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JOB EVALUATION in making Job Grading Using Hay Method By : Pungki Purnadi M.W. www.pungkipurnadi.com or www.pungkipurnadi.com or www.pungkipurnadiassociates.com
CHRP38 additional class – Friday, 18th August 2017
To provide an in-depth understanding and application of the Job Management (Job Analysis – Job Description – Job Evaluation – Job Grading) tools and methodologies in order to value jobs towards achieving business results with effective Remuneration System.
Position/Job Evaluation – Its application to current organization 3
Level
L
L
L1 L2
L1 L2
•
L1 L2
L2
L1 L2
L2
L3
L2 L3
Position Class – Class – Job Job Grade 58
L2
L3
L1
56
•
L1 L1
55
L2 l2
54 L2
53 51
L2
L2 L2
Position/Job Evaluation clarifies each positions’ relative ranking between one another, represented in “Position Class” or “Job Grading”
L1
L3
L2
In this model, ranking between positions represents functional level, which can be misleading
L
57
52
L1
L3
L2 L2
3
Position Evaluation – Developing a Grading Structure 4
Position Classes are banded based on the distribution of position within organization, to create a grade.
Position Class – Class – Job Job Grade
L
58 57
L1
56
L1 L1
55 54
52 51
Employee group is usually used to manage cash / noncash benefits.
Grade & Position Title
Employee Group
M 3
President Director
M 2
Division Heads
M 1
Department Heads /Senior Specialist
Management
S3
Superintendents /Specialists
Staff
Top Management
L2 l2 L2
53
Grade is usually for managing base salary, for salary structure.
L1
L3
L2
L2 L2
L3
L2 L2
4
Components of Job Management & Salary Structure Design Job Analysis Job Design In making Job Description
Organisation Structure Design
Job Evaluation / Grading Job Value
•
•
INPUT REQUIRED
•
•
Business Objectives Key Business Process SWOT Analysis of the company Balance Score Card Corporate
Salary Surve •
•
•
Deliverables of Job (KRA & KPIs) Organisation Model and Structure Functional Structure
•
•
•
Inter relationship of job accountabilities within the organisation Impact of jobs on business results Ownership of roles
Establish the value of the job Undertake correlation to ensure internal relativity and external comparability
•
•
Salary Structure Design
METHODS & TOOLS for H.R. MANAGEMENT JOB/POSITION DESCRIPTION COMPETENCY BASED (POSITION vs EMPLOYEE)
TEAM & INDIVIDUAL OBJECTIVES
JOB EVALU EVALUATION ATION
KRA - KPI JOB/POSITION LEVEL
INDIVIDUAL ANNUAL INTERVIEW
OPTIMIZATION OF H.R. MANAGEMENT : 1. REMUNERATION & REWARD 2. DEVELOPMENT & TRAINING 3. CAREER & MOBILITY
Total Reward Model TOTAL REWARDS STRATEGY Business Strategy
Compensations
Benefits Human Capital Strategy
Work-life Performance & Recognition
Organizational Culture
Development & Career Opportunities
Attract
Employee
Motivate Satisfaction & Engagament Retain
Business Performance & Reward
Remuneration Remuner ation Management Vision Mission Values Objectives Organization Model & Structure
Pay For Position Pay For Performance Pay For Person
With Job Evaluation Committee
Three P Remuneration Management Systems –
Position Evaluation Pay for Position
Performance Evaluation
Role Classification Job Description KRA – KPI – Target Objective Setting Position Evaluation Performance Review
Basic Salary Compensation
Person Competency Development
Person Evaluation Pay Pay for Person Allowance –
Pay for Performance Incentive Bonus Allowance
3-P Compensation • Pay for Position have the same Reference Reference ▫ All individuals in the same grade have Salary (minimum to maximum and normally Basic Salary)
• Pay for Person ▫ Competency determines actual salary relative to Reference Salary ▫ Competencies in high demand receive a market premium
• Pay for Performance ▫ Performance pay is variable (incentives or allowances or bonus, mostly percentage of Basic Salary) ▫ Pay for both short-term and long-term performance
• Total Compensation ▫ Control cost to employer while maximizing values to employees
Remuneration Remuner ation Management
Using The Hay Guide Chart as a Tool to Grade Jobs • The Hay Guide Chart Method of Evaluation was introduced in the 1950’s. • It evolved through experiences with organizations of every type and size, and most widely used proprietary position evaluation methodology in the world. • It is a ‘numerical method’ of evaluating jobs.
