All you need to know about implementing the Paterson Job Grading system

All you need to know about using the
Paterson Grading System to conduct
Job Evaluation
Human Resources, Labour Relations and Payroll Specialists

Mar 2019 "People Management Simplified" 2
Definition and purpose
of Job Evaluation

Definition:
Job Evaluation is defined as the
process of assessing the relative worth
of jobs in an organisation, using an
objective and reliable rating system.
Definition and Purpose of Job Evaluation

Definition:
Job Evaluation is defined as the
process of assessing the relative worth
of jobs in an organisation, using an
objective and reliable rating system.
Purpose:
The purpose of Job Evaluation is to
establish a logical hierarchy of jobs to
which a fair and equitable pay structure
may be attached, i.e. rewarding each
person in relation to the position he/she
holds based on job content.
Definition and Purpose of Job Evaluation

Benefits of Job Evaluation

Utilising a Job Evaluation system has a number of direct and indirect
benefits:

• Provides a means of ensuring that every individual in the organisation is
adequately and equitably rewarded, relative to others, for the work they
do.
benefits:

do.
• Removes, as far as possible, personal bias in assessing job worth.
benefits:

do.
• Provides a hierarchy of jobs that can be used in organisational structure
and career planning.
benefits:

do.
• Improves manpower planning and organisation of work.
benefits:

do.
• Improves overall utilisation of human resources.
benefits:

do.
• Provides the basis of a fair and equitable remuneration structure.
benefits:

do.
• Determines a logical hierarchy to which benefits can be attached.
benefits:

do.
• Provides a sound structure on which to review remuneration and
benefits.
benefits:

do.
• Provides a sound structure on which to review remuneration and
benefits.
• Provides an objective system that can be negotiated with employee
groups and/or their trade union or representatives.
benefits:

Advantages of the
Paterson System

The Paterson method of job evaluation is one that provides all the above
benefits. It has certain other significant advantages.
Advantages of the Paterson System

• It is universal in its application. It is applicable to jobs at all levels and
covers all functions in an organisation.

• In a single system, it permits the evaluation together of labour and
management, wage and salary earners, and technical and administrative
personnel.

personnel.
• As such, it provides a well-founded basis for the development of a unified,
integrated remuneration structure.

personnel.
• It is a relatively uncomplicated system, which is easy to understand,
flexible and easy to communicate.

personnel.
• Furthermore, as it encourages employee involvement and participation, it
has wider credibility than many other job evaluation systems.

personnel.
• Furthermore, as it encourages employee involvement and participation, it
has wider credibility than many other job evaluation systems.
• It has international acceptability, which is becoming increasingly important
as more and more attention is focused on industrial relations practices in
South Africa.

Legislative
Framework

Various statutes influence the manner in which
Job Evaluation should be undertaken.
To ensure best practice Job Evaluation should also incorporate the
guidelines provided by the Codes of Good Practice titled “Integration of
Employment Equity into HR policies” and “Equal pay for work of equal
value”.
Note: The extracts from the legislation must be interpreted within the context of the legislation.
Legislative Framework

Section 186
2. “Unfair labour practice” means any unfair act or omission that arises
between an employer and an employee involving –
(a) unfair conduct by the employer relating to the promotion, demotion,
probation (excluding disputes about dismissals for a reason relating to
probation) or training of an employee or relating to the provision of
benefits to an employee;
(b) ……
Labour Relations Act (L.R.A.)

Section 6(1):
“No person may unfairly discriminate, directly or indirectly, against an
employee, in any employment policy or practice, on one or more grounds,
including race, gender, sex, pregnancy, marital status, family responsibility,
ethnic or social origin, colour, sexual orientation, age, disability, religion,
HIV status, conscience, belief, political opinion, culture, language, birth or
on any other arbitrary ground.”
Employment Equity Act (E.E.A.) - 1
Chapter 1 – Definitions
Employment policy or practice includes but is not limited to:
(c) Job classification and grading

Section 6(4):
"(4) A difference in the terms and conditions of employment between
employees of the same employer performing the same or substantially the
same work or work of equal value is a form of unfair discrimination and is
prohibited on any one or more grounds of unfair discrimination listed in
subsection (1 ).
The purpose of section 6(4) is to deal explicitly with unfair discrimination by
an employer in respect of the terms and conditions of employment of
employees performing the same or substantially the same work, or work of
equal value.
Employment Equity Act (E.E.A.) - 2

Examining the elements of EEA Section 6(4) - 1
“performing the same work”
This would seem to indicate more than one employee employed in the same
position performing the same functions.
Identifying this category is straight-forward and should pose no challenges.
“performing substantially the same work”
This would seem to indicate more than one employee employed in “similar”
positions, performing “similar” functions.
This could mean anything! The challenge here will be to identify and agree on the
factors that determine “similar”, and here we foresee a lot of confusion as these
factors will be subjective opinions influenced by individual interest.

Examining the elements of EEA Section 6(4) - 2
“performing work of equal value”
This would seem to indicate more than one employee employed in any position
performing functions of “equal value”.
This could also mean anything, and for the same reasons provided in the previous
item, the challenge will be to identify and agree on the factors that determine “equal
value”.

