Rhetoric and Practice of Reward Management by Rosario Longo - HTML preview

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also takes account of difficulties involved in exercising these skills.

Factor levels

Communication and relationship skills

Level 1

Providing and receiving routine information orally to assist in undertaking own job.

Providing and receiving routine information orally, in writing or electronically to inform work

Level 2

colleagues, patients, clients, carers, the public or other external contacts.

(a) Providing and receiving routine information which requires tact or persuasive skills

or where there are barriers to understanding.

Or

Level 3

(b) Providing and receiving complex or sensitive information.

Or

(c) Providing advice, instruction or training to groups, where the subject matter is

straightforward.

(a) Providing and receiving complex, sensitive or contentious information, where persuasive,

motivational, negotiating, training, empathic or re-assurance skills are required. This may be

Level 4

because agreement or cooperation is required or because there are barriers to understanding.

Or

(b) Providing and receiving highly complex information

(a) Providing and receiving highly complex, highly sensitive or highly contentious information,

where developed persuasive, motivational, negotiating, training, empathic or re-assurance

skills are required. This may be because agreement or co-operation is required or because

there are barriers to understanding.

Or

(b) Presenting complex, sensitive or contentious information to a large group of staff or

Level 5

members of the public.

Or

(c) Providing and receiving complex, sensitive or contentious information, where there

are significant barriers to acceptance which need to be overcome using developed

interpersonal and communication skills such as would be required when

communicating in a hostile, antagonistic or highly emotive atmosphere.

Providing and receiving highly complex, highly sensitive or highly contentious

information where there are significant barriers to acceptance which need to be overcome

Level 6

using the highest level of interpersonal and communication skills, such as would be

required when communicating in a hostile, antagonistic or highly emotive atmosphere.

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Rating and ranking jobs

Factor comparison

Factor comparison represents one of the simplest, arguably the simplest, approach to

job evaluation. As the points or point-factor approach it is essentially based on jobs

comparison; differently from this, however, comparison is not based on an objective,

predetermined scoring system, but rather on the perceived importance associated by

evaluators with the identified factors. Albeit consideration is thus essentially still shown

for factors, jobs are compared the one with the other without any reference to a

structured grading or scoring system, but exclusively relying on assessors’ judgment.

As suggested by Suff and Reilly (2006), this approach can actually be carried out having

recourse to two different methods: graduated factor comparison and analytical factor

comparison. According to the former approach, the factors of the different roles are

related one another, on the basis of a grading scale, in order to determine if the factors

of a job can be deemed equal, smaller or bigger compared to the same factors of a

different job. Analytical factor comparison is instead carried out assessing each job

against a pre-arranged scale where each factor is described in a growing level of

complexity.

Even though this approach cannot be deemed as particularly effective in order to

determine internal relativities, especially when a large number of jobs exists within a

firm, it reveals to be much more effective and useful for independent consultants when

engaged by a Court to express their advice on equal pay claims. In these cases in fact

the consultants task is that of comparing one job with a very few others and not to

determine the consistency of an organization overall job hierarchy (Armstrong, 2010).

Job matching

Albeit analytical job matching is based on valuing roles on a factor-assessment basis, in

order to determine internal relativities this approach does not rely on a comparative

method, but rather on a matching process. Roles can be matched either to grade or the

one with the others.

Role to grade

This activity is performed by delivering two different processes, on the one hand roles

are analysed on the basis of their main factors, whereas on the other hand grades or

levels included on the grading system are defined on the basis of the same factors used

to carry out roles evaluation. Roles are finally matched with the different grades in order

to attain the most appropriate fit between the requirements of each job and those

outlined for each level contained in the grading system.

Role to role

Differently from the role to grade approach, the role to role method tends to match each

job factors with a benchmark job profile which has already been graded and as such

considered representative or as a point of reference for correctly grading other roles and

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Rating and ranking jobs

identify jobs of equal value. There will clearly be as many benchmark roles as the

number of grades included in the grading system. In all the cases in which evaluators

will identify a consistent and objective fit between the benchmark grade role and the role

which needs to be graded, this will be included in the so identified grade.

This method can effectively enable evaluators to more swiftly asses those types of jobs

which have many, promptly identifiable factors and characteristics in common, such as

supervisory and administrative roles. The two approaches can also be used in

conjunction with each other (Armstrong, 2010), somewhat of a double check, to ensure

that the identified grade for each job is actually consistent with the overall scheme and

that job hierarchy and internal relativities have been consistently and appropriately

identified.

Non analytical schemes

Non-analytical job evaluation differs from analytical job evaluation by reason of the

circumstance that the former, differently from the latter, does not entail jobs to be

broken down into their main components in order to be evaluated and graded. According

to this approach each job in actually assessed in its totality or, as it is commonly said, as

a “whole-job.” For the rest, also non-analytical approaches aim at pursuing the same

objectives as analytical schemes and it can be added, having resort to the same type of

methodology. Jobs are in fact compared and matched the one with the other in order to

determine internal hierarchy and relativities. Also in this case, jobs can be compared on

a job-to-job basis or on a job-to-grade basis (Armstrong, 2010).