THE COMMON ELEMENTS OF JOBS INPUT
THROUGHPUT
OUTPUT
ACCOUNTABILITY
KNOW-HOW
PROBLEM SOLVING
Linking Job Analysis to Job Measurement Factors Job Analysis Components
Accountabilities Qualifications & Experience
Competencies
Organisation Structure
Job Purpose
Job Measurement Factors
Accountabilities Special Aspects/Major Challenges
Accountabilities
•
•
Managerial Know-How
•
Human Relation Skills
•
Thinking Environment
•
Thinking Challenge
•
Freedom To Act
Dimensions Key Performance Indicators
Depth and Breadth of Specialised Knowledge
•
•
Job Impact on End Results Magnitude
•
•
•
KNOW HOW
PROBLEM SOLVING
ACCOUNTABILITY
Relationship of Job Analysis & Job Evaluation JOB EVALUATION FACTOR
KNOW HOW
1.
JOB PURPOSE
X
2.
KEY / MAIN ACCOUNTABILITIES (KRA – (KRA – KPI) KPI)
X
3.
DIMENSION
4.
WORKING RELATIONSHIP
5.
AUTHORITY FREEDOM TO ACT
6.
CHALLENGES
7.
MINIMUM REQUIREMENT
8.
ORGANIZATION STRUCTURE
PROBLEM SOLVING
ACCOUNTABILITY
X
X
X
X
X
X
X
X
X
JOB EV JOB EVAL ALUA UATI TION ON – ELEMENTS OF JOB SIZE KNOW-HOW
PROBLEM SOL SOLVING VING
Technical Know-How
Thinking Environment
Management Breadth
Thinking Challenge
Human Relations Skills
ACCOUNTABILITY Freedom to Act Area of Impact
Nature of Impact
}
Position/Job Evaluation – Rule of Thumb Position/Job Evaluation should focus on the Position,, not on the Position and certainly incumbent and incumbent not on how the incumbent performs. Evaluations Evaluations are correct at the present of time.
If org aniza nizattion chang chang es , the eval evalua uatti ons s hould be revisited.
Job Evaluation (JE) • What is Job Evaluation Job Evaluation is a system for ranking jobs logically and fairly by comparing job against job or against a pre-determined scale to determine the relative size of jobs in an organization.
JOB JO B EV EVAL ALUA UATI TION ON IS
IS NOT
Comparative
Absolute
Judgmental
Scientific
Structured
Unstructured
Job Centered
Person Centered
JOB EVALUATION INFORMATION • Information about a job typically comes from: –
–
–
The content of job or role description. The knowledge and understanding of those carrying out the evaluations (Job Evaluation Committee). The current organization model & structure
JOB JO B EV EVAL ALUA UATI TION ON
Information Judgment
Job Size
Method
Job Evaluation Committee
Applicable Accepted/able “Felt“Felt-fair”
•
•
•
JOB EVALUATION - JUDGMENT • Constrained by “rules” ▫ jobs not people ▫ “normal” performance ▫ the job as it is now ▫ disregard current pay and status ▫ no understanding : no evaluation • Checks and Balances ▫ collective judgment ▫ consensus ▫ profiles ▫ “sore thumbing”
Principles of Job Evaluation / Grading 29
• What to GRADE: ▫ the JOB itself ▫ Not concerned with current pay or status ▫ the VALUE OF THE JOB being performed performed at a fully proficient level (NO MORE! NO LESS!) ▫ Jobs TODAY
• What NOT to GRADE: ▫ the strengths and weaknesses of the individual currently performing the job ▫ titles or status
KNOW-HOW The sum of every kind of knowledge, skill and experience required for standard acceptable job performance ▫
Technical echnica l Know-How Kno w-How (A, B, C, D, E, F, G, H)
▫
(lebih banyak ke latar belakang pendidikan akademis dan lama tahun pengalaman di bidang nya) Management Breadth (N, I, II, III, etc.) (lebih banyak melihat kompetensi managerial yang dibutuhkan dalam mengelola pekerjaan dan anak buah)
▫
Human Relations skills (1, 2, 3)
(lebih banyak melihat kepada kompetensi komunikasi yang dibutuhkan dalam berinteraksi di posisi jabatan)
Depth of Technical Technical Know How A.
PRIMARY Jobs are extremely simple in nature, can be learned within a matter of several days or weeks. Little formal education required. Typical Typical jobs: file clerks, mail distribution clerk. An entry level position requiring no previous work experiences.
B.
ELEMENT ELEMEN TARY VOCATIONAL Covers jobs which are highly repetitive/basically simple assignments, often requiring operating equipment knowledge: typewriters, duplicating machines or keypunch, etc.
C.
