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The steps involved in the design of a point plan are:
[1] Step One: Conduct job analysis. A representative sample of benchmark jobs is selected. The content of these jobs is the basis for compensable factors.
[2] Step Two: Determine compensable factors. This step is based on the work performed or what is done, on the strategy and the values of the organization, and on what is acceptable to those affected by the resulting pay structure.
[3] Step Three: Scale the factors. This step involves using examples to anchor the factors.
[4] Step Four: Weight the factors. This step is where the judgment of organization leaders, a negotiated structure and a market-based structure can be reflected.
[5] Step Five: Select criterion pay structure. This step is where committee judgment is supplemented with statistical analysis.
[6] Step Six: Communicate the plan. This step provides for communication of the plan and training of the users. At this time, the plan manual is prepared.
[7] Step Seven: Apply to non benchmark jobs. This step is where the point plan is applied to non benchmark jobs.
[8] Step Eight: Develop online software support. Large employers today use online job evaluation systems.
Terms in this set [23]
If the internal structure's purpose is to aid management, and if ensuring high involvement and commitment from employees is important, those managers and employees with a stake in the results need to be involved in the process of designing it. A common approach is to use committees, task forces or teams that include representatives from key operating functions, including non managerial employees. In some cases, the group's role is only advisory. In others, it designs the evaluation approach, chooses compensable factors and approves all major changes. Research suggests that attending to the fairness of the design process and the approach chosen, rather than focusing solely on the results, is likely to achieve employee and management commitment, trust and acceptance of the results. No job evaluation plan anticipates all situations. Review procedures to handle such cases and to help ensure procedural fairness are required. Historically, the compensation manager has handled reviews but, increasingly, peer or team reviews are being used. An approval process helps ensure that any changes that result from evaluating work are consistent with the organization's operations and directions.
Prior to the widespread use of job evaluation, employers in the 1930s and 1940s had irrational pay structures based on decentralized and uncoordinated wage-setting practices. Pay differences were a major source of unrest among workers. Employment and wage records were rarely kept, with only the foremen knowing how many workers were employed in the department and what rates they received. Foremen often used this information to vary the rate of favored workers or assign them to jobs where piece rates were loose. Job evaluation with its specified procedures and document able results helped to change that. The technique provided work-related and business-related order and logic. However, over time, complex procedures and creeping bureaucracies can cause users to lose sight of the objectives. Today the work of many requires that they identify problems and opportunities, make decisions, plan courses of action, marshal support and, in general, design their own work methods, techniques and tools. The challenge is to ensure that job evaluation plans afford flexibility to adapt to changing conditions.
Prior to the widespread use of job evaluation, employers in the 1930s and 1940s had irrational pay structures based on decentralized and uncoordinated wage-setting practices. Pay differences were a major source of unrest among workers. Employment and wage records were rarely kept, with only the foremen knowing how many workers were employed in the department and what rates they received. Foremen often used this information to vary the rate of favored workers or assign them to jobs where piece rates were loose. Job evaluation with its specified procedures and document able results helped to change that. The technique provided work-related and business-related order and logic. However, over time, complex procedures and creeping bureaucracies can cause users to lose sight of the objectives. Today the work of many requires that they identify problems and opportunities, make decisions, plan courses of action, marshal support and, in general, design their own work methods, techniques and tools. The challenge is to ensure that job evaluation plans afford flexibility to adapt to changing conditions.
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