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Leading
Point
deploys
different
techniques
in
designing
and
delivering
Job
Evaluation
Assignments,
the most
suitable
being
determined
by the
characteristics
of the
organization,
including
its
size,
the
number
of jobs
involved,
the time
available
for the
study,
the past
experience
of those
responsible
for the
effort,
and
other
organizational
traditions.
1.
Qualitative
Systems
Qualitative
methods
of job
evaluation
are
distinguished
by the
fact
that
they
involve
the
analysis
of jobs
as a
whole.
There is
no
attempt
to
isolate
the
components
that
comprise
the
position.
Essentially
there
are two
qualitative
systems.
Ranking
Straight
ranking
of jobs
is the
simplest
of all
job
evaluation
methods;
however,
it is
effective
only
where
there
are
relatively
few
positions
to be
evaluated
(customarily
less
than 30)
and
where it
is
possible
to make
logical
comparisons
between
jobs
with
common
characteristics,
such as
clerical,
technical,
etc.
To
simplify
ranking
and to
make it
possible
to rank
a
maximum
number
of
positions,
a
technique
called
paired
comparisons
is used
by
Leading
Point
Consultants.
Whereas,
a matrix
is
constructed
such
that
jobs are
listed
on both
vertical
and
horizontal
axes.
Comparisons
now are
made
between
two jobs
at a
time, an
easier
and less
ambiguous
process
than
attempting
to rank
a number
of jobs
at the
same
time.
When
each job
has been
compared
with
others,
it is
then
possible
to add
up the
relative
rankings
for each
to
determine
the
final
listing.
When
rankings
have
been
completed,
jobs
that are
considered
to be
relatively
close to
each
other
are
grouped,
and
these
groupings
are
turned
into
salary
grades.
Classification
System
This
second
qualitative
approach
used by
Leading
Points
is where
an
organization
has a
larger
number
of
positions
and
where
the
nature
of these
jobs may
be
dissimilar.
In the
classification
system,
jobs are
sorted,
much as
books
are
sorted
in a
library.
Different
categories
are
defined
that
describe
the
level of
complexity
and the
relative
importance.
For
example,
the
highest
classification
level
might be
defined
as one
that
requires
a Ph.D.
level of
education,
extensive
background
and
experience
in
several
professional
or
technical
disciplines,
and the
ability
to solve
problems
of
complex
nature
and that
has a
critical
impact
on the
organization.
In
contrast,
the
lowest
classification
level
might
include
jobs
that are
simple
and
routine
in
nature,
requiring
only an
ability
to read
and
write,
and that
consist
of
duties
and
functions
that can
be
learned
easily
in a
short
period
of time.
When the
classifications
have
been
defined,
jobs are
then
reviewed
and
placed
into the
correct
classifications.
After
they
have
been
placed
in
appropriate
classifications,
the jobs
are then
ranked.
The
result
is a
listing
of all
jobs in
the
organization
from top
to
bottom.
The
grouping
of jobs
into
grades
would
then
follow,
guided
by the
classifications.
2.
Quantitative
Systems
In
large-scale
organizations,
job
evaluations
are
usually
so
complex
and
involves
so many
jobs
such
that
using a
qualitative
process
is
impractical.
In such
cases,
one of
two
quantitative
approaches
is
usually
selected.
Both of
these
approaches
break
the jobs
down
into
compensable
parts so
that it
becomes
possible
to
evaluate
the
total
worth of
a job by
adding
up the
values
of its
compensable
parts.
Factor
Comparison
This
method
of job
evaluation,
which
has
fallen
into
disuse,
is based
on a
process
that
compares
the
degree a
compensable
factor
is
present
in a
particular
job with
the
degree
to which
it is
present
key
benchmark
jobs.
Called
factor
comparison,
this
process
first
involves
identifying
these
key
benchmark
jobs and
dividing
them
into
their
compensable
factors;
each
factor
is then
assigned
a dollar
value,
based on
the
job's
total
worth in
the
competitive
marketplace.
Alternatively,
if a
market
survey
is not
used, it
is
possible
to
divide
each key
job into
component
factors
by
identifying
the
percentage
each
factor
represents
as a
part of
the
whole.
When
these
percentages
have
been
established,
comparisons
are made
to other
jobs,
also by
the
compensable
factors.
When all
jobs
have
been
evaluated,
a salary
survey
of the
market
is
conducted
for each
of the
key
benchmark
jobs.
When
salaries
have
been
established
for
them,
other
jobs are
slotted
in at
rates
that
maintain
the same
percentages.
Point
Method
Leading
Point
mostly
uses the
Point
Method
approach
to
conduct
job
evaluation
assignments,
whereas
the
Point
Method
is a
system
whereby
points
are
awarded
to each
job,
based on
the
extent
to which
the job
possesses
compensable
factors
as
compared
with an
objective
standard
rather
than
another
job.
This
method
is
preferred
because
objectivity
is built
in and
because
the
system
can
remain
in place
over a
long
period
of time,
even
though
individual
jobs
used in
the
factor
comparison
method
may have
changed.
Obviously,
after
points
are
totaled,
there is
a
complete
ranking
of all
jobs
that
becomes
the
basis
for
determining
job
grades
and
eventually
salary
scales.
Hybrid
Approaches
Our
Experienced
compensation
consultants
developed
and
perfected
hybrid
plans
that can
be fine
tuned to
an
organization.
This
generally
is not
done by
the
organization
itself
because
the
process
usually
requires
a
sophisticated
compensation
administrator.
An error
in
developing
the
basic
plan can
be
costly
in terms
of the
program's
not
achieving
its
goals.
In fact,
a poorly
designed
job
evaluation
system
can be
counterproductive
and
further
diminish
the
organization's
employee
relations
and
economic
health.
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