VOCATIONAL Proficiency Proficiency means capability in: e.g., shorthand or bookkeeping, Specialized equipment tabulating machines, peripheral data processing, off-set duplicating machines, or other machines of this level of complexity. complexity.
D.
ADVANCED VOCATIONAL Specialized skills include the fields of advanced bookkeeping, computer operation, design drafting and craft skills, e.g., electrical. Most first line supervisors will fall in this category.
E.
BASIC PROFESSIONAL Covers jobs that require the equivalent of a basic college education or advanced vocational training, strengthened by years of experience. Jobs at this level require the incumbent to have a specialized body of knowledge at his command
Depth of Technical Technical Know How F.
SEASONED PROFESSIONAL Focus is the difference in meaning between “proficiency” and “sufficiency”. F indicates more thorough capability as suggested by the meaning of “seasoned”, F requires the equivalent of a basic college education supplemented by substantial, pertinent work experience in a specialized knowledge in a wide variety of situations. F jobs also are those requiring advanced degrees where the formal knowledge requires almost immediate competent performance. Keep in mind the “advanced degree” maybe substituted by “X” years of experience. Again, the focus here is on the utilization of KnowHow, not in acquisition.”
G.
PROFESSIONAL MASTERY This covers jobs requiring expertise supplemented by additional depth to the point of being the authoritative source of knowledge within the organization. The financial, human resources, merchandising, merchandising, sales, distribution, etc., Jobs to whom others turn for advice and counsel. G also represents positions that call for expertise in several or more specialized fields. Top management positions may often require G know-How because of the requirements for the incumbent to know quite a bit about a wide variety of fields.
Breadth of Management Know-How • Planning, organizing, directing and controlling • Complexity • Functional diversity • Timescale/planning horizon • Scale • Strategic influence • Recognizes the structural realities
Breadth of Management Know How N TASK Performance Performance of a task (s) highly specific ads to objective and content, and not involving leadership of others. All blue-collar, blue-collar, non-staff jobs fall under this category. category.
I SUPERVISORY This covers positions at the first level of supervision. These positions are close to the work being done; they supervise individual workers and/or group leaders. They often must consider the requirements of relating operations when establishing priorities and scheduling work.
II MANAGERIAL This covers single functional department managers. Actual of various activities is largely delegated. Typical managerial responsibilities include the integration of (or with) supportive activities and external coordination with others managers in planning and executing for end results. Normally, the span of control is limited and the depth of managerial control to the point of action is not deep. Or this covers positions which coordinate a function across several operating departments in a company. company.
Breadth of Management Know How III
DIVERSE MANAGERIAL This covers multifunctional managers. By multifunctional we mean either: Managing at least two functional areas of an important nature and size or diversity in the nature of the end results of each area is important, and focusing on inherently competing requirements or, this covers positions which coordinate a major function across several operating units in the group.
IV
TOTAL Management positions at these levels are responsible for the operations of major unit or units (having a significant impact on the total company) as the CEO or for the functional guidance of a strategic function to various units in the organization and are limited to top management m anagement operating at the policy-making level of the company.
HUMAN RELATIONS SKILLS • The requirement for Know-How in working with or through people inside and/or outside the organization • Three levels:
Basic
Effective Communication
Important
Convincing through use of logical and “adult”, and objective arguments
Critical
Changing behavior by understanding human motivation (at any level)
Range of Human Relations Skill 1.
BASIC Human Relations skill at this level are subordinate to technical or procedural skill requirements. These jobs need not influence others in carrying out their assignments. Some non-supervisory and specialist positions fail into this category.
2.
IMPORTANT (win-win) Human Relations Skills are not overriding to the success of an assignment. Normal courtesy and effectiveness with people, however, is just not enough to fulfill the needs of the position. The ”2” level of Human relations Skills requires interplay with subordinates and superiors of a more intensive nature than “1”. This slot is also appropriate for those positions that do some coordinating outside incumbent’s incumbent’s division or department
3.
CRITICAL (win – loose) Positions at this level are required to motivate, convince or “sell” to people successfully to attain end results. The majority of supervisory and management positions fall into this slot. The job requires establishing rapport, or getting others to do what they would not otherwise do. Jobs dealing with any government department or customer usually fall in this category.