Codes of Good
Practice

EMPLOYMENT EQUITY ACT, 1998 (ACT 55 OF
1998 AS AMENDED)
Code of Good Practice on the Integration of Employment
Equity into Human Resource Policies and Practices
Section 6
Codes of Good Practice - 1

6. JOB ANALYSIS AND JOB DESCRIPTIONS
6.1. SCOPE
6.1.1. A job description outlines the role and duties of the job and consists of two components:
6.1.1.1. a description of the outputs of the job (what the job proposes to do). This description should provide
an accurate and current picture of what functions make up a job, and should not include unrelated tasks.
This should outline the job's location, purpose, responsibilities, authority levels, supervisory levels and
interrelationships between the job and others in the same area; and
6.1.1.2. a description of the inputs of the job (i.e. what the person doing the job is required to do). This
description should provide details about the knowledge, experience, qualifications, skills and attributes
required to perform the job effectively.
6.1.2. Employers should conduct a job analysis when developing a job description. A job analysis is the
process used to examine the content of the job, breaking it down into its specific tasks, functions,
processes, operations and elements.
6.2. IMPACT ON EMPLOYMENT EQUITY
Job descriptions may either advance or undermine employment equity depending on how they are written.
A job description should clearly state the essential or inherent requirements of the job. These are the
minimum requirements that an employee needs in order to be able to function effectively in that job. These
requirements should not be overstated so as to present arbitrary or discriminatory barriers to designated
groups. However, in the interests of promoting the appointment of employees who may not meet all the
essential or inherent job requirements, an employer may decide that an employee who has, for instance, six
out of the ten threshold or essential requirements, will be considered to be suitably qualified, subject to
obtaining the outstanding requirements within a specified time.

6.3. POLICY AND PRACTICE
6.3.1. In order to ensure that job descriptions refer only to the essential or inherent job requirements, they
should comply with the following criteria:
6.3.1.1. Each task or duty in the job description is essential to be able to perform the job and is not
overstated;
6.3.1.2. The job description is free of jargon and is written clearly;
6.3.1.3. The competency specification includes only criteria essential to perform the duties. This should be
objective and avoid subjective elements that can be interpreted differently;
6.3.1.4. Experience requirements that are not essential, related or arbitrary to the job should be excluded;
and
6.3.1.5. Criteria do not disadvantage employees from designated groups.
6.3.2. An employer may also use job descriptions to promote affirmative action, for instance, by
incorporating potential as a requirement and making reference to development and training to acquire
additional skills and competencies.
6.3.3. A job description should be capable of flexible interpretation in the interest of promoting affirmative
action. In this regard, an employer may list all the minimum or essential requirements of the job.

6.4. KEY LINKS TO OTHER TOPICS IN THE CODE
6.4.1. Recruitment and selection - Job descriptions that are flexible may aid the recruitment of employees
from designated groups in order to create equitable representation. Rigid job descriptions may operate as a
barrier to attracting individuals from designated groups with potential.
6.4.2. Performance management - Specificity of job descriptions contributes to setting clear performance
objectives in an employee's career development plan. This may avoid perceptions of unfair or discriminatory
treatment in performance.
6.4.3. Skills development - A clear job description enables the identification of skills and competency gaps.
These gaps could be closed through appropriate interventions like training and development.

EMPLOYMENT EQUITY ACT, 1998 (ACT 55 OF
1998 AS AMENDED)
Code of Good Practice on Equal Pay/ Remuneration for
work of Equal Value
Sections 5 - 8

5. EVALUATING JOBS
5.1. Article 3 of the ILO Equal Remuneration Convention 1951 (No. 100) requires that "measures shall be
taken to promote objective appraisal of jobs on the basis of the work to be performed".
5.2. While the Convention only applies to equal pay /remuneration for work of equal value between men
and women, the need to conduct an objective appraisal of jobs is a necessary element of applying the
principle in all contexts, in particular, to eliminate residual structural inequalities related to legislated and
practised racial discrimination that applied in the labour market in South Africa.
5.3. In order to ascertain the value of the job for the purpose of applying the principle of equal pay
/remuneration for work of equal value, an objective assessment in accordance with relevant and appropriate
criteria must be undertaken.
5.4. The basic criteria commonly used to evaluate the value of jobs by an employer are-
5.4.1. The responsibility demanded of the work, including responsibility for people, finances and material.
This includes tasks that have an impact on who is accountable for delivery of the enterprise's or
organisation's goals, for example, its profitability, financial soundness, market coverage and the health and
safety of its clients. It is important to consider the various types of responsibility associated with the
enterprises or organisation's goals independently from the hierarchical level of the job or the number of
employees it involves supervising.
5.4.2. The skills, qualifications, including prior learning and experience required to perform the work,
whether formal or informal. This includes knowledge and skills which are required for a job. What is
important is not how these were acquired but rather that their content corresponds to the requirements of
the job being evaluated. Qualifications and skills can be acquired in various ways including academic or
vocational training certified by a diploma, paid work experience in the labour market, formal and informal
training in the workplace and volunteer work.

