CHAPTER 13CHAPTER 13

Presentation

CompensationCompensation

ResponsibilityResponsibility

Job Evaluation SystemsJob Evaluation Systems

Job Rating PlanJob Rating Plan

Presentation

Presentation

Presentation

CHAPTER 13 (cont.)CHAPTER 13 (cont.)

Presentation

KnowledgeKnowledge

ResponsibilityResponsibility

Yesterday, Today, TomorrowYesterday, Today, Tomorrow

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Presentation

COMPENSATION

Condition of labor MarketCondition of labor Market

Prevailing Wage RatesPrevailing Wage Rates

Cost of livingCost of living

Ability to payAbility to pay

Union StrengthUnion Strength

Worth of the JobWorth of the Job

Government RegulationsGovernment Regulations

GENERAL COMPENSATION ISSUES

CompressionCompression

EquityEquity

SecrecySecrecy

Organizational JusticeOrganizational Justice

Changing Compensation StrategiesChanging Compensation Strategies

BroadbandingBroadbanding

Pay for Performance/Skill/KnowledgePay for Performance/Skill/Knowledge

FACTORFACTOR

RESPONSIBILITYRESPONSIBILITY

1) Tools

2) Safety

3) Products

DEGREES

1 2 3 4 5 620 30 40 50 60 7030 40 50 60 70 8010 20 30 40 50 60

JOB EVALUATION SYSTEMS

I. NON-QUANTITATIVEI. NON-QUANTITATIVE

1. Ranking1. Ranking

2. Job Classification or Grading-- 2. Job Classification or Grading-- “Commonalties” “Commonalties”

II. QUANTITATIVEII. QUANTITATIVE

1. Factor Comparison-- “Five Factors”1. Factor Comparison-- “Five Factors”

2. Point Method-- “Factors, Subfactors2. Point Method-- “Factors, Subfactors

& Degrees”& Degrees”

NATIONAL METAL TRADES ASSOCIATION JOB RATING PLAN

Also adopted by the National Electrical Manufacturers Association and the National Position Evaluation Plan.

POINTS ASSIGNED TO FACTOR DEGREES AND RANGE FOR GRADES

FACTOR 1st 2nd 3rd 4th 5thDegree Degree Degree Degree Degree

Skill1. Knowledge 14 28 42 56 702. Experience 22 44 66 88 1103. Initiative and

Ingenuity 14 28 42 56 70

POINTS ASSIGNED TO FACTOR DEGREES AND RANGE FOR GRADES

FACTOR 1st 2nd 3rd 4th 5thDegree Degree Degree Degree Degree

Skill1. Knowledge 14 28 42 56 702. Experience 22 44 66 88 1103. Initiative and

Ingenuity 14 28 42 56 70

Effort4. Physical Demand 10 20 30 40 505. Mental or Visual

Demand 5 10 15 20 25

POINTS ASSIGNED TO FACTOR DEGREES AND RANGE FOR GRADES

FACTOR 1st 2nd 3rd 4th 5thDegree Degree Degree Degree Degree

POINTS ASSIGNED TO FACTOR DEGREES AND RANGE FOR GRADES

FACTOR 1st 2nd 3rd 4th 5thDegree Degree Degree Degree Degree

Responsibility6. Equipment or

Process 5 10 15 20 257. Material or

Product 5 10 15 20 258. Safety of Others 5 10 15 20 259. Work of Others 5 10 15 20 25

POINTS ASSIGNED TO FACTOR DEGREES AND RANGE FOR GRADES

FACTOR 1st 2nd 3rd 4th 5thDegree Degree Degree Degree Degree

Responsibility6. Equipment or

Process 5 10 15 20 257. Material or

Product 5 10 15 20 258. Safety of Others 5 10 15 20 259. Work of Others 5 10 15 20 25

Job Conditions10. Working

Conditions 10 20 30 40 5011. Hazards 5 10 15 20 25

SCORE RANGE GRADES

139 and under…………………………...12140-161…………………………………..11162-183…………………………………..10184-205……………………………………9206-227……………………………………8228-249……………………………………7250-271……………………………………6272-293……………………………………5294-315……………………………………4316-337……………………………………3338-359……………………………………2360-381……………………………………1

KNOWLEDGE

This factor measures the knowledge or equivalent training required to perform

the position duties.

KNOWLEDGE

1st DegreeUse of reading and writing, adding and

subtracting of whole numbers; following of instructions; use of fixed gauges; direct reading instruments and similar devices;

where interpretation is not required.

2nd DegreeUse of addition, subtraction, multiplication

and division of numbers including decimals and fractions; simple use of formulas, chars, tables, drawings, specifications, schedules,

wiring diagrams; use of adjustable measuring instruments; checking of reports, forms, records and comparable data; where

interpretation is required.

KNOWLEDGE

KNOWLEDGE

3rd DegreeUse of mathematics together with the use of complicated drawings, specifications,, charts, tables; various types of precision measuring

instruments. Equivalent to 1 to 3 years applied trades training in a particular or

specialized occupation.

KNOWLEDGE4th Degree

Use of advanced trades mathematics, together with the use of complicated

drawings, specifications, charts, tables, handbook formulas; all varieties of precision

measuring instruments. Equivalent to complete accredited apprenticeship in a recognized trade, craft or occupation; or equivalent to a 1 year technical college

education.

KNOWLEDGE

5th DegreeUse of higher mathematics involved in the

application of engineering principles and the performance of related practical operations, together with a comprehensive knowledge of

the theories and practices of mechanical, electrical, chemical, civil or like engineering

field. Equivalent to complete 4 years of technical college or university education.

e.g. Responsibility

1) For Tools1) For Tools

2) For Safety2) For Safety

3) For Products3) For Products

(6 Factors Total to 3000 pts. (6 Factors Total to 3000 pts.

Responsibility = 800)Responsibility = 800)

YESTERDAY TODAY TOMORROW

Fixed salary Variable pay as add-on to salary

Low fixed salary,more variable pay

Bonuses/perks forexecutives only

Variable payemerging throughoutorganization

Variable pay commonthroughout theorganization

Fixed benefits,reward long tenure

Flexible benefits Portable benefits

Company-basedcareer, “moving up”

Industry-basedcareer, “movingaround”

Skill-based career,interim employment

Hierarchicalorganizations

Flatter, team-basedorganizations

Networked “virtual”organizations

“Cookie cutter” payplans

Total compensation(Look at benefits,too)

Customized,integrated paysystems; pay, benefitsintangibles