Question

A job evaluation plan provides for five labor grades, of which grade 5 has the highest base rates and grade 1 the lowest. The linear plan involves a range of 50 to 250 points for skill, 15 to 75 points for effort, 20 to 100 points for responsibility, and 15 to 75 points for job conditions. Each of the four factors has five degrees. Each labor grade has three money rates: a ‘low,’ a ‘mean,’ and a ‘high’ rate.

a) If the high money rate of labor grade 1 is $8 per hour and the high money rate of labor grade 5 is $20 per hour, what would be the mean money rate of labor grade 3?

b) What degree of skill is required for a labor grade of 4 if second-degree effort, second-degree responsibility, and first-degree job conditions apply?

Answer 1

a) For Labor Grade 1 the High Money rate is 8 Per hour and Labor Grade 5 the High Money rate is 20 Per hour. The spread is 12 over 4 level hence = 3 per level. High Money rate at Labour Grade 3 will be the average of 8 and 20 = 14. There are a total of 3*5 points = 15 points between 6 and 20 with 6 signifying the low rate at Grade 1 and 7 signifying Mean rate at grade 1. All grades are equally spaced hence the Mean arte at Grade 3 is 13.

b) Total skill points = 200, Total effort points = 60. Total responsibility points = 80. Total job condition points = 60.

Each of them are broken up into 5 degrees. Per degree points are as follows. Skill = 200/5 =40. Effort = 60/5 = 12, Responsibility = 80/5 =16. Job Conditions = 60/5=12.

Labor Grade 5 is Maximum points = 250 + 75 + 100 + 75 = 500

Labour Grade 1 is Minimum points = 50 + 15 + 20 + 15 = 100 For Labor Grade 4 a total of 400 points is required.

2nd Degree Effort = 60 points. Second degree responsibility = 80 points. First degree Job conditions = 75 points. Total points = 60 + 80 + 75 = 215. Points needed for skill = 400 - 215 = 185 which is between 150 and 200. Hence second degree skills are required.