bangor transfer abroad programme pay. copyright © 2011 pearson education, inc. publishing as...

BANGOR TRANSFER ABROAD BANGOR TRANSFER ABROAD PROGRAMMEPROGRAMME

PAYPAY

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 11–2

Basic Factors in Basic Factors in Determining Pay RatesDetermining Pay Rates

Direct financial payments

Indirect financial payments

Employee Compensation Components


Legal Considerations in Legal Considerations in CompensationCompensation

Employee Compensation

Equal Pay Act (1963)

Employee Retirement Income Security Act

Age Discrimination in Employment Act

Americans with Disabilities Act

Davis-Bacon Act (1931)

Walsh-Healey Public Contract Act (1936)

Title VII of the 1964 Civil Rights Act

Fair Labor Standards Act (1938)

The Family and Medical Leave Act

The Social Security Act of 1935 (as amended)

National Labor Relations Act of 1935 (Wagner Act)

Workers’ Compensation


FIGURE 11–1Independent Contractor


FIGURE 11–2 Some Typical Exempt, Nonexempt Job Titles

EXEMPT

Attorneys

Physicians

Pharmacists

Engineers

Teachers

Scientists

Computer systems analysts

General managers

Personnel directors

Accountants

Purchasing agents

NONEXEMPT

Paralegals

Accounting clerks

Newspaper writers

Working supervisor

Management trainees

Secretaries

Clerical employees


FIGURE 11–3 Who Is Exempt? Who Is Not Exempt?

Step 2: Exemption Applicability

Step 1: Salary Basis Test

Step 3: Job Analysis

Does the employee perform any of the following types of duties/jobs?

Executive—management is the employee’s primary duty

Administrative—employee performing nonmanual office work

Professional/creative—employee whose work requires highly advanced knowledge/education; creative and artistic professional

Computer professional—employee involved in design or application of computers and related systems

Outside sales—employee making sales or taking orders which influence sales outside of the employer's premises

Is the employee paid at least $455 per week ($23,660 per annum),*not subject to reduction due to variations in quantity/quality of work performed?

*The computer professional exemption has a salary basis test of $455 per week or $27.63 per hour. The outside sales exemption is not subject to the salary basis test.

A thorough analysis of the job duties must be performed to determine exempt status. An exempt position must pass both the salary basis and the duties tests.

Employee is Nonexempt Employee is Nonexempt

Yes Yes

No

No


Corporate Policies, Competitive Corporate Policies, Competitive Strategy,Strategy,and Compensationand Compensation• Aligned Reward StrategyAligned Reward Strategy

The employer’s basic task:The employer’s basic task:

To create a bundle of rewards—a total reward package—To create a bundle of rewards—a total reward package—that specifically elicits the employee behaviors that the firm that specifically elicits the employee behaviors that the firm needs to support and achieve its competitive strategy.needs to support and achieve its competitive strategy.

The HR or compensation manager along with top management The HR or compensation manager along with top management creates pay policies that are consistent with the firm’s strategic creates pay policies that are consistent with the firm’s strategic aims.aims.


TABLE 11–1 Developing an Aligned Reward Strategy

Questions to Ask:

1. What must our company do, (for instance in terms of improving customer service), to be successful in fulfilling its mission or achieving its desired competitive position?

2. What are the employee behaviors or actions necessary to successfully implement this competitive strategy?

3. What compensation programs should we use to reinforce those behaviors? What should be the purpose of each program in reinforcing each desired behavior?

4. What measurable requirements should each compensation program meet to be deemed successful in fulfilling its purpose?

5. How well do our current compensation programs match these requirements?


Compensation Policy IssuesCompensation Policy Issues• Pay for performancePay for performance

• Pay for seniorityPay for seniority

• The pay cycleThe pay cycle

• Salary increases and promotionsSalary increases and promotions

• Overtime and shift payOvertime and shift pay

• Probationary payProbationary pay

• Paid and unpaid leavesPaid and unpaid leaves

• Paid holidaysPaid holidays

• Salary compressionSalary compression

• Geographic costs of living differencesGeographic costs of living differences


Equity and Its Impact on Pay Equity and Its Impact on Pay RatesRates

External equity

Proceduralequity

Internal equity

Individualequity

Forms of Compensation Equity


Addressing Equity IssuesAddressing Equity Issues

Area wage and salary surveys

Job analysis and job evaluation

Performance appraisal and incentive pay

Communications, grievance mechanisms, and employees’

participation

Methods to Address

Equity Issues


Establishing Pay RatesEstablishing Pay Rates

1

2

3

4

5

Steps in Establishing Pay Rates

Determine the worth of each job in your organization through job evaluation (to ensure internal equity).

