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Job Evaluation Program
This document outlines a job evaluation program aimed at establishing an equitable wage structure within an organization by systematically assessing the relative worth of different jobs. It details the objectives, principles, methods, and processes involved in conducting job evaluations, as well as the factors considered and the importance of cooperation from both supervisors and employees. The point method is emphasized as a key quantitative evaluation technique, along with examples and insights into the implications for wage comparisons and structures.
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Job Evaluation Program
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- 2. Seta A. Wicaksana,M.Psi., Psikolog 0811 19 53 43 [email protected] • Ahli Senior di Komite Kebijakan Pengelolaan Kinerja Organisasi dan SDM (KPKOS) Dewan Pengawas BPJS Ketenagakerjaan • Wakil Dekan II Fakultas Psikologi Universitas Pancasila • Pembina Yayasan Humanika Edukasi Indonesia • Pendiri dan Direktur Humanika Consulting • Penulis Buku “SOBAT” Elexmedia Gramedia 2016 • Trainer, Psikolog, Konselor Karir dan Assessor di Humanika Consulting • Pengembang Alat Tes minat bakat BRIGHT dan Sistem Tes Psikologi berbasis aplikasi HITS dan HABIT • Narasumber di Radio DFM 103,4FM • Dosen Tetap Fakultas Psikologi Universitas Pancasila • Sedang mengikuti tugas belajar Doktoral (S3) di Fakultas Ilmu Ekonomi dan Bisnis Universitas Pancasila Bidang MSDM • Lulusan Fakultas Psikologi S1 dan S2 Universitas Indonesia • Lulusan sekolah ikatan dinas Akademi Sandi Negara
- 4. Job Evaluation Job evaluationis an orderly and systematic technique of determining the relative worth of the various jobs within the organization so as to develop an equitable wage and salary structure.
- 5. Objectives of Job EvaluationProgram • To determine equitable wage differentials between different jobs in the organization. • To eliminate wage inequities. • To develop a consistent wage policy. • To establish a rational basis for incentive and bonus schemes. • To provide a frame work for periodic review and revision of wage rates. • To provide a basis for wage negotiation with Trade Unions. • To minimize wage discrimination on the basis of age, sex, caste, region etc.
- 6. When is aJob Evaluation Necessary? A job evaluation may be justified under the following circumstances: • A brand new job has been created. • There have been significant and sustained changes in the permanent and essential responsibilities of a job. • The nature or type of work has changed and is at a substantially higher or lower level than previously required. • There has been a departmental reorganization or other changes within the department which have resulted in significant and sustained changes in a job’s level of responsibility.
- 7. Principles of JobEvaluation • Job evaluation must attempt to rate the job and not the man. • Elements of job selected for the job must be common to most of the jobs, few in number and simple to identify and easy to understand. • Clean definition of elements and consistency of degrees of such elements, improve accuracy of job evaluation. • Secure willing co-operation and support of supervisors on job evaluation. This is obtained by selling this idea among them and obtains this participation in the process. • Secure co-operation and participation from employees. • Minimise number of wage rate within each grade.
- 8. Job Evaluation Process JobAnalyzed Job descriptions’ written Factors Identified: - Education - Skill & Experiences - Effort - Responsibility Job Evaluated Job Structure Pay Rates Assigned Job Evaluation Weighting/Job Value : Point Methods Approach Salary Structure Salary of Employee
- 9. Methods of theEvaluation Quantitative Methods: Point Methods The procedure involved is as follows: • Select And Define The Factors: The factors common to all jobs are selected and defined clearly. Skill, physical and mental effort, responsibility and working conditions are the main factors used. • Select Key Jobs: Key jobs serve as standards against which other jobs can be compared. A key job is one having standardised contents and well accepted pay rate, key jobs should be a cross-section of all jobs in the organisation representing all levels of pay. • Rank Key Jobs by Factors: Job descriptions are carefully analysed and the key jobs are rated in terms of the selected factors. • Decide Rates For Key Job: A fair and equitable wage rate (hourly and daily) is dimensioned for each key job. • Apportion the Wage Rate: The wage rate for a job is allocated among the identified and ranked factors. • Evaluate The Remaining Jobs: The remaining jobs are compared with the key jobs in terms of each factor.