The most negative distinctive feature of this type of schemes is that being these

essentially grounded in an entire-job assessment approach, as opposed to the analytical

measurement of a job main components, the final outcome these are likely to produce is,

or is prone to be, considered essentially subjective and lacking of scientific methodology

and appreciation. Yet, all too often non-analytical schemes tend to practically leave

unchanged the current state of play (Suff and Reilly, 2006). This point is further stressed

by Watson (2005), who highlights the circumstance that non-analytical schemes are not

essentially based on any objective evaluation scale or framework. This also accounts for

these approaches being particularly ineffective in order to assess those roles whose

classification might reveal to be particularly dubious, uncertain or disputed. These

schemes also pose considerable difficulties when a large number of jobs, especially if

complex, need to be evaluated. All in all, these are essentially the reasons accounting for

these approaches not being considered particularly helpful for employers to self-defend

against the pay discrimination claims eventually made by their employees.

The circumstance that according to this approach jobs do not need to be broken down

into their main factors, clearly accounts for these being easier and faster to develop and

implement. Additionally, as suggested by Armstrong (2010), such schemes can

effectively and successfully be used by evaluators in order to test the outcomes attained

by means of analytical approaches to job evaluation.

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Rating and ranking jobs

Non-analytical job evaluation can be carried out by means of the paired comparison, job

ranking, job classification and benchmarking methodologies.

Job ranking

Job ranking represents one of the most straightforward and intuitive approach to job

evaluation. Jobs are indeed ordered in a hierarchical rank essentially on the basis of the

appreciation of the evaluation panel members for each job object of the exercise. The

rank order is thus identified by evaluators on the basis of jobs titles and descriptions and

the relative importance that evaluators associate with each of them.

In order to be assessed, roles are not actually broken down into factors and comparison

is carried out on a one-against-the-others basis. This simple approach, in theory, should

also contribute to make the scheme easier to explain and to more promptly be

understood by staff.

Simplicity, however, is not necessary invariably synonymous with acceptance. The final

jobs rank is exclusively based on the evaluation panel members’ judgment and on what

these consider to be a consistent and coherent hierarchy on the basis of their personal

appreciation. This does not necessarily entail that the final output of the exercise will be

perceived as equitable and fair, and hence accepted, by the individuals concerned.

Notwithstanding, as suggested by the ACAS (2005) this approach could reveal to be

particularly appropriate when the number of jobs object of evaluation is particularly

small.

Paired comparison

Paired comparison can be considered somewhat of a more structured form of the job

ranking scheme. The scheme is relatively simple, overall jobs are essentially compared

the one with the other, but 0, 1 or 2 points will be allotted to the job object of

comparison depending on whether this is considered less, equally or more important

than the other. According to this approach, each job is compared with all of the others

by turns so that the total score recorded by each role will be used to determine the final

job hierarchy.

Albeit this approach can be considered as an enhancement of the job ranking method, it

cannot clearly be deemed suitable for large organizations (Suff and Reilly, 2006) and, as

warned by the ACAS (2005), its application should be limited to organizations where no

more than 30 different jobs exist. This because, even though a jobs’ analysis is not

actually performed as part of the process, comparing each job with all of the others is a

very demanding exercise both in terms of time and resources. For instance, Watson

(2005) calculated that in order to assess 50 jobs, a staggering 1,225 comparisons need

to be performed.

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Rating and ranking jobs

Job classification

With the only exception that job classification is carried out considering jobs in their

entirety rather than on the basis of the analytical measurement of the factors composing

them, the job classification approach can be considered rather similar to the role to

grade analytical matching scheme.

The first stage of the process consists in determining the right number of grades, which

will be consequently outlined. A benchmark job is hence identified and assessed for each

grade in order to test and validate each job definition. Finally, the remaining jobs are

compared and matched with benchmark jobs in order to be included in the relevant

grade of the pre-set and pre-identified grading system (Acas, 2005).

Internal benchmarking

Internal benchmarking definitely represents the most spontaneous as well as basic

approach to job evaluation. It is essentially based on comparing and matching each job

with pre-identified benchmark jobs, which are considered correctly and consistently

graded within the business, in order to identify the correct grade in which each job has

to be included.

So basic is this approach that, as suggested by Armstrong (2010), it can hardly be

considered as a formal approach to job evaluation. Additionally, the circumstance that it

exclusively relies on internal benchmark jobs and that no additional types of analysis are

carried out in conjunction with this, is very likely to produce the outcome of maintaining

unaltered inequalities eventually existing within the business.

