Valuing Roles : How to Establish Relative Worth

by Armstrong, Michael; Cummins, Ann

• ISBN13: 9780749450779
• ISBN10: 0749450770
• Format: Hardcover
• Copyright: 2008-04-01
• Publisher: Kogan Page Ltd

Summary

Organizations have different drivers that influence how roles and jobs are evaluated and rewarded. Valuing Roles offers you practical advice and highlights the benefits and risk of the different approaches businesses can use. It puts job evaluation into perspective and shows you how it links to other people, pay-related processes, systems and policies, ensuring a transparent framework for talent management. Valuing Roles thoroughly examines the 'why' and 'how' behind the concept. It provides an overview of the approaches and current issues, an outline of the methodology, a guide to designing and implementing a scheme and structures and coverage of topics such as equal pay and marketing pricing. It includes international case studies, flowcharts, checklists, templates, and an analysis of a job evaluation survey carried out in 2007 by e-reward.

Author Biography

Michael Armstrong is a management consultant and joint managing partner of e-reward. He is author of A Handbook of Human Resource Management Practice (also published by Kogan Page), now in its tenth edition, and has sold over 500,000 copies of his books worldwide. Ann Cummins is a management consultant specializing in reward and performance management.

Table of Contents

Acknowledgements	p. vii
Introduction	p. 1
Approaches to role valuation	p. 1
Purpose of role valuation	p. 2
Role valuation options	p. 2
Plan of the book	p. 3
Reference	p. 4
The Process of Role Valuation
Valuing roles: approaches and issues	p. 6
The purpose of role valuation	p. 7
Methodology	p. 8
Jobs, roles and people	p. 9
The meaning of value	p. 11
Formal job evaluation	p. 14
Role valuation issues	p. 19
References	p. 23
Role valuation: methodology	p. 25
Formal analytical job evaluation schemes	p. 26
Formal non-analytical schemes	p. 32
Market pricing	p. 35
Informal role valuation approaches	p. 36
Combined approaches	p. 37
Levelling	p. 38
Computer-aided job evaluation	p. 39
The parties involved	p. 45
Choice of approach	p. 46
References	p. 46
Developing Job Evaluation
Choice of approach	p. 48
Factors affecting choice	p. 49
Deciding on the approach to role valuation	p. 52
Review present arrangements	p. 53
Decide whether to retain, modify or replace	p. 54
Define objectives	p. 58
Specification	p. 59
Evaluate alternative formal approaches	p. 60
Choice between a tailor-made, ready-made or hybrid scheme	p. 64
Using outside help	p. 66
Plan and resource the development programme	p. 67
Developing a formal job evaluation scheme	p. 68
The development process	p. 68
Design principles	p. 71
Design practice	p. 72
Job and role analysis	p. 73
Structuring the project	p. 79
Involving people in the project	p. 83
Project planning	p. 84
Project management	p. 95
Communicating to people about the project	p. 96
Rolling-out, implementing and maintaining job evaluation	p. 103
Roll-out and implementation principles	p. 104
Roll-out	p. 104
Implementation	p. 112
Operational procedures	p. 116
Advice on introducing job evaluation	p. 119
Maintaining job evaluation	p. 121
Designing a point-factor job evaluation scheme	p. 122
Identify and define factors	p. 122
Define factor levels to produce the basic factor plan	p. 128
Analyse test jobs	p. 131
Test basic factor plan	p. 131
Decide on the factor weighting	p. 132
Develop scoring system	p. 135
Test the full factor plan	p. 136
Convert the paper scheme to a computer-aided scheme	p. 137
Test the computer-aided scheme	p. 137
Select and evaluate benchmark jobs	p. 137
Design grade structure	p. 139
Roll-out evaluation to remaining jobs	p. 140
Conduct market rate survey	p. 140
Design pay structure	p. 140
Designing a matching job evaluation scheme	p. 141
Identify and define matching elements	p. 142
Decide on grade structure	p. 142
Define profiles	p. 143
Develop matching procedure	p. 153
Test the matching procedure	p. 158
Prepare individual role profiles for matching	p. 158
Train matching panel	p. 158
Conduct matching	p. 158
Market pricing	p. 159
The rationale for market pricing	p. 160
Use of market pricing	p. 160
The process of market pricing	p. 160
Limitations of market pricing	p. 161
The validity and reliability of market rate data	p. 163
The process of market analysis	p. 165
References	p. 169
Consultants' schemes	p. 170
Summary of consultants' schemes	p. 170
Developments in the approach used by consultancies	p. 174
Selecting a provider	p. 175
Case studies	p. 177
Applications of Role Valuation
Equal pay	p. 186
The regulatory framework	p. 187
Equal pay legislation	p. 188
Avoiding discrimination in job evaluation	p. 194
Defending an equal pay claim in the United Kingdom	p. 196
Managing the risk of equal pay claims	p. 198
Equal pay reviews and job evaluation	p. 200
References	p. 202
Developing grade and pay structures	p. 203
Grade and pay structures	p. 203
Grade structures	p. 204
Pay structures	p. 205
The use of job evaluation in developing a grade structure and grading jobs	p. 206
Developing pay structures	p. 209
Equal value considerations	p. 214
International job evaluation	p. 215
Standardization of job evaluation practices internationally	p. 215
Approaches to role valuation in different countries	p. 219
Case studies	p. 222
References	p. 245
The Practice of Job Evaluation
Job evaluation in action	p. 248
Incidence of job evaluation	p. 250
Type of scheme	p. 252
Reasons for using job evaluation	p. 253
Use of computer-aided job evaluation	p. 254
Features of job evaluation schemes	p. 255
Operation of job evaluation	p. 257
Doing without job evaluation	p. 263
Effectiveness of job evaluation	p. 264
Advice on job evaluation	p. 265
Conclusions	p. 266
Reference	p. 267
Case studies in job evaluation	p. 268
Chichester College	p. 269
The Crown Prosecution Service	p. 271
Rencol Tolerance Rings	p. 274
Stockport Council	p. 277
Syngenta	p. 280
Trends and issues in role valuation	p. 283
Trends	p. 283
Issues	p. 289
Reference	p. 292
Appendices
Bibliography	p. 294
Example of point-factor job evaluation scheme (trade union)	p. 297
Example of job questionnaire	p. 303
Example of a project plan for the development of an analytical matching scheme	p. 307
Example of an appeals procedure (university)	p. 311
Example of a job evaluation policy statement	p. 315
Index	p. 319
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