Computation of Compensation

Job Analysis, Documentation, and Evaluation 181
Figure 10.1 Methods of job analysis.

Direct Observation—Observing workers in order to understand job duties, responsi-
bilities, tasks, and task elements.
Individual Interview—Structured, one-on-one review of job content by a job analyst
with the incumbent or supervisor.
Group Interview—A structured review of job content between a job analyst and a
group of incumbents.
Technical Consultation—A structured review of job content between a job analyst
Job Analysis, Documentation, and several experts.
10 and Evaluation
Open-Ended Questionnaires—A written set of questions regarding job content that
requires the incumbent to prepare a narrative response.
Highly Structured Questionnaires—A written set of questions regarding job content
that limits responses to a predetermined set of answers.
plans, another output of the job evaluation process would be to develop some form
of detailed job documentation to help effectively establish the job’s position within
the job-worth hierarchy. Secondly, it is important to determine which sources and
methods will be used and who will be collecting this information.
When conducting a job analysis, it is necessary to identify, collect, and analyze
critical data about the job. Typically, the critical data collected will fall into two cat-
The process of building a base pay structure and determining the value of a job
egories—the nature of work and the level of work. The nature of work usually refers
begins with job analysis. As stated in Chapter 8, job analysis can be defined as the
to the duties and responsibilities of the incumbent in the job. The level of work re-
systematic process for obtaining important and relevant information about each
fers to the skill required for the job, any mental or physical effort needed, levels of
distinct role played by one or more employees. This would include duties and
responsibility/accountability, and various working conditions (basically the generic
responsibilities of the job as well as the required behaviors, competencies, and
factor groups identified in the Equal Pay Act of 1963).
worker characteristics.
Several sources of information can be used to identify and analyze job-critical
One of the first questions to ask when beginning the job analysis process is,
data. This data can be collected from both primary and secondary sources. Primary
“Who in the organization should be involved?” Should it be limited to only those in
sources refer to information obtained directly from the incumbent or supervisor,
human resources or compensation? How about department managers? What about
and typically will be obtained by using one of the methods of job analysis listed
incumbents?
previously. Secondary sources refer to any information obtained from sources other
All of the aforementioned groups would be a great addition to a team. For job
than the incumbent or supervisor. (See Figure 10.2.) Secondary sources are very
analysis to be accepted as a valid analysis, you should include a team of represen-
helpful in the understanding of the job as a whole, without any possible bias that
tatives outside of the human resources function to conduct the job analysis. The
might exist with the incumbent or supervisor. It is useful to study existing secondary
incumbents are valuable because they would have the most detailed information
source information about the job or process to be reviewed.
about their own duties and responsibilities. The compensation department could
To accomplish the goal of establishing a valid, reliable, and defensible job-
provide a more objective approach and would add consistency if involved in the job-
evaluation system, the job analysis must have employee acceptance. If the compen-
analysis process. The department managers could help the team both validate the
sation department has done an inadequate job of communicating the purpose of
incumbent’s comments and the intent of the job.
the job analysis, employees may have a negative view of the process. In addition to
And, although typically, a true job analysis only would be concerned with the
communication, it is vital that the methods of data collection and analysis are valid.
current job, by determining the intent of the job, an analyst could analyze the job
Some of the barriers of validity include:
further and determine knowledge, skills, and ability requirements for the job.
When starting the process of job analysis, it is important to first determine what • Sampling errors.
information to collect. This typically is based upon the method of job evaluation to • Incumbent bias.
be used. (See Figure 10.1.) • Incomplete information.
For internal job evaluation purposes, it is important to gather information that • Illogical question order and sequence.
will help the compensation department effectively and efficiently evaluate jobs • Inadequate communication.
based upon the plan’s predetermined critical factors. With most internal evaluation • Misinterpretation of the questions.
180
182 Job Analysis, Documentation, and Evaluation Job Documentation 183
Figure 10.2 Secondary sources for job analysis. Job descriptions can be defined as the following:
Work-flow studies may have been conducted in an attempt to analyze which jobs can • A job description is a summary of the most important features of a job, includ-
be automated. ing the general nature of the work performed (duties and responsibilities)
Policies and procedures materials of the group can sometimes be an indication of the and level (e.g., skill, effort, responsibility, and working conditions) of the work
work process, training, and knowledge requirements of various job groups. performed.
Organizational charts can provide some indication of the level of the job and report- • It typically includes job specifications that detail employee characteristics re-
ing relationships. quired for competent performance of the job.
Existing job documentation is an effective way to obtain background information on • A job description should describe and focus on the job itself and not on any
the job. specific individual who might fill the job.
Organizational goals or objectives discuss the responsibilities and achievements that With the passage of the Americans with Disabilities Act of 1990, job descriptions
are measured for performance purposes. began to take a more prominent role within organizations. Although not specifi-
Industry association materials can be useful, as some associations have standard job cally required by the act, most employers use job descriptions as a way to identify
descriptions to provide benchmark information. essential functions of the job. An essential function can be defined as:
Salary surveys have some generic job descriptions in the survey materials.
Government publications are generally inexpensive and comprehensive in sampling • The reason the job exists.
a large number of jobs (O*NET, Dictionary of Occupational Titles, Occupational • A limited number of employees available to distribute the work.
Outlook Handbook). • Functions that are highly specialized and require expertise.
There is no universal format for job descriptions. In fact, because job descrip-
tions are not specifically required, a job documentation document can take any
form. However, most job descriptions contain similar information.
A job title should be the first item listed on any job description. The job title
• Bias in recording the information. defines the general nature of the job and the level of work performed, and is the
• Faulty interpretation of results. main identifier of the job. It is important to include the job title for classification
purposes as well as using it as a placeholder in the job-worth hierarchy.
By carefully reviewing the methods of data collection and the means used to ana-
The exemption status of the position is also typically found on a job description.
lyze the data, and communicating these methods in simple terms to the employee
In most job descriptions, it is indicated whether the job is exempt, or not exempt,
population, the chances of a successful implementation are greatly increased. With
from the hours worked and the overtime provisions of the FLSA. Because some
a valid job analysis in hand, the compensation department then can move into the
organizations group like jobs together, the exemption status listing could assist with
next phase of the job process—job documentation.
that grouping. Additionally, by listing the exemption status on the job description,
employees will know if they are overtime eligible (or not).
Job Documentation A listing of reporting relationships is another section found on most job de-
scriptions. In this section, both whom the employee reports to and who reports to
the employee are identified. This identification could be textual or on occasion a
When most people hear the words “job documentation,” the first thing that comes
graphical representation may be included.
to mind is a job description. Unfortunately, the second thing that often comes to
The first main task identifier found on a job description is the general summary.
mind is how out-of-date their organization’s job descriptions are, if they exist at all.
This section is intended to give some idea of the level of skill and responsibility
How important are job descriptions? Are job descriptions the only form of job docu-
found in the job. It is a brief summary (just a few sentences) and is provided as a
mentation? Why do organizations use job documentation? What is the purpose?
general overview of the general nature, level, and purpose of the job.
Job descriptions are perhaps the most widely used form of job documentation,
After the general summary, the job description typically contains a principal
although certainly not the only form used by organizations today. Any written in-
duties and responsibilities section. This section generally contains the essential
formation about job content typically resulting from a job-analysis effort could be
functions of the job with the duties and responsibilities listed in some rank order
considered a form of job documentation. Job documentation usually takes one of
of importance. Any duties or responsibilities that account for more than 5 percent
several forms:
of time or are critical to the successful performance of the job are usually in-
• Job-analysis questionnaires—in many cases, questionnaires completed by incum- cluded. Sometimes each duty/responsibility will have the percent of time it would
bents contain more specific and extensive data about a particular job than a encompass the incumbent’s time listed, which will help in the evaluation process
formal job description. of the job.
• Job-family matrices—information on multiple levels within the same job family. After the duties and responsibilities are identified, a section containing job speci-
• Job descriptions—a formal documentation of duties and responsibilities as well fications usually can be found. This section identifies the knowledge, skills, abilities
as job specifications. (KSAs) and behaviors needed to perform the job competently. This section usually
184 Job Analysis, Documentation, and Evaluation Job Analysis: A Step-by-Step Process 185
notes the minimum specifications required to perform the job. If a bona fide occu- For example, when two workers are employed as administrative assistants, and
pational qualification (BFOQ) exists, it would be noted in this section. their duties and responsibilities are essentially the same, there are two administra-
In some job descriptions, a working conditions section is included. The working tive assistant positions but only one administrative assistant job. Of course, there are
conditions section lists any hazardous or unpleasant (or pleasant) working condi- also single-incumbent jobs (e.g., the chief executive officer). Jobs that are common
tions that may be encountered on the job. The information provided will entail the to many organizations are known as occupations. For example, most organizations
level of intensity, frequency, and duration of the adverse working conditions. employ administrative assistants and accountants; thus, both are occupations.
The final section found on most job descriptions is the disclaimer. A typical dis- A work group or team exists when a worker interacts with others to produce
claimer section will cover any instance when an incumbent might be asked to do a component of a product or service for sale or consumption (Figure 10.4). The
a duty that is not listed on the job description. Because of these unforeseen occur- emphasis is on the human element involved in the production, not the mechanical
rences, many descriptions contain a disclaimer statement that states: “may perform or automated processes involved, except to understand how the worker interacts
other duties as assigned.” with or affects them. The focus of work analysis is on how worker interactions add
Although job descriptions can be written by anyone in an organization, it is rec- value during the process. It consequently serves as the first step in identifying teams.
ommended that the job descriptions maintain the same “look and feel” for all jobs Single-job analysis actually can be part of work analysis, depending on the ultimate
in the organization. Human resources, the supervisor/manager, or even the incum- objective of the analysis project. Job or work analysis is a step-by-step process.
bent could write the descriptions. Regardless of who writes the job descriptions, the
job descriptions should be unbiased and kept up-to-date.
Job Analysis: A Step-by-Step Process
What Is a Job?
Step 1: Obtain Management Approval
In practice, the terms job and position often are interchanged. However, there is a
difference. A job consists of a collection of duties and responsibilities, which can Before beginning a major undertaking in any organization, be sure to obtain top
management support. The human resources department should not unilater-
be further divided into specific tasks and further into task elements. (See Figure
10.3.) Using an “executive assistant” job as an example, a task element is the simple ally initiate a job analysis effort. Support is won more easily when management is
motion of setting up a word processing document. A task is typing the minutes of a aware of its legal liabilities under the Fair Labor Standards Act (FLSA), ADA, Equal
Pay, and all of the various local, state, and federal civil rights laws (in Canada, the
particular meeting. A duty is having to maintain a record of those minutes from a
series of meetings. A responsibility of this job is having accountability for the record- Human Rights Act and pay-equity laws). Consequently, it may be necessary first to
ing, typing, dissemination, and maintenance of the record. When there are enough educate management about the critical role job analysis has in minimizing liability
under these laws. Job analysis also is the first step to ensure that jobs are classified
duties and responsibilities to require the employment of a worker, a position exists.
Consequently, an organization has as many positions as it has current workers and
job openings (vacancies). When more than one worker is employed in the same or
similar position(s), a job exists.
Figure 10.4 Work team.
Figure 10.3 Hierarchy of terms.
properly as either exempt or nonexempt, that “essential job functions” are identi- Emphasize to employees how critical it is to get good information about their jobs.
fied, and that hiring requirements (i.e., job specifications) are clear and defensible. If the job-analysis effort is the first step in a project to re-evaluate jobs, the organi-
Moreover, performance appraisals can lead to lawsuits under state and federal anti- zation should promise to communicate the results—consistent with management’s
discrimination laws. Legally, a performance appraisal is a type of selection proce- philosophy on communicating compensation matters. To maintain credibility in the
dure or employment test. The basis for developing standards of performance is the future, it is imperative to honor that promise.
job description, which is developed from a detailed job analysis. Consequently, job If the work-study is intended to result in a realignment of workers into teams or
analysis is critical to developing a sound performance management system. to implement quality improvements, explain to participants that their input at the
When coupled with work analysis, there are many aspects of job analysis that also outset is vital, and that the final work redesign plan will be presented to them first
are of interest to management. All organizations want to ensure that roles and re- for their suggestions. Employees must believe that their participation is welcome
sponsibilities are clearly understood, that there is no duplication of effort, and that and will make a difference.
work flows smoothly and efficiently from one department or function to another.
In an era when organizations are seeking to achieve the “right” size, job and work
analysis also can establish the basis on which staffing decisions can be made. Tech- Gaining Union Support
nology has greatly impacted the design of work and efficiency of workers. An up-to- In a union environment, gaining the union’s cooperation and support is always im-
date job analysis ensures management that job content, job descriptions, and so on
portant. However, even without that support, management has the right to collect
accurately reflect how work is being performed and what skills are required. It also
important information about jobs. Fortunately, union support frequently is forth-
ensures them that correct job matching occurs when benchmark jobs are priced coming because job-analysis information is helpful in defining jobs in contracts
against relevant labor markets. Job analysis is also necessary to develop a successful and in conducting pay surveys. However, job descriptions sometimes become work
training program for workers assigned to jobs that require formal training. Job and
“rules” and handcuff management’s flexibility in union environments.
work analysis give management a clear picture of who is doing (or not doing) what, Work-studies may be opposed if a union perceives it to be the first step in job
and they provide the basis for ensuring that the company’s limited compensation eliminations. However, in today’s competitive, global economy, unions understand
dollars are properly spent. the need for efficiency and quality. It is on this basis that their cooperation can be
To institute effective quality management programs, it is imperative that the work
solicited, especially if they are invited to participate in the process so everyone is
dynamics be understood before any realistic improvements can be made. However, working toward a common goal—a profitable and stable organization that produces
management’s desire to make things better is not enough; employee acceptance a quality product.
also is needed.
Step 3: Decide Who Will Conduct the Analysis

