Factors of Job Evaluation

The criteria for job evaluation is the consideration of various factors,  which analyse a position in relation to the skills and experience  required for competent performance, the demands made on the job  and the overall structure and responsibility/accountability involved.

In some cases minor changes to the wording are used to  define factors and levels made in order to better align the job evaluation methodology  with the client’s culture and environment. Where this is done, great care  is taken to ensure inter-organisation consistency is not compromised. The  primary factor in determining compensation is an evaluation of work performed.  The internal worth of a job is evaluated based upon factors like – Know-How,  Problem Solving,  Accountability, Education, Experience, Complexity  involved in the job, Scope of job, Supervision received and Authority  Exercised.

  1. Know-How — The knowledge, skill and experience required for  standard acceptable performance. It considers the requirement for  technical and professional skills, expertise and experience, the amount  of planning and organizing required and the requirement to work with  and through others. The three dimensions of Know-How are listed below:
    • Technical  Know-How :  Measures levels ranging from learning basics work to  specialized techniques and knowledge to professional  mastery of scientific theory.
    • Managerial  Know- How :  Measures the job’s requirements to integrate diversified  types of supervisory or managerial activities.
    • Human Relations  Know- How :  Measures the degree to which the job requires practical  person to-person skills in persuasion, motivation, and  selection of people.
  2. Problem Solving — The thinking required for analyzing, evaluating,  creating, reasoning, arriving at and drawing conclusions; the extent  to which this thinking is covered by precedents or circumscribed by  standards; and the degree of creativity or original thought required. The  two dimension of problem solving are:
    • Thinking Environment :  The degree of structure provided by the job in solving  problems.
    • Thinking  Challenge :  It is the complexity of the problems in the job assignment  and the amount of thinking required to solve job-related  problem.
  3. Accountability — The degree to which the employee is held accountable for  taking action and for the consequences of that action. It is the measured  effect of the job on end results. The freedom to act measured through the  existence or absence of constraints by managers, committees and  procedures and the impact of that action on the organization. The three  dimensions of accountability are depicted below:
    • Freedom to Act :  Measures the relative degree to which decisions can  be made, the level of authority which is needed, or  the precedents, policies, and procedures which must  be considered before an employee can take action.
    • Magnitude :  It is the degree of influence a position has on the  organizational operations.
    • Impact : It is the degree to which the job affects the  organizational operations. Some jobs are directly  responsible for actions while others provide counsel  and advice, which is used by others to take action.
  4. Education – The level of formal education required to perform the  functions required of a position. There is often an overlap between  education and experience, and for this reason it is often advisable to  consider the education level that would be expected of a new incumbent  recruited externally.
  5. Experience – The length of practical experience and nature of  technical/managerial familiarity required. This experience is in addition  to formal education.
  6. Complexity — Measured in terms of: (a) the time taken to learn and adjust  to specific job requirements, (b) the level to which the job functions are  defined and follow established and predictable patterns and, (c) the  thinking challenge required to adapt to rapidly changing  circumstances and innovative or conceptual thinking needed to initiate  new corporate direction.
  7. Scope of Job – The complexity and scope of work factors tend to be  related to the education and experience level required of a position. The  calculation of points for each of these factors is based on the application  of a percentage rating of the sum of the points derived in the evaluation of  Education and Experience.
  8. Supervision Received -The extent of supervision, direction or guidance  imposed on the job holder and the freedom the executive has to take  action.
  9. Authority Exercised – Authority level expressed in terms of routine  expenditure, capital expenditure and investments, granting of loans,  hiring and firing staff, etc.

Credit: Compensation Management-CU

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