5.4.3. Physical, mental and emotional effort required to perform the work. This refers to the difficulty related
to and the fatigue and tension caused by performing job tasks. It is important not to only consider physical
efforts but also take mental and psychological effort into consideration.
5.4.4. The assessment of working conditions may include an assessment of the physical environment,
psychological conditions, time when and geographic location where the work is performed. For example,
one may consider factors such as noise levels and frequent interruptions for office jobs as conditions of
work.
5.5. Best practice indicates that the four criteria should form part of every job evaluation. These four criteria
are generally regarded as being sufficient for evaluating all the tasks performed in an organisation,
regardless of the economic sector in which the enterprise operates.
5.6. The weighting attached to each of these factors may vary depending on the sector, employer and the
job concerned. These factors do not constitute any particular preference in respect of weighting allocation.
5.7. In addition, employers may take into account the conditions under which work is performed in
evaluating the value of work. However, many employers take working conditions into account when
determining pay /remuneration by, for example, paying an allowance, rather than as part of the job
evaluation process.

6. COMPARING AND EVALUATING MALE- AND FEMALE-DOMINATED JOBS
6.1. Discrimination in pay/remuneration based on the sex of employees is an international phenomenon
found to a greater or lesser degree in all countries. The ILO has suggested that due to-
6.1.1. stereotypes with regard to women's work;
6.1.2. traditional job evaluation methods that were designed on the basis of male dominated jobs; and
6.1.3. weaker bargaining power on behalf of female workers .
6.2. The use of job evaluation does, in itself, not ensure that there is an absence of unfair discrimination.
6.2.1. It is acknowledged that traditional job evaluation methods were designed on the basis of male-
dominated jobs.
6.2.2. Predominantly female jobs often involve different requirements from those of predominantly male
jobs, whether in terms of qualifications, effort, responsibility or working conditions.
6.2.3. Traditionally, female-dominated jobs were evaluated based on methods designed mainly for male-
dominated jobs, which partly accounts for wage discrimination.
Continued/…..

6.2.4. It is important to be vigilant when selecting the method of job evaluation and to ensure that its content
is equally tailored to both female-dominated and male-dominated jobs. For instance, responsibility for
money or equipment is often valued more than other forms of responsibility.
6.2.5. Jobs involving caring for others or cleaning may be undervalued because of the erroneous
assumption that the skills involved in these jobs are intrinsic to nature of women and not acquired through
learning and experience.
6.3. Employers may therefore be required to establish the value of male- and female-dominated jobs in
order to be able to ascertain whether particular jobs have been undervalued and to align female-dominated
jobs with comparable male-dominated jobs in the organisation.
6.4. The fact that there are no comparable male-dominated jobs to female-dominated jobs within the
employer's organisation, does not necessarily imply that there is no discrimination on grounds of sex or
gender (or other prescribed grounds).
6.5. An employee may base a claim on the ground that they would have received higher pay /remuneration
if they were not female. To succeed in such a claim, the employee would have to show that a male
employee hired to perform the work would have been employed on different terms and conditions of
employment.

7. FACTORS JUSTIFYING DIFFERENTIATION IN PAY / REMUNERATION
7.1. Once jobs have been evaluated and/or graded, the various jobs are allocated pay /remuneration packages in
accordance with the pay/remuneration philosophy of the employer and the value of the jobs. Employers are
required to ensure that unfair discrimination does not occur at any of these stages.
7.2. Where employees perform work that is the same or substantially the same or is work of equal value, a
difference in terms and conditions of employment, including pay/remuneration, is not unfair discrimination if the
differentiation is not based on a listed or on any other arbitrary ground in terms of section 6(1) of the Employment
Equity Act, as amended.
7.3. Regulation 7 of the Employment Equity regulations lists a number of grounds which are commonly taken into
account in determining pay/remuneration. Subject to what is stated below, it is not unfair discrimination if the
difference is fair and rational and is based on any one or a combination of the following factors -
7.3.1. the individuals' respective seniority or length of service;
7.3.2. the individuals' respective qualifications, ability, competence or potential above the minimum acceptable
levels required for the performance of the job;
7.3.3. the individuals' respective performance, quantity or quality of work, provided that employees are equally
subject to the employer's performance evaluation system, and that the performance evaluation system is
consistently applied;
7.3.4. where an employee is demoted as a result of organisational restructuring or for any other legitimate reason
without a reduction in pay/remuneration and fixing the employee's salary at this level until the pay /remuneration of
employees in the same job category reaches this level;

7.3.5. where an individual is employed temporarily in a position for purposes of gaining experience or
training and as a result receives different pay/remuneration or enjoys different terms and conditions of
employment;
7.3.6. the existence of a shortage of relevant skill in a particular job classification; and
7.3.7. any other relevant factor that is not unfairly discriminatory in terms of Section 6(1) of the Act.
7.4. These factors may not be used to determine pay/remuneration in a manner that is biased or indirectly
discriminates against an employee or group of employees based on a listed or on any other arbitrary
ground in terms of section 6(1) of the Act.