Step 2: Gain Employee Acceptance
Job or work analysis can be performed by anyone in the organization who has been
Employee acceptance is crucial. If management has done an inadequate job of com- trained or who is familiar with the work being analyzed. Of course, it is always best
municating what the job analysis or work-study effort is all about and the reasons for to ask trained job analysts from the human resources department or elsewhere to
it, negative employee relations may result. conduct the study. This is not always practical, however, because of time constraints,
Because of the recent downsizing trend in American business, employees natu- geographic limitations, or company size.
rally will view job or work analysis efforts with suspicion. To mitigate any negative To be efficient, especially when many jobs need to be analyzed, organizations
impact of the job analysis process, an upbeat communication campaign should ask supervisors, job incumbents, human resources staff, outside consultants, and
be developed to explain to employees why the study is being done (e.g., imple- others to perform the analysis. The best results come from directly involving super-
mentation of an incentive program, compliance with ADA, re-evaluation of jobs, visors and incumbents. Most important, mutual concern for working efficiently and
development of the strategic plan, development of total quality management enhanced communication between worker and manager often result. If everyone
programs, etc.). is not trained in the analysis techniques discussed in this book, the results will be
Emphasize the benefits to the employee as well—a clearly defined job that will be inconsistent, and, consequently, of limited value.
the basis for developing performance standards and evaluating the job’s worth, or Whoever is chosen to do the analysis should have good interpersonal skills, good
the creation of opportunities for employee participation in the production process writing skills, and knowledge of how the organization functions. In addition, success-
to increase quality and efficiency, and to enhance employee satisfaction. Potentially, ful analysts will be inquisitive by nature and objective in their business dealings.
the study could result in determination of required competencies and training de-
veloped for employees in those competencies that employees might now fall below
new standards. The latter may particularly be the case with new/upgraded technol- Step 4: Think in Terms of Work Flow
ogy. Communicate how employees can help the process by properly filling out ques-
tionnaires, responding to interview questions with detailed information, making In all organizations, whether profit or nonprofit, public or private, work “flows”
suggestions for work improvement, and identifying problem areas. from one area to another. (See Figure 10.5.) Whether it is manual or intellectual
work that is being analyzed, think of work flow in these terms: The worker will re- ownward in the organization), lateral (work assignments are received from and
d
ceive work from someone (or somewhere), will add value by doing something to it, sent to peer departments), or diagonal (work is requested from or sent to incum-
and then will pass it on to the next worker. If no value is added (this may frequently bents who are in other functions and at different levels in the organizational hier-
be the case, particularly in bureaucratic organizations), the activity should be re- archy). Often, the formal chain of command is not followed, and workflow speed
viewed to determine the implications of discontinuing it. If it is discontinued, the increases; this is important to remember in conducting workflow analysis, especially
worker should be reassigned, if possible. if the ultimate goal of the analysis is to reorganize job incumbents into teams.
In a quality management environment, workflow focuses heavily on the “added- While review of workflow is important for both quality management and job
value” component. Workflow on an assembly line, for example, might involve one evaluation purposes, the process differs for each purpose. For job evaluation, it is
worker passing a semifinished product to the next worker on the line, who adds important to understand a specific job and its relationship with other jobs in the
another part and then passes it on, and so on until completion. job-worth hierarchy (the value organizations place on individual jobs). In quality
In quality management, workflow is scrutinized from two standpoints: management, workflow is scrutinized from two standpoints:
• From within the job itself. • From within the job itself, by having the job incumbent ask questions for each
• Through the entire process of the workflow. activity, such as: From where or from whom does the work come? Are there
any changes in how the work is provided to me that would make my job easier
Workflow is not simply lateral. In knowledge work, workers receive a project as-
or faster? How could I enhance the work I provide to others to expedite the
signment from their bosses, or a request from another department, or a report
next step in the workflow? By asking such questions, the worker is trained to
from a subordinate. A job analyst’s concern is what the worker does with the assign-
think in an analytical way about what is being done and why.
ment. Therefore, workflow can be vertical (work assignments are passed upward or
• Through the entire process of the workflow, to determine if a major activity
can be accomplished more effectively and efficiently through reassignment or
through modification of one or more tasks or responsibilities, not only across
Figure 10.5 How work flows. job functions but also across departmental lines. If the purpose of the work-
study ultimately is to enhance teamwork, the analysis will focus additionally
on identifying the best cluster of workers, or “team,” that adds value to the
product or service being produced.
Step 5: Consult Secondary Sources First
Before beginning to conduct the actual job or work analysis by approaching a