Conduct a salary survey of what other employers are paying for comparable jobs (to help ensure external equity).

Group similar jobs into pay grades.

Price each pay grade by using wave curves.

Fine-tune pay rates.


Step1: The Salary SurveyStep1: The Salary Survey

To price benchmark

jobs

To make decisions

about benefits

Uses for Salary Surveys

To market-price wages

for jobs


Sources for Salary Sources for Salary SurveysSurveys

Self-Conducted

Surveys

Government Agencies

Consulting Firms

Sources of Wage and Salary Information

Professional

Associations

The Internet


TABLE 11–2 Some Pay Data Web Sites

Sponsor Internet Address What It Provides Downside

Salary.com Salary.com Salary by job and zip code, plus job and description, for hundreds of jobs

Adapts national averages by applying local cost-of-living differences

Wageweb www.wageweb.com Average salaries for more than 150 clerical, professional, and managerial jobs

Charges for breakdowns by industry, location, etc.

U.S. Office of Personnel Management

www.opm.gov/oca/09Tables/index.asp

Salaries and wages for U.S. government jobs, by location

Limited to U.S. government jobs

Job Smart http://jobstar.org/tools/salary/sal-prof.php

Profession-specific salary surveys

Necessary to review numerous salary surveys for each profession

cnnmoney.com cnnmoney.com Input your current salary and city, and this gives you comparable salary in destination city

Based on national averages adapted to cost-of-living differences


Step 2: Job EvaluationStep 2: Job Evaluation

Skills EffortResponsibilit

y

Identifying Compensable Factors

Working conditions


The Job Evaluation ProcessThe Job Evaluation Process

1

Performing the actual evaluation

Getting the cooperation of employees

Preparing for the Job Evaluation

Identifying the need for the job evaluation

Choosing an evaluation committee

2

3

4


How to Evaluate JobsHow to Evaluate Jobs

RankingJob

classificationPoint

method

Methods for Evaluating Jobs

Factor comparison


Job Evaluation Methods: RankingJob Evaluation Methods: Ranking• Ranking each job relative to all other jobs, usually Ranking each job relative to all other jobs, usually

based on some overall factor.based on some overall factor.

• Steps in job ranking:Steps in job ranking:

1.1. Obtain job information.Obtain job information.

2.2. Select and group jobs.Select and group jobs.

3.3. Select compensable factors.Select compensable factors.

4.4. Rank jobs.Rank jobs.

5.5. Combine ratings.Combine ratings.


TABLE 11–3 Job Ranking by Olympia Health Care

Ranking Order Annual Pay Scale

1. Office manager $43,000

2. Chief nurse 42,500

3. Bookkeeper 34,000

4. Nurse 32,500

5. Cook 31,000

6. Nurse’s aide 28,500

7. Orderly 25,500


Job Evaluation Methods: Job Evaluation Methods: Job ClassificationJob Classification

• Raters categorize jobs into groups or classes of jobs that Raters categorize jobs into groups or classes of jobs that are of roughly the same value for pay purposes.are of roughly the same value for pay purposes. Classes contain similar jobs.Classes contain similar jobs.

Administrative assistantsAdministrative assistants Grades are jobs similar in difficulty but otherwise different.Grades are jobs similar in difficulty but otherwise different.

Mechanics, welders, electricians, and machinistsMechanics, welders, electricians, and machinists Jobs are classed by the amount or level of compensable factors Jobs are classed by the amount or level of compensable factors

they contain.they contain.


FIGURE 11–4 Example of a Grade Level Definition

This is a summary chart of the key grade level criteria for the GS-7 level of clerical and assistance work. Do not use this chart alone for classification purposes; additional grade level criteria are in the Web-based chart.


Job Evaluation Methods: Point Job Evaluation Methods: Point MethodMethod• A quantitative technique that involves:A quantitative technique that involves:

Identifying the degree to which each compensable factor is Identifying the degree to which each compensable factor is present in the job.present in the job.

Awarding points for each degree of each factor.Awarding points for each degree of each factor.

Calculating a total point value for the job by adding up the Calculating a total point value for the job by adding up the corresponding points for each factor.corresponding points for each factor.


