- Other personal traits necessary for performing jobs.^1
- Market pricing. This is basically a micro economic approach to determining the val-
ue of labour under the principle of the free market where the forces of demand and
supply determine the value of products and services. In this case, the higher the sup-
ply of labour the lower the demand and hence the lower the price and vice versa.
Therefore, market pricing relates internal rates of pay to market rates. - Point factor rating. This is an analytical method of job evaluation, which is more
systematic and job centred than the other methods. For example, in a manual job the
main important factors could be centred around knowledge and skills, effort,
responsibility and working environment with the following sub components for
consideration: level of education, working experience, initiative, physical strength,
mental engagement, supervision, use of plant and equipment, safety, extent of
hazard and noise environment (ACAS 1984).
These ten job factors could be considered in a chart ranging from ‘0’ to ‘120’. Where 0
is no factor present for the job, and 120 implying that the factor is fully present in the
job and hence it matters for the job by one hundred percent. Table 7.1 summarises the
evaluation.
Table 7.1 Job factor analysis
Job factor The degree to which the factor is present
Knowledge/Skill 1 2 3 4 5 6 7 8- Education 15 30 45 60 75 90 - -
- Experience 20 40 60 80 90 100 - -
- Initiative 15 30 45 60 75 90 105 120
effort - Physical 10 20 30 40 50 - - -
- Mental 5 10 15 20 25 30 35 40
responsibility - Supervision 5 10 15 20 25 30 35 40
- Equipment 5 10 15 20 25 - - -
- Safety work- 5 10 15 20 25 - - -
ing conditions - Hazardous 5 10 15 20 - - - -
- Noise/dirt 10 20 30 40 50 - - -
Source: adapted from Cole (1997).
Data in Table 7.1 suggest a scenario whereby some aspects of the job under job factor
are more important for the performance of a particular job category than in other jobs
and hence should be more rated and weighted than other aspects. For example, when the
job of let say artisan is split into 4 factors and eight levels as exemplified in the column
rows, and each level having a different need of a certain factor, we can predict that for
an artisan initiative under knowledge category is very important and it should be rated
very high (120) which is the maximum. Where there are no scores, it means that par-
ticular factor at that specific level is not important for the performance of that job. All
these factors can be weighed for different categories of jobs. The job with the highest
weight should also deserve the highest reward package and vice versa. Of course, before
- More details on job competencies and how they are identified and used are covered in chapter 10.