worker or a supervisor, it is always useful to study existing secondary-source infor-
mation about the job or process to be reviewed. Many sources of information are
already available about the work being performed.
Internal Sources
The most obvious and perhaps most useful piece of information available is the ex-
isting job description. Instead of starting from scratch, it is possible simply to update
the job description based on additional information gathered from the job incum-
bent, supervisor, or both. Focus on “what has changed” rather than rewriting the job
description from the beginning. Again, technology has greatly influenced how work
is done, and it is imperative that these changes are captured through a current job
analysis. Generic job descriptions provided in salary surveys of benchmark jobs are
another good secondary source of information.
Other sources can offer quite a bit of information about the job, about the unit
in which the job or work group is located, and about workflow. In terms of workflow,
the most useful source is the organization chart. It tells where the worker function
is located within the organization, and it provides a good idea of where the work
comes from and where it goes after the unit has added value.
Many organizations design company phone books that reflect their structure. For
example, the head of a department is shown at the top of the page, indented below
is a list of the major functional units within that department, and further indented involved. There are three primary methods of collecting information about jobs: ob-
are the specific names and titles of workers in each unit. When current formal orga- servation, interviews, and questionnaires. Each has advantages and disadvantages.
nization charts are not available, the phone book can be a valuable substitute, but
keep in mind that it may not reflect actual reporting relationships accurately.
Today’s organizations often use the management-by-objectives (MBO) approach Observation Method
to communicate the key contributions expected from each department on an an- The observation method is most appropriate for manual and repetitive production
nual basis. These usually are broken into specific objectives for each worker, and work. For example, in the case of an assembly line worker attaching simple handles
they will indicate the expected contribution(s) of the job being analyzed. Organiza- to pieces of equipment, two or three observations would be sufficient to learn where
tion or department strategic plans and annual budget write-ups also can provide the work comes from, what the assembler does with it, and where the work goes
helpful, though indirect, information. These are important models to use while after the operation is complete.
conducting the “reality test” in Step 10. In-depth questioning of the worker, or having the worker maintain a detailed log
In an attempt to understand which functions can be automated, systems analysts for several days, would not be necessary to understand what is being done and how
often prepare work-studies and procedures manuals. To do so, they will ask job in- it is being done. For a more complicated or protracted process, it might be neces-
cumbents to keep diaries and logs for a period of time. Certain types of work need sary to observe several cycles or to observe them piecemeal. The cycles may occur
to be performed in an orderly and consistent manner, and many organizations de- over days or weeks, so it is important to know if the entire function or just part of it
velop training or procedures manuals that instruct the worker on how to perform is being observed.
specific tasks. These documents all should be consulted to gain an understanding
of the nature of the work that is being performed before actually conducting a job
analysis. If parts of the workflow have been outsourced, the outsourcing contract How to Observe
will usually contain specific “Service Level Agreements” that spell out in detail the
work to be performed and the level of quality to be achieved by the external entity. Do not assume that the worker knows why the observation is occurring. Remember,
the best job analysis occurs in an atmosphere of trust. Once the observation begins,
be as unobtrusive as possible so as not to interfere with the process. While observ-
External Sources ing production jobs, it is important to be aware of the effort the worker exerts in
doing the job and the physical environment in which the work is performed. Record
Source material also may be found in government publications, books, maga- noise, heat, moving machine parts, and the weight of parts or equipment handled.
zines, and other material published by industry or professional trade associations. Pay special attention to the work environment, for example, heat, noise, etc. If the
The Dictionary of Occupational Titles (DOT), published by the federal government, work is performed outside, weather and other factors may also be important. Note
provides information on more than 20,000 job titles. The government also pub- any exposure or handling of hazardous materials, safety equipment required as well
lishes The Occupational Outlook Handbook (OOH), which is cross-referenced to the as the physical demand on the worker, for example, ability to lift objects weighing
DOT and provides extensive information about jobs and the outlook for related more than 50 pounds. Thank the worker when finished with the observations. It is
careers. Both are valuable sources and especially are useful when the analyst has always a good idea to discuss observations with a supervisor. Summarize any notes
little knowledge of the jobs to be studied. Both DOT and OOH are accessible taken soon after the observation so important details are not forgotten. If complete,
online. notes are a form of job documentation, even though they usually are developed into
In addition, many professions such as law, accounting, and human resources have a more formal job description.
associations that gladly will supply information about the nature of work performed The observation method is not limited to single-job analysis. It is useful in fol-
by their membership, including model job descriptions. Usually, they also publish lowing a product or service from raw material to finished product, especially if the
magazines and newsletters that, although technical or narrow, certainly can provide process is predominantly manual in nature. In fact, it is a valuable first step in total
valuable insight to a job analyst. In addition, do not forget the local bookstore or li- quality management to walk through the entire production process before any
brary, where information can be found about the type of work that is to be analyzed, changes are contemplated. “Walk-throughs” are also a valuable step when the pur-
including textbooks in the subject field. pose of the study is to identify appropriate members of work teams.
The idea is to use any or all of these sources, as necessary, to gain at least a gen-
eral understanding of the job before moving to the next step. Moreover, the cus-
tomer may be the most critical source of information regarding the quality or lack Observation and Interviews
of it that represents the outcome of the work performed.
Observation can be used in conjunction with questionnaires by having workers com-
plete them before observation of the production process. When observing a more
Step 6: Decide Method and Collect Data sophisticated process, ask the worker a few questions to clarify the observations. For
example, suppose an assembler sometimes opens the casing before attaching the
When deciding how to collect the information needed to analyze work, it is im- handle and makes some adjustment to the internal mechanisms. Observation in
portant to take into account the scope of the project and the time, staff, and costs this case does not tell the whole story. It is necessary to ask the assembler why the
adjustments are being made to some machines and not others, what the adjustment Figure 10.6 How to conduct an interview.
actually is, and how long the average adjustment takes. In a workflow study; ask what
could have been done in a previous operation to make the worker’s job more effi-
cient, or what the worker could do to streamline the next operation in the process. ■ Establish rapport
Try not to interfere with the worker or the process; questioning between cycles is
best. If it seems that part of the picture is missing, talk to a supervisor. ■ Begin interview with broad, general questions —
think of workflow
Observations: Advantages and Disadvantages
Observation is time-consuming and costly, and it requires observers to be trained ■ Ask specific questions
properly. By itself, it may not be a sufficient approach to job analysis because the
observer might “miss” something important. In a more thorough work analysis, an ■ Check list
analyst will have to question why things are being done. Consequently, the ana- ■ Explain next steps
lyst will have to discuss his or her observations with a worker’s supervisor or other
technical experts. While it can be expensive, observation is not as costly as the next
method, one-on-one interviewing.
■ Leave door open for further discussion
One-on-One Interviewing ■ Thank interviewee and close
The observation method becomes less useful toward the higher end of the organi- ■ Follow up by telephone, if necessary
zation hierarchy. Watching a financial analyst poring over numbers or executing a
computer program will not tell much about what actually is being done, nor will it
indicate the skills required to do it. An in-depth discussion with the job incumbent Learn to listen “between the lines.” Avoid closed-ended questions that can be
will provide information about what is being done, how and why. A useful analogy answered with simple “yes” or “no” answers. The mission is to obtain as much infor-
often has been drawn between a job analyst doing an interview and a newspaper mation about the job as possible.
reporter whose job is to find out who, what, where, when, why, and how. As men-
tioned before, consult secondary sources first to ensure that interview questions are
informed and insightful. Writing a Job Description
If the goal is to write a job description from the interview that will be used for job
Starting an Interview evaluation, it is necessary to know beforehand what the evaluators will be looking
for in the job description—that is, what “compensable factors” they will be using to
The most important part of the interview is the beginning. (See Figure 10.6.) It is evaluate the job. Compensable factors are ones for which an organization is willing
always important to put the job incumbent at ease by engaging in informal chitchat to pay. The specific factors and how they are measured should be explained in the
to break the ice. Then, as the formal part of the interview begins, it is imperative to job-evaluation plan being used.
explain why the meeting is taking place, what will be discussed, and what will occur It is important to have a solid understanding of the compensable factors in order
after the interview is over. If the job incumbent still seems unsure about why the to ask pertinent questions or to probe deeper for clarification. Let’s take a compen-
interview is taking place, it is even more important to provide an adequate explana- sable factor such as “freedom to act,” for example, and assume it is measured by the
tion. Otherwise, the interviewee will be guarded and the interview will be difficult. degree of sign-off authority an incumbent has. In the interview, ask: “What is your
Remember, the best interview occurs in an atmosphere of trust and mutual commit- expenditure approval authority? Is it $1,000? $10,000? $1 million?”
ment to fact-finding. Note that the answer to this question is expressed in numbers, or dimensions.
Start the actual interview with broad, general questions: On what do you spend Dimensions are statistics that help quantify the scope of the job and the impact that
most of your time? What are your major responsibilities, from the most important the incumbent performing it has on the bottom line. Frequently requested dimen-
to the least important? sions include dollar sign-off authority, number of subordinates reporting, budget,
If there are no up-to-date organization charts, start by asking the incumbent to dollar-value of plant and equipment, sales volume, revenues, expenses, assets under
describe the department and the chain of command. Keeping the concept of work- management, and so on.
flow in mind, probe from the general to the specific as the incumbent begins to an- Some organizations are moving toward defining jobs in terms of “competencies,”
swer questions. Listen actively by nodding when the incumbent emphasizes certain the technical and behavioral skills inherently needed to perform the job well. Com-
points. Use eye-to-eye contact frequently and ask insightful and clarifying questions; petencies focus on what people are or can do; they identify traits, knowledge, skills,
it demonstrates genuine interest in the job. and abilities.
How to Ask Questions involved it is (or is not) will provide a more complete picture of the work as well as
the knowledge, skills, and abilities required to do it.
Not all questions will be direct or specific. Figure 10.7 gives a list of suggested ques-
tions that can be modified to create a specific checklist that ensures all-important
topics have been covered. With practice, it is possible to develop a reliable list of Closing the Interview
questions and a sequence for asking them. Remember to ask questions that pertain Closing the interview is as important as beginning it. Explain the next steps in the
to quality management and workflow. (See questions 9 through 14 in Figure 10.7.) process. (For example, a draft of the job description will be prepared and sent for
Each interview is unique, and some will be easier (and more interesting) than the incumbent’s review and comments within five business days.) Give the incum-
others. Do not try to hold the job incumbent to a preset notion of the order in which bent a business card and invite him or her to call if there is anything that should
things should be discussed. Remember to direct the interview, not control it. A free- have been discussed but was not. Find out when the best time is to contact the job
flowing dialogue can reveal much. However, to make sure all important issues have incumbent with follow-up questions, if necessary.
been explored, double-check the question list toward the end of the interview. Most organizations separate the responsibility for job analysis from the responsi-
During the interview, it is acceptable to admit that something is unclear. Every bility for job evaluation. However, someone in the awkward position of being both
profession has its jargon and acronyms, and professionals often talk in “code,” for- analyst and evaluator should not be forced during the interview into giving an in-
getting that the uninitiated do not understand. When unsure of something, stop dication of the evaluation. Emphasize the current fact-finding role; explain that
the interviewee and ask, “What does that mean?”, or, “Could you please explain?” evaluation decisions will be postponed until the job description is finished and can
Also ask for examples. If a financial analyst talks about a complicated report, ask to be reviewed in the context of the larger picture. If the interview was conducted as
see a copy of it. Being able to touch the report physically to see how lengthy and part of a work-study, explain that the job and the value it adds will be assessed when
the whole process has been analyzed.
Often, the incumbent will find that the interview was a valuable experience.
Don’t be surprised if the incumbent says afterward, “You know, I never stopped to
Figure 10.7 Suggested interview questions. think about how much I actually get involved with around here.”
1. To whom do you report? When finished with the interview, take time immediately to summarize and orga-
2. Who reports to you? nize notes, especially if there is more than one interview a day or if a time lapse of a
3. What are your budget accountabilities—both budget dollars and the value of day or two is expected before it is possible to write the job description or work-analysis
assets under your control? report. Time has a way of eroding the understanding and recall of important details.
4. What are your principal duties and responsibilities?
5. What is the most important task you perform? Group Interviews
6. How do you spend most of your time?
7. On whom do you rely for information necessary to do your job? Interviewing is not limited to a single job incumbent. It is possible to conduct a
8. To whom do you routinely provide information? “group interview,” where several incumbents are interviewed at the same time. The
9. What tasks should be completed before the work comes to you? guidelines presented earlier apply. At times, especially in total-quality programs, it
10. What do you do to add to the quality of the product (or service)? may be desirable to bring several experts from different disciplines together to dis-
11. What tasks do you feel are redundant or unnecessary? cuss the work, usually because it is highly technical.
12. How can workflow be improved? For example, consider an assembler who has to stop occasionally to make an ad-
13. How would you change the workflow to expedite the process without justment before attaching the handle. Perhaps there is a problem with the previous
decreasing quality? operation. By bringing the supervisor, quality-control manager, and parts depart-
14. What could be handled differently to reduce expenses or costs? ment together, the problem can be identified and resolved. If not, at least there will
15. Are there any formal guidelines, regulations, policies, etc., that you must be an adequate explanation made of why the adjustment is necessary on some ma-
follow in fulfilling your job responsibilities? chines but not every machine, and a conclusion can be drawn that there is nothing
16. About what decisions would you consult or notify your boss before taking more to be done to prevent it at this time. Such meetings are known as “technical in-
action? terviews” because they tend to focus on very specific items. Technical interviews are
17. How does this job challenge your creativity and problem-solving abilities? critical in a total-quality study because they help enhance communications, clarify
18. With whom do you have regular contact, both inside and outside the organiza- the source of problems, and identify possible solutions.
tion? What is the reason for the contact?
19. What qualifications would your replacement need, in terms of knowledge and Interviewing Customers
experience, to perform your job at a competent level?
20. Describe the physical conditions in which you work (if appropriate). Although a different set of questions may be used to interview customers, the ques-
21. How would you answer the question, “Why does my job exist?” tioning techniques will be similar. However, more emphasis will be placed on prod-
uct quality and customer needs and wants.
Interviewing: Advantages and Disadvantages Figure 10.8 Position-analysis questionnaire.

