Salary setting in governmental agencies: The prevailing wage survey
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SALARY SETTING- IN GOVERNMENTAL AGENCIES THE PREVAILING WAGE SURVEY
A T h esis P r e s e n t e d -to th e F a c u lt y o f th e S ch ool o f P u b lic A d m in istr a tio n The U n i v e r s i t y o f S o u t h e r n C a l i f o r n i a
In P a r t ia l F u lfillm e n t o f t h e R e q u ir e m e n t s f o r t h e D e g r e e M aster o f S c ie n c e in P u b lic A d m in is tr a tio n
by H a r o ld S . R o sen F ebruary 1 950
UMI Number: FP64488
All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion.
Dissertation Publishing
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T h i s thesis, w r i t t e n by HAROLD S* ROSEN
u n d e r the g u i d a n c e of h ..%&.. F a c u l t y C o m m i t t e e , a n d a p p r o v e d b y a ll its m e m b e r s , has been p r e s e n t e d to a n d a c c e p t e d b y the C o u n c i l on G r a d u a t e S t u d y a n d R e s e a r c h in p a r t i a l f u l f i l l m e n t o f the r e q u i r e m e n t s f o r the d e g r e e o f
MASTER OF SCIENCE IN PUBLIC ADMINISTRATION
Date..
ommittee
TABLE OF CONTENTS CHAPTER I.
PAGE
THE PROBLEM AND IT S IMPORTANCE................................ The p r o b le m
II.
* • • _ . • • . . . » • • •
» ♦
2
Im p ortan ce o f th e stu d y
. . . . . . . .
2
. . . . . . . . .
5
BACKGROUND TO THE PROBLEM
Navy Y ard s a l a r i e s
.............................................
S ta tu to ry s a la r ie s
.
6 7 7
. ..............................
9
..............................
10
Summary
THEORETICAL CONCEPTS OF. WAGES AND SALARIES .
12
The s u b s i s t e n c e wage . . . . . . . . . . .
12
The e f f i c i e n c y
14
wage
• • • • • . • • • • •
L i v i n g wage
.....................
15
Summary
.....................
18
SALARY-SETTING METHODS....................................................
21
. . . . . . . . . . . .
In c e n tiv e p la n s
. . . . . . . . . . . . .
21
Wage s y s t e m s b a s e d on o u t p u t ..........................
21
In c e n tiv e pay in p u b lic s e r v ic e
23
Summary V.
*
. . . . . . . . . . . .
Federal se r v ic e
IV .
2
S t a t e m e n t o f t h e p r o b le m ♦ ♦ ..........................
G overnm ent P r i n t i n g O f f i c e w a g e s . . . .
III.
1
. . . .
........................................
SALARY-SETTING METHODS IN GOVERNMENT SERVICE P o sitio n c la s s if ic a t io n Jo b e v a l u a t i o n
• • • • • . • • •
.............................................................
F a c to r co m p a riso n
25 26 26 29 32
CHAPTER
PAGE P o in t system
. . . . . . . . . . . . .
33
F a cto r w e ig h tin g • • • • • • • • • • •
33
E v a l u a t i o n p r o c e s s ............................... * .
36
F a cto r s e l e c t i o n
..............................
3?
F a c t o r v a l i d i t y .........................
38
F a cto r d u p lic a t io n
39
• » • • • • • • • •
P r e v a ilin g r a te c o n f lic t s
V I.
.
. . . . . .
40
C o st-o f-liv in g
s a la r y p la n s
..........................
42
Summary
...................... • ..............................
47
.
.
.
THE PREVAILING WAGE SURVEY . . . . . . . .
50
The J o i n t Wage and S a l a r y S u r v e y . . . .
51
D e f i n i t i o n o f p r e v a i l i n g wage
51
. . . . .
S u r v e y m e t h o d s ......................... S e le c tio n o f key jo b s
54 . . . . . . . .
D e v e lo p in g k e y jo b d e s c r i p t i o n s
54
. . .
57
S e le c t io n o f firm s • • • • • • • • * •
58
D e v e lo p in g th e sc h e d u le
. . . . . . .
65
. . . . . .
66
O b ta in in g th e
in fo r m a tio n
R e p o r tin g th e d a ta Summary V II.
PERQUISITES Summary
V III.
. . . . . . . . . . . . . . . .................................................... . . . . . . . . . . . . . . . .
C O N C LUSIO NS..........................................
67 .
70 72 79 80
BIBLIOGRAPHY.............................................
83
APPENDIX
89
..............................
CHAPTER I , THE PROBLEM AND ITS IMPORTANCE E ach y e a r govern m en tal a g e n c ie s , l o c a l , f e d e r a l, pay m illio n s o f d o lla r s t h e i r e m p lo y e e s # a lo n e ,
fiv e
s t a t e and
i n s a l a r i e s and w a g e s t o
In th e M e tr o p o lita n Los A n g e le s a r ea
governm ent a g e n c ie s — S t a t e o f C a lif o r n ia ,
C ou nty o f L o s A n g e l e s ,
C ity o f L os A n g e le s , L os A n g eles
C ity School D i s t r i c t s ,
and t h e L o s A n g e l e s C i t y H o u s in g
A u t h o r i t y — e m p lo y a p p r o x i m a t e l y 7 5 , 0 0 0 w o r k e r s w i t h a c o m b in e d t o t a l
annual p a y r o ll o f # 2 5 0 ,0 0 0 ,0 0 0 .1
im p r e s s iv e f i g u r e s i n d i c a t e th e
Such
s c o p e and m a g n itu d e o f
t h e s a l a r y p r o b le m s w h ic h f a c e th e r e s p e c t i v e f i x i n g b o d ie s o f th e l o c a l a g e n c ie s .
sa la r y -
The p r o b le m i s
e v e n more f o r c i b l y b r o u g h t i n t o f o c u s when one r e a l i z e s t h a t s a l a r i e s f o r l o c a l p u b l i c a g e n c i e s c o n s t i t u t e more th an t w o - t h ir d s o f t h e i r t o t a l o p e r a t in g e x p e n s e s .