Sample Evaluation Know-How
EII 3 264
Scoring Know How • Decide on alphabet, and scale (- or +, if applicable), nest on roman lettering, and shad (- or + if applicable), then on Arabic numeral (no shading) • Example: E+ II – 3 thus, E + II - 3
PROBLEM PROBLE M SOL SOLVING VING The ‘self starting’ thinking required by the job for analyzing, evaluating, creating, reasoning, arriving at and drawing conclusions. • Freedom Freedom To Think Think – Thinking Environment ▫
(A, B, C, etc. difficulty of problem diagnosis)
• Thinking Challenge ▫(1, 2, 3, etc. difficulty of finding the right solutions)
FREEDOM TO FREEDOM TO THINK – THINKING ENVIRONMENT strategy : • Limited by strategy: Direct supervision/guidance on policy at the top level : Procedures : Nature of the task. automatically) : • Hierarchical (but not automatically): Jobs can often think “as free as their boss” - but usually within the same - or smaller - strategic framework.
Levels of Thinking Environment A.
STRICT ROUTINE Rules are very basic and instructions quite specific (mostly oral orders), saying “don’t think, “don’t think, do” Example “File only “File only Red Copies” Copies”;; “Dispatch mail “Dispatch mail on hand at 3 and 6 pm” pm”;; “Mail according “Mail according to class and weight rate schedule” schedule”;; “Sweep halfway “Sweep halfway and return for further work assignments.” assignments. ” ROUTINE This slot covers a number of the positions in the clerical hierarchy. Thinking restrictions are less severe than in slot A; positions carry out specific assignments according to established routines or standing instructions, or until instructed to do otherwise.
B.
C.
SEMI ROUTINE There is a definite crossover between B and C. Now, the thinking environment has the somewhat less limiting aspects of procedures, rather than instructions; or the past practice of doing something the Company’s way. Company’s way. Many clerical and non-supervisory jobs are covered by this slot.
Levels of Thinking Environment D.
STANDARDIZED Positions must resolve a course of action within diversified, yet explicit, well established procedures. There is some leeway as how to resolve the problems due to the variety of procedures or standards available. Unusual situations at variance with procedures and instructions are referred upwards for assistance or further definition. Most supervisory positions fall f all in this category. category.
E.
CLEARLY DEFINED Again, we have a definite crossover from the preceding slot. Policies even though clearly defined, are less limiting than procedures. The “what” “what” is distinctly stated; the “how” “how” is largely determined by the incumbent's own judgment, based on principles. By principles we mean those of disciplines such as engineering, law, accounting etc. Most professional and management jobs fall in this category.
Levels of Thinking Environment F.
BROADLY DEFINED The determination of the “what to do” do” in applying broad policies to solve the problem is largely left to the incumbent. However, the objectives themselves would tend to be stated rather clearly, but not in as specific terms as in E. Most functional heads fall in this category.
G. GENERALLY DEFINED This slots covers positions concerned with determining the major functional directions the Company takes. The “what” is specified in only very general terms. The objectives must be determined for fo r achieving Company policy. policy. Jobs at this level translate over-all strategies into broad functions or corporate direction. The jobs are close to the very top where overall direction is being considered. (e.g., CEO, President Director) H. ABSTRACTLY DEFINED Job holder sets strategic consistent with its charter. (e.g. Chairman)
THINKING CHALLENGE • Degree of creativity or original thought. • Complexity of problems. • Relationship with Thinking Environment. • Degree level of solution origination.
Levels of Thinking Challenge 1.
REPETITIVE Jobs at this level require the recall of specific learned things in simple, stable and repetitive situations. An example might be a job that requires sorting out black and white balls. File clerks, and mail distribution clerks are examples of this level.
2.
PATERNED Here the incumbent makes a choice of applicable learned things in traditional situations. It is a kind to sorting twenty grey balls into three shades of grey. grey.
3.
VARIABLE Here the person in the job makes choices of relevant learned things in situations that any present some new material, but this material conforms to established patterns and modes. “Interpolate” “Interpolate” implies being confronted with a number of different questions, each having several different answers to it. It is a “pick and choose” situation. Decision can still be made rather rapidly rap idly based on prior knowledge or experience, as opposed to fitting a prescribed pattern (as in 2), or the necessity to be more methodical in defining the problem and solution. At “3” the answers have previously being found; the incumbent must select the most appropriate answer or combination of answers.
Levels of Thinking Challenge 4.
ADAPTIVE This level of thinking means innovative imitation requiring constructive thinking where the response often involves study or contemplation. The incumbent defines the problem, develops a recommended course of action. At “4” the answers cannot be selected from some that are already known; it is up to the incumbent to come up with the appropriate response, solution or answer.
5.
UNCHARTED This applies to truly creative thinking about something never done before within or by the company. The position must be structured so that this requirement is a significant part of the job.
