Lawrence Wagoner

Job EvaluationJob EvaluationTwo Point-Factor Two Point-Factor

MethodsMethods

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.

Lawrence Wagoner

Universal FactorsUniversal Factors Four Popular Methods Four Popular Methods

BASS NMTASkill 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 Universal Factors Four Popular MethodsFour 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-FactorCombining Point-Factorand Factor-Comparison and Factor-Comparison

MethodsMethods

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 Job Evaluation CommitteeCommittee

Essential to the

success of all job

evaluation

processes is the

presence of expert

judgment.

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Job Evaluation Job Evaluation CommitteeCommittee

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.

Lawrence Wagoner

Job Evaluation Job Evaluation CommitteeCommittee

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....

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Job Evaluation Job Evaluation CommitteeCommittee

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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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.

Job Evaluation Job Evaluation CommitteeCommittee

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Roles Of The Roles Of The CommitteeCommittee

Rank And Rate Jobs

Select A Job Evaluation Methodology

Choose Benchmark Jobs

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Role Of The Role Of The CompensationCompensationDepartmentDepartment

Provide Committee Representation

Provide Committee With Staff Specialists

Identify Benchmark Jobs

Provide Training For Committee Members

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Factor Evaluation Factor Evaluation SystemSystem

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 Factor Evaluation SystemSystem

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 FES Factor Description TableDescription 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 ExerciseFES 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 CheckFES 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 ThumbingSore 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-Hay Guide Chart-Profile MethodProfile 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 Hay Guide Chart-Profile MethodMethod

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 MethodHay 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 MethodHay 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 MethodHay 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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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.

Hay MethodHay Method

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Hay MethodHay 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 MethodHay MethodACCOUNTABILITY

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 Hay Method ExampleExample

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 MethodHay MethodQuality Checks And Quality Checks And

PatternsPatterns

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 MethodHay MethodQuality Checks And Quality Checks And

PatternsPatterns

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 MethodHay MethodQuality Checks And Quality Checks And

PatternsPatterns

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 MethodHay MethodQuality Checks And Quality Checks And

PatternsPatterns

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 MethodHay MethodQuality Checks And Quality Checks And

PatternsPatterns

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 MethodHay MethodQuality Checks And Quality Checks And

PatternsPatternsPROFILING

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 MethodHay MethodQuality Checks And Quality Checks And

PatternsPatternsPROFILING

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 MethodHay MethodQuality Checks And Quality Checks And

PatternsPatterns

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 MethodHay MethodQuality Checks And Quality Checks And

PatternsPatterns

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.

Lawrence Wagoner

Hay MethodHay MethodQuality Checks And Quality Checks And

PatternsPatterns

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