T h is
tr e m e n d o u s o u t l a y o f t a x m o n ie s w a r r a n t s t h e m o s t s y s t e m a tic ,
o b j e c t i v e and v a l i d p l a n o f e x p e n d i t u r e t h a t t h e
c o m b in e d s c i e n c e s o f p u b l i c p e r s o n n e l a d m i n i s t r a t i o n and p s y c h o m e t r ic s can p r o d u c e .
1
U n p u b l i s h e d Town H a l l r e p o r t , Wage S e t t i n g M eth od s i n t h e L o c a l G overnm ent J u r i s d i c t i o n s o f t h e L o s A n g e l e s A r e a T L o s A n g e l e s , May,"* 1 9 4 9 ) p . 1 .
2
I.
THE PROBLEM
S ta te m en t o f th e p ro b lem . is
The p u r p o s e o f t h i s
stu d y
t o i n v e s t i g a t e c u r r e n t p r a c t i c e s and m e th o d s o f s e t t i n g
s a l a r i e s i n govern m en tal a g e n c ie s .
S p e c ific a lly ,
it
is
i n t e n d e d t o a n a l y z e t h e m ethod u s e d b y t h e L o s A n g e l e s C i t y Seho.ol D i s t r i c t s ;
n a m e ly , t h e p r e v a i l i n g w age s u r v e y ,
and t o e v a l u a t e t h e a p p l i c a t i o n c la s sifie d
se r v ic e II.
o f su ch a p la n t o th e
o f th e Los A n g e le s C ity S ch o o l D i s t r i c t s . IMPORTANCE OF THE STUDY
W ith t h e I m p e tu s o f s t r i c t war m an-pow er u t i l i z a t i o n , th e p u b lic p erso n n el f i e l d h a s ,
i n th e p a s t few y e a r s ,
an i n t e n s i v e r e v i e w o f e x a m i n a t i o n t e c h n i q u e s ,
seen
jo b a n a l y s is ,
j o b e v a l u a t i o n , and o t h e r a p p r o p r i a t e s e g m e n t s o f p e r s o n n e l a d m in istr a tio n .
Y et,
few p u b lis h e d a r t i c l e s
th e r e have been p r o p o r tio n a te ly o r b o o k s on w h a t i s on e o f t h e m o st
im p o rta n t p h a se s o f p e r s o n n e l; s a la r y d e te r m in a tio n . o f th e r e l a t i v e
t h e p r o b le m o f wage and
One a u t h o r i t y ,
f o r ex a m p le,
says
im p orta n ce o f t h i s p e r s o n n e l f u n c t io n
th a t: H. . . . w a g e s a r e f a r more t h a n m e r e l y m a t t e r s o f d o l l a r s and c e n t s . T hey a r e t h e m o st t a n g i b l e e x p r e s s io n o f a c o m p lic a te d r e l a t i o n s h i p . As s u c h , t h e y a r e a c c e p t e d , b y b o t h m anagem en ts and e m p l o y e e s , a s s y m p t o m a t ic o f t h e w h o le s p i r i t o f t h e c o o p e r a t i v e r e la tio n sh ip . I t i s f o r t h i s r e a s o n t h a t w age p o l i c y
3
i s a m a t t e r o f m a jo r c o n c e r n t o e v e r y managem ent and e v e r y e m p l o y e e . "2 A l t h o u g h t h e f i e l d h a s b e e n d e l u g e d w i t h " v o lu m in o u s d i s c u s s i o n s o f s e r v i c e r a t i n g s and t h e i r r e l a t i o n s t o s a l a r y a d m in istr a tio n ,
t h e number and amount o f i n c r e m e n t s w i t h i n
a r a n g e and s i m i l a r s u b j e c t s , " 3 l i t t l e
d e ta ile d
in fo r m a tio n
h a s been p u b lis h e d r e g a r d in g the te c h n iq u e s o f s a la r y s u r v e y s and t h e i r a p p l i c a t i o n .
M a i n t a i n i n g a c u r r e n t pay
p l a n n e c e s s i t a t e s a c c u r a t e and u p - t o - d a t e i n f o r m a t i o n r e g a r d i n g com m u nity s a l a r y r a t e s and p r a c t i c e s .
Y et,
th e
m eth o d s f o r e g a t h e r i n g s u c h d a t a a r e u s u a l l y r e l e g a t e d t o a s e c o n d a r y p o s i t i o n w i t h a s t a t e m e n t s u c h a s " th e com m u n ity s h o u l d b e s u r v e y e d i n o r d e r t o d e t e r m i n e th e p r e v a ilin g r a te * "
The o n l y p r o b le m s w h ic h r e m a in a f t e r t h i s
p r o c l a m a t i o n a r e w hat i s m ean t b y th e p r e v a i l i n g r a t e , and
(1 )
t h e co m m u n ity ,
(2 )
( 3 ) how s u c h a s u r v e y s h o u l d be
con d u cted in order to in s u r e v a l i d
and r e l i a b l e
r e su lts,
R i c h e y i n d i c a t e s t h a t p e r s o n n e l t e c h n i c i a n s may h a v e "become l o s t i n a f o r e s t o f o v e r l a p p i n g r a n g e s , m a in t e n a n c e charges, c o s t of liv in g
in d ic e s ,
g e o g r a p h ic d i f f e r e n t i a l s ,
and m a t h e m a t i c a l l y i n t e g r a t e d c o m p e n s a t i o n s t r u c t u r e s . " ^
g
.
