Job evaluation establishes the relative value of jobs in an organization. This leads to the rank order of all jobs by grade. The grading structure is used to anchor the development of an equitable pay structure. The process of evaluating jobs should be viewed as fair and logical. This allows the organization to develop a defensible pay structure. As you embark on a job evaluation exercise, the biggest challenge is managing employees' expectations regardless of which system you will use. The challenge relates explicitly to the expectation that a job evaluation will lead to salary adjustments.
Zimbabwe's most popular job evaluation system is the Patterson system, and 54% of Zimbabwean organizations use it. The Castellion system is second at 34%. The other systems share the balance. Professor T.T Paterson developed the Patterson system. He was a multi-disciplinary scholar; in biological sciences, Anthropology and Psychology.
Using factor analysis of various job grading factors, Professor Patterson discovered that all other previously used factors in grading jobs were loading on one factor; decision making. Therefore the Patterson system grades jobs based on the level and complexity of decisions made by each job. The decision bands range from A to F, with F the highest decision band. Each Band is further subdivided into higher and lower except for band A, which does not have such a subdivision. The lower part of the Band has subgrades 1, 2, & 3. The upper part of the Band has 4 & 5. These grades apply to all bands except grade A. The upper part of the Band is often reserved for the jobs that coordinate or supervise other jobs. You can find self- coordinating roles in the upper Band; these usually are specialists. Band A has subgrades 1, 2 & 3 only. The number of subgrades in each Band largely depends on each organization's needs; some have fewer than five subgrades in each Band.
The process of job grading using the Patterson system starts with placing jobs into a Band (A to F) followed by sub-grading. The two approaches to sub-grading are; a subjective process of establishing a job in an upper or lower part of the Band or using a point factor system. The factors used in sub-grading are as follows: Complexity, Accuracy/ tolerance, Pressure of work, supervision given, Independence of operation, Judgement and impact and then Knowledge, skills and competencies.
The placement of jobs into bands is based on the contents of each job, especially the decision-making part of the job. It is essential that before placing jobs into bands, you understand the content of each job fully. The challenge you need to be aware of is that job descriptions are often poorly done, such that the decision latitude and scope of a role are not apparent or are exaggerated. To address this, you must be thorough and meticulous in developing credible job descriptions. This is the biggest challenge for any job evaluation project.
F – Band
This Band deals with decisions that focus on the organization's direction. These decisions are often associated with the demise or survival of the organization. The Band handles some of the most complex decisions. These are decisions often taken by CEOs of big and complex organizations. At this level, "Parameters are wide and mostly only restricted by the laws of the country of operation as well as economic, social, technological or political considerations." The roles at this level "Decides the strategy, policy and implementation for a national/regional organization, major subsidiary or several business units/functions." Decisions made at this level are made under considerable uncertainty. The decisions made at this level may impact the organization in 5 to 10 years. Roles at this level usually sit on the company board. The decision to place a role in the F band can also largely depend on the complexity of the business model value chain, business outputs, and the number and geography of assets being managed. For any support function role to be placed under this Band, they must manage assets or resources under multiple complex business units.
E – Band
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F band roles are responsible for decisions related to the execution of strategies set at Band F. These roles are focused on strategic decisions related to resource optimization in line with the strategy set above. In this Band, you find CEO/GMs of business units that are not complex. In this Band, you also find senior support function roles responsible for making business unit or group-wide support function decisions. “The complexity of work at this level arises from the need for a management team to optimize resource allocation/utilization across the company and translate strategy into action and performance.” At this level, “ Attention needs to be focused on the global, national and regional environment, and the necessity to ensure that the organization remains operationally and financially viable.”
D- Band
“Interprets the overall business plan, programmes, and strategies formulated at Bands F and E and develops the required best practice, operational systems, rules, regulations and budgets to achieve the business goals of their particular department/unit/function area/discipline.” This is the Band for frontline operational managers. The roles at this level are responsible for crafting best practice systems and monitoring how such systems are working.
C – Band
The focus of this Band is to lead a team and produce. “The work in this decision band is governed by the plans, rules and regulations already established at ‘D Band’ and above.” The decisions made at this level are not considered precedent-setting as Band D roles develop most of the parameters used at this level. In this Band C, you also find professional roles.
B- Band
At this level, roles work within established procedures and if in doubt, incumbents need to ask. “This involves work in which the processes (an integrated combination of activities or operations) are already specified, and freedom of choice is restricted to the operations within the process.”
A – Band
“The process and cycle of operations are laid down and are self-evident. The job incumbent is told what is to be done, why, where and when. The work usually involves using basic tools and equipment to fulfil parts of the operation. Work is normally carried under direct supervision, and the job incumbent rarely has to understand the interrelationship of their job with others.” This is the lowest Band for most routine and unskilled roles.
The challenge with using the Patterson grading system
The challenge with using the Paterson system is that the ultimate grade will be wrong once you get the Band wrong. Invest time and money to train the people involved in job grading to understand how the Paterson system works. The sub-grading should be easy if the Band is right, especially using the point factors system.
Job evaluation is the anchoring process for all remuneration systems. It is in every organization's best interest to ensure that it is carried out professionally.
Memory Nguwi is an Occupational Psychologist, Data Scientist, Speaker, & Managing Consultant- Industrial Psychology Consultants (Pvt) Ltd, a management and human resources consulting firm.Email:mnguwi@ipcconsultants.com or visit our websites https://www.thehumancapitalhub.com/ and www.ipcconsultants.com