( I-IV)
- Associate Professor ( I-IV)
- Assistant Professor ( I-IV)
- Professor
Non-Academic
- Guidance Counsellor
- Librarian
Administrative/Office
- Messenger
- Administrative Associate
Module Six:

Trends in Job Evaluation

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 Trends
Movement away from complex job
evaluation systems ( in US)
Fewer evaluation factors
Competency-based evaluation models
Market- based system

Automated Job Descriptions/ Job

Evaluation

Single Classification Plan in the

Academic Sector ( consider this)