D a le Y o d e r , P e r s o n n e l M anagement and I n d u s t r i a l R e l a t i o n s , (New Y ork: P r e n t i c e - H a l l , I n c . , 1 9 4 8 ) , p . 3 5 8 , 3 C a r l ' ’R i c h e y , " D e t e r m i n i n g Pay P o l i c y , " P u b l i c P e r so n n e l R e v iew ; 3 : 2 1 , Janu ary, 1 9 4 2 . ^L oc.
c it.
4 I t .a p p e a r s ,
th erefo re,
th a t th ere i s
still
t u n i t y f o r i n v e s t i g a t i o n and r e s e a r c h i n t h e f i e l d
oppor of .
p u b l i c p e r s o n n e l c o m p e n s a t i o n w i t h t h e m a jo r e m p h a s is on a d e t a i l e d a n a l y s i s o f m e t h o d o lo g y and p r o c e d u r e . r e s u l t s o f s u c h an i n v e s t i g a t i o n f o r t h e a d m i n i s t r a t o r who i s
The
sh o u ld prove f r u i t f u l
ask ed t o p r e p a r e o r approve
s a l a r y r e c o m m e n d a tio n s ? /h ich may r e q u i r e t h a t t a x l e v i e s b e i n c r e a s e d “d u r i n g a p e r i o d o f e c o n o m ic s t r a i n to fin a n c e th e expanded b u d g e t. th e t e c h n ic ia n a check l i s t may b e c o m p a red .
in order
I t sh o u ld p r o v id e f o r
a g a i n s t w h ic h h i s
own m eth o d s
I t s h o u ld p r o v id e em p lo y ee s w it h a g u id e
t o v a l i d and r e l i a b l e m e th o d s o f c o m p e n s a t i o n r e s e a r c h s o t h a t c o n f i d e n c e i n t h e p e r s o n n e l s t a f f may b e m e a s u r a b ly in c r e a se d . phere o f i t s
I t s h o u l d c l e a r some o f t h e p r e v a i l i n g a tm o s s e c r e c y and m y s t i c i s m
g a t h e r i n g and s t a t i s t i c a l
so t h a t t h e f a c t u a l
t r e a t m e n t o f wage d a t a may a l i g n
i t s e l f w ith o th er s c i e n t i f i c
tec h n iq u e s o f f a c t - f in d in g ,
and r e p o r t i n g .
in v e stig a tio n
F in a lly ,
th e
sh o u ld fu r n is h
an a n a l y s i s and e v a l u a t i o n o f t h e p r o g r e s s and r e s u l t s o f one a g e n c y w h ic h u s e s t h e p r e v a i l i n g s a l a r y its
p r im a r y s a l s . r y - s e t t i n g m e th o d .
su rvey as
CHAPTER I I . BACKGROUND TO THE PROBLEM The p r o b le m o f w a g e s and s a l a r i e s ,
o b v io u sly ,
is
n o t an i n n o v a t i o n i n t r o d u c e d by t h e , s o c i a l r e v o l u t i o n s and r e f o r m p ro g ra m s o f r e c e n t y e a r s .
T h is c o m p l i c a t e d
and f r e q u e n t l y d i s t r e s s i n g m a t t e r h a s b e e n a p r o b le m s i n c e th e b e g in n in g o f t h i s
co u n try.
The e v i d e n c e c o n t a i n e d i n
t h e e a r l i e s t c o l o n i a l r e p o r t s i n w h ic h r e f e r e n c e s t o w a g e s 1 are fo u n d , i n d i c a t e t h a t th e em p lo y ers o f th e s e v e n t e e n t h c e n t u r y w e r e b e s e t b y t h e same f e a r s and s u s p i c i o n s o f l a b o r and l a b o r ’ s g a i n a s a r e e m p l o y e r s o f t o d a y .
L etters
and r e p o r t s from a g e n t s o f B r i t i s h c o m p a n ie s e n g a g e d i n c o lo n ia l
s e t t l e m e n t and from t h e e a r l y c o l o n i a l g o v e r n o r s
express
" c o n s t e r n a t i o n a m o u n tin g t o d i s t r e s s . o v e r t h e 2 e x o r b i t a n t demands o f c r a f t s m e n and l a b o r e r s . ” A c o lo n ia l t r e a s u r e r o f t h e V i r g i n i a C o lo n y d e c l a r e d a b o u t 1625, t h a t t h e w a g e s p a i d t h e r e w e r e " i n t o l e r a b l e and much i n e x c e s s o f t h e sum p a i d t o t h e
same c l a s s
o f p e r so n s in E n g la n d .”
3
H i s t o r y o f Wages i n th e U n i t e d ' T S t a t e s , U .S . D e p t , o f L a b o r , B u rea u o f L a b o r S t a t i s t i c s , W a s h in g t o n , D . C . , 1 9 3 4 , p . 7 . 2 L oc* c l t . 3 . L o c . c l t . c i t i n g : B r u c e , P h i l i p A . , E con om ic H i s t o r y o f V ir g in ia i n th e S e v e n te e n th C en tu ry . V o l. I I , p. 4 0 .
6
N o t e t h e r e f e r e n c e h e r e t o a p r e v a i l i n g wage p h i l o s ophy, even a t t h i s
e a r ly p e r io d .
M ost o f t h e i n f o r m a t i o n
r e g a r d in g t h i s f o r m a tiv e p e r io d o f our c o u n tr y r e g a r d s th e p r i v a t e e m p l o y e r , h o w e v e r ; t h e m a t t e r o f s a l a r i e s and w a g e s t o governm ent em p lo y ees r e c e i v e d r e l a t i v e l y l i t t l e n o tic e u n t il
p u b lic
t h e m i d d le o f t h e n i n e t e e n t h c e n t u r y .
G overnm ent P r i n t i n g O f f i c e w a g e s .
In 1 8 6 0 ,
the
f e d e r a l governm ent p u r c h a se d th e governm ent p r i n t i n g o f f i c e fro m i t s p r i v a t e o w n er s and i n t h e i n t e r e s t s o f c o n t i n u e d e m p lo y e e m o r a le and g o o d - w i l l a ssu m ed t h e a g r e e m e n t s h e l d b y th e u n i o n s w i t h t h e fo r m e r o w n e r s .