Interviewing is the most costly method of job and work analysis, especially when
there are many jobs to be analyzed. For one thing, interviewing occupies two people
simultaneously in a single-job analysis, or several in a technical interview or quality
review. For another, interviewing takes a lot of time.
Interviewing can be inefficient if the analyst and the interviewee(s) are ill pre-
pared to engage in a meaningful discussion of the work. This can happen if the
purpose of the meeting is not explained adequately, if the analyst does not consult
secondary sources, or if there is resistance to the job or work analysis underway.
What adds to cost is the additional time the job analyst spends organizing notes
and actually writing the job description or a thorough workflow study. However, the
benefits from accurate job descriptions, improved quality, cost savings, efficiency,
and enhanced communication often far outweigh the costs involved in the inter-
view method.
Questionnaires
When many jobs are to be analyzed, questionnaires often are used in place of inter-
views. Questionnaires are interviews on paper. They set forth a list of questions that
attempt to capture the same information that would be pursued in a one-on-one
interview.
Questionnaires are flexible because they can be tailored to the job population
being analyzed, especially when the nature of the work is very different. For ex-
ample, a questionnaire for production jobs most likely would be modified for pro-
fessional jobs and further modified for executive-level jobs. Such questionnaires
are great devices for preparing a job incumbent for an interview. By sending the
incumbent a questionnaire a week or so ahead of the actual interview, the chances
of a successful interview are increased greatly because the incumbent has a chance
to think through the questions and to gather relevant materials.
Frequently, when there are a number of incumbents (positions), analysts will
select a sample of individuals to interview after they have received the completed
questionnaires. Often, a manager will help the analyst in deciding whom to inter-
view. Usually, it is best to interview the most experienced job incumbents, and the
best performers. A combination of completed questionnaires and selective inter-
viewing can be a highly effective way of conducting a thorough job analysis, and it
can provide the analyst with a solid basis for developing an accurate and complete
job description or a thorough workflow study.
Open-Ended Questionnaires
There are essentially two types of questionnaires. For most professional, manage-
rial, and executive-level jobs, an “open-ended” questionnaire is appropriate. It is
called open-ended because the questions are structured to allow the job incumbent
much latitude in responding—the same technique as used during an interview. The If the majority of the incumbents in the job population being analyzed have weak
questionnaire form should provide a sufficient amount of blank space for job in- language and writing skills, their responses will be of limited value. This is why open-
cumbents to complete their answers. (For an example, see Figure 10.8.) ended questionnaires often are not used for lower-level jobs. On the other hand,
The responses to open-ended questionnaires may be inadequate for a complete highly creative incumbents may enhance responses so the analyst believes their jobs
job analysis. Frequently, it is necessary to follow up with the job incumbent to clarify have a much greater impact on organizational success than they actually do, or the
or elaborate on responses; this process can be handled easily over the phone. analyst may not notice redundancies or inefficiencies.
Closed-Ended Questionnaires Step 7: Document the Analysis

Closed-ended questionnaires, which focus mainly on the frequency of tasks or re-
When data gathering is complete, job documentation already has been created,
sponsibilities, typically are used for lower-level, production-type jobs. They measure
regardless of the data-collection method or combination of methods used. Notes
simply whether an incumbent has responsibility for performing a certain task, and,
taken during an observation or an interview are a form of job documentation, as are
if so, how frequently. Two sample questions from a closed-ended questionnaire are
completed questionnaires.
shown in Figure 10.9.
Closed-ended questionnaires are often designed to be analyzed by computers. Figure 10.10 Example of a human resources manager job description.
The mere fact that a worker does or does not perform a task usually does not ad-
dress the issues an analyst is trying to uncover in a work-study. The analyst’s goal is
to improve efficiency and quality, and questionnaires generally are considered to be
of limited use in workflow analysis.
There are highly sophisticated closed-ended questionnaires tailored to specific
organizations, and some questionnaires are very effective for job evaluation for
most levels in an organization because they are behavioral- rather than task-based.
These questionnaires are very expensive to develop, and they are processed using
computers and statistical techniques. They, too, do not lend themselves to workflow
analysis.
Questionnaires: Advantages and Disadvantages

Because the questionnaire method can be used to analyze large numbers of jobs in
the least amount of time, it is considered the most efficient method of single-job
analysis. However, questionnaires by themselves often result in incomplete, confus-
ing, or insufficient answers. If the language and writing skills of the population are
inadequate, the results will be weak. If the job population being studied includes
employees who do not read or write English, the English version of the question-
naire will have to be translated and the answers interpreted, adding to the cost.
Using questionnaires may be a necessary step, but it probably will not be a suf-
ficient step in documenting work for purposes of a quality study. Follow-up inter-
views, most likely technical interviews, will be required.
Figure 10.9 Closed-ended questionnaire.
Job-related experience required for competent Maintain effective customer relations. (Check one.)
performance of this job. (Check one.) Not part of job
No experience required Little time spent performing this task
Up to one month Moderate time spent performing this task
Over 1 month, up to 12 months Substantial time spent performing this task
Over 1 year, up to 3 years Little time spent supervising this task
Over 3 years up to 5 years Moderate time spent supervising this task
More than 5 years Substantial time spent supervising this task
Source: Materials for WorldatWork Certification Course C2: Job Analysis, Documents, and
Evaluation, 2007.
Job descriptions are the most common, complete, and usable form of job doc- • Heading: Important organizational information is provided here (e.g., title,
umentation because they attempt to record the important aspects of a job in an department, FLSA status, current date, job incumbent, reporting relation-
organized, narrative fashion. (See Figures 10.10, 10.11, and 10.12.) Because job ships, job analyst, etc.).
descriptions vary from organization to organization, there is no widely agreed-upon • Job Summary: Two to four sentences usually are written to answer a single ques-
format. However, descriptions usually contain the following sections: tion: “Why does this job exist?” It is advisable to write the job summary only
after the rest of the job description has been written and the entire job—
including the required knowledge, skills, and abilities—has been “thought
through.”
• Principal Duties: This section lists the major duties and responsibilities of the
Figure 10.11 Example of a department administrative assistant job incumbent. It can be organized a number of ways: from the most impor-
job description. tant responsibility to the least important, most time spent to least time spent,
or in order of sequence. For lower-level jobs, it is a good idea to indicate the
percentage of time spent on each responsibility, making sure the percentages,
of course, total 100.
Because of the ADA, “principal duties” should be divided into two subsections:
essential functions and nonessential functions. Many organizations include a dis-
claimer statement such as, “Performs other duties as required.” This type of dis-
claimer becomes particularly important as organizations expand the content of jobs
and provide more lateral experiences for job incumbents. In a union environment,
however, the disclaimer statement might not be permitted, and under the ADA it
should pertain only to nonessential functions.
• Working Conditions: The physical environment in which the work is performed
is described here. Adverse environmental conditions such as noise, heat, and
fumes are detailed along with the frequency of exposure. Most professional
and executive job descriptions do not include this section because work is
Figure 10.12 Example of a human resources manager,human capital

