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Job Evaluation

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Liberty Enterprises is a small government contractor of specialized engineering products. Company facilities are located in
Mobile and Dothan, AL Listed below are 10 benchmark jobs and their point values derived from an internal job evaluation of
positions at Liberty Enterprises using the point method. You are going to construct a “wage line” based on the job point
values and market rates for the 10 jobs presented below.

Job Job Points
Administrative Assistant 160
Technical Writer 370
Accountant 410
Information System Manager 930
Treasurer 850
Engineering Manager 900
Mechanical Engineer 460
Purchasing Agent 350
Marketing Manager 650
Financial Analyst 430

A) Using a total point range of 0-1400, establish 7 pay grades of 200 points each. Label the pay grades W1, W2, etc.,
up to W7. This data (job points) will be the X-axis of your wage line graph

B) Use O*NET to identify the annual median market wages for each job. This wage data will comprise the Y-axis of
your pay line graph.

C) Using Excel, SPSS, or another statistical program, determine the equation to construct a wage line representing
the relationship between job points and annual median market wage for the AL data. Let “W” represent the
median market wage and “P” represent the job points. The wage line will be of the form W = aP + b where “a” is
the slope of the wage line and “b” is the constant (intercept of Y-axis).

D) Based on the Excel trend lines in (c), which job(s) may be misclassified? Explain why you think misclassification
exists, and identify what action the company should take?

E) For each of the 5 jobs identified below (1) identify the wage grade and (2) calculate the estimated median market wage
using the wage line equation for AL data.

VP, Operations 1250
Marketing Coordinator 310
Field Sales Representative 550
Director, Compliance & Ethics 1050
Foreman 450

F) Complete this exercise by submitting the answers to all the questions presented on the next two pages.
Attach your Excel or SPSS graph to show how the wage line was determined.

Submitted by:

A) Median Market Wages (from O*NET)

Job Wage
Grade

Median Market
Wage (U.S.)

Median Market
Wage (AL)

Administrative Assistant
Technical Writer
Accountant
Information Systems Manager
Treasurer
Engineering Manager
Mechanical Engineer

Purchasing Agent
Marketing Manager
Financial Analyst

B) What concern(s), if any, do you have about the market “median”
wages displayed on O*NET?

C) Which two jobs show the most significant difference in the market
wage between the U.S. and AL data? What factors account for
these differences?

D) What is the Wage Line Equation for AL data? [W = aP + b]

E) Based on the Excel trend line for the AL data, which job(s) may be
misclassified? Why? What action should the company take?

F) For this exercise, should Liberty Enterprises’ wage line be based on
U.S. or AL data? Why?

G) Using the AL wage line equation, calculate the estimated median
wage for each of the following jobs. [This approach is used to slot
jobs for which reliable market data may not be available.]

Job Wage Grade Estimated Median Wage (AL)
VP, Operations
Marketing Coordinator
Field Sales Representative
Director, Compliance and Ethics
Foreman

NOTE: Include with your response a copy of your original EXCEL or SPSS analysis showing
the wage line graph for the Alabama data. Responses to other questions will not be accepted
without the wage line graph.

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