Sample Evaluation Problem Solving
E
D+
II-
3
3
(33)
264
87
ACCOUNTABILITY • The answerability for action and for the consequences of that action. • The measured effect of the job on the end results. • It has three dimensions in the following order of importance: 1) Freedom to Act (A, B, C, D, E, F, F, G) 2) Nature of Impact - Magnitude 3) Area of significant signific ant Impact (P, S, C, R)
Levels of Freedom to Act • A : PRESCRIBES ▫ Job at this level do exactly as told. No various are permitted unless specifically authorized. Supervision is on a continuing or hour-to-hour basis. Keep in mind, however, that this does not necessarily imply personal supervision. An example might be the right janitor working alone, where standing instruction are explicit.
• B : CONTROLLED (by direct hierarchy) ▫ The work routines permit some re-arrangements of work sequence and supervision is less stringent For example, a secretary has a set routine, close supervision provided by the clearly defined nature of work, but the secretary changes the sequence of the work depending upon the circumstances.
• C : STANDARDIZED (by SOP) ▫ Practices and procedures permit variations in work routine. Supervision at this level is periodic both before and after the fact. This is typical of senior clerical and secretarial positions and first level supervisors and foreman.
Levels of Freedom to Act • D : REGULATED (from regulator) ▫ Here there is some latitude in modifying practices and procedures to accomplish the assignment. Review of work maybe at the end of a day or week and is after the fact. Assignment at this level specify the “what” and “what” and “by when”. when”. On the light side of “D” “D” assignment receive close supervisory attention and have very limited authority. The incumbent is controlled closely by supervisor and by local work rules and practices covering essentially all phases of his activity. This control is less stringent for solid heavy “D”. “D”. The incumbent has more latitude in accomplishing his assignment. By latitude we are talking about ways to do something or how to do something, not what to do or whether to do. In “A” through “A” through “D”, the “D”, the what and how are given.
• E : DIRECTED (from management) ▫ The job is subjected to broad practices and procedures by functional precedent & policies. Managerial direction.
Levels of Freedom to Act • F : GENERALLY DIRECTED (from BoD) ▫ These positions are free to determine the general results. It is up to the incumbent to draw on available resources to accomplish the end results. The review of end results is over a longer time span such as six months to a year. year.
• G : BROAD GUIDANCE (from owner or commissioners) ▫ Determining goals and major directives to achieve “the what” which is defined in very general terms (eg. CEOs of large companies).
• H : STRATEGIC GUIDANCE ▫ Setting strategic direction consistent and subjected to BOD and corporate governance constraints (eg. Chairman of large companies).
Nature of Impact - Magnitude Measuring how much the monetary impact toward the achievement of company vision and mission. • Impact on Company PROFIT – REVENUE – COST • How much the monetary size impact in company organization (V ( Very Small, Small, S mall, Medium, Large, Very Large)
Area of significant Impact Measuring the directness / indirectness of position/job values’ impact toward the achievement of company vision and mission. • • • •
P = Prime S = Shared C = Contributory R = Remote
Sample Evaluation Accountability Accountability
E II3 264 D+ 3 (33) 87 D 2P 115
466
Sample Profile Managerial Position (PS
Sample Profile Functional Position (PS>ACC) Professional Position • P4 : 100% achieve target through self position • P3 : 87,5% achieve target through self position • P2 : 75% achieve target through self position • P1 : 62.5% achieve target through self position
good luck & success! If you need further assistance, please contact me at 08121055000 08121055000 Or visit www.pungkipurnadi.com www.pungkipurnadiassociates.com [email protected] [email protected]
Pungki Purnadi, ST. MM.MHRM. Pungki Purnadi is certified HR practitioner, having more than 26 years experience in handling HR matter. His engineering background education and master human resources management support him to become the innovative HR Practitioner. He had various working experiences regionally and internationally internatio nally such as with TOT TOTAL AL Indonesi Indonesie, e, MedcoEnergi, Petronas Petronas Carigali, WorleyParsons, Petrosea and some years with international management consultant, handling some HR matte matters rs in various industries. During his working experiences, he had been assigned to various key HR position in various countries (France, England, Scotland, Norway, Arab Emirates, Nigeria, Libya, Iran, Sudan, Turkey, Australia, Myanmar, Thailand and Malaysia) such as Training & Development Manager, HRD Manager, Country HR Manager, South East Asia Regional HR Manager and Human Capital Director. He is also one of the founders who have an initiative to conduct HR certification in Indonesia such as Certified Human Resources Professional (CHRP); Certified Human Resource Management Management (CHRM) and Certified Human Capital Management. As HR practitioners, he is very active to run and facilitating several HR program.