DECISION BAND^TM METHOD SUMMARY AND OVERVIEW BACKGROUND

The Decision Band^TM Method (DBM) of job evaluation is a highly effective method of objectively evaluating the worth of a job to an organization. A sound theoretical framework serves as the basis of the method which provides a consistent and valid approach to comparing and contrasting jobs.

Initially developed over thirty years ago by Professor Emeritus Thomas T. Paterson, and further refined by Fox Lawson's compensation consultants, the Decision Band^TM Method has been tested in organizations throughout the world as a means of identifying rational distinctions in pay for all jobs. DBM has been used successfully in both public and private sector organizations. Organizations converting their current job evaluation plans to the DBM framework can be assured that their pay hierarchy will be reliable, valid and justifiable.

The basic premise of DBM is that the value of a job to an organization is based on its level of responsibility. Responsibility is reflected, and therefore measured, by the decision-making requirements of the job. Because all jobs require incumbents to make decisions in order to perform their jobs, decision-making is a logical and equitable basis on which to compare jobs within an organization.

SUMMARY OF METHOD

DBM job evaluation involves three basic steps. First, jobs are classified into one of six different "Decision Bands" based on the characteristics of the decisions that a job requires. This classification process reflects the level of responsibility of the job within the organization. The second step involves classifying the jobs within each "Decision Band" into one of two "Grades" based on the differential supervisory difficulty and effort required of the job. Each of the six bands is subdivided into two grades, (coordinating and non coordinating) or subclasses, depending on the requirements to monitor or supervise subordinate jobs.

At this point in the process, jobs will have been classified into a hierarchy of twelve different classes of jobs, based on the job's level of responsibility and supervisory difficulty and effort.

The third and final step involves further subdivision of jobs within each grade into subgrades by reference to the complexity, difficulty, and skills required of the job in relation to other jobs that have been classified into the same Band and Grade. Frequently, this subgrading is done within each occupational group in order to facilitate the making of relative judgements in comparing the complexity, difficulty, and skills required of jobs across different occupations. The subgrading process shares many characteristics with point-factor methods of job evaluation.

Finally, the jobs are priced within the relevant labor market.

OVERVIEW OF THE DECISION BAND^TM METHOD

Banding

The first step in evaluating jobs using DBM involves Banding each decision-making task according to the kind of decision required. All jobs in an organization are composed of a set of tasks. In most organizations, job descriptions are formal documents which describe these tasks. In order to perform all its requirements each task requires the incumbent to make different kinds of decisions some of which may be of a higher level of greater difficulty than others. Each decision-making task is assigned a Band and a job is classified according to the highest level of decision required.

The Decision Bands are defined as follows:

These Decision Bands form a continuum of responsibility within an organization. Thus, the higher the level of decision-making required, the greater the level of responsibility.

Jobs are now subgraded (ranked) by Grade. As an example, among two data processing jobs one is more difficult than another and therefore given different subgrades.. By limiting the subgrading step to within grades, the subjectivity of the evaluation process is greatly reduced.

Subgrading involves assessing the relative difficulty, complexity, and skills required of the job in comparison to the other jobs within the same Band and Grade. Since difficulty and complexity are stubborn concepts to apply, the Decision Band^TM Method provides criteria to assist in determining the relative difficulty between decision making requirements of jobs being evaluated:

• Time pressure
• Need for alertness
• Need for care and precision
• Essential skills and experience

In unusual situations, other compensable criteria such as working conditions may be added, depending on the occupational group and organizational characteristics.

In the standard DBM framework, the lower coordinated grades (AO, Al, B2, C4, D6, E8, FlO) are subdivided into three Subgrades, whereas the upper coordinating Grades (B3, C5, D7, E9, Fl 1) are subdivided into two. In practice, the number of subgrades can be increased or decreased and can vary between the grades. Users should keep in mind that objectivity and reliability of the evaluation will increase with fewer subgrades.

To clarify how DBM is applied to a typical organizational unit, an organizational chart of jobs which have already been evaluated, are provided. This organizational chart displays the relationships between jobs and shows the Band, Grade, and Subgrade assignment of each job.

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