T h is a c t i o n was t h e
f i r s t by th e f e d e r a l governm ent w h er ein th e w ages o f i t s e m p l o y e e s w ere f i x e d b y u n i o n n e g o t i a t i o n .
D u rin g th e C i v i l
War, a s i n a l l t i m e s o f w a r , w a g e s e x p e r i e n c e d a s h a r p r i s e In p r iv a t e
i n d u s t r y w h ic h c r e a t e d a marked d i s c r e p a n c y
b etw een th e w ages r e c e iv e d , by p r i n t e r s in p r i v a t e . i n d u s t r y and t h o s e i n t h e g o v e r n m e n t-o w n e d p r i n t i n g o f f i c e .
In 1863
t h e p u b l i c p r i n t e r s r e q u e s t e d im g e i n c r e a s e s t o m atch i n c r e a s e s i n p r i v a t e em p lo ym en t a n d , h ou r w o rk in g d a y .
in a d d it io n ,
an e i g h t -
T h e se demands w ere r e f u s e d and th e p r i n t e r s
p r o m p t ly w e n t on s t r i k e .
The s t r i k e l a s t e d
se v e n w eeks,
t h e en d o f w h ic h tim e
t h e u n i o n won a l l
i n c l u d i n g an o f f i c i a l
r e c o g n i t i o n o f a p r e v a i l i n g wage
th eo ry .
of it s
req u ests,
at
7
Navy y a r d s a l a r i e s .
The p r e v a i l i n g wage p o l i c y
f i r s t r e c e i v e d s t a t u t o r y r e c o g n it io n by C o n tre ss in th e A c t o f 1 8 6 1 a f f e c t i n g t h e w ages o f Navy y a r d w o r k e r s .
T h is
A c t w h ic h was p a s s e d i n D ecem b er, 1 8 6 1 , p r o v i d e d : “T hat t h e h o u r s o f l a b o r i n t h e Navy y a r d s o f t h e U n i t e d S t a t e s s h a l l be t h e same a s i n p r i v a t e s h i p y a r d s a t o r n e a r e s t t h e p o r t w h er e s u c h y a r d i s e s t a b l i s h e d , and t h e w a g e s t o be p a i d t o a l l e m p lo y e e s i n s u c h y a r d s s h a l l b e , a s n e a r a s may b e , t h e a v e r a g e p r i c e p a i d t o a l l e m p l o y e e s o f t h e same g r a d e i n p r i v a t e s h i p y a r d s o r work s h o p s i n o r n e a r e s t t o t h e same v i c i n i t y , t o b>e d e t e r m i n e d by t h e Commandant o f t h e Navy y a r d .* 1 The la v / i n t h i s
form w as c o n s i d e r e d much t o o r i g i d
and was am ended s o o n a f t e r t o r e a d : “T h a t t h e h o u r s o f l a b o r and t h e r a t e s o f w a g e s o f t h e e m p l o y e e s i n t h e Navy y a r d s s h a l l c o n fo r m a s n e a r ly as i s c o n s i s t e n t .w ith th e p u b lic i n t e r e s t w i t h t h o s e o f p r i v a t e e s t a b l i s h m e n t s i n t h e im m e d ia te v i c i n i t y o f th e r e s p e c t i v e y a r d s , to be d eterm in ed by t h e Commandant o f t h e N a v a l y a r d s u b j e c t t o th e a p p r o v a l o f t h e S e c r e t a r y o f t h e N a v y . ”5 Federal s e r v ic e .
A p a rt from t h e g o v e r n m e n t P r i n t i n g
O f f i c e and t h e Navy D e p a r tm e n t , t h e h i s t o r y o f w a g e - s e t t i n g p o l i c y in th e f e d e r a l g o v e rn m e n t. in the n i n e t e e n t h c e n tu r y was one o f a “do n o t h i n g ” p o l i c y .
W r itin g o f th e p e r io d
from t h e e n d o f t h e C i v i l War u n t i l 1 9 0 0 , Mary C on yngton 4
1 2 Stat.%
51 2 S t a t .
330,
Decem ber 2 1 , 1 8 6 1 .
587, J u ly 1 6 , 1862.
8
sa id : " U n q u e s t i o n a b l y when a t t h e c l o s e o f t h e C i v i l War when t h e s a l a r y s c a l e was s e t , i t was l i b e r a l a s com p ared w i t h t h e c o s t o f l i v i n g and p r e v a i l i n g w a g e s and s a l a r i e s o u t s i d e t h e G overnm ent s e r v i c e . The i d e a t h a t a G overnm ent p o s i t i o n was a ' c i n c h ' , an ' e a s y t h i n g 1, becam e s o w i d e s p r e a d and d e e p l y r o o te d th a t i t l i n g e r s to t h i s day to th e c o n s id e r a b le d e trim e n t o f th e s e r v i c e . But h a v in g e s t a b l i s h e d i t s o r g a n i z a t i o n and s e t i t s s c a l e o f compen s a t i o n , t h e G overnm ent a p p e a r e d t o f e e l t h a t t h e m a t t e r was d on e w i t h f o r e v e r , and t o o k no f u r t h e r s t e p s e x c e p t when i n some . p a r t i c u l a r g r o u p o r d i v i s i o n c o n d i t i o n s a r o s e w h ic h f o r c e d a c t i o n . " ® D isc u ssin g a p o s itio n
o f t h e same e r a ,
e sp e c ia lly
th e
tr e n d o f f e d e r a l . s a l a r i e s f o r th e p e r io d b e g in n in g 1890, P r o f e s s o r P a u l H. D o u g la s o b s e r v e d t h a t "no c l a s s o f l a b o r s e e m s t o h a v e . s u f f e r e d t h e l o s s e s w h ic h g o v e r n m e n t e m p l o y e e s 7 have s u ffe r e d ." Two f a c t o r s c o m b in e d t o h o l d t h e g o v e r n m e n t 8 w o r k e r a t a d i s a d v a n t a g e i n c o m p a r is o n w i t h o t h e r e m p l o y e e s . The f i r s t
o f t h e s e was t h e p u b l i c b e l i e f t h a t g o v e r n m e n t
w o rk ers w ere p a r a s i t i c
g r o w th s h o l d i n g down p l u s h s i n e c u r e s
a t th e p e o p le 's e x p e n se .