- 10. Job Evaluation: ThePoint Method • Job Analysis to determine… – The tasks performed in a job • The Job Description – The knowledge, skills, and abilities needed to perform the job • The Job Specification
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- 12. Generic Factor -Skill • Technical know-how • Specialized knowledge • Organizational awareness • Educational levels • Specialized training • Years of experience required • Interpersonal skills • Degree of supervisory skills
- 13. Generic Factor -Effort • Diversity of tasks • Complexity of tasks • Creativity of thinking • Analytical problem solving • Physical application of skills • Degree of assistance available
- 14. Generic Factor - Responsibility •Decision-making authority • Scope of organization under control • Scope of organization impacted • Degree of integration of work with others • Impact of failure or risk of job • Ability to perform tasks without supervision
- 15. • Potential hazardsinherent in job • Degree of danger which can be exposed to others • Impact of specialized motor or concentration skills • Degree of discomfort, exposure, or dirtiness in doing job Generic Factor – Working Conditions
- 16. Job Evaluation: ThePoint Method • Example: Software Engineer – Job Description • The Software Engineer designs, develops, tests and maintains one or more of our products or internal applications. The software engineer works as a member of an engineering team developing, designing, and maintaining one or more of our products or internal applications. This position reports to the appropriate Project Manager. – Job Specification • Bachelor's or undergraduate degree in Computer Science, Information Systems, Electrical Engineering or equivalent experience. Masters or graduate degree is desirable. Understand Intranet and Internet technologies: http, firewall.
- 17. Job Evaluation: ThePoint Method • Define the degrees of each factor – Responsibility: This factor identifies the extent to which the job requires judgment and responsibility in the making of decisions. The importance of the decisions and the extent to which standard policies and procedures provide guidance in decision making will be considered. • 1st Degree: Work requires decision making involving the analysis of the facts of a situation and the determination of what actions should be taken within the limits of standard procedures; only unusual or seldom recurring situations require referral. Judgment could affect the work of others or cause minor inconvenience. Typical errors are generally confined to a single team or phase of operations. University of Wisconsin-Oshkosh
- 18. Job Evaluation: ThePoint Method • 3rd Degree: In consultation with team members decide specific work projects to perform, and proceed to plan, coordinate, and commit resources required to accomplish work; associates develop or establish procedures or policies. Judgment requires accuracy because errors could potentially result in inaccurate reports, incomplete or misleading information, unsound recommendations, or incorrect decisions. Consequences could adversely affect operations or services causing significant losses of time, resources and potentially have a long term impact on a team. • 5th Degree: Assists board in the development of policies, general procedures and corporate goals. Errors in judgment could jeopardize the viability of the company.
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- 20. Overview of thePoint Method Job Factor Weight 1 2 3 4 5 1. Education 50% 100 200 300 400 500 2. Respons- ibility 30% 75 150 225 300 375 3. Physical effort 12% 24 48 72 96 120 4. Working conditions 8% 25 51 80 Degree of Factor
- 21. Job Evaluation: ThePoint Method • Evaluate benchmark jobs to determine Job Evaluation Point Totals… – Benefits supervisor = 700 – Training material development specialist = 650 – Job evaluation specialist = 460 – Compensation manager = 920
- 22. Apportion the WageRate (example)
- 23. Job Evaluation: ThePoint Method • Collect salary survey data on benchmark jobs… – Benefits supervisor = $60,393 – Training material development specialist = $58,403 – Job evaluation specialist = $43,155 – Compensation manager = $79,958
- 24. Job Evaluation: ThePoint Method • Do a regression analysis to find the pay line for the benchmark jobs… – Dependent variable is salary survey data – Independent variable is job evaluation point total – Calculate salaries for benchmark and other jobs using the regression equation… • Salary = 79.67*JETotal + 6101.09 • Example: Compensation Director = 79.67*1120 + 6101.09 = $95,333
- 26. Final Result: Structure •Outcome – Ordered list of jobs based on their value to organization – Hierarchy of work – Structure supporting a policy of internal alignment • Information provided by hierarchy – Which jobs are most and least valued – Relative amount of difference between jobs • Note that job hierarchy resulting from job evaluation process that mirrors pay hierarchy of key jobs in external labor market may in fact be problematic – may be perpetuating historical discrimination
- 27. Sharing and Givingfor Better Indonesia