JOB DOCUMENTATION

AND JOB EVALUATION

Modul 13
CERTIFIED HUMAN RESOURCES
PROFESSIONAL (CHRP)

Certification on Human Resource Professional (CHRP), AtmaJaya University Jakarta, 2006

 OBJECTIVES
z By the conclusion of this Module, you
will be able to accomplish the following:

z Differentiate Job Documentation, Job

Analysis and Job Evaluation.
z Identify the roles of each in Pay
Programs.
z Apply each in the real organization
setup.

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 JOB ANALYSIS
Is a systematic process for obtaining important and
relevant information about a job content. For
Compensation purposes, this includes the duties and
responsibilities of the job as well as required worker
characteristic.

There are some techniques of Job Analysis as follows:

INTERVIEW
A structured review of job content by a job analyst with the
incumbent or a group of incumbents.

JOB OBSERVATION
Physically watching people work in order to understand job
content.
CONTINUED

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 JOB ANALYSIS (continued)

JOB QUESTIONNAIRE
A written set of questions regarding job content that requires the
incumbent to prepare a narrative response.

EMPLOYEES LOG
A method of gathering detailed information about a job by asking a
job incumbent to maintain a diary or log of activities for a specified
period.

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 JOB ANALYSIS (continued)
To keep and maintain competitiveness with other Companies,
there are 2 (two) analyses apply as follows:

EXTERNAL ANALYSIS/VALUE
Benchmark jobs are compared with similar jobs in other
Companies through Job Matching process.

INTERNAL ANALYSIS/VALUE
Each job is rated according to degree of importance, complexity
and difficulty by process of job evaluation.

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 JOB ANALYSIS
WHY USE IT ?
To identify organization design elements

To document work methods and processes for training

purposes
To provide a basic for performance appraisal based on
job related standards
To identify job families and career paths

To identify qualifications required to perform work for

purposes of job posting and advertising, and candidate
selection
To provide a basis for legal and regulatory compliance

To determine if a job should continue to exist in its

present form
To develop a job worth hierarchy

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 SOURCES OF JOB INFORMATION

Direct
Observation

Group Individual
Interviews Interviews

Primary
Resources

Technical Questionnaires:
Consultation Open-ended
Highly structured

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 SOURCES OF JOB INFORMATION

Industry
Association Materials

Government Work Flow Studies

Publications

Organization Goals / Commercially Available

Secondary
Objectives Materials
Resources

Salary Surveys Policies and Procedures

Manuals

Existing Job Organization Chart

Documentation

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 JOB DOCUMENTATION -
DESCRIPTIONS
DEFINITION
Is a summary of the most important features of a job,
including the general nature (duties and
responsibilities) and level (skill, effort, responsibility,
working conditions) of the work performed.

A job description should describe and focus on the job

itself and not on any specific individual who might fill
the job

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 JOB DOCUMENTATION (continued)

Job Description consist of the following features:

JOB TITLE
Use title, which describes the nature and level of work performed.

ORGANIZATIONAL UNIT
Identify the organizational unit(s) in which the job operates (by geographic
location, product affiliation, internal division or service)

REPORTING RELATIONSHIP
The job holder/compiler writes reporting relationship unless the job is a
generic nonexempt job found in multiple departments (such as Generic
Clerk I or Secretary I). Indicate the job title of the supervisor to whom this
job reports. Indicate the title(s) of any employees directly supervised by
this job. Address dotted-line reporting relationships and formal lead
duties in the Duties and Responsibilities section.

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 JOB DOCUMENTATION

GENERAL SUMMARY
The job holder/compiler writes the purpose of having the job
in the organization or why the job exists in the organization.
In the General Summary, summaries in three or four
sentences the general purposes of the job and its overall
objectives.

PRINCIPLE DUTIES AND RESPONSIBILITIES

Itemize processes or responsibilities of the job that accounts
for at least 5% or more of the work. In this part,
summarize the tasks with a maximum of 7
statements/sentences and in rank order.

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 JOB DOCUMENTATION
SCOPE/AUTHORITY
The job holder/compiler writes information which shows
how big the job/position in the organization in term of
number of team members (direct/indirect), financial
responsibility (OEB/CEB), deliverables/outputs and others.
In the scope/Asset Management Authority, state how big
the job is (direct/indirect report, etc.)

JOB REQUIREMENT
The job holder/compiler writes the minimum requirements
in term of education requirement, experience, special
knowledge & skills and ability required to fill in the position.
In the job requirement, state the minimum of formal
education, related working experience, training and specific
knowledge & skills traits, behavior and mental attitude
required to perform the job.