Step 3: Grouping JobsStep 3: Grouping Jobs

Point Method

Ranking Method

Classification Methods

Grouping Similar

Jobs into Pay

Grades


Step 4: Price Each Pay GradeStep 4: Price Each Pay Grade• The Wage Curve The Wage Curve

Shows the pay rates paid for jobs in each pay grade, relative to Shows the pay rates paid for jobs in each pay grade, relative to the points or rankings assigned to each job or grade by the job the points or rankings assigned to each job or grade by the job evaluation.evaluation.

Shows the relationships between the value of the job as Shows the relationships between the value of the job as determined by one of the job evaluation methods and the determined by one of the job evaluation methods and the current average pay rates for your grades.current average pay rates for your grades.


FIGURE 11–5 Plotting a Wage Curve


Step 5: Fine-Tune Pay RatesStep 5: Fine-Tune Pay Rates• Developing Pay RangesDeveloping Pay Ranges

Flexibility in meeting external job market ratesFlexibility in meeting external job market rates

Easier for employees to move into higher pay gradesEasier for employees to move into higher pay grades

Allows for rewarding performance differences and seniorityAllows for rewarding performance differences and seniority

• Correcting Out-of-Line RatesCorrecting Out-of-Line Rates

Raising underpaid jobs to the minimum of the rate range Raising underpaid jobs to the minimum of the rate range for their pay gradefor their pay grade

Freezing rates or cutting pay rates for overpaid (“red circle”) Freezing rates or cutting pay rates for overpaid (“red circle”) jobs to maximum in the pay range for their pay gradejobs to maximum in the pay range for their pay grade


FIGURE 11–6 Wage Structure


HR in Practice: HR in Practice: Developing a Workable Pay PlanDeveloping a Workable Pay Plan

• Simplified Approach:Simplified Approach: Conduct a wage surveyConduct a wage survey

Conduct a job evaluationConduct a job evaluation

Conduct once-a-year job appraisalsConduct once-a-year job appraisals

Compile the compensation budget Compile the compensation budget for upcoming yearfor upcoming year


FIGURE 11–7Compensation Administration Checklist


Pricing Managerial and Pricing Managerial and Professional JobsProfessional Jobs

Base pay

Executive benefits/perk

s

Short-term incentives

Long-term incentives

Compensating Executives and

Managers


Pricing Managerial and Pricing Managerial and Professional JobsProfessional Jobs• What Determines Executive Pay?What Determines Executive Pay?

CEO pay is set by the board of directors taking into account CEO pay is set by the board of directors taking into account factors such as the business strategy, corporate trends, and factors such as the business strategy, corporate trends, and where they want to be in the short and long term.where they want to be in the short and long term.

CEOs can have considerable influence over the boards that CEOs can have considerable influence over the boards that determine their pay.determine their pay.

Firms pay CEOs based on the complexity of the jobs they fill.Firms pay CEOs based on the complexity of the jobs they fill.

Shareholder activism and government oversight have tightened Shareholder activism and government oversight have tightened the restrictions on what companies pay top executives.the restrictions on what companies pay top executives.

Boards are reducing the relative importance of base salary while Boards are reducing the relative importance of base salary while boosting the emphasis on performance-based pay.boosting the emphasis on performance-based pay.


Compensating Professional Compensating Professional EmployeesEmployees• Employers can use job evaluation for professional jobs.Employers can use job evaluation for professional jobs.

• Compensable factors focus on problem solving, Compensable factors focus on problem solving, creativity, job scope, and technical knowledge and creativity, job scope, and technical knowledge and expertise. expertise.

• Firms use the point method and factor comparison Firms use the point method and factor comparison methods, although job classification is most popular.methods, although job classification is most popular.

• Professional jobs are market-priced to establish the Professional jobs are market-priced to establish the values for benchmark jobs.values for benchmark jobs.


Competency-Based PayCompetency-Based Pay• CompetenciesCompetencies

Demonstrable characteristics of a person, including knowledge, Demonstrable characteristics of a person, including knowledge, skills, and behaviors, that enable performanceskills, and behaviors, that enable performance

• What is Competency-Based Pay?What is Competency-Based Pay? Paying for the employee’s range, depth, and types of skills and Paying for the employee’s range, depth, and types of skills and

knowledge, rather than for the job title he or she holdsknowledge, rather than for the job title he or she holds


Why Use Competency-Based Why Use Competency-Based Pay?Pay?

