decision band system

Job EvaluationPractical case study

on

Paterson PlanDecision Band™ Method (DBM)

By

Omar Abd Al Wahab Mohd

Omer A.Wahab Mohammad MBA2009 -1641

University of Medical Sciences and TechnologyFaculty of Administrative and Financial Sciences

MBA Program, Bach3 HR

Job Evaluation

• “Systematic process for comparing different jobs systematically to assess their relative worth (value), so providing a basis for a grading and reward structure on fair and sound judgements”.

• Technique for comparing and evaluating JOBS rather than employees.

• It is about the internal Relativity of jobs.

OMER ABD AL WAHAB MOHD.........MBA2009-1642

What is Job Evaluation

Job Evaluation

Aims and objectives of Job Evaluation(1):

• Establishes fair relative value of jobs based on fair judgement.

• Gives more information to design equitable and sound pay and grade structure.

• Enables sound market comparison.


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Job Evaluation

Aims and objectives of Job Evaluation(2):• Provides transparency.• Reduces industrial disputes and legal claims.• build right track for career path and succession planning.

• Boosts the emotional ties between the job and the holder.


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Job Evaluation

Aims and objectives of Job Evaluation(3):• Increases retention and decreases turnover.

• Build-up faithful and loyal calibres.

• provides fair pay regardless to any discriminating factors.

• Reflects positive external image that increases attraction.


Job Evaluation

Methods of Job Evaluation:• Analytical (e.g. points rating , factor

comparison, Patterson , HAY) analysing the level at which various defined factors or elements are presented in a job.

• Non-analytical (e.g. ranking, grading, paired comparison and classification) Comparing the whole jobs to place them in grades . They are not analysed by reference to their element factors.



Facts about Job Evaluations.• In Uk and according to e-reward survey 2003, 44% of

the surveyed companies had introduced Job Evaluation.

• While 45% of those who did not have a scheme intended to introduce one. Source : Michael Armstrong (2007) A hand book of Human resources Management PP 666

• In Sudan it was introduced in the Civil Service in 1975. kenana is pioneering company in Job Evaluation. What is about others…. Any comments.

Job Evaluation

Job Evaluation


Procedural steps of introducing Job Evaluation(1)Top Management approval and commitment.Unions agreement.Communication.Getting the reputable consultancies Firm.Selecting the Job Evaluation method.Staff training. Job description.

Job EvaluationProcedural steps of introducing Job Evaluation(2) Convene the grading committee.Result acceptance from the senior Management.communication.Introduction & applicationAnomalies and grievances committeesUpdating & revising.



Paterson Plan Decision Band™ Method (DBM)

• It is based on analytical method of Job Evaluation.• It was developed over 30 years ago by professor Paterson when he was in the school of Business at the University of Strathclyde in Scotland while he was studying the relationship between work and pay.•The method is called the Patterson Plan or the Decision Bands Method (DBM).

JOB EVALUATION

Job Evaluation

The Method Wide Spread:• The method was recently developed and refined

by Fox Lawson’s compensation consultants.

• The method is used world wide in both the private and the public sectors organizations e.g.. South Africa , kenana Sugar Company , State of North Carolina USA and provides good results.



Job Evaluation

The Basic Concepts of the Method:• The basic premise of the method is that , the value of

any job is depend on the level of its responsibility.

• Responsibility is reflected and measured by the Decision making requirements of the job.

• Accordingly , decision making is a logical and equitable basis on which to compare jobs within an organization.


