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Equity Theory
My Outcomes = Mark’s Outcomes
My Inputs Mark’s Inputs
$90,000 < $100,000
10 papers 1 paper
Market-Based Pay Example
Administrative
Assistant
Entry Level High 10%
Company A $11.50 $14.00
Company B $12.00 $15.00
Company C $12.50 $17.00
Competency Based Pay Example for Impact and Influence 0—Lets things happen 1—Appeals to reason; does not adapt to
audience 2—Tries different tactics when attempting to
persuade 3—Tailors presentations to appeal to the
audience 4—Uses experts to develop a planned network
of relationships with all business-related parties
Skill-Based Pay Example For Factory Worker Core--$9.00 for completion of core:
Quality course, shop floor control Core Electives—Panel fabrication $1.00,
pad welding $.50, flame spraying $2.00 degreasing $.10; end casting $1.50
Optional Electives—Career development $1.00, geometric tolerance $.40
Mixed Method Example
0-1 Yrs 2-5 Yrs 6-10 Yrs 11+ Yrs
BA 1.0 1.4 1.7 2.0
BA + 15 1.2 1.5 1.9 2.2
BA +30 1.4 1.7 2.0 2.4
MA 1.7 1.9 2.4 2.7
MA +30 2.0 2.4 2.7 2.9
Ph.D. 2.5 3.0 3.4 3.7
Pay Structure Example
Pay (External Equity) Points (Internal Equity) Pay or Policy Line (Strategic Equity) Pay Grades (Employee Equity)
Preliminaries
Job Analysis—Observation, diary, videotape, portfolio, questionnaire
Job Description—Identification, responsibilities, essential and nonessential job functions (tasks), job specifications
Job Analysis Questions
Identification: Job title, supervisor title, department, exempt/nonexempt, pay range, grade level
Responsibility Essential Job Functions Nonessential Job Functions Job Specifications: Education, Experience,
Working Conditions, Knowledge, Skills, Abilities
September 30, 2011 NonexemptGrade 5 (Pay Range $12-$16/hr.)
Job Title: Maintenance Group Leader
Reports To: Facilities Manager
Responsibilities:Coordinates and schedules activities of workers engaged in facilities repair and maintenance. Orders department supplies.
Essential Job Functions:
1. Coordinates and schedules activities of workers engaged in the repair and maintenance of machines and utility systems and new construction activities such as carpentry, plumbing, and electrical activities.
2. Monitors and orders all repair and maintenance materials.
3. Monitors the facilities to ensure that machines and utility systems are operated in compliance with federal, state, and local laws.
4. Repairs equipment.
Other Job Functions:
1. Coordinates contract labor with in-house labor repair and maintenance activities.
2. Suggests changes to utility systems to assist the layout of new work areas.
3. Contracts minor repair work.
4. Performs special projects as assigned.
Job Specifications:Education:High school graduate or equivalent with vocational courses in heating, ventilation, and air conditioning (HVAC), electrical installation and maintenance, and facilities systems.Experience:Must have a minimum of three years experience as a maintenance worker or equivalent work experience.Working Conditions:May have to occasionally work outdoors to maintain HVAC systems.Knowledge:Must know how to read and interpret HVAC instruction manuals.Skills: Must use listening and reading skills to understand maintenance issues. Must use technical skills to fix equipment and facilities.Abilities:Must be able to lift at least fifty pounds of equipment as needed.
Employee Signature: _________________ Date: ___________Supervisor Signature: _________________ Date: ___________Human Resources Signature: ___________ Date: ___________
Details
External Equity—Pay Surveys Internal Equity—Job Evaluation Strategic Equity—Goals (e.g., lag) Employee Equity—Merit, Seniority,
Incentives
External Equity—Pay Surveys
Federal—National Compensation Survey State—Idaho Department of Labor
Employment and Wage Survey Private—Salary.com
Internal Equity—Job Evaluation
Nonquantified Quantified
Job To Job Ranking Factor Comparison
Job To Predetermined Standard
Job Classification
Point
Ranking I
Legal Secretary--Perform secretarial duties utilizing legal terminology, procedures, and documents. Prepare legal papers and correspondence, such as summonses, complaints, motions, and subpoenas.
Ranking II
Paralegal--Assist lawyers by researching legal precedent, investigating facts, or preparing legal documents. Conduct research to support a legal proceeding, to formulate a defense, or to initiate legal action.
Ranking III
Lawyer--Represent clients in criminal and civil litigation and other legal proceedings, draw up legal documents, and manage or advise clients on legal transactions.
Job Classification
Grade 1—8th Grade Education, No experience, easy working conditions
Grade 2—HS Education, one year experience, moderate working conditions
Grade 3—College Education, two years experience, harsh working conditions
Factor ComparisonEducation
Required
People Contact
Working Conditions
$0
$4 Plumber Recruiter
$6 Recruiter Plumber Architect
$8 Recruiter
$12 Architect Plumber
$25 Architect
Point System Compensable Factors Education Experience Working Conditions Monotony People Contact Know-How Responsibility
Education Factor
10 8th Grade 20 High School Graduate 50 Associates Degree 70 Bachelors Degree 100 Masters Degree 150 Ph.D.
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