High-Performance Work Systems

StrategicAims

Competency-Based Pay Supports

Performance Management


Competency-Based Pay in PracticeCompetency-Based Pay in Practice• Main elements of skill/competency/knowledge–based Main elements of skill/competency/knowledge–based

pay programs:pay programs:

1.1. A system that defines specific skillsA system that defines specific skills

2.2. A process for tying the person’s pay to his or her skillA process for tying the person’s pay to his or her skill

3.3. A training system that lets employees seek and acquire skillsA training system that lets employees seek and acquire skills

4.4. A formal competency testing systemA formal competency testing system

5.5. A work design that lets employees move among jobs to A work design that lets employees move among jobs to permit work assignment flexibilitypermit work assignment flexibility


Competency-Based Pay: Pros and Competency-Based Pay: Pros and ConsCons• ProsPros

Higher qualityHigher quality

Lower absenteeismLower absenteeism

Fewer accidentsFewer accidents

• ConsCons Pay program implementation problemsPay program implementation problems

Costs of paying for unused knowledge, skills, and behaviorsCosts of paying for unused knowledge, skills, and behaviors

Complexity of programComplexity of program

Uncertainty that the program improves productivityUncertainty that the program improves productivity


Special Topics in CompensationSpecial Topics in Compensation• BroadbandingBroadbanding

Consolidating salary grades and ranges into a few wide levels Consolidating salary grades and ranges into a few wide levels or “bands,” each of which contains a relatively wide range of or “bands,” each of which contains a relatively wide range of jobs and salary levels.jobs and salary levels.

Pros and ConsPros and Cons

More flexibility in assigning workers to different job gradesMore flexibility in assigning workers to different job grades

Provides support for flatter hierarchies and teamsProvides support for flatter hierarchies and teams

Promotes skills learning and mobilityPromotes skills learning and mobility

Lack of permanence in job responsibilities can be unsettling Lack of permanence in job responsibilities can be unsettling to new employees.to new employees.


FIGURE 11–8 Broadbanded Structure and How It Relates to Traditional Pay Grades and Ranges


Comparable WorthComparable Worth• Concept:Concept:

Employers should be required to pay men and women Employers should be required to pay men and women equal wages for dissimilar jobs that are of equal wages for dissimilar jobs that are of comparablecomparable (rather than strictly (rather than strictly equalequal) value to the employer.) value to the employer.

• Basis:Basis: Seeks to address the issue that women have jobs that Seeks to address the issue that women have jobs that

are dissimilar to those of men and those jobs are often are dissimilar to those of men and those jobs are often consistently valued less than men’s jobs.consistently valued less than men’s jobs.

• Question at Hand:Question at Hand: Who will get to make final decisions on the comparability Who will get to make final decisions on the comparability

of jobs?of jobs? EmployersEmployers CourtsCourts


The Pay GapThe Pay Gap• Factors Lowering the Earnings of Women:Factors Lowering the Earnings of Women:

1.1. Women’s starting salaries are traditionally lower.Women’s starting salaries are traditionally lower.

2.2. Salary increases for women in professional jobs do not Salary increases for women in professional jobs do not reflect their above-average performance.reflect their above-average performance.

3.3. In white-collar jobs, men change jobs more frequently, In white-collar jobs, men change jobs more frequently, enabling them to be promoted to higher-level jobs over enabling them to be promoted to higher-level jobs over women with more seniority.women with more seniority.

4.4. In blue-collar jobs, women tend to be placed in In blue-collar jobs, women tend to be placed in departments with lower-paying jobs.departments with lower-paying jobs.


Board Oversight of Executive PayBoard Oversight of Executive Pay• Factors Influencing Executive CompensationFactors Influencing Executive Compensation

FASB requirements for expensing of stock options FASB requirements for expensing of stock options at fair market value.at fair market value.

U.S. government’s “pay czar” overseeing certain pay U.S. government’s “pay czar” overseeing certain pay awards in firms which had U.S. treasury loans.awards in firms which had U.S. treasury loans.

Increased SEC reporting requirements for Increased SEC reporting requirements for compensation-related information.compensation-related information.

Increased executive liability for accuracy in corporate Increased executive liability for accuracy in corporate financial reporting under the Sarbanes Oxley Act.financial reporting under the Sarbanes Oxley Act.

Shareholder activism protesting excessive executive Shareholder activism protesting excessive executive compensation due to lack of independence by compensation due to lack of independence by executive board compensation committees.executive board compensation committees.


