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IPE METHODOLOGY

2008-09-16

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Job Evaluation/Job Analysis Objectives


On the basis of documented job descriptions, evaluate benchmark positions using Mercers globally accepted International Position Evaluation methodology Redesign current grade structure to align with best-inclass local and nationwide practices

Create a common context and framework, that allows for easy comparison of grade structures across your organization

Ensure that HR professionals and Line Managers are suitably equipped to manage this structure in the changed context

2008-09-16

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Job Evaluation/Job Analysis Methodology

2008-09-16

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The International Position Evaluation System


Impact
Contribution Impact Organization

Communication
Frame Communication

Innovation
Complexity Innovation

Knowledge
Teams Knowledge Breadth

2008-09-16

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Banding defined
1. Banding (or broad banding) maybe defined as a system of responsibility and accountability definition that identifies distinct levels of qualitatively different work through the analysis of benchmark roles and responsibilities. 2. The primary purpose for introducing broader bands is typically to provide a more flexible environment. 3. The emphasis can then be shifted from a focus on jobs, and small differences in job size, toward a focus on roles and people their performance, capability and contribution

2008-09-16

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Characteristics of Band based Structures


1. 2. 3. 4. 5. One-half to one-third fewer grades than traditional structures Consolidated, simplified position titles Wide range between band minimum and maximum Strong reliance on market benchmarking with pay typically administered though zones or ranges Progression through bands linked to progressive stages of career development

Traditional Structure
Range Spread: 40%-60% Midpoint Differential: 10%-15%

Broad Grades
Range Spread: 60%-80% Midpoint Differential: 15%-30%

Bands
Range Spread: 80% - 100%+ Midpoint Differential: none

2008-09-16

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IPE Factor Analysis Using IPE Factors to define the band structure
Factors
Impact & Contribution Innovation & Complexity Communication Knowledge Team Leadership

2008-09-16

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Band/ Job Family Matrix


L6 Functional Leadership Sub Functional Leadership/ Technical Expertise Frontline Management/ Functional Specialists Functional/ Business Support I Functional/ Business Support II Admin Support

L5

L4

Sales & Marketing

Logistics

Finance

HR

Eng

L3

L2 L1

2008-09-16

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Three stages of development within the Band

Contributor Learning how to do work and developing up to the required standard for the band

Developer When one applies and further develops his/her skills in her own specific area of expertise, sometimes to a very high standard

Leader/ Expert When one applies his/her expertise more broadly to benefit the organization, and develop and coach others

2008-09-16

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Conceptual Illustration of the Person Development Model


Growth of Professional Competence & Results Contribution
Business/ Functional Leadership
Leader/ Expert Sub-functional Leadership/ Technical Expertise Leader/ Expert Frontline Management/ Functional Specialists Leader / Expert Developer Contributor Expert Developer Contributor Developer Contributor

Business/ Functional Support

Business/ Functional Support

Developer

Contributor 2008-09-16

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2008-09-16

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2008-09-16

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