Job analysis

The validity and consistency of a job hierarchy is very much depending on the approach

used to determine this. The most structured and analytical the process, the more

consistent and more legally sound the outcome it will very likely produce. In order an

evaluation committee being able to properly perform the tricky task of determining

internal relativities, however, it is crucially important, insofar as it can be considered as

a mandatory prerequisite, that a thorough and up-to-date analysis of the relevant jobs

has previously been carried out. Job analysis, representing a “systematic process to

collect and analysing jobs” (Patterson et al, 2010), can hence effectively help the

members of the evaluation panel to successful complete their difficult task.

In order to genuinely help evaluators to achieve defensible and consistent results, job

analysis, as the same wording suggests, needs first of all to be analytical (Patterson et al,

2010). This entails that essentially the job analysis process has to be carried out

according to the same approach adopted in the job evaluation exercise: jobs need to be

broken down into their main components or factors rather than being considered in their

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Rating and ranking jobs

entirety. The final outcome of the investigation has to be represented by a factual,

“documented, structured and thorough report” clearly describing the most important

requirements of each role. Additionally, in order to avoid falling into the pitfalls usually

associated with equal pay legislation, information should be gathered amongst the whole

variety of groupings of individuals working within the organization, considering both

ethnic, religious, gender and cultural diversities. All of this will in turn enable the

members of the evaluation panel to devise more “accurate and representative” job

descriptions (Patterson et al, 2010).

Table 30 – Job evaluation approaches

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Rating and ranking jobs

It is crucially important that the process is concerned with thoroughly analysing jobs and

not merely listing the tasks associated with them. Moreover, analysis has to be executed

based on the current state of play and not on judgment and assumptions about how the

role was carried out in the past or the way it should better be executed (Hay Group,

2007).

Albeit jobs descriptions already exist within an organization, for the purpose of the job

evaluation exercise, job analysis should be conducted anew in order to avoid the likely

risk of reaching the same conclusions which have led to the current state of play and

basically confirm the existing job hierarchy.

The success and validity of job analysis is clearly very much resting upon the quality of

the information gathered and on the extensiveness of the sources from which data are

obtained. There are indeed several ways to collect data relating to jobs but, as

suggested by Patterson et al (2010), it should not be adopted an exclusive approach, but

rather a multiple methodology to data collection.

The main approaches to which evaluators can have recourse to this end are: direct

observation, face-to-face interviews, written questionnaires, diaries kept by workers and

activity logs.

Direct observation

In this case information about a job are directly collected and noted by evaluators

shadowing individuals and directly observing them in the workplace. In general, this

approach is more easily applicable when simple, mainly manual duties are executed by

employees (Hamel, 2008). Where applicable, structured checklists can also be used by

evaluators (Patterson et al, 2010).

Face-to-face interviews

Interviews should be better based on carefully prearranged, structured questionnaires

and should be held with present incumbents of the role and their managers. Questions

should basically aim at identifying the essential tasks of the role and the skills and

capabilities required to properly perform it (Hemel, 2008).

Written questionnaires

Written questionnaires can be submitted to employees and their managers as an

alternative to interviews or as an additional means to gather information in a quicker

way. Questionnaires may include both open-ended and closed questions. Since there

might not be the presence of an evaluator assisting individuals when filling the form,

questions need to be formulated in a clear and simple way.

Diaries kept by employees or activity logs

According to this approach it will be up to the individuals concerned identifying the

different activities and tasks carried out during their working activity, also taking note of

the length of time devoted to each of these (Hemel, 2008).

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Rating and ranking jobs

Job analysis should ultimately enable evaluators to gather information in order to answer

the what, how and why questions of each job. The what is concerned with the “physical,

mental and interactional” requirements of the job; the how is associated with the

procedures, tools or approaches required to properly perform a job duties; whereas the

why aims to identify and explain the reasons for the tasks being performed (HR-Exec,

2002). For instance:

What: prepare contracts of employment,

How: legally compliant with the current employment legislation,

Why: to recruit individuals whose contribution is considered important by the

employer for the attainment of the organizational objectives.

Job analysis, in terms of reward, can hence be considered as a means to an end. As a

structured and systematic approach to detailed job investigation in fact it enables

evaluation committee members to describe a job in measureable terms and

consequently compare this with the other jobs existing within a business. Jobs can thus

be rated and consistent and fair salary grades established (SHL, 2005).

Market pricing

As described earlier in this chapter, the job evaluation exercise is essentially concerned

with determining internal relativities and identifying job hierarchies within a business.

This approach, however, essentially aims at investigating the organizational environment

and hence the internal context. Indeed, the pressure exerted on organizations by the

external environment is undeniably remarkable and salary grade architecture is not

immune from this strain by any means. Designing and developing a consistent internal

rank system actually aims at enabling employers to ensure that the personnel budget is

fairly and coherently distributed amongst staff, but reward management can and has to

be used by employers also to attract and retain quality staff. In order to attain this

objective, reward professionals in-depth knowledge of the labour market rates is clearly

crucially important too. The technique most widely acknowledged and most extensively

used to investigate labour market rates is known as “market pr