team, job description.
assumed to be performed under normal office conditions. If it is not, the sec- etermine if that activity is “essential” to the performance of the job. Ask whether
d
tion should be included. the activity is necessary to achieve the end result(s) of the job, or whether it is an
• Job Specifications: Commonly referred to as hiring or background requirements, “add-on” activity that easily could be reassigned to another worker. While going
job specifications tell the reader what specific knowledge, skills and abilities through this analysis, think of ways a disabled worker could perform the activity with
a worker needs to perform the job at a satisfactory level. Avoid simply stating, the aid of special equipment or with a schedule change.
“B.A. or B.S. required.” Instead, list the specific areas of knowledge the incum- If appropriate, have the individual responsible for plant safety review the docu-
bent must have, and then conclude (if it is reasonable to do so) that what is mentation for compliance with the Occupational Safety and Health Act (OSHA).
listed is “equivalent to a B.A. or B.S.” in a specific subject area. Also, if the final product is a work-study report that recommends substantial or-
ganizational changes affecting people’s jobs—especially if it results in staff reduc-
Use the financial analyst job as an example. A specification might read as follows:
tions—the EEO specialist should conduct a population analysis to determine if any
“This position requires knowledge of accounting, financial analysis and forecasting
adverse impact will result from implementation of the recommendations.
techniques, as well as quantitative methods acquired through formal education and
two to three years of on-the-job application. Also required is computer proficiency
in spreadsheet software and word processing, and strong writing and verbal skills Step 10: Conduct a Reality Test
to prepare management reports and presentations. Equivalent to a B.A. or B.S. in
finance or business administration.” In addition to testing the job documentation for legal considerations, it is always
If the objective of the analysis is the “big picture,” it probably will be necessary to a good idea to step back and look at the big picture. Even if the specific mission
submit a work-study report. The format of such a report will, of course, depend on was only to analyze single jobs and write job descriptions, a good job analyst always
management’s preferences and the person preparing the report. A work-study report questions the work design to identify opportunities for improvement. Are the ana-
usually includes the job descriptions in an appendix, but the body of the report will lyzed jobs designed to meet departmental objectives identified in the secondary
describe the workflow, opportunities for improvement, quality pitfalls, inefficiencies, sources? Is the flow of work consistent with meeting those objectives efficiently?
and staffing redundancies or inadequacies. Diagram the workflow and highlight the Are the right workers interacting regularly to ensure quality? Would establishing a
opportunities for improvements. If appropriate, include recommended team rosters. team approach greatly improve efficiency? Is there any duplication of effort? Are
there enough quality checkpoints? Are roles and responsibilities defined clearly?
Do all workers understand their jobs? Are expectations communicated clearly? Are
Step 8: Obtain Necessary Approvals accountabilities understood? Does everyone in the process take ownership of the
end result?
No job description is complete without the review and approval of the immediate These are just sample questions. More specific questions, depending on the goal
supervisor. If the organization culture supports it, have the job incumbent review
of the study, also might be required. The ultimate objective is to realize the maxi-
a first draft for accuracy, and then submit the revised version to the supervisor for
mum from efforts to analyze individual jobs and to examine workflow. The most im-
review and approval. Have the supervisor sign and date the description. portant question is: What specific suggestions or recommendations can be made to
Job documentation should be anchored in time so future readers will know
management that would improve quality and efficiency, enhance communications,
exactly when the analysis was done. If someone other than a trained job analyst expedite workflow, reduce costs, empower workers, and so on?
prepared the job description, have the human resources department review it for
content and format consistency. Most organizations require human resources re-
view of the job description. Step 11: Formulate Specific Recommendations
Obtaining approval for a work-study report might not be straightforward because
the recommendations might point to perceived failures on the part of some depart- If the analyst’s role was limited to single-job analysis for the purposes of job evalu-
ments. However, if the whole initiative was positioned as a team effort with substan- ation, Step 11 is not required. However, if the end product is a work-study report,
tial participation from line managers and workers, then the final recommendations organize the opportunities identified in Step 10 into a final report to the appropri-
(Step 11) should be everyone’s, not just those of the report’s author. ate member of management. Include workflow charts and final job descriptions or
team rosters to illustrate recommendations.
Step 9: Test for Legal Compliance
Step 12: Keep Up-to-Date
After summarizing the observation or interview notes—or obtaining a completed
questionnaire—ask some questions. Are the job specifications defensible? Does the The world is changing constantly. New technology, new products, new markets, and
job content described support the knowledge, skills, and abilities required? Will the reorganizations make existing job documentation obsolete quickly.
job content pass an exemption test under the FLSA? Organizations become bureaucracies when old methods and processes be-
Throughout the observations and interviews, be aware of equipment or processes come entrenched. Consequently, these methods and processes need to be re-
that would prohibit a disabled person from performing a particular activity, and viewed much more frequently than in the past. Initially, the task of conducting
204 Job Analysis, Documentation, and Evaluation Internal Job Evaluation—Nonquantitative Methods 205
job and work analysis and creating job documentation is onerous. However, a Job Evaluation
comprehensive analysis of all jobs does not need to be repeated every time the
organization changes. If a procedure is established for keeping job descriptions Job evaluation can be defined as a formal process used to create a job-worth hierar-
and other forms of documentation up‐to‐date, a total reconstruction of the job- chy within an organization. The two basic approaches are market data and job con-
documentation library is not necessary. Establish a “tickler” file that ages job de- tent. The job-content approach can be further broken down into nonquantitative
scriptions so that every two or three years a job description (or questionnaire) can methods and quantitative methods.
be sent to the incumbent and supervisor for review and comment. Many organiza- The process used for mapping the job process is fairly distinct, and to be a valid
tions ask managers and subordinates to review job descriptions annually as perfor- and defensible process, each step should feed into the next step. If the job analysis
mance reviews are conducted. This approach serves the dual purpose of updating is done properly, it will feed into the job documentation; if the job documentation
the description and focusing both parties on appraising performance on the basis is accurate and up-to-date, it will help ensure a valid evaluation of the job. When the
of job responsibilities. job is evaluated, it will fall within the job-worth hierarchy of the organization. When
Organizations are reorganizing and creating new jobs continually, and manag- each component of this process is correctly completed, all of the necessary informa-
ers frequently approach the human resources department for job re-evaluation. As tion to complete the next component is at hand.
these events occur, job documentation should be updated. With the powerful word-
processing capability that exists today, keeping job descriptions or questionnaires
up‐to‐date is not as burdensome as it was in the past. Also, there are many software
packages on the market that are designed to facilitate the job description and ques- Internal Job Evaluation—Nonquantitative
tionnaire process. Methods
When reorganizations occur, processes change, new technology is introduced,
or new products are added, the work-study should be updated so opportunities for Two major objectives of job evaluation are to develop internal standards of com-
efficiency and improved quality are not missed. Even if there is no major change, parison and measure relative job values within the organization. For many or-
follow-up studies should be scheduled to ensure that the efficiencies and quality ganizations, the relative value of jobs internally is just as important as external
improvement initially predicted are occurring. competitiveness.
This may be based on the organization’s compensation philosophy or on a com-
pensation strategy that seeks to ensure that employees feel they are being compen-
Job and Work Analysis: Weighing Costs sated fairly in relation to their peers, both internally and externally.
and Benefits The third component of the job-mapping process is to evaluate the job. As stated
previously, an organization either can use job content–based evaluation systems or
Having a system for managing the job documentation library will ensure that an market-based evaluation systems. A job content–based evaluation is a systematic ap-
organization is on top of job and work analysis, and it will strengthen further the proach designed to help establish the relative value of jobs within a specific organi-
organization’s position should it be challenged on the employment-law front. Good zation. The focus of job-content evaluation is on the actual content of the job. Job
job documentation, however, is not simply a preventive measure. It also greatly as- content can be evaluated using specific, quantifiable measures of job value (quanti-
sists an organization’s efforts to achieve efficiency and quality, and it facilitates the tative methods) or by other means where no attempt is made to obtain quantitative
creation of an equitable job-worth hierarchy. Furthermore, job documentation is measures of job value (nonquantitative methods).
used in many other initiatives: hiring, training and development, and succession The ranking method of job evaluation is the simplest form of job evaluation.
planning, for instance. Basically, the organization would use a whole job comparison approach and rank
Work analysis provides the basis for quality management programs to assess order the jobs within the organization from highest to lowest. It is important to note
where processes need to be improved through a change in human behavior such that ranking only gives an organization an indication of how each job fits within the
as a job redesign and incentive program, or training in new/enhanced competen- job-worth hierarchy; ranking does not provide any insight as to the relative degree
cies. It also helps determine where processes can be eliminated or streamlined. The of distance between the various jobs.
review should take place at the individual job level, within a department and across Ranking jobs within an organization typically follows three steps:
functional lines, and it should follow the product or service from raw material to
1. Analyze and document job content.
customer usage. In addition, work analysis can assist an organization to determine if
2. Identify selected groups of jobs (also known as job sets).
certain elements of the workflow should be considered for outsourcing to increase
3. Rank order jobs within the sets.
productivity and/or reduce cost.
Initially, job or work analysis appears to be a monumental undertaking, but if The first step with any evaluation process is to determine the job evaluation cri-
approached in an organized way, the effort can yield a tremendous return to the terion; by comparing whole jobs, the criterion used is the job itself. The job analysis
organization over the long term. Perhaps the most important benefit is in improved and documentation steps will provide the organization with a description of the job,
communications: Job or work analysis can help translate an organization’s strategic which will then be used to compare the jobs with each other. For ranking purposes,
plan into specific roles and responsibilities. the comparison is based on the job as a whole, not its component parts.
206 Job Analysis, Documentation, and Evaluation Internal Job Evaluation—Nonquantitative Methods 207
The second step in the ranking process is to identify selected groups of jobs (job Pairs Selection
sets). If the organization has a small number of jobs, all jobs could be ranked at one
Job 1 vs. Job 2 Job 2
time; however, this is not always feasible. When an organization has a large number
of jobs, they should be broken into groups or job sets. Job sets can be established
using any set of criteria (e.g., clerical, supervisory, director, etc.). However, the job
sets should assist with the creation of a job-worth hierarchy. The main goal of es-
tablishing job sets is to simplify the ranking process, so that one does not need to
compare 100 jobs, but 5 sets of 20 jobs, for example.
After the job sets are created, the next step is to rank order the jobs within each The third step of the paired-comparison approach is to determine the amount of
set. After each set is ranked, the job-worth hierarchy is established. (See Figure times each job was selected during the comparison. Remember, it is possible to have
10.13.) some jobs selected the same number of times. In the example above:
The paired-comparison approach is the second nonquantitative approach. This
approach is more effective than ranking when evaluating a larger number of jobs. • Job 1 was selected two times.
The paired-comparison approach to job evaluation compares every job to every • Job 2 was selected three times.
other job within the organization. Each job is individually compared to every other • Job 3 was not selected at all.
job and the job that is most valuable from each pairing is noted. The job-worth • Job 4 was selected one time.
hierarchy is then established by the number of times a job was selected during the The final step in the paired-comparison approach is to rank the jobs and establish
comparison phase. With pair-comparison, it is completely feasible and possible that a job-worth hierarchy. In the instances that two (or more) jobs have been selected
some jobs could have been selected the exact same number of times; if further rank- the same amount of times, whole job ranking would determine the hierarchy. Fol-
ing is needed for these jobs, whole job ranking can be used. lowing the example, the job-worth hierarchy of the organization would look like:
The paired-comparison approach typically follows the following four steps:
• Job 2.
1. Determine number of pairs required.
• Job 1.
2. Compare each pair and select the stronger job.
• Job 4.
3. Determine the number of times each job was selected.
• Job 3.
4. Rank order the jobs.
The first step uses a formula to assist with determination of the total number Using the ranking or paired-comparison approach to job evaluation has its ad-
of pairs required. The formula used is number of pairs 3 [(number of jobs to be vantages and disadvantages. In most cases, both ranking and paired-comparison
ranked) 3 (number of jobs to be ranked minus 1)]/2. For example, if an organiza- approaches are easy to administer, inexpensive, and require little training of all the
tion had 50 jobs, the number of pairs would be [(50) 3 (49)]/2 or 1,225 pairs, for people involved. However, because the jobs are compared “wholly,” several disad-
paired-comparison. vantages exist. One of the most significant drawbacks is the potential of inconsistent
The second step would be to compare each of the pairs and select the stronger judgment across raters. Documentation may not be collected to record differences,
job. Each job will be compared to every other job during this step. so it could be difficult for different evaluators to evaluate the same. Additionally,
in cases where the jobs are very similar, important aspects of the job might be over-
looked because the details of the job should be ignored.
Figure 10.13 Job-worth hierarchy using ranking. The final method of nonquantitative job evaluation is the classification method.
The best example of classification being used today is in the government. This is a
Title Rank true classification system where jobs are compared on a whole-job basis with pre-
defined class descriptions established for a series of job grades. The jobs then are
Director of Accounting 1
placed in the classification grouping that best describes the job.
Director of Human Resources 2
Using the classification approach typically follows five steps:
Senior Manager of Advertising 3
Manager of Accounting 4 1. Analyze/document job content.
Senior Compensation Analyst 5 2. Identify and cluster benchmark jobs.
Senior Human Resources Analyst 6 3. Develop preliminary generic definitions.
Senior Financial Analyst 7 4. Compare jobs to definitions.
Financial Analyst 8 5. Assign remaining jobs to classification levels.
Supervisor, Accounts Payable 9
Accounts Payable Clerk 10 First, the job analysis and documentation steps will provide the organization with a
Human Resources File Clerk 11 job description that will be used to compare the jobs with each other. For classification
purposes, the comparison is based on the job as a whole, not its component parts.
208 Job Analysis, Documentation, and Evaluation Internal Job Evaluation—Quantitative Methods 209
The second step is to identify benchmark jobs that appear to be similar and • Manual dexterity—relates to specific movements required.
cluster them. The similarity used is typically an aspect of the job—nature, scope, or • Analytical ability—if the job requires the incumbent to analyze, decipher, or
level. This will enable the evaluator to note the similarities and provide that infor- explore other possibilities.
mation for the next step. • Creativity—typically found in jobs of a creative nature (web design, graphic
The third step is to develop preliminary definitions of each cluster. These defini- design, marketing manager, advertising).
tions will be the basis for the generic comparison factors used in classification. This • Communication.
step defines the classification levels or pay grades. • Verbal—refers to the level of verbal communication needed to perform the
The fourth step is a review step. In the classification model it is important to job (a phone customer service representative may require a higher level of
review the job clusters and ensure that the preliminary definitions match the jobs verbal communication than a janitor).
within the clusters. If they do not, benchmark jobs might be moved to a cluster that • Written—refers to the level of written communication needed to perform
better represents the job, or the preliminary classification levels can be adjusted to the job (a journalist would need a higher level of written communication
match the jobs within each level. than a cashier).
The final step is to slot the nonbenchmark jobs into the classification levels. • Complexity of the job—defines the overall use of specific skills needed to per-
Typically this step is done by comparing the nature, scope, or level of each non- form the job. It is important to note complexity of the job does not always re-
benchmark job to the classification levels that best fit. This final step ensures that a late to the level of the job; a machinist job could potentially be more complex
job-worth hierarchy is created with all jobs in the organization. than an administrative assistant.
The effort factors usually refer to:

