HUMAN RESOURCE MANAGEMENT PRACTICE - Fichier PDF

Grade and pay structures ❚ 701broad-graded 24%narrow-graded 18%pay spine 13%job family 11%individual job ranges 10%spot rates 10%broad-banded 8%career family 6%n = 166Figure 46.8Type of grade and pay structureDeciding on grade boundariesAn analytical job evaluation exercise will produce a rank order of jobs according totheir job evaluation scores. A decision then has to be made on where the boundariesthat will define grades should be placed in the rank order. So far as possible, boundariesshould divide groups or clusters of jobs which are significantly different in sizeso that all the jobs placed in a grade are clearly smaller than the jobs in the next highergrade and larger than the jobs placed in the next lower grade.Fixing grade boundaries is one of the most critical aspects of grade structure designfollowing an analytical job evaluation exercise. It requires judgement – the process isnot scientific and it is rare to find a situation when there is one right and obviousanswer. In theory, grade boundaries could be determined by deciding on the numberof grades in advance and then dividing the rank order into equal parts. But thiswould mean drawing grade boundary lines arbitrarily and the result could be theseparation of groups of jobs that should properly be placed in the same grade.The best approach is to analyse the rank order to identify any significant gaps inthe points scores between adjacent jobs. These natural breaks in points scores willthen constitute the boundaries between clusters of jobs that can be allocated to adjacentgrades. A distinct gap between the highest rated job in one grade and the lowestrated job in the grade above will help to justify the allocation of jobs between grades.It will therefore reduce boundary problems leading to dissatisfaction with gradings