Wednesday, September 18, 2013

Explain Decision Band Method, What is Decision Band Method

What is the meaning of Decision Band Method in the context of Job Evaluation?

This refers to a tool propounded by Prof Thomas T. Paterson in the 1970s and improved upon by Ernst & Young’s Compensation Specialists for their client companies. It is based on the premise that the value of a job depends on its decision-making requirements. Decision-making scope is a rational and balanced approach in differentiating jobs, because every employee in the organization is expected and bound to make decisions of some kind in the process of their carrying out their job in any level of the organization. This method-envisages 6 levels of decision-making, or “ decision bands” ranging from the most far-reaching or crucial decisions on organizational objectives to the simplest decisions like the speed of data entry. It consists of a 3-step evaluation process-first; jobs are classified into 6 different decision bands based on the characteristics and type or level of the decisions that a job requires. Second, jobs within each decision band can be classified into one of two grades coordinating or non-coordinating. Third or final, the jobs can be further subdivided within each grade into sub-grades based on specific
position, relevant competencies like skills, effort, responsibility and working conditions.

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