8. PROCESS FOR EVALUATING JOBS FOR THE PURPOSE OF EQUAL PAY/ REMUNERATION FOR
WORK OF EQUAL VALUE
8.1. The following process may be used to determine equal pay/remuneration for work of equal value -
8.1.1. determine the scope of the audit to be conducted to identify inequalities in pay/remuneration on
account of gender, race, disability or any other listed or on any other arbitrary ground;
8.1.2. identify jobs that would be subjected to the audit;
8.1.3. ensure that job profiles or job descriptions exist and are current before evaluating jobs;
8.1.4. utilise a job evaluation and/or grading system that is fair and transparent and does not have the effect
of discriminating unfairly on any listed or arbitrary ground;
8.1.5. compare jobs that are the same, similar or of equal value in the employer's own organisation or
company. This should include comparing female-dominated jobs with male-dominated jobs as well as other
jobs that may have been undervalued due to, race, disability or other discriminatory grounds;
8.1.6. select a method of comparing pay/remuneration, both in money and kind, in the relevant jobs: this
can be done by using either the average or the median earning of employees in the relevant jobs as the
basis for pay/remuneration comparisons or by using another method that will compare pay/remuneration in
a fair and rational manner;
Continued/…..

8.1.7. identify the reasons for differentiating in pay/remuneration as contemplated by Regulation 7 in the
Employment Equity regulations and determine whether they are justifiable;
8.1.8. where differentiation is found not to be justifiable, determine how to address inequalities identified,
without reducing the pay/remuneration of employees to bring about equal remuneration; and
8.1.9. monitor and review the process annually.

Getting Started

It is necessary, to prevent ambiguity and misunderstanding, to understand
certain of the terms and expressions used in this presentation.
Definitions - 1

Job Evaluation:
May be defined as a scientific method to determine as systematically,
objectively and reliably as possible, without regard for personalities, the
worth of one job relative to another.
Definitions - 1

Job Evaluation:
May be defined as a scientific method to determine as systematically,
objectively and reliably as possible, without regard for personalities, the
worth of one job relative to another.
Definitions - 1
Paterson:
Professor TT Paterson, Emeritus Professor at the Department of
Economics & Commerce, Simon Fraser University, Vancouver. Noted
Scientist and Anthropologist. Has carried out extensive research as a
consultant to Industry, Commerce, Government Departments and Armed
Services. Taught management at Glasgow University and University of
Strathclyde. Had carried out wide scale research on his theory of
distribution of the payroll as applied to Industry and Commerce. His
theories are extensively used in Europe, India and Southern Africa.

Job:
That which a person contributes towards the achievement of the purpose
of the business. A job is composed of a number of Tasks.
Definitions - 2

Job:
Tasks:
Groups of related Processes and Operations.
Definitions - 2

Job:
Tasks:
Process:
A set of logically related Operations.
Definitions - 2

Job:
Tasks:
Process:
A set of logically related Operations.
Operation:
A complete and logical cycle of elements (either as physical movements or
mental activities).
Definitions - 2

Difficulty of a Job:
A relative term – what is difficult to one person may not appear difficult to
another – but relative job difficulty can be expressed in terms of kinds of
decisions, the higher the decision level of the job, the greater the difficulty.
Definitions - 3

Structural Authority:
The right to command.
Definitions - 3

Structural Authority:
The right to command.
Sapiential Authority:
The right to be heard by reason of expertise.
Definitions - 3

Coordinate Decisions:
Are defined as responsibility for integrating people, resources and systems
wherein the coordinator is held formally accountable for the output of
subordinate jobs and for functions under his control.
A coordinator of people is a person who:
• Allocates work directly to subordinates.
• Checks their performances against his/her requirements.
• Uses his/her position and structural authority to ensure compliance with
his/her orders.
Note: Coordination must not be confused with simple allocation of duties
on a routine basis, or inspection of work.
Coordination of Band A jobs are placed in Band B.
Definitions - 4

• Job Grades are determined using set criteria, and jobs are placed into the
grade if they fit the definition. A remuneration structure is finally attached
to each of these grades.
Determining Job Grades

• Grades are identified by a two-character label that consists of a “Band” in
the range A thru F, and a numeric “Grade” in the range 1 thru 5, (e.g. A5,
B3, D1, etc.)

B3, D1, etc.)
• The band is determined based on the highest level of decision-making
required of the incumbent, and the sub-grades are determined by
measuring specified criteria.

B3, D1, etc.)
• The band is determined based on the highest level of decision-making
required of the incumbent, and the sub-grades are determined by
measuring specified criteria.
Important Note
Relate jobs in terms of job content only.
Other factors should not be used to differentiate between jobs because
these do not reflect the difficulty of the jobs themselves, but only
characteristics of the people doing the jobs.

BAND KIND OF DECISION LEVEL GRADE FUNCTION
F
POLICY MAKING
Make policy decisions in all major areas of operation
Top Management
2 Coordinative or Supervisory
1 General
E
PROGRAMMING
Plan the implementation in all major areas of
operation
Senior
Management
2 Coordinative or Supervisory
1 General
D
INTERPRETIVE
Interpret plan and choose action within limits of
discretion set by plan
Middle
Management
(What?)
5
4
Coordinative or Supervisory
3
2
1
General
C
ROUTINE
Decide the process necessary to do what has been
decided requires doing
Skilled
(How, Where,
When?)
5
4
3
2
1
General
B
AUTOMATIC
Decide on the cycle of operations within a process
Semi-Skilled
(Where, When?)
5
4
3
2
1
General
A
DEFINED
Decide only on the elements of the operation
Unskilled
(When?)
5
4
3
2
1
General
Paterson Job Grading Structure

Job Grading
Guidelines

Basic Grading
• In order to be able to differentiate between jobs, and to grade fairly, one
cannot simply grade a job as a whole.
Job Grading Guidelines - 1

Basic Grading
• It is necessary to first grade each separate task, process or operation,
which goes to make up that job. This allows one to establish the highest
grade of task in a job, and provided this is done regularly, and is therefore
the major component of the job, that should be the grade given to the
whole job.