Internal Job Evaluation—Quantitative Methods • Physical demands of the job—how much exertion is need for this job (lifting,
walking, running, sitting).
As opposed to nonquantitative methods of job evaluation, quantitative methods use • Mental exertion required—relates to the amount of mental effort required
measures that lend themselves to precise definition and assessment, with very little to perform the job. This could contain both decision making and/or
room for variability of data. When conducting a quantitative job evaluation, it is im- concentration.
portant to ensure that the factors selected to determine job value do not discriminate
against a specific group or class of employees. Additionally, it is important to balance Responsibility factors include:
complexity and/or flexibility of a given method against the needs of the organiza-
tion. This section will discuss the selection and definition of compensable factors. • Supervisory duties—how many direct reports the position has could poten-
Compensable factors are the key to quantitative methods of job evaluation. They tially place the job higher within the job-worth hierarchy.
can be defined as: • Budget—the amount of budgetary responsibility the incumbent has could re-
flect a higher position within the hierarchy.
• Any criterion used to provide a basis for judging job value in order to create a • Decision making—this typically relates to the impact of the decisions made to
job-worth hierarchy.
the organization.
• The elements used to measure a job’s worth.
• Accountability—refers to the amount of liability the incumbent has on deci-
• Intrinsic elements in jobs that add value to the organization and for which it sions made.
wants to pay.
• Impact job has on the organization—how important is the incumbent’s posi-
Generic compensable factors are skill, effort, responsibility, and working condi- tion to the organization.
tions. These generic factors are outlined in the Equal Pay Act of 1963 as the key
criteria for determining whether jobs are substantially equal and thereby requiring Working conditions refer to:
equal pay.
• Hazardous environment—refers to the amount of time an incumbent could
Most organizations that use quantitative methods of job evaluation use a deriva-
be exposed to potentially hazardous conditions in the workplace.
tion of the four generic compensable factor groups, which are also known as the
• Temperature conditions—relates to the variance of temperature an incum-
level of work. Typically each group is further divided to determine the true worth
bent might face (e.g., for a person who works on a fishing boat, the day could
of the job.
be sunny or rainy or cold or warm).
The first generic factor, skill, usually requires a short description when used in a
• Odors—what adverse odors might an incumbent be exposed to (e.g., smells
job evaluation plan. This is because skill factors include:
that could be generated in smelting plants).
• Experience—which typically relates to actual experience performing the job, • Loud noises—will the incumbent be exposed to loud noises, and how long in
either gained through the employer or through previous employers. duration will the noises last.
• Knowledge—refers to the educational knowledge needed to perform the job. • Or lack of hazardous environment—refers to incumbents who are not ex-
This usually is the minimum knowledge needed to perform the job. posed to potentially hazardous conditions (office environment).
210 Job Analysis, Documentation, and Evaluation Internal Job Evaluation—Quantitative Methods 211
When evaluating a job on the generic factor groups, each group is divided into burdensome to conduct the evaluation. Usually, 5 to 12 factors should be brought
specific factors. Factors can be defined as an individual component aspect of job to upper management to determine which ones best reflect what the company val-
content within the generic factor groups. For example, analytical ability is a factor ues. Bringing the factors to upper management and asking for assistance on the
of the skill generic factor group. (See Figure 10.14.) Additionally, each factor would selection process will add the buy-in component to the process. This will help with
be measured in varying degrees on levels of complexity. obtaining management support and stakeholder acceptance.
When conducting a job evaluation, it is important to select the appropriate com- After receiving input from upper management, the next task is to determine the
pensable factors for the organization. For example, the service industry might de- specific factors to be used. Effective factors should:
termine that the working conditions factor does not really apply to its industry,
• Differentiate job value. For purposes of internal job evaluation, measuring the
whereas, the manufacturing industry would place high importance on working con-
same of similar job characteristics more than once should be avoided.
ditions. In determining which factors would best fit the organization, it is vital to
• Have a logical relationship to overall job value to the organization.
identify the organization’s internal values. What does the mission statement say?
• Cover all major aspects of job requirements for which the organization is will-
What about the business strategy? These will help the evaluator determine what
ing to pay.
is important to the organization, and therefore which factors would most support
• Be manageable. It is important to limit the factors used to a reasonable number.
the stated mission and strategy. Going back to the service industry example—if the
strategy of the organization is to provide the best customer service while responding Failure to consider these factors increases administrative time without adding
to customer inquiries in an efficient, timely manner—the skill generic factor group meaningful information and may create systemic bias for (or against) certain jobs.
would be very important, and the communications factor would appear to be vital. During this process, it is vital to include all important factors. If any important fac-
Determining the strategy of the organization will help in selecting compensable tors are not included, there may be an inadvertent discrimination for (or against)
factors. certain jobs, or it may produce a job-worth hierarchy inconsistent with internal
The next step in selecting compensable factors is to review the job content of values.
the work group to be evaluated. This is an important step because it will help es- After the compensable factors have been selected, the next step is to define the
tablish what factors are important to each work group, thus helping to establish an factors. This basically means to develop a clear and comprehensive definition for
organization-wide evaluation system. Typically, one would examine the results from each factor and define the highest and lowest levels of each factor present in the
the job analysis and job documentation relating to each work group. When analyz- work group to be covered by the plan. (See Figure 10.15.) After the highest and
ing each work group, common characteristics usually surface. Additionally, unique lowest levels are determined, the intermediate levels can be identified, typically in a
aspects of each job or the diverse characteristics of the jobs should be noted. lowest to highest progression using a logical approach. This ensures that the factors
To use the service example: If the call center work group were reviewed, it would reflect reasonable differences.
be important to review aspects of the job. For example, how often do they talk on Because the goal of compensable factors is to establish a job-worth hierarchy
the phone to customers? What about e-mail? How much product knowledge is re- that is consistent with management’s perception of relative job worth, selecting the
quired? Is there a need for physical exertion? All of these observations/questions correct compensable factors is important. The appropriate number of factors and
will help in determining which factors need to be considered. the corresponding levels will assist in construction of the job-worth hierarchy. If too
When selecting compensable factors, is there a limit on the number of factors to many levels are selected, it may force artificial distinctions between degree levels, as
be used? It is important to include enough factors to establish a value differential. well as increase administrative time. Additionally, having too many levels would re-
That is, if too few factors are selected, it will be difficult to gauge a difference in quire highly detailed job documentation; this increases the possibility of additional
the value of each job; if too many factors are selected, it will be too administratively requests for re-evaluation of jobs, which, in turn, may result in “grade creep.” If too
few levels are selected, it may not fully cover the range of work performed and not
adequately differentiate important aspects of job value.
Figure 10.14 Terms—generic factor group: skill.