Improving Productivity Through Improving Productivity Through HRIS: Automating Compensation HRIS: Automating Compensation AdministrationAdministration• Benefits of Compensation Automation:Benefits of Compensation Automation:

Allows for quick updating of compensation programsAllows for quick updating of compensation programs

Eliminates costs of formerly manual processesEliminates costs of formerly manual processes

Coordinates centralized compensation budgets to prevent Coordinates centralized compensation budgets to prevent overages in compensation and raisesoverages in compensation and raises

Can integrate and automatically administer other pay actionsCan integrate and automatically administer other pay actions


K E Y T E R M Semployee compensation

direct financial payments

indirect financial payments

Davis-Bacon Act (1931)

Walsh-Healey Public Contract Act (1936)

Title VII of the 1964 Civil Rights Act

Fair Labor Standards Act (1938)

Equal Pay Act (1963)

Employee Retirement Income Security Act (ERISA)

salary compression

salary survey

benchmark job

job evaluation

compensable factor

ranking method

job classification (or grading) method

classes

grades

grade definition

point method

factor comparison method

pay grade

wage curve

pay ranges

competency-based pay

competencies

broadbanding

comparable worth


Quantitative Job Evaluation Quantitative Job Evaluation MethodsMethods• Factor Comparison Job Evaluation MethodFactor Comparison Job Evaluation Method

Step 1.Step 1. Obtain job informationObtain job information

Step 2.Step 2. Select key benchmark jobsSelect key benchmark jobs

Step 3.Step 3. Rank key jobs by factorRank key jobs by factor

Step 4.Step 4. Distribute wage rates by factorDistribute wage rates by factor

Step 5.Step 5. Rank key jobs according to wagesRank key jobs according to wagesassigned to each factorassigned to each factor

Step 6.Step 6. Compare the two sets of rankings to Compare the two sets of rankings to screen out unusable key jobsscreen out unusable key jobs

Step 7.Step 7. Construct the job-comparison scaleConstruct the job-comparison scale

Step 8.Step 8. Use the job-comparison scaleUse the job-comparison scale


FIGURE 11–A1 Sample Definitions of Five Factors Typically Used in the Factor Comparison Method

1. Mental RequirementsEither the possession of and/or the active application of the following:

A. (inherent) Mental traits, such as intelligence, memory, reasoning, facility in verbal expression, ability to get along with people, and imagination.

B. (acquired) General education, such as grammar and arithmetic; or general information as to sports, world events, etc.

C. (acquired) Specialized knowledge, such as chemistry, engineering, accounting, advertising, etc.

2. Skill RequirementsA. (acquired) Facility in muscular coordination, as in operating machines, repetitive movements, careful coordinations, dexterity, assembling, sorting, etc.

B. (acquired) Specific job knowledge necessary to the muscular coordination only; acquired by performance of the work and not to be confused with general education or specialized knowledge.

It is very largely training in the interpretation of sensory impressions.

Examples

1. In operating an adding machine, the knowledge of which key to depress for a subtotal would be skill.

2. In automobile repair, the ability to determine the significance of a knock in the motor would be skill.

3. In hand-firing a boiler, the ability to determine from the appearance of the firebed how coal should be

shoveled over the surface would be skill.

3. Physical RequirementsA. Physical effort, such as sitting, standing, walking, climbing, pulling, lifting, etc.; both the amount exercised and the degree of the continuity should be taken into account.

B. Physical status, such as age, height, weight, sex, strength, and eyesight.


FIGURE 11–A1 Sample Definitions of Five Factors Typically Used in the Factor Comparison Method (cont’d)

4. ResponsibilitiesA. For raw materials, processed materials, tools, equipment, and property.

B. For money or negotiable securities.

C. For profits or loss, savings or methods’ improvement.

D. For public contact.

E. For records.

F. For supervision.

1. Primarily the complexity of supervision given to subordinates; the number of subordinates is a secondary feature. Planning, direction, coordination, instruction, control, and approval characterize this kind of

supervision.

2. Also, the degree of supervision received. If Jobs A and B gave no supervision to subordinates, but A received much closer immediate supervision than B, then B would be entitled to a higher rating than A

in the supervision factor.

To summarize the four degrees of supervision:

Highest degree—gives much—gets little

High degree—gives much—gets much

Low degree—gives none—gets little

Lowest degree—gives none—gets much

5. Working ConditionsA. Environmental influences such as atmosphere, ventilation, illumination, noise, congestion,

fellow workers, etc.

B. Hazards—from the work or its surroundings

C. Hours


TABLE 11–A1 Ranking Key Jobs by Factors1

11 is high, 4 is low.