The s e c o n d was t h a t t h e e m p lo y e e s
c o n c e r n e d w ere u n o r g a n i z e d and t h e r e f o r e u n a b l e p r e v a ilin g p r e ju d ic e s.
—
Spero p o i n t s o u t,
t o com bat
how ever, t h a t th e
g
Mary C o n y n g to n , "The. G overnm ent Wage P o l i c y D u r in g t h e L a s t Q u a r t e r C e n t u r y ," M o n th ly L a b o r R e v i e w , J u n e , 1 9 2 0 , p . 1 9 . 7 . . . P a u l D o u g l a s , R e a l Wages i n t h e U n i t e d S t a t e s , 1 8 9 0 1 9 2 6 , ( B o s t o n : B o u g h t o n - M f f l i n C o ., 1 9 3 0 ) , p . 3 7 7 . 8 S t e r l i n g D. - S p e r o , G overnm ent a s E m p l o y e r , (Ne\^ Y o rk : Remsen P r e s s , 1 9 4 8 ) , p . 4 4 3 . -
9
fed era l
g o v e r n m e n t , a.s w e l l a s s t a t e
and l o c a l
govern m en ts,
d u r i n g more r e c e n t y e a r s h a s a t t e m p t e d t o f o l l o w a p p ro x im a tio n o f th e p r e v a i l i n g r a t e o f e m p lo y e e s #
some
in f i x i n g th e pay
9
P r o f e s s o r Herman F eldm an
10
a ls o p o in ts
out th a t
e x a m i n a t i o n o f th e s t a t u t e s r e v e a l s t h e s t r i k i n g f a c t t h a t p r a c t i c a l l y n o p r o g r e s s o r im p r o v e m e n t o f c o n s e q u e n c e h a d b e e n made i n t h e f e d e r a l g o v e r n m e n t ' s wage p r a c t i c e u n t i l t h e C l a s s i f i c a t i o n A c t o f 1 9 2 3 was p a s s e d .
T h is A c t p r o
v id e d f o r th e e s t a b lis h m e n t o f u n ifo r m co m p en sa tio n s c h e d u l e s b a s e d on a p o l i c y o f e q u a l p a y f o r e q u a l w o rk , w i t h t h e g r a d e s o f work h a v i n g a s a l a r y r a n g e f i x e d by C o n g r e s s and a s h o r t ,
very general d e sc r ip tio n 11 in e a ch grade*
fa llin g
S ta tu to ry s a l a r ie s .
The C l a s s i f i c a t i o n A c t h a s
s i n c e b e e n amended a number o f t i m e s , 1949.
o f t h e k i n d o f w ork
th e l a t e s t b e in g in
A l t h o u g h t h e w a g e s f o r c l a s s e s c o v e r e d by t h i s A c t
9 I b id ., p. 424. 10
Herman F e ld m a n , A .P e r s o n n e l Program f o r t h e F e d e r a l S e r v i c e t ( W a s h in g t o n , D .t ! * : U n i t e d S t a t e s G overnm ent P r i n t i n g O f f i c e , 1 9 3 1 ) , p . 17* ^ C l o s i n g R e p o r t o f Wage and P e r s o n n e l S u r v e y , P e r s o n n e l C l a s s i f i c a t i o n B o a r d , (W a s h in g to n , D i d . : U n i t e d S t a t e s G overnm ent P r i n t i n g O f f i c e , 1 9 3 1 ) , p . 1 1 .
10
are as fa r as p o s s ib le era l se r v ic e ,
b a s e d upon s c a l e s o u t s i d e t h e f e d
th e s t a t u t o r y n a tu r e o f the s a l a r y
makes f o r an i n e l a s t i c
system o f a d ju stm e n t.
sc a le s
W h ile t h i s
makes f o r a d v a n t a g e i n t i m e s o f f a l l i n g p r i c e s ,
a se r io u s
d i s a d v a n t a g e f o r t h e p u b l i c e m p lo y e e i s c r e a t e d d u r i n g a p e r io d o f r i s i n g p r i c e s .
W h ile a d j u s t m e n t s b o t h upw ards
and downwards a r e e v e n t u a l l y m ade,
Hs u c h a d j u s t m e n t s
u s u a l l y l a g f a r b e h i n d t h e movement o f t h e p r i c e s in c e th e l e g i s l a t i v e
process i s
in d ex
s l o w and cum bersom e and
t h e s a l a r y s c a l e s o f p u b l i c y /o r k e r s a r e b u t one o f a h o s t 12 o f p r o b le m s w i t h w h ic h t h e l e g i s l a t u r e i s c o n c e r n e d * -11 Summary.
A r e v i e w o f some o f t h e p r o b le m s i n v o l v e d
i n th e s e t t i n g o f s a l a r i e s d u r i n g t h e p e r i o d p r i o r t o th e f i r s t w o r l d war and t h e s o l u t i o n s
t h e r e t o by t h e f e d e r a l
g o v e r n m e n t i n d i c a t e s t h e s e m i - c h a o t i c , p a tc h w o r k n a t u r e o f t h e w age s y s t e m s t h e n i n v o g u e .