Specific Factor Name: Experience Figure 10.15 Factor definition and levels: mental/visual strain
and fatigue.
Specific Factor Description: This factor measures the time normally required on
related work and on-the-job training for the job being evaluated for an individual The degree of this factor is determined by the amount of mental/visual strain and AuQ 1
to attain satisfactory performance standards under normal supervision. fatigue caused by performing this job.
• 1st degree—less than 3 months 1st degree—rarely (15% or less of work time)
• 2nd degree—3 months, up to and including 12 months 2nd degree—occasionally (16–35% of work time)
• 3rd degree—more than 1 year, up to and including 3 years 3rd degree—frequently (36–50% of work time)
• 4th degree—more than 3 years, up to and including 5 years 4th degree—often (51–75% of work time)
• 5th degree—more than 5 years 5th degree—constantly (75% or more of work time)
212 Job Analysis, Documentation, and Evaluation Internal Job Evaluation—Point Factor 213
Overlapping levels is another issue to consider. With overlapping levels, it be- The factors and the weights potentially could vary by job group, depending upon
comes difficult to select the correct level for the job because the adjacent level de- the organization’s business strategy. In cases where the factors and weights would
scriptions are too similar. vary, this process would be repeated for each job group, based upon the nature of
Weighting is the final step concerning compensable factors. In this step, weights work from each job group.
are based upon the value of each compensable factor to the organization. The more
a factor drives the organization’s business strategies and objectives, the higher is the
weight value associated to the factor. For example, in a call center environment, Internal Job Evaluation—Point Factor
factors relating to skill and communication will carry more weight than a factor re-
lating to hazardous work environment. (See Figure 10.16.) Determining how much A factor comparison method is one of the most commonly used methods of internal
more value the communication skill has versus the hazardous work environment is job evaluation. It values specific aspects of the job and compensable factors, and as-
a very important step in the process. signs a weight and level to that job.
When establishing the weighting of the factors, it is very important to consider The point factor method, which assigns point totals to each compensable factor,
the nature of the work performed by each job group and the appropriate mea- is the most widely used method of factor comparison.
sures. The next step is to rank them in order of importance to the organization. It started in the mid-1930s when Edward Hay began development of one of the
(Please note: This process refers to the larger factor and not the degrees within first point factor plans. He first installed a job-evaluation program in a bank in
each factor.) After the factors are rank ordered, the initial factor weights need to the 1940s. He went on to found Hay & Associates in 1943 and continued work on
be developed. The process of developing the initial factor weights could encompass this evaluation methodology. In the 1950s, organizations using this methodology
statistical analysis and/or management judgment. The last step in this process is to wanted Hay to develop a linkage between internal equity and market pay. Hay was
review the weights with key management and stakeholders and make any changes the first to make this linkage through market surveys based on job content versus
as required. title matches that were the prevailing practice at the time. Today, this methodology
is the most broadly used in the world, with linkages of job evaluation to market pay
Figure 10.16 Call center environment. in more than 40 countries. (See Sidebar 10.1.)
Factor
Verbal Communication Sidebar 10.1: Hay Point Factor Plans
Hazardous Work Environment
Written Communication The Hay Guide Chart Profile Method of job evaluation is considered the
Prior Work Experience benchmark of point factor/factor comparison job-evaluation plans. In the
Product Knowledge mid-30s Edward Hay began development of this method to determine how
Analytical Ability to value jobs based on common compensable elements of job value. The Hay
Physical Demand plan today typically contains three to four factors (the fourth factor, working
conditions, is most typically applied when evaluating nonexempt jobs):
Factor Rank
1. K
now-how is defined by using the following critical areas of applied
Verbal Communication 1
knowledge and skill:
Written Communication 2
Prior Work Experience 3 a. Technical
Product Knowledge 4 b. Managerial
Analytical Ability 5 c. Human relations.
Hazardous Work Environment 6
2. Problem solvingis defined by the following criteria:
Physical Demand 7
a. Thinking environment
Factor Factor Weights
b. Thinking challenge.
Verbal Communication 30%
3. Accountability is defined by the following criteria:
Written Communication 20%
Prior Work Experience 15% a. Freedom to act
Product Knowledge 15% b. Magnitude
Analytical Ability 10% c. Impact.
Hazardous Work Environment 5%
(continued)
Physical Demand 5%
Figure 10.17 Weighing compensable factors.

Sidebar 10.1 (Continued)
Factor Max Points % of Possible Points
4. Working conditionsis defined by criteria such as:
Skill (62.6%)
a. Physical effort Knowledge 120 14.6%
b. Working environment Work Experience 135 16.4%
c. Sensory attention Analytical Ability 110 13.3%
d. Physical risks. Independent Judgment 150 18.3%
In addition, a unique characteristic of the Hay method is that it incorpo- Effort (9.4%)
rates a principle called profile where the weight and relationship of the factors Mental/Visual Strain and Fatigue 77 9.4%
is indicative of the size and nature of the job. For example, accountability Responsibility (21.9%)
is the most important factor for a top executive position, while know-how is Contact 75 9.1%
weighted more heavily for an entry-level professional. Further, accountability Supervision 105 12.8%
is weighted more heavily than problem solving for line jobs and the reverse is Working Conditions (6.1%)
true for research jobs. Physical Working Environment 50 6.1%
The Hay method is the first one to make the linkage of internal job value to
external market value through surveys that utilize job content in addition to job
titles and organization size as the fundamental criteria for market pricing.
In Figure 10.17, the organization has deemed that skill (62.6 percent) is the most
important generic factor, and independent judgment (18.3 percent) is the highest-
rated factor. It also appears that the jobs covered under this plan have a significant
As stated, factor comparison models value jobs based upon specific compensable amount of supervision responsibility (12.8 percent), whereas they would not have a
factors and the importance of those factors to the organization. In the beginning, lot of supervision. Based upon the distribution of points, this plan was designed for
factor comparison models were entrenched in statistics and mathematics. Many orga- a position group with the following characteristics: (1) high level of education and
nizations felt these models were very accurate, but extremely difficult to administer work experience; (2) high level of analytical ability; (3) high level of independent
and even more difficult to communicate. As factor comparison plans evolved, point judgment; and (4) high level of supervision. This could be a financial, accounting,
factor plans came to the forefront to solve these administration and communication or managerial position.
problems, and are one of the most prevalent internal job-evaluation methods. The next step would be to determine the number of degree levels and assign
Point factor plans can be defined as a quantitative form of job content evalua- points to each of those levels. This step adds complexity to the development pro-
tion that uses defined factors and degree levels within each factor (usually five to cess. Typically you assign points to the structure by dimension and progression. Di-
seven levels, also defined). Each factor is weighted according to its importance to mension refers to the number of factors with which each point relates. Progression
the organization. Job content descriptions are compared to definitions of the de- refers to the way the numbers increase as the level increases.
gree levels and the corresponding points assigned to the appropriate level are then There are two ways to look at dimension: single and multiple. Single-dimension
awarded to the job and summed for all factors to determine the total job score. The factors relate to instances when the factor is dependent on only one variable (e.g.,
total scores are used to create a job-worth hierarchy. years of experience). (See Figure 10.18.)
Although organizations have the ability to purchase off-the-shelf versions of point Multiple-dimension factors relate to when the factor is dependent on multiple
factor plans, some organizations create and use their own version. Designing and variables (e.g., business judgment is dependent on both decision making and
developing a customized point factor plan may not be as difficult as one might scope). When multiple-dimension factors are used, each subfactor must be evalu-
think, and custom designing a plan that fits the organization can produce a plan ated as it relates to the main factor. (See Figure 10.19.)
that better reflects the organizational values than an off-the-shelf version. As with dimension, there are also two ways to look at progression: arithmeti-
One of the first steps involved in developing a point factor plan is to select and cally and geometrically. With arithmetic progression (typically used in the single-
weight the compensable factors that most reflect the organizational strategy. The dimension factor approach), each level of the dimension receives a number. (See
weighing process would entail defining the factors and degree levels within each Figure 10.20.) The increase between levels could be as simple as 10, 15, 20, etc. With
factor—each factor should be weighted as a percent, with all factors equaling 100 geometric progression (typically used in the multiple-dimension factor approach),
percent. This process is very important in ensuring that what the organization val- each level receives a percent increase over the previous level. (See Figure 10.21.)
ues will be used to establish the job-worth hierarchy. For example, in a call center As a percentage, the points assigned to each dimension progressively increases,
environment, if the factor of adverse temperature conditions is selected and as- thereby allocating more points for increasing knowledge.
signed a high weight, most employees would receive a lower score because adverse After the point factor plan is constructed, the next step is to begin evaluating the
temperature most likely would not be encountered in a call center. jobs within the organization. In order to get an accurate evaluation of jobs within
Figure 10.18 Single-dimension factor. Figure 10.20 Arithmetic progression.
Factor A Knowledge Factor A Knowledge

Knowledge refers to the minimum level of knowledge required for the job. Knowledge refers to the minimum level of knowledge required for the job. Knowl-
Knowledge is basically acquired through formal education versus on‑the‑job edge is basically acquired through formal education versus on‑the‑job training.
training.
Degree Definition Point Value
Degree Definition Point Value
1 Work requires basic understanding 15
1 Work requires basic understanding of reading 15
of reading and writing principles, as well
and writing principles, as well as
as basic arithmetic. Ability to communicate
basic arithmetic. Ability to communicate
verbally through use of multiple and
verbally through use of multiple and complete
complete sentences as well as written
sentences as well as written communication
communication using sentences and
using sentences and paragraphs. Ability
paragraphs. Ability to read, interpret,
to read, interpret, and understand use
and understand use of decimal and
of decimal and fractions. Able to complete
fractions. Able to complete nontechnical
nontechnical reports and records
reports and records (including
(including maintenance reports, payroll
maintenance reports, payroll
reports, etc.).
reports, etc.).
2 Work requires the level of knowledge 30
typically attained through a brief period
Figure 10.19 Multiple-dimension factors. (typically fewer than six months) of
specialized technical training.
Factor G Mental/Visual Strain and Fatigue 3 Work requires knowledge typically acquired 45
The degree of this factor is determined by the amount of mental/visual strain and through a four-year high school diploma,
fatigue caused by performing this job. or equivalent. Can express complex
Intensity thoughts clearly in writing, perform
complex algebraic calculations and
Significant deal effectively with other people.
Percentage Minor Low Moderate High-Intensity
of Time Exposure Regular Exposure Exposure
Rarely Less
than 15% of time 10 14 20 Figure 10.21 Geometric progression.
Factor G Mental/Visual Strain and Fatigue