Basic Grading
• It is necessary to first grade each separate task, process or operation,
which goes to make up that job. This allows one to establish the highest
grade of task in a job, and provided this is done regularly, and is therefore
the major component of the job, that should be the grade given to the
whole job.
• In addition, when one is comparing two jobs, it may well be necessary to
compare by a count of the number of higher grades allocated to tasks.
……/Cont

• Since grading is based on the decision making factor, grades will be
allotted mainly in terms of the degree of judgment each
task/process/operation requires.

• Factors such as training, supervision required, consequence of errors and
pressure of work are also important, but are more qualifications of the
judgment aspect.

judgment aspect.
• One usually finds that of two workers in the same job category, one is
better at his job than the other. This is inclined to affect our judgment as
graders. Remember we are only looking at the tasks themselves - Look
at the job, not the man!

judgment aspect.
• One usually finds that of two workers in the same job category, one is
better at his job than the other. This is inclined to affect our judgment as
graders. Remember we are only looking at the tasks themselves - Look
at the job, not the man!
• A worker exercises judgment whenever he/she has some discretion to
choose from several alternative ways of doing a task, e.g. at a higher
level there are probably many ways of increasing production from the
work place, whilst at the lowest level the man digging a hole can probably
only choose the speed at which he digs.
……/Cont

Remember that workers in Band A are usually “unskilled”.
Their equipment and tasks are fully and clearly laid down.
Why they have to do the job, what they must do, how they carry out each
task, and when, have all been decided for them.
This means that the process they carry out, the smaller operations in each
of these processes, and the separate elements of work in each operation,
have all been strictly laid down for them.
The limits of discretion are extremely limited.

In Band B the semi-skilled worker does not need to know why he performs
his operations in a certain way. He only has to decide how to carry out the
task given to him – the what, where and when are laid down.

In Band B the semi-skilled worker does not need to know why he performs
his operations in a certain way. He only has to decide how to carry out the
task given to him – the what, where and when are laid down.
The skilled worker in Band C has the choice of process.

Grading of Supervisory or Coordinative Tasks
A supervisory task can only be graded as such if the jobs being supervised
are in the same decision band. However, this does not prevent that job
being graded at a higher level in the non-supervisory part of the next
decision band, provided the job includes tasks at that level.
It should be noted too that supervisors of Band A workers can be Band A if
their relationship with other workers is more that of a “leading hand” as
opposed to a true supervisor.
It may become necessary to increase the number of grades for the
supervisory/coordinative part of a decision band in order to differentiate
between the “amount” of supervision required in comparable jobs.
……/Cont

• If possible, there should not be more than two grades for each
supervisory portion of a band.
• When it becomes necessary to compare supervisory jobs the first
criterion will be the number of people from the same decision band who
are being supervised, (span of control). The larger the span of control,
the more difficult the job.
• However, the degree of difficulty of the jobs being supervised may also
vary and so the following rules apply:
• Compare grades of jobs being supervised.
• Coordinating unlike jobs is more difficult than coordinating like jobs.
• If difficulty is still experienced, the average times taken to learn the
supervisory jobs should be compared. For example, it will take longer to
learn how to co-ordinate the work of maintenance fitters, with all the
complications of scheduling them, than of production fitters, where the
scheduling is already partly done by the production control department.

Grading of Staff Posts
The grading of staff, (e.g. “administration” as opposed to line), posts is
often difficult because the incumbent provides the analysis of alternatives
and recommendations to their superiors for a final decision.
Thus, the decision-making in these posts is often at a low level.
To overcome this it is necessary to relate the work done and the
recommendations made to the position and grading of the incumbent’s
superior, i.e. the incumbent’s sapiential authority.
Because this is a subjective process, even more care must be taken to
ensure conscientious review.

Job Grading
Procedure

Grading Committee
It is suggested that a grading committee be established as follows:
• Chairperson – Skilled in the grading process
(usually from HR) - Neutral
• Process Heads – Extensive knowledge of the
functions in their areas of responsibility (e.g.
representation from Finance, Quality,
Manufacturing, Sales, Engineering etc.)
• Worker Representative – Good general knowledge
of operations (can be Senior Shop Steward or
similar)
In addition, when a position needs to be graded, then the position’s
manager/ supervisor should be invited to present the job specific detail that
the forum requires to establish the job grade, (e.g. Job Description,
Standard Practices, Work Instructions etc.)
Transparency and the active participation of all parties is encouraged to
ensure the system gains and maintains its credibility.