I n m ost c a s e s ,
th ere
was a t e n d e n c y t o f a v o r t h o s e e m p l o y e e s .who w e r e o r g a n i z e d o r c o u l d make t h e m s e l v e s m o st a u d i b l e and t h e i r
in e q u a li
t i e s more c o n s p i c u o u s , w i t h a c o r r e s p o n d i n g n e g l e c t o f t h o s e e q u a l l y n e e d y and i n s i m i l a r c i r c u m s t a n c e s who w ere IS w i t h o u t sp o k esm en f o r t h e i r c a u s e . _
s.
Spero,
0£ .
c i t . , .p . 4 4 2 ..
13
F eld m a n ,
ojd.
c l t . , p. 17.
11
T h is s i t u a t i o n w as n o t u n i q u e t o t h e f e d e r a l s e r v i c e . In l o c a l ,
m u n i c i p a l and s t a t e a g e n c i e s , w a g e s and s a l a r i e s
w ere t r e a t e d i n s i m i l a r f a s h i o n .
Few l o c a l a g e n c i e s had
a n y t h i n g w h ic h e v e n s l i g h t l y r e s e m b l e d an o b j e c t i v e s a l a r y or c l a s s i f i c a t i o n p la n . b a r g a in in g b a s i s ,
S a l a r i e s w ere s e t on an i n d i v i d u a l
w ith t i t l e s
f o r p o s i t i o n s b e a r in g l i t t l e
r e l a t i o n s h i p t o a c t u a l d u t i e s b e in g p erfo rm ed .
As M osher
and K i n g s l e y p o i n t o u t ,
Hi n m o st A m e rica n j u r i s d i c t i o n s
t h e r e i s no p a y p o l i c y ,
and i n d i v i d u a l s a l a r y r a t e s a r e
f r e q u e n t l y f i x e d by t r a d i t i o n o r upon t h e b a s i s 14 i t i s m and p o l i t i c a l p r e s s u r e . u T h is , th en i s d r o p a g a i n s t w h ic h o u r . d i s c u s s i o n
of favo rth e b ack
o f p u b l i c p a y p l a n s and
p o l i c i e s w i l l b e sh ow n .
14W i l l i a m E . M osher a n d ' J . D o n a ld K i n g s l e y , P u b l i c P e r s o n n e l A d m i n i s t r a t i o n , (New York and L on d o n : H a rp er and B r o t h e r s , 1 9 4 1 } ~ p T ~ 4 4 2 .
CHAPTER
. III.
^THEORETICAL CONCEPTS OF WAGES AND SALARIESj The f o u n d a t i o n o f any wage p l a n i s p o lic y o f th e o r g a n iz a tio n .
t h e b a s i c wage
A g r a d u a l s h i f t i n e m p h a s is
s in c e th e in d u s tr ia l, r e v o lu tio n h a s, t h e c h a n g i n g e c o n o m ic t h e o r i e s
i n t h e m a in , f o l l o w e d
o f c a p i t a l and l a b o r .
The
fram e o f r e f e r e n c e h a s p a s s e d from t h e mere s u b s i s t e n c e w age t o t h e e f f i c i e n c y tw e n tie s, r
w a g e , and s i n c e
th e l a t e
n in ete en
t o th e c u l t u r a l wage. ^ /
The s u b s i s t e n c e w a g e . ; The t h e o r y o f a s u b s i s t e n c e
wage may b e t r a c e d t o R o b e r t M a ith u s b a s e d on h i s l a w o f p o p u l a t i o n a l t h o u g h m odern e c o n o m i s t s g e n e r a l l y a c c r e d i t D a v id R i c a r d o w i t h e x p r e s s i n g t h e M a l t h u s i a n t h e o r y i n 2 term s o f w a g e s. T h is e c o n o m ic t h e o r y s t a t e s t h a t w ages c o n s i s t o f th e a c tu a l c o s t o f p r o d u c tio n o f la b o r , th e c o s t o f s u r v iv a l f o r th e la b o r e r p lu s h i s
i.e .,
fa m ily ,
and
th e o v e r a l l c o s t ad eq u a te to m a in ta in th e r e q u ir e d la b o r s u p p l y .-
O r ig in a lly ,
and e x p l o i t a t i o n
M a it h u s i n d i c a t e d t h a t o v e r p o p u l a t i o n
o f l a n d a r e p a r a l l e l phenom ena w h ic h
J . E . W a lte r s , A p p lied P e r s o n n e l A d m in is t r a t io n , (New Y o rk : J o h n W ile y and S o n s , I n c . , 1 9 3 1 ) , p . 1 3 0 . 2
D a le Y o d e r , L a b o r E c o n o m ic s and L a b o r P r o b l e m s , (New York and L on d on : M cG ra w -H ill Book Company," 1 9 3 3 ) , p . 216.
e v e n t u a l l y r e s u l t i n l o w e r w a g e s and h i g h e r p r i c e s *
W ith
t h e c o m p e t i t i o n b e t w e e n t h e h i g h l a b o r m a r k e t s o f A m e r ic a and t h e c h e a p l a b o r m a r k e t s o f E u r o p e a n d . A s i a , a lis ts
in d u str i
and e c o n o m i s t s o f t h e s u b s i s t e n c e s c h o o l o f w a ges
b e l i e v e d t h a t t h e l o w e s t wage p o s s i b l e was n e c e s s a r y t o 3 c o n t in u e f r e e trad e* R ic a r d o ’s t h e o r i e s o f w ages e n j o y e d t r e m e n d o u s p o p u l a r i t y i n E n g la n d d u r i n g t h e f i r s t p a r t o f th e n in e te e n th c e n tu r y ,
e s p e c i a l l y w i t h t h e r i s i n g m a n u fa c
t u r i n g c l a s s w h ic h s o u g h t l o w w a g e s and fr e e d o m from g o v ern m en ta l
In terferen ce.