The degree of this factor is determined by the amount of mental/visual strain and
the organization, accurate job analysis and documentation must be completed. It fatigue caused by performing this job.
is important that all job descriptions are both up-to-date and jobs are described in
Intensity
terms of the selected compensable factors. If the job descriptions are up-to-date but
not in a format that is usable for evaluation, the jobs either will be difficult to evalu- Significant
ate or lead to an inaccurate job-worth hierarchy. (See Figure 10.22.) Percentage Minor Low Moderate Regular High-Intensity
With the evaluation process, each job (job description) will be compared to the of Time Exposure Exposure Exposure
degree definitions. The process of evaluating jobs entails looking at each job’s com-
Rarely Less 10 14 20
pensable factor and comparing that to the compensable factors in the point factor
than 15% of time
plan. (See Figure 10.23.) For each of the compensable factors defined in the plan,
Occasionally
the role of the evaluator is to determine which degree definition of each factor best
16–35% of work time 14 20 28
fits the job and assign the respective point values. When the process is completed,
Frequently
each job will have a total number of job evaluation points. These points will then be
36–50% of work time 20 28 39
used in creating the job-worth hierarchy.
Figure 10.22 Job description. Figure 10.23 Job evaluation plan: professional and technical
employees.
Title: Course Developer
ABC Corporation
Department: Product Delivery and Training
Job Evaluation Plan: Professional and Technical Employees
Classification: Exempt
Factor G Mental/Visual Strain and Fatigue
Reports to: Director of Training and Development
The degree of this factor is determined by the amount of mental/visual strain or
General Summary fatigue caused by performing this job.
Responsible for the design, development, maintenance, and improvement of Intensity
instructor-led and computer-based training for clients on DNS products.
Percentage Minor—low Moderate— Significant—
Duties and Responsibilities of time exposure to regular exposure high intensity
- Responsible for designing and developing instructor-led and computer-based fatigue to fatigue and levels of fatigue
training for clients on DNS products.
Rarely—15% or less
- Develop and maintain course manuals, instructor guides, and handouts.
of work time 10 14 20
- Train the trainers for instructor-led courses.
Occasionally—16%–
- Respond to feedback by completing product updates and course improvements.
35% of work time 14 20 28
- Conduct needs assessments and compare to generally accepted body of knowl-
Frequently—36%–
edge to determine training needs/gaps.
50% of work time 20 28 39
Job Specifications Often—51%–75%
- Basic understanding of network management systems. of work time 28 39 55
- Technical writing and product-management skills. Constantly—over 75%
- Ability to identify training needs and translate into effective courses for clients. of work time 39 55 77
- Knowledge of web-based training application software.
- Excellent oral/written communication skills.
- Well-developed presentation skills.
Figure 10.24 Job-worth hierarchy (point totals).
Education/Training/Experience
- Master’s degree in education, instructional design, or a related field. Job Title Points
- Three years of experience administering client product training or one year of
experience developing client training in a network management environment. Director of Human Resources 790
May be required to perform duties outside of those listed above. Senior Manager of Marketing 753
Senior Manager of Tax and Accounting 748
Buyer 697
Manager of Finance 686
It is important to note that there is always some inherent bias in any system used
to evaluate jobs. As several different evaluators review the same job, it is possible
(even likely) that some jobs might receive different point totals. If the job descrip-
tions were written so that they reflect the compensable factors listed on the point Remember, when utilizing a job-worth hierarchy based upon internal evaluation,
factor plan, some of the differences could be eliminated. the hierarchy will be established based solely upon organizational criteria and or-
Regarding Figure 10.22, based upon the job description and review of the posi- ganizational value. These values and placements might not reflect what the market
tion, the position of course developer is worth 546 points out of a total of 862 points. is paying, but how the organization values the positions. In Figure 10.24, the buyer
This position’s location on the job-worth hierarchy would be higher than those with is a highly valued position within the organization (higher than the manager of
fewer than 546 points and lower than those with 547 points or more. But what ex- finance). If the organization does a market analysis on the positions within the orga-
actly does this mean to the organization? How does one determine how much to nization, they might find a buyer position is valued much lower in the marketplace.
pay a course developer with 546 points? What about someone with 347 points? How These discrepancies are common when using internal valuation over external valu-
does point factor equate into a grade/midpoint structure? ation. The key to making this successful is to have a solid structure and be confident
As stated earlier, point factor plans will help an organization with the develop- in the plan used to value these jobs.
ment of an internally driven job-worth hierarchy. After each job is evaluated and To determine the appropriate way to pay a position once the hierarchy is es-
point totals are assigned to each job, a hierarchy can be established. tablished, an organization can take several approaches. Most often, organizations
Figure 10.25 Regression analysis. Figure 10.26 Groupings (or clusters).
Position Points Market Rate Position Points

Administrative Assistant 335 $31,000 Director of Finance and Accounting 801
Recruiting Manager 470 $45,000 Director of Human Resources 790
Mail Clerk 190 $22,400 Senior Manager of Web Development 789
Human Resources File Clerk 210 $25,000 Senior Manager of Marketing 753
Executive Assistant 430 $42,000 In the example above, the first three positions (Director of Finance and Account-
ing, Director of Human Resources, and Senior Manager of Web Development)
Regression
appear to form a grouping. Those positions could potentially be in the same
X Y grade, which could be defined as:
Grade 10 (785–815)
31000 335
45000 470
22400 190
25000 210 The first step in conducting a market pricing analysis would be to determine the
42000 430 benchmark jobs within the organization. A benchmark job can be defined as jobs
that closely resemble other jobs performed in other organizations and/or across
Straight Line Equation—Derived from the Regression Analysis (will vary based industries. A benchmark job should:
upon salary and data points; this equation is solely based upon the numbers
above) • Be well represented in the marketplace.
Salary = (78.9)Points + 7286 • Be important in the organization’s internal hierarchy.
Verify that the equation works—solve for a point total already known • Represent many organizational levels or grades in the salary structure utilized
Recruiting Manager 470 points $45,000 salary by the organization.
Salary 5 (78.9)Points + 7286 • Be matched to 70 percent or more of the duties found in the survey jobs.
Salary 5 (78.9)470 + 7286 • Generally have multiple incumbents (with the exception of managerial and
Salary 5 37,083 + 7286 executive-level positions) with an organization.
Salary 5 $44,369.00 After the organization collects and analyzes market data for the benchmark posi-
$44,369.00 is approximately equal to $45,000 market rate; therefore, the equation tions, the next step is to perform regression analysis on the data collected. Regres-
is valid. sion analysis is the statistical method in which a straight line is created depicting a
To determine the “dollar/point,” plug in one (1) for point in the above equation model of a Y (dependent) variable as a function of one or more X (independent)
Salary 5 (78.9)Points + 7286 variables using the method of least squares. (See Figure 10.25.) Regression analysis
Salary 5 (78.9)1 + 7286 allows the evaluator to create a base pay policy line. This line will be used to deter-
Salary 5 $78.9 + $7286 mine the dollar/point value. For point factor examples, the Y (dependent variable)
For the equation above, each point is worth approximately $78.90, with an addi- will always be market rates (salary) and the X (independent variable) will always
tional $7,286 added to each evaluation. be the job points. The simplest way to calculate a regression line would be to use a
spreadsheet program that will calculate the value for you (Excel can do this calcula-
tion once the Data Analysis ToolPak is activated).
Based upon the equation in Figure 10.25, the course developer (545) in Figure
arket price benchmark jobs and determine a “dollar/point” value using a statisti-
m 10.22 would be worth approximately $50,286.50:
cal technique called regression analysis (more on this later). Other methods would
be to utilize consultants, government sources, or any other mean to establish a dol- Salary 5 (78.9)Points 1 7286
lar/point value. Salary 5 (78.9)545 1 7286
Using market data might seem a little strange, as the entire idea behind using Salary 5 43,000.50 1 7286
a point factor plan is to value jobs internally, without regard to external data. This Salary 5 50,286.50.
is true; in fact, before market rates are added to the system, the jobs are evaluated
based upon the compensable factors used within the point factor plan. Because How does point factor relate to grades and midpoints? Point factor plans can be
each job is assigned a point value, and each job is slotted in the hierarchy based used in typical salary structure environments, grades and midpoints, or they can be
upon that value, the market position of the various jobs should not alter the posi- constructed to have each point be its own grade. Typically with point-type hierar-
tioning of these positions. chies, there are two methods used to place a job into a grade. The first method would
222 Job Analysis, Documentation, and Evaluation
be to place jobs into grades prior to the market rate analysis. With this method, right
after the job-worth hierarchy is constructed, the evaluator will look for groupings
(or clusters) of points and use those groups as initial grades. (See Figure 10.26.)
The second method would be to conduct the market analysis of the positions,
establish the grade structure and slot the positions into the grade that has the clos-
est midpoint. (Although this is a simplified explanation of the process, this is what
typically happens in a market pricing environment.)
Another way that point factor plans can utilize a structure would be if each point
total had its own minimum, midpoint, and maximum. Although having 862 grades
(as in the example of course developer) would appear to be an administrative
nightmare, it really is not. With today’s technology and the use of spreadsheets, it
is relatively easy to set up this sort of structure, and when the structure moves, the
formulas can be entered to automatically adjust when one structure is adjusted.
As mentioned previously, it is important to ensure that job documentation (i.e.,
job descriptions) is used appropriately to accurately reflect the responsibilities of
the job and to accurately place the job within the hierarchy. Job evaluation systems,
in general, if not managed properly, can lead to both level creep and job descrip-
tion inflation.

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Job Analysis, Documentation, and Evaluation 181

Figure 10.1 Methods of job analysis.

Step 3: Decide Who Will Conduct the Analysis

Step 5: Consult Secondary Sources First

Before beginning to conduct the actual job or work analysis by approaching a

Interviewing: Advantages and Disadvantages Figure 10.8 Position-analysis questionnaire.

Closed-Ended Questionnaires Step 7: Document the Analysis

Questionnaires: Advantages and Disadvantages

Figure 10.9 Closed-ended questionnaire.

Figure 10.12 Example of a human resources manager,human capital

The effort factors usually refer to:

Figure 10.14 Terms—generic factor group: skill.

Figure 10.17 Weighing compensable factors.

Figure 10.18 Single-dimension factor. Figure 10.20 Arithmetic progression.

Factor A Knowledge Factor A Knowledge

Factor G Mental/Visual Strain and Fatigue

Figure 10.25 Regression analysis. Figure 10.26 Groupings (or clusters).

Position Points Market Rate Position Points

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Job Analysis, Documentation, and Evaluation 181

Figure 10.1 Methods of job analysis.

Step 3: Decide Who Will Conduct the Analysis

Step 5: Consult Secondary Sources First

Before beginning to conduct the actual job or work analysis by approaching a

Interviewing: Advantages and Disadvantages Figure 10.8 Position-analysis questionnaire.

Closed-Ended Questionnaires Step 7: Document the Analysis

Questionnaires: Advantages and Disadvantages

Figure 10.9 Closed-ended questionnaire.

Figure 10.12 Example of a human resources manager,human capital

The effort factors usually refer to:

Figure 10.14 Terms—generic factor group: skill.

Figure 10.17 Weighing compensable factors.

Figure 10.18 Single-dimension factor. Figure 10.20 Arithmetic progression.

Factor A Knowledge Factor A Knowledge

Factor G Mental/Visual Strain and Fatigue

Figure 10.25 Regression analysis. Figure 10.26 Groupings (or clusters).

Position Points Market Rate Position Points

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Figure 10.12 Example of a human resources manager,human capital