Each task is examined and, according to the type of decision making
involved, is given a BAND ranking.
The highest ranking obtained in a list of tasks decides in which band the
job will be placed.
Decisions are more easily identified in the higher-level jobs, but at lower
levels it is more a question of judgment.
The more difficult a job is, the more judgment is required from the worker,
while the easier the job is, the less judgment is required.
The six levels of decisions, called Bands, will now be examined.
STEP 1 - ESTABLISH THE BAND
Job Grading Procedure - 1

Band F – Policy Making Decisions (Top Management)
Mandate:
Makes wide scope, broad strategic decisions, e.g. Definition of Policy.
Defining Questions:
Is the Job at the very top of the Organisation?
Does it involve making long-term POLICY decisions, within wide limits of discretion that
establishes criteria for internal planning?
Definition:
Establishes the purpose, vision and mission of the organisation, and defines applicable
policies to ensure the achievement thereof.
The spectrum of possible decisions is limited only by legislation, labour practice, and
economic considerations.

Band E – Programming Decisions (Senior Management)
Mandate:
Operates within limits set, and policies defined by top management.
Determines e.g. Organisational structure, long-term overall programme for major functions,
relationships between major functions, operational objectives, and the allocation of resources
to meet these objectives.
Defining Questions:
Does the Job involve making decisions on long-term programmes for a major function, within
the limits of set policy, setting objectives for the function, and allocating resources to meet the
objectives of the business and/or business unit?
Definition:
Performs senior management tasks where the employee defines and establishes the overall
or functional programmes and plans that must be accomplished in order to meet the
objectives of the business.
The spectrum of possible decisions is set by Policy and broad business objectives, and the
targets contained therein.
This is the level at which direction and strategy is set.
As there are no routines for making decisions at this level the employee functions to set up
operational objectives, directives, and budgets in order to achieve the business objectives.

Band D – Interpretive Decisions (Middle Management) - 1
Mandate:
Operates within the programmes defined by senior management.
Interprets the programmes into specific processes within the limits set by the programme,
plan, or budget drawn up by senior management, e.g. determines best use of manpower and
resources to achieve targets, establishes procedures, etc. i.e. "WHAT TO DO" – Planning.
Defining Questions:
Does the Job entail taking decisions to interpret the programme into specific processes that
will be followed as a routine procedure in future in order to fulfil the programme?
Definition:
Performs middle management tasks where the employee interprets the overall or functional
programme/plan into specific decisions on the allocation of resources required to put the
programme or plan into effect, i.e. to make a choice of the best decision out of a spectrum of
possible decisions set by the programme, and involving the best use of available resources.
These operational directives specify how, when and where allocated resources will be utilised.
The spectrum of possible decisions is set by guidelines of the programme/plan, and the
targets it contains.
……/Cont

Band D – Interpretive Decisions (Middle Management) – Cont.
This is the level at which operating procedures and processes are set.
As there are limited routines for making decisions at this level the employee functions to set
up operational directives, schedules and budgets to deal with the circumstances not covered
by procedures already being operated.
When enough of these unique situations have occurred he/she sets up or modifies routines
and procedures to handle these in the future to ensure the objectives of the program are
accomplished.

Band C – Routine Decisions - 1
Mandate:
Executes interpretive decisions - choosing "HOW, WHERE, and WHEN TO DO" – Execution
within established processes.
Defining Questions:
Does the Job entail deciding which process to use from those that have previously been
established, either within the organisation, or in trade or occupational theory?
Definition:
Skilled employees or those involved in Supervisory or Junior management positions.
At this level, employees are concerned with processes over and above the operations found
in the A and B band Jobs.
A process is an integrated combination of operations that requires understanding by the
employee of the way in which the operations have been combined before he/she can carry
out the process at an acceptable standard.
The end result of what is needed is decided for him/her.
The employee chooses a set of routines or processes once he/she has summed up what the
requirements of the particular system are.
……/Cont

Band C – Routine Decisions – Cont.
The employee must acquire qualifications or considerable experience, e.g. through an
learnership, in order to acquire a body of knowledge of well-established rules, regulations,
procedures, and their basic theoretical underpinnings.
This allows him/her to match routines/techniques/procedures to changing circumstances.
He/she is circumscribed in his/her decisions by being able to move outside of this framework
of specialist knowledge/experience by inventing new routines or processes, or by changing
the blueprint or overall system without reference to a higher decision.

Band B – Automatic Decisions - 1
Mandate:
Utilises defined processes, and choice of decision is restricted to operations, i.e. “WHAT” and
"HOW" is defined; the worker chooses “WHEN” and "WHERE" he carries out the operations.
Defining Questions:
Does the Job entail deciding how best to carry out and operation within the process that has
been selected, i.e. regarding tools, sequence and timing, etc.?
Definition:
Semi-skilled work where the overall process of activity is specified, but the employee makes
decisions regarding the carrying out of operations within it.
Basic skills required for these decisions can be taught, but for an acceptable standard of
performance to be obtained, additional experience and practice is necessary.
Not all possible situations in which the employee will find him/ herself on the tasks can be
envisaged, and the operations cannot therefore be precisely defined.
Skill or judgement is critical to the outcome of these tasks.
These are learned in situations that have to be experienced, and are used in deciding:
The best movements to effect an operation.
The best tools or equipment to use from a limited range.
The most appropriate timing of an operation.
……/Cont

Band B – Automatic Decisions - 2
Once the skill and experience have been gained the employee can perform the tasks
automatically, e.g. driving a motor car, operating a machine.
If there are different ways of accomplishing the Job they could make significant difference to
the end result.
The way the job fits into the overall process is decided for the employee.
Jobs made up of such tasks may differ in the number and variety of operations involved.
Some may have a greater variety or number of constituent operations, but the employee is
still not required to exercise discretion over the total process.