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 JOB DOCUMENTATION
WORKING CONDITION
The job holder/compiler writes the physical environment in which
the work is performed and described the working condition in term
of hazards, unpleasantness, the level of intensity, frequency and
duration.

REMARK/DISCLAIMER
The job holder/compiler writes other requirements which have not
been stated. Typically every duty or responsibility that the job
holder may be asked to perform. In the remark/disclaimer, state
additional specific/unique requirements which are not covered by
the above.

DATES AND APPROVAL

The job description needs to be approved (for legal purpose) by
the job holder/compiler, Head of the Department, and final
approval by Head of the Unit(s) or next level for certain jobs.

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

JOB DOCUMENTATION - DESCRIPTIONS
THE ROLE OF JOB DESCRIPTIONS
IN PAY PROGRAMS
Developing a
Job Worth
Establishing Hierarchy
Career Paths/ Salary Survey
Succession Exchange
Planning

Assigning
Recruiting Employees to
Job Descriptions
Appropriate
Jobs

Organizational
Design Legal Defense

Establishing
Performance
Standards

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 BASE PAY REQUIRES A JOB WORTH
HIERARCHY
JOB JOB
JOB JOB BASE PAY
DOCUMENTATIO WORTH
ANALYSIS EVALUATION STRUCTURE
N HIERARCHY

Job Analysis and Job Documentation create the information needed to

complete the Job Evaluation process. The Job Evaluation process and Job
Worth Hierarchy lay the foundation necessary to create the Base Pay
Structure.

A Base Pay Program requires a job worth hierarchy

The pay for a job depends largely on the perceived value of that job
relative to others in the organization, established by the Job Worth
Hierarchy.
You determine the job worth hierarchy by determining job content and
qualifications, through Job Analysis and Design and Job
Documentation
By doing a Job Evaluation you can decide where the job fits relative to
other jobs, which becomes the job worth hierarchy
Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006
 TWO CONCEPTUAL APPROACHES IN
DEVELOPING A JOB WORTH HIERARCHY

Job Analysis

Job Documentation
MARKET JOB
DATA CONTENT
Which approach?

Data Collection & Analysis Job Content Evaluation

Job Content Evaluation Reconciliation of Internal Data Collection & Analysis

& External Consideration

Job Worth Hierarchy

Base Pay Structure

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 SUMMARY OF
JOB EVALUATION METHODS AND
TECHNIQUES
MARKET DATA Market Pricing z Can not be used in isolation in pay equity or comparable
EMPHASIS worth jurisdictions
z Market determines organizational pay philosophy
z Easy to communicate
JOB Non- Ranking z Little training required
CONTENT Quantitati z Evaluators may bring different judgment criteria to
EMPHASIS ve exercise
Methods z No detail/documentation to justify evaluation
Classification z Little training required
z Job descriptions can be inflated to fit a classification
z Generally not practical for companies with numerous,
diverse job families
Quantitati Job z Statistically accurate and relatively objective
ve Component z Management oriented
Methods z Often perceived as black box
Point Factor z Easy to evaluate new or revised jobs
z Relative objective
z Compensable factors can be tailored to company
Slotting z A technique used within some already established job
evaluation method
z Involves placing a job into a category or classification
Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006
 JOB EVALUATION
Is a process of evaluating the job using
Compensable Factors, job slotting by job to job
comparison or validation of inter-class comparison
in order to reach comprehensive evaluation. The
job will be assessed by the evaluation team or
evaluator (HR Staff).

There are some techniques of Job Evaluation as follows:

SLOTTING
Is the act of placing a job into a category, classification,
or any other class defined by a job evaluation system.
Slotting usually involves the comparison of a job to some
standard or to benchmark jobs.
continued

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 JOB EVALUATION
RANKING
Is the simplest form of job evaluation. The process involves
a whole job, job-to-job comparison, resulting in an ordering
of jobs from highest to lowest.

CLASSIFICATION
Is the process compares job on a whole-job basis.
Predefined class descriptions are established for a series of
job classes, and a job is placed in whichever classification
best describes it. This method frequently used in the public
sector.