Job Evaluation

The Decision Bands :The Patterson Plan is based on six decision Bands:1. Band F policy Making

2. Band E programming

3. Band D Interpretive

4. Band C Band Routine

5. Band B Automatic

6. Band A Defined

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BAND BAND AA DEDINED DECISION UNSKILLED WORKER DEDINED DECISION UNSKILLED WORKER

BANDBAND B B AUTOMATIC DECISION SEMI SKILLED WORKERSAUTOMATIC DECISION SEMI SKILLED WORKERS

BAND BAND CC ROUTINE DECISION SKILLED WORKERS ROUTINE DECISION SKILLED WORKERS

BAND BAND DD INTERPRETIVE DECISION MIDDLE MANAGEMENT INTERPRETIVE DECISION MIDDLE MANAGEMENT

BAND BAND EE PROGRAMMING DECISION SENIOR MANAGEMENT PROGRAMMING DECISION SENIOR MANAGEMENT

BAND BAND FF POLICY MAKING DECISION TOP MANAGEMENT POLICY MAKING DECISION TOP MANAGEMENT

TYPES OF PATTERSON BANDSTYPES OF PATTERSON BANDS Decision Band™ Method (DBM)

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Pyramid


Job Evaluation

These are decisions that determine the scope, the direction, and the overall goals of the whole organization. Band F decisions are the kind typically made by a Board, Council, or CEO.

BAND F-Policy Making Decision


Job Evaluation

•These decisions are concerned with formulating or adjusting programs for the major Functions/divisions/departments, and allocating resource among these groups. • The executives at Band E are typically in charge of advising line executives, heading up such major functions as marketing, administration, production, and finance in private sector organizations, and major departments in public sector organizations. They are similar to MD ,GM and Project Manager.

BAND E Programming Decisions


Job Evaluation

At Band D, the incumbents are required to interpret and carry out the programs or objectives developed at Band E. These decisions specify what is to be done in lower Bands, and how the resources allocated by Band E are to be deployed. Band D decisions are typically made by middle managers in various functions.

BAND D – Interpretive decisions


Job Evaluation

Decisions in Band C involve determining the means or process of achieving the objectives, standards or guidelines established by Band D decisions. They are subject to the limits imposed by the available technology and resources and to the constraints set by Band D. Selecting the process is a decision that must precede carrying out the operations that make up the process. A process decision specifies what is to be done at Band B. These are typically decisions made by supervisory personnel and/or senior technical specialist positions.

BAND C – Process Decisions


Job Evaluation

• These decisions focus on how to carry out the operations of the process specified by a Band C decision. • There is, within the limits set by the specific process, a choice as to how and when the operations are carried out, but not as to what operations constitute the process.

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BAND B – Operational Decision


Job Evaluation

• Band A decisions are confined to the manner and speed of performing the elements of an operation. • There is, within the limits set by the prescribed operation, a choice as to how the elements are performed, but not as to what elements constitute the operation.

BAND A – Defined Decisions


Job Evaluation

The Grades within the Bands : All decision bands ,except for Band A are divided

into two grades ,

• HIGHER for those jobs which co-ordinate / supervise other job or self co-ordinating.

• LOWER for those jobs which are not co-ordinating.


BAND GRADE

F Higher…Coordinating policy decisions

F Lower…. Making policy decision.

E Higher… Coordinating programming decisions

E Lower….Making programming decisions

D Higher….Coordinating interpretive decision .

D Lower…Making interpretive decision .

Job EvaluationThe Grades within the Bands :


BAND GRADE

C Higher….Coordinating routine decision.

C Lower….Making routine decision.

B Higher….Coordinating automatic decision .

B Lower…..Making automatic decision.

A No Higher or lower grade, just single grade

Job Evaluation

The Grades within the Bands :


Job Evaluation

The Sub-Grades within the Grades :• The eleven grades are subdivided into sub-grades.

• There should at most be three sub-grades in each lower grade as well as in A , and two sub-grades in the higher co-ordinating grade.

• The numbers of sub-grades in within the grade can vary according the needs of each particular organization.


BAND GRADES SUB-GRADES

F

Higher F54

Lower F321

E

Higher F54

Lower F321

D

Higher F54

Lower F321

Job Evaluation

Decision Band layout


BAND GRADES SUB-GRADES

C

Higher C54

Lower C321

B

Higher B54

Lower B321

A

Higher A54

Lower A321

Job Evaluation

Decision Band layout


Job Evaluation

Grading procedure guidelinesStep one: Job Description:

• Well trained staff start describing all the jobs.