Band A – Defined Decisions - 1
Mandate:
Little choice other than "WHEN" to carry out operations.
Defining Questions:
Is the Job completely defined, involving only simple decisions regarding the best elements of
an operation, e.g. how fast or slow to work?
Definition:
A task is at this level if the Employee can be taught exactly and precisely what to do.
The task is completely defined as to purpose, method and elements.
It can be learned after minimal training, usually “On the Job”, or by experience. Performance
cannot be improved by further training.
The equipment and movements used in the Job are either self evident, or are clearly
specified.
Whether or not the Job has been successfully done is known immediately it is completed.
Decisions to be made are of such a simple nature that they do not critically affect the
successful performance of the task.
……/Cont

Band A – Defined Decisions - 2
Although discretion in decision-making is minimal, tasks in this band can still differ in the
amount of training that is needed to learn the cycle of activities involved in the job.
Different ways of doing the task make no real difference to the end result.
The worker does not have to know how his/her job fits in with others to successfully complete
it.

STEP 2 - ESTABLISH THE GRADE
• Structural authority, where a person is structurally, (in a line position), in
charge of a group of people whose jobs fall into the lower grade within
the same BAND; and,
• Sapiential authority, where a person is performing a coordinative role by
reason of a special knowledge or expertise. Such jobs may also be
graded on the basis of the level at which the incumbent is expected to
give strong advice to line management, i.e. where the line manager
would normally act on the advice given by the incumbent.
Jobs are examined for authority.
A job may be placed in the upper (coordinative/supervisory) grade through:

Finally, the job is placed in the particular grade by means of establishing
the highest level of task performed in that job.
For example, a job with six major tasks graded 1, 1, 2, 3, 2, 1, would
usually be graded 3 overall.
Jobs within the same band are compared ordinarily to each other in terms
of four major criteria:
• Complexity
• Knowledge
• Alertness
• Pressure of work
These criteria will now be examined more closely.

Complexity (Variety, simplicity, difficulty)
Jobs having a wider variety of tasks are graded higher than jobs where there is little variety.
Jobs having more complex tasks, or more complex combinations of tasks, are graded higher
than less complex jobs.
COMPLEXITY (Variety, simplicity, difficulty)
Band
Grade
1 - Low 2 - Medium 3 - High
A A limited number of very simple tasks
A combination of tasks that are still
essentially simple
A greater variety of tasks some of which
are difficult
B
A limited number of tasks in a routine
that is fairly simple.
More varied combination of tasks, some
of which are less simple.
Combination of tasks of a much more
difficult nature.
C
A limited number of tasks, simple
processes and procedures.
A more varied combination of tasks -
more difficult processes and procedures.
A greater variety of tasks, processes and
procedures some of which are complex.
D
A variety of tasks (usually similar or
parallel) some of which are difficult.
A greater variety of tasks (usually
dissimilar) of a unique or difficult nature.
A wide variety of tasks that have to be
carefully considered in the light of
possible implications.

Knowledge (Education, training, experience, know-how)
The knowledge, education, training and working experience required to perform the essential
elements of the job must be determined.
More often than not, the time required to attain this knowledge and expertise is a good
measure to be used when determining this factor.
This combined with the complexity of the functions to be performed, and the level of
independence and the guidance available to the worker whilst performing the function, will
indicate the knowledge factor.
KNOWLEDGE (Know-how, education, training, experience)
Band
Grade
A
Needs no basic knowledge - reacts only
to direct instructions.
Simple knowledge with an ability to carry
out simple instructions under guidance.
Greater knowledge with the ability to
carry out more difficult instructions.
B
Basic knowledge with the ability to carry
out instructions with a fair amount of
guidance.
Basic knowledge and experience giving
the ability to carry out instructions
without much guidance.
Basic knowledge, experience and
training providing the ability to solve
work problems with little or no guidance.
C
Background providing basic knowledge
and skills of a limited number of
procedures. Supervision available to
solve the problems.
Background providing knowledge and
skills of a variety of procedures, and the
ability to solve work problems unaided.
Extensive training and experience
providing comprehensive knowledge of
complex systems.
D
Extensive education and experience
providing comprehensive knowledge of
varied systems.
Professional knowledge in a specialised
field providing the ability to work from
first principles.
Advanced specialised knowledge giving
ability to deal with extremely complex
practices.