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 JOB EVALUATION

POINT FACTOR
Uses defined factors and degree levels to establish job
value. Job descriptions are compared to the definitions of
degree levels in order to determine the most appropriate
level. The corresponding points for that level are then
awarded to the job and combined for all factors to derive a
total score.

continued

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 JOB EVALUATION

JOB COMPONENT (REGRESSION)

The regression method statistically develops a job evaluation
method by using multiple regression analysis. This analysis
identifies the factors and factor weights which best explain the
relative market pay levels of benchmark jobs. Jobs for which no
market data are available can then be evaluated using the
model.
Compensable Factors describe as:
Basis for judging job value Generic Compensable Factors:
Elements used to measure job worth Skill, effort, responsibility, and
Intrinsic elements that add value to the working condition
organization

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

Point Factor Job Evaluation
1. Select compensable factors

2. Weight compensable factors

3. Define factors and degree levels

4. Assign points to each degree level

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 Point Factor Method (continued)
5. Rate each job on all factors, assigning
scale points to each job as appropriate

6. Sum points for each job

7. Create job worth hierarchy

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

1. Select compensable factors
Preparation and Training Mental or Visual Demand
Work Experience Education
Analytical Ability Responsibility for the work of
others
Knowledge
Responsibility for the safety of
Responsibility for equipment others
or process Complexity of duties
Contacts with others Supervision required
Physical effort Independent Judgment &
Initiative and ingenuity Consequence of errors
Adverse working conditions Work of others
Purpose of contacts Mental/Visual/Physical Strain

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 2. Weight compensable
factors
z Begin with total points in system

z Allocate points across factors, based on

organizational strategy, culture, jobs involved

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

Sample weighting scheme
Preparation and Training 120

Work Experience 150

Analytical Ability 120

Contacts with others 60

Independent Judgment & 140

Consequence of errors

Work of others 60

Mental/Visual/Physical Strain 60

Adverse Working Conditions 55

Total 765 Points

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 3. Define factors and degree levels
Analytical Ability: This factor considers the extent the work requires the
ability to gather and interpret data and to find solutions to difficult and/or
complex problems. This factor does not necessarily correlate with factor 4. A
high level of analytical ability may be required for jobs which involve little
consequence of errors.
Degree Level Definition
1 Little or no analytical ability required. Any analysis done involves simple
comparisons between numbers, letters, etc.

Some analytical ability required in order to gather and interpret data but in
2 situations where the problems are not difficult or complex.

3 Some analytical ability required in order to gather and interpret data but in
situations where the problems are somewhat complex

4 A relatively high level of analytical ability is required in order to find solutions

to difficult human, technical or administrative problems.

5
A high level of analytical ability is required in order to gather and interpret
complex data and to find solutions to unusual and difficult problems.
6
An extremely high level of analytical ability is required in order to gather and
interpret complex data and to find solutions to unusual and extremely
difficult problems.

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 4. Assign points to each
degree level
Analytical Ability: This factor considers the extent the work requires the
ability to gather and interpret data and to find solutions to difficult and/or
complex problems. This factor does not necessarily correlate with factor
4. A high level of analytical ability may be required for jobs which involve
little consequence of errors.
Point Values Dgree Level Definition
20 1 Little or no analytical ability required. Any analysis done involves simple
comparisons between numbers, letters, etc.

Some analytical ability required in order to gather and interpret data but in
40 2 situations where the problems are not difficult or complex.

3 Some analytical ability required in order to gather and interpret data but in
60 situations where the problems are somewhat complex

80 A relatively high level of analytical ability is required in order to find solutions

4 to difficult human, technical or administrative problems.

100 5 A high level of analytical ability is required in order to gather and interpret
complex data and to find solutions to unusual and difficult problems.

120 6 An extremely high level of analytical ability is required in order to gather and
interpret complex data and to find solutions to unusual and extremely
difficult problems.

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 To develop equal scale
intervals

Where
I = interval size
Max = maximum scale
(Max - Min) level
I= Min = minimum scale
N-1 level
N = number of scale
levels

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

5. Rate each job on all factors
z Who should rate?

z Rows and columns approach

z Biases in evaluation

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 6. Sum points for each job
z Spreadsheet approach

z Separating factor level and point ratings

z Vertical lookups

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

7. Create job worth hierarchy
Sample Internal Wage Structure
Job Family
Pay Grade Point Spread Clerical Production Manager Prof/Tech

1 101-200 Clerk I Laborer I

2 201-300 Painter

3 301-400 Secretary

4 401-500 Admin. Sec. Machinist Supervisor

5 501-600 Exec. Sec. Programmer

6 601-700 Bus. Prog.

7 701-800 Dept. Head Sr. Prog.

8 801-900 HR Manager

9 901-1000 Plant Mgr.

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 Job Evaluation Results are
not Infallible

z Rating error and bias

z Incorrect or inadequate job information
z Bad choice or weighting of evaluation factors
z Mismatch with organizational strategy
z Gaming by incumbents, supervisors

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006

 Job Value Measures are
Necessary
z Best reflection of internal hierarchy of work
value

z Market rates not available for all jobs

z Employee input to system provides buy-in

Certification on Human Resource Professional (CHRP), AtmaJaya University, Jakarta, 2006