• Consideration will be given to reporting system, detailed information about technical task (hard factors)done and to job factors in case of stress, tolerance, activity sequence and variety .(soft factors)

• Well done job description will lead to perfect grading.


Job Evaluation

Grading procedure guidelinesStep Two: slotting jobs into Bands:

• Jobs are to be slotted into the Bands according to the types of decisions made in the job.

• The guiding rule is that the highest-level tasks in the job determines the Band into which the job falls.


Job Evaluation

Grading procedure guidelinesStep Three : choosing the Grade within the Band:• Jobs are to be classified within each "Decision Band"

into one of two "Grades" based on the differential supervisory difficulty and effort required of the job.

• At this point in the process, jobs will have been classified into a hierarchy of twelve different classes of jobs, based on the job's level of responsibility and supervisory difficulty and effort.

30 OMER ABD AL WAHAB MOHD.........MBA2009-164

Job Evaluation

Grading procedure guidelinesStep Four: choosing the sub-grade within the grade.• Jobs are moved into sub-grades by considering the

following soft factors:

1. Stress: pressure under which the job is done.2. Tolerance :degree of accuracy

31OMER ABD AL WAHAB MOHD.........MBA2009-164

Job Evaluation

Grading procedure guidelinesStep Four: choosing the sub-grade within the grade.3. Sequence: length of the cycle or process related to the

job.4.Variety: number of different elements involved in the

job.• Every job is compared with other jobs according to

those factors.• Numeric scale can be made for each factor.

32 OMER ABD AL WAHAB MOHD.........MBA2009-164

Job Evaluation

Grading procedure guidelinesStep Five: Grading committee• the committee composed of well trained staff

supported by the consultants.• the committee main function is to grade the

job ,revise the job description and may call the department head whenever necessary to give more clarification about any job.

• The committee raises its final grading report to the HR Manager.


Job Evaluation

Grading procedure guidelinesStep Six: Result communication• The grading result will be communicated to

the Senior Management for the purpose of approving the both side of the grading result as the job evaluation may need strong commitment to meet the additional cost in case of job cut off or salary increase, (ability to pay)

• Union has to be fully oriented about the result.


Job Evaluation

Grading procedure guidelinesStep Six: Result Implementation : HR Role.• Informing the employees by their new grades • Treating the hard issue of surplus.• Creating the mechanism of grievance and

appeal procedures.• Continuous revision and updating to the

system


Job Evaluation

Using job evaluation for setting pay:

Analyse jobs and rank themGroup jobs into grades/bandsLink pay to bandsOnly the first stage is ‘job evaluation’


Job Evaluation

Link pay to Bands Job Pricing (1)

Union/Management committee will recommend an appropriate pay structure, Jobs are placed in salary Bands only on the basis of the decision requirements of their duties. Salary data should be collected by making external salary survey. Bench – mark jobs and high flier jobs are to be put into consideration.


Job Evaluation

Determine low / high salary ratio.( vertical relativity.)Determine the start of each band in consideration to the Minimum Wages Act and the Triplicate Agreement.Determine the salary overlap.Determine the horizontal progression ( the 5% annual increase).Determine the Band other related non basic pay (allowances related to the value of the sub grades.)Treat the issue of the odd salary and the anomalies.

Link pay to Bands Job Pricing (2).


Job Evaluation

Treat the issue of surplus.Take care of the Management Commitment .•Remember the golden rule :

ABILITY TO PAY

Link pay to Bands Job Pricing (3).


Job Evaluation

References•Michael Armstrong (2007) A hand book of Human resources Management •Royal institute of Public Administration 1988 Fact book Of Personnel Management.•www.foxlawson.com.com


Question and Answer SessionQuestion and Answer Session

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Job Evaluation

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decision band system