Alertness (Vigilance, concentration, attention)
Jobs requiring a high degree of concentration, precision and very strict tolerances would be
graded higher than jobs where these criteria are not critical, and/or where tolerances are
gross. For example, an instrument maker or a millwright would be graded higher than a
boilermaker, as would a worker operating a machine that functioned at high speed, or where
the processes are unduly complex.
The “damage” that can be caused to the business when mistakes are made influences the
alertness and vigilance factor, as the worker would be required to maintain high levels of
concentration for prolonged periods.
ALERTNESS (Vigilance, concentration, attention)
Band
Grade
A
Almost nil - Impact on Company is hardly
perceptible.
Sufficient to avoid making mistakes that
could result in wasted time.
More required to avoid having to repeat
the job again and resulting in costs to the
Company.
B
Sufficient required to avoid making
simple mistakes.
A fair amount required to avoid upsetting
the routine or other people's work.
A great amount required to avoid costly
errors.
C
A fair degree required to avoid having to
repeat the job again.
A greater amount required to avoid
upsetting the planned work program -
mistakes can be costly.
Close attention required to avoid other
sections/departments being affected -
mistakes can be very costly.
D
A fair degree required to avoid upsetting
the planned work program.
A greater amount required to avoid other
sections/departments being affected.
Close attention required to avoid the
whole function or other areas being
affected.

Pressure of work (Stress factor)
Jobs demanding high physical and/or mental stress are graded higher than jobs where these
factors are less demanding.
This criterion can be problematic in view of the fact that the stress factor is more difficult to
judge even on an ordinal scale and since, very often, the stress may be alleviated or lowered
depending on the number of people sharing the function or occupying that job category.
PRESSURE OF WORK (Stress factor)
Band
Grade
A Direct instructions only - no real stress. Few decisions - occasional peak loads. More decisions - more deadlines to meet.
B Regular flow of work - few decisions.
Flow of work subject to expected
fluctuations - some deadlines.
Variable flow of work subject to
unforeseen peak periods - more
deadlines.
C
Flow of work fairly steady but subject to
expected fluctuations.
Deadlines to meet - unforeseen peak
periods - frequent decisions.
Variable pressure - more deadlines -
fluctuating workload - numerous
decisions.
D
Variable pressure – Fluctuating workload
– deadlines to meet
Frequent peak periods – necessary to
take immediate action.
Prolonged peak periods – definite time,
stress and pressure.

Benchmarking
It could prove useful to conduct an external benchmarking and parity
exercise by positioning the organisation’s job grades and pay scales
against the market, (external equity), and to establish the market values for
key positions before implementation.
This could assist to motivate any disparities that may exist.

Job Grading
Output

Grade Table
Once Job Grading is
completed a Grade
Table should be
compiled for reference
and benchmarking
purposes
Grade Table Example
Designation Grade Designation Grade
Managing Director F1 Shift Superintendent C5
Chief Operating Officer E2 Workshop Foreman C4
Finance Manager E1 Human Resources Officer C3
Human Resources Manager E1 Millwright C3
IT Manager E1 Training Officer C3
Manufacturing Manager E1 Electrician C2
Quality Assurance Manager E1 Fitter & Turner C2
Sales & Marketing Manager E1 Bookkeeper C1
Engineer D3 Maintenance Fitter C1
Production Manager D3 Payroll Officer C1
Financial Accountant D2 Shift Supervisor B5
Management Accountant D2 Creditors Clerk B3
Systems Analyst D2 Storeman B3
Cost Accountant D1 Machine Operator B1
Database Analyst D1 Stock Controller B1
Labour Relations Manager D1 Leading hand A5
Production Planning Manager D1 Handyman A3
Quality Systems Manager D1 Transporter A3
Remuneration Manager D1 Cleaner A2
Training & Development Manager D1 General Labourer A1

Pay Scales
Once Job Grading is completed a
Pay Structure should be determined
for each grade
Pay Structure Example
Grade Low Mid High
A1 R 2,050 R 2,250 R 2,500
A2 R 2,350 R 2,600 R 2,850
A3 R 2,700 R 3,000 R 3,300
A4 R 3,100 R 3,450 R 3,800
A5 R 3,550 R 3,950 R 4,350
B1 R 4,100 R 4,550 R 5,000
B2 R 4,750 R 5,250 R 5,800
B3 R 5,450 R 6,050 R 6,650
B4 R 6,250 R 6,950 R 7,650
B5 R 7,200 R 8,000 R 8,800
C1 R 8,300 R 9,200 R 10,100
C2 R 9,550 R 10,600 R 11,650
C3 R 11,000 R 12,200 R 13,400
C4 R 12,650 R 14,050 R 15,450
C5 R 14,550 R 16,150 R 17,750
D1 R 16,700 R 18,550 R 20,400
D2 R 19,200 R 21,350 R 23,500
D3 R 22,100 R 24,550 R 27,000
D4 R 25,450 R 28,250 R 31,100
D5 R 29,250 R 32,500 R 35,750

Pay Slope

Conclusion
This brings us to the end of this presentation
Thank you for your time
We hope that you found the workshop useful and that what
you have learned will enable you to undertake a Job
Evaluation exercise for your organisation.
If not, PAY MATTERS is able to assist you to do so which will
enable you to manage your employees more effectively, and
we look forward to the opportunity to do so.

All you need to know about implementing the Paterson Job Grading system

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All you need to know about implementing the Paterson Job Grading system