J o h n S t u a r t M i l l , w h o se c l a s s i c a l e c o n o m ic w r i t i n g s f o llo w e d th o s e o f R ic a rd o ,
f i r s t e x p r e s s e d t h e rwage fu n d
t h e o r y by e m p h a s i z i n g t h e l a w s o f s u p p l y and demand i n t h e d e te r m in a tio n o f w ages.
A cco rd in g t o M i l l ,
u p on t h e r e l a t i o n s h i p b e t w e e n p o p u l a t i o n and c a p i t a l
( l a b o r d e m a n d ).
w a g e s d e p e n d ed
( la b o r su p p ly )
S in ce c a p i t a l c o n s is t e d o f th e
a c t u a l a v a i l a b l e f u n d s o f e n t r e p r e n e u r s c o l l e c t e d from t h e c a r r y -o v e r p r o f i t of p r e v io u s b u s in e s s e s , t i o n s m u st u t i l i z e
an y f u r t h e r o p e r a
t h e s e m o n ie s t o p u r c h a s e raw m a t e r i a l s
and t o i n v e s t i n c a p i t a l o u t l a y s *
M ill th e o r iz e d th a t th e
b a la n ce o f c a p i t a l a f t e r th e se e x p e n d itu r e s r e p r e se n te d 3
W i l l i a m V o g t , Road t o S u r v i v a l , (New Y o r k : W i l l i a m S l o a n e A s s o c i a t e s , I n c . , 1 9 4 8 ) , C h a p te r IV .
14
a wage f u n d from w h ic h l a b o r c o u l d be p a id * le v e l
The g e n e r a l
o f w a g e s c o u l d t h e n b e a s c e r t a i n e d by t h e r a t i o
betw een th e s i z e
o f t h e l a b o r f o r c e and t h e s i z e
o f th e
wage f u n d . The e f f i c i e n c y w a g e . is
The e f f i c i e n c y wage t h e o r y
p r e d i c a t e d on t h e b e l i e f t h a t a w o r k e r s h o u l d b e p a i d
a c c o r d i n g t o t h e amount o f u s e f u l work p r o d u c e d by h im . H ere l i e s
th e
m en t p l a n s . th is lin e
f o r e r u n n e r o f t h e many i n c e n t i v e wage p a y The m a r g i n a l p r o d u c t i v i t y t h e o r y a l s o f o l l o w s
o f l o g i c b u t w i t h a som ew hat d i f f e r e n t e m p h a s is .
H ere, th e th e o r y s t a t e s
t h a t e m p lo y er s a re in c o m p e t it io n
w ith each o th e r f o r la b o r , The f i n a l r a t e o f p a y i s
and l a b o r i s
c o m p etin g f o r j o b s .
d e te r m in e d by th e u t i l i t y
o f th e
m a r g i n a l l a b o r e r on t h e b a s i s t h a t t h e e m p lo y e r w ou ld refu se
to h i r e anyone e l s e w ith o u t a d d in g a d d i t io n a l 4 c a p ita l. H ere t h e p r o d u c t i v i t y i s g a u g e d , n o t f o r t h e
m o st e f f i c i e n t e m p l o y e e , b u t f o r t h e l e a s t p r o d u c t i v e . L a b o r 1s a p p r o a c h t o t h e . e f f i c i e n t w o r k e r c o n c e p t h as been a s e r i e s o f r e v e r s a ls . w a g e s was l a b o r ' s
The b a r g a i n t h e ory o f
o r ig in a l co n cep t.
Wage l e v e l s ,
accord-
t o t h i s t h e o r y , d e p e n d e d e n t i r e l y up on t h e r e l a t i v e 4
S olom an Blum, L a b o r E c o n o m i c s , and Company, 1 9 2 5 ) , p . 4 3 5 .
(New Y o r k : H en ry H o l t
15
b a r g a i n i n g p o w e r s o f managem ent and l a b o r -
5
Labor has s in c e a d v o ca ted in tu rn the p r o d u c tiv e w o r k e r , h i g h wage p h i l o s o p h y , a more s o p h i s t i c a t e d form o f th e o r i g i n a l b a r g a i n i n g t h e o r y , cep t.
M ost r e c e n t l y ,
t h e r e h a s b e e n i n t r o d u c e d a c o m b in a
t i o n o f th e c o s t - o f - l i v i n g p lu s th e liv in g p h ilo s o p h ie s.
and a l i v i n g wage c o n
in c r e a se d sta n d a r d -o f-
T h is c o n c e p t i s
a l s o commonly
r e f e r r e d to a s a c u lt u r a l w age. L i v i n g Wage.
The l i v i n g wage c o n c e p t s e r v e s a s t h e
d e ter m in a n t o f th e b a s e s a l a r i e s o c c u p a n t s i n an o r g a n i z a t i o n * fram e o f r e f e r e n c e
o f e n t e r in g or b e g in n in g
I t a lso
i n t r o d u c e s a new
fo r c o n sid e r in g s a l a r ie s ;
th a t i s ,
from *1 an e t h i c a l p o i n t o f v i e w a s c o n t r a s t e d w i t h t h e e c o n o m i c .
O l i v e r S h e l d o n e m p h a s iz e d t h i s when h e s a i d : ti
I t i s i m p o r t a n t t o b e a r i n mind t h a t t h e c a s e f o r t h e minimum wage i s , t h o u g h b a s e d up on an a ssu m p tio n o f p r o d u c t i v i t y , n o t r e l a t i v e t o i t . The p r im a r y c a s e f o r a minimum wage i s t h a t i t i s t h e r i g h t o f e v e r y c i t i z e n o f a c i v i l i z e d com m u nity to be a s s u r e d t h e m ean s t o a r e a s o n a b l e s c a l e o f l i v i n g a c c o r d in g to th e g e n e r a l sta n d a r d o f the c o m m u n i t y .11®
g
.