Mental Requirements

Physical Requirements

Skill Requirements Responsibility

Working Conditions

Welder 1 4 1 1 2

Crane operator 3 1 3 4 4

Punch press operator 2 3 2 2 3

Security guard 4 2 4 3 1


TABLE 11–A2 Ranking Key Jobs by Wage Rates1

11 is high, 4 is low.

HourlyWage

Requirements

WorkingConditions Mental Physical Skill Responsibility

Welder $9.80 4.00 (1) 0.40 (4) 3.00 (1) 2.00 (1) 0.40 (2)

Crane operator $5.60 1.40 (3) 2.00 (1) 1.80 (3) 0.20 (4) 0.20 (4)

Punch press operator $6.00 1.60 (2) 1.30 (3) 2.00 (2) 0.80 (2) 0.30 (3)

Security guard $4.00 1.20 (4) 1.40 (2) 0.40 (4) 0.40 (3) 0.60 (1)


TABLE 11–A3 Comparison of Factor and Wage Rankings

Mental Requirements

Physical Requirements

Skill Requirements Responsibility

Working Conditions

A1 $2 A1 $2 A1 $2 A1 $2 A1 $2

Welder 1 1 4 4 1 1 1 1 2 2

Crane operator 3 3 1 1 3 3 4 4 4 4

Punch press operator 2 2 3 3 2 2 2 2 3 3

Security guard 4 4 2 2 4 4 3 3 1 1

1Amount of each factor based on step 3.

2Ratings based on distribution of wages to each factor from step 5.


TABLE 11–A4 Job (Factor)-Comparison Scale

ValueMental

RequirementsPhysical

RequirementsSkill

Requirements ResponsibilityWorking

Conditions

0.20 Crane Operator Crane Operator

0.30 Punch Press Operator

0.40 Welder Sec. Guard Sec. Guard Welder

0.60 Sec. Guard


1.00 (Plater)

1.20 Sec. Guard


1.40 Crane Operator Sec. Guard (Inspector) (Plater)

1.50 (Inspector) (Inspector)


1.70 (Plater)

1.80 Crane Operator (Inspector)

2.00 Crane Operator Punch Press Operator Welder

2.20 (Plater)

2.40 (Inspector) (Plater)

3.00 Welder

4.00 Welder


The Point Method of Job EvaluationThe Point Method of Job Evaluation

Step 1.Step 1. Determine clusters of jobs to be evaluatedDetermine clusters of jobs to be evaluated

Step 2.Step 2. Collect job informationCollect job information

Step 3.Step 3. Select compensable factorsSelect compensable factors

Step 4.Step 4. Define compensable factorsDefine compensable factors

Step 5.Step 5. Define factor degreesDefine factor degrees

Step 6.Step 6. Determine relative values of factorsDetermine relative values of factors


FIGURE 11–A2 Example of One Factor (Complexity/Problem Solving)in a Point Factor System

Level Point Value Description of Characteristics and Measures

0 0 Seldom confronts problems not covered by job routine or organizational policy; analysis of data is negligible. Benchmark: Telephone operator/ receptionist.

1 40 Follows clearly prescribed standard practice and demonstrates straightforward application of readily understood rules and procedures. Analyzes noncomplicated data by established routine. Benchmark: Statistical clerk, billing clerk.

2 80 Frequently confronts problems not covered by job routine. Independent judgment exercised in making minor decisions where alternatives are limited and standard policies established. Analysis of standardized data for information of or use by others. Benchmark: Social worker, executive secretary.

3 120 Exercises independent judgment in making decisions involving nonroutine problems with general guidance only from higher supervision. Analyzes and evaluates data pertaining to nonroutine problems for solution in conjunction with others. Benchmark: Nurse, accountant, team leader.

4 160 Uses independent judgment in making decisions that are subject to review in the final stages only. Analyzes and solves nonroutine problems involving evaluation of a wide variety of data as a regular part of job duties. Makes decisions involving procedures. Benchmark: Associate director, business manager, park services director.

5 200 Uses independent judgment in making decisions that are not subject to review. Regularly exercises developmental or creative abilities in policy development. Benchmark: Executive director.


TABLE 11–A5 Evaluation Points Assigned to Factors and Degrees

First-Degree Points

Second-Degree Points

Third-Degree Points

Fourth-Degree Points

Fifth-Degree Points

Decision making 41 82 123 164 204

Problem solving 35 70 105 140 174

Knowledge 24 48 72 96 123

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