J o h n D a v i d s o n , The B a r g a i n i n g T h e o r y o f W ages, (New Y ork : Putnam and. S o n s , 1 8 9 8 ) , p . 1 4 2 . 6
O l i v e r S h e l d o n , The P h i l o s o p h y o f M anagem ent, (New York and L on d on : P itm a n and S o n s , L t d . , 1 9 2 3 ) , p .151.
16
It wage i s
is
commonly fo u n d t h a t t h e c o n c e p t - o f - l i v i n g
a p u b l i c e m p l o y e r p o l i c y r a t h e r th a n p r i v a t e .
T h i s may b e due i n p a r t t o t h e f a c t t h a t w h i l e
g o v e rn m e n t
a s a m o n o p o ly i s
o f p r iv a te
In d u stry,
it
to so c ie ty
is
n o t u n d e r t h e e c o n o m ic s t r e s s a s o c i a l a g e n c y ttm ore d i r e c t l y
f o r t h e w isd om and f a i r n e s s o f i t s
p r a c t i c e s * 11
a c t i o n s and
W h ile f e w p e o p l e w i l l d e n y t h a t an e m p lo y e e
sh o u ld r e c e i v e a l i v i n g
w a g e , a more d e t a i l e d e x a m i n a t i o n
o f t h e p r o b le m sh ow s t h a t t h e d i f f i c u l t y m in in g i t s
o b lig a te d
com es fli n d e t e r
b o u n d a rie s,
m e a s u r i n g i t s l i m i t a t i o n s , and 8 a d e q u a te ly c o n v e y in g i t s s i g n i f i c a n c e . ” M o sh er and
K i n g s l e y l i s t t h r e e m a a l n o b j e c t i o n s to. t h e l i v i n g wage 9 co n cep t. T h e se a r e ( 1 ) t h e e c o n o m ic i n a b i l i t y o f t h e n a t i o n t o s u p p o r t s u c h wage l e v e l s a t our p r e s e n t r a t e o f p r o d u c tiv ity ;
(2)
s t a n d a r d s upon w h ic h s u c h m inim um' w a g e s
c o u l d b e b a s e d a r e s o v a r i o u s and i l l - d e f i n e d
th a t th ey
c o u l d n o t b e a s c e r t a i n e d w i t h any r e a s o n a b l e a c c u r a c y ; (3)
th e o b j e c t io n
and
t h a t a f i x e d minimum t e n d s t o becom e t h e
maximum and w o r k e r s a r e t h e n t h e s u b j e c t o f e x p l o i t a t i o n . /
Of t h e
th ree,
v a lid ity .
10
the f i r s t The s e c o n d ,
and t h i r d h a v e r e l a t i v e l y l i t t l e in c o n tr a s t, i s
t h e on e o f w h ic h
A P e r so n n e l Program , op . c i t . , p . 5 6 . 8 R e p o r t o f Wage and P e r s o n n e l S u r v e y , o p . c i t . , p . 9 Op. c i t . , p . 4 5 3 . 10 Loc. c i t .
20.
17
much h a s b e e n w r i t t e n . The minimum wage h a s a t v a r i o u s t i m e s b e e n d e s c r i b e d a s a b a re e x i s t e n c e , l e v e l , a l i v i n g w age, a com fort l e v e l or a c u lt u r a l l e v e l , 11
Here t h e c o n c e p t s ru n t h e c o n t in u u m
fro m a .wage p e r m i t t i n g l o d g i n g and f o o d w i t h l i t t l e
e ls e ,
t o a w age w h ic h w o u ld p r o v i d e f o r a s t a n d a r d o f l i v i n g s u f f i c i e n t l y h ig h to p r o v id e fo r a l l
o f t h e w a n t s p l u s m o st
o f t h e l u x u r i e s o f a m odern c i v i l i z a t i o n . how ever,
to f e e l th a t th ere i s
It
i s proper,
a l e v e l a t w h ic h t h e minimum
wage c o u l d b e s e t ^ t o p r o v i d e f o r a h e a l t h - a n d - d e c e n c y l e v e l fo r a l l
em p lo y ee s.
The d e t e r m i n a t i o n o f t h i s
s t a n d a r d or
l e v e l l e a d s in t o a d e te r m in a tio n through c o s t - o f - l i v i n g and t h e o r e t i c a l b u d g e t s t u d i e s o f t h e a v e r a g e wage n e c e s s a r y to m a in ta in t h i s
s t a n d a r d ..
The t e c h n i q u e s o f s u c h b u d g e t
p r i c i n g h a v e b e e n g r e a t l y im p r o v e d due t o t h e work done b y t h e B ureau o f L a b o r S t a t i s t i c s ,
th e N a tio n a l I n d u s t r ia l
C o n f e r e n c e B o ard and e s p e c i a l l y t h e H e l l e r C o m m itte e .
12
R e p o r t o f Wage and P e r s o n n e l S u r v e y , p . 7 0 .
12
f,W artime B u d g e t s f o r T h ree Incom e L e v e l s , 11 H e l l e r C om m ittee f o r R e s e a r c h i n L a b o r E c o n o m i c s . ( B e r k e l e y : U n iv e r s ity o f C a lifo r n ia P r e ss, 1 9 4 4 ), p. 113.
18
Summary. The e v o l u t i o n i n
th e t h in k in g o f b o th
i n d u s t r y and g o v e r n m e n t a s r e g a r d s an o v e r - a l l wage p o l i c y has been b r i e f l y
t r a c e d from t h e
c u l t u r a l wage.
It is
s u b s i s t e n c e w age t o t h e
i m p o r t a n t t h a t t h e s t u d e n t o f wage
and s a l a r y p r a c t i c e s k e e p i n mind t h a t t h e m e th o d o f d e t e r m i n i n g s a l a r y r a t e s f o r an o r g a n i z a t i o n m u s t s t a r t from t h e b a s i c w a g e ' p o l i c y o f t h e e m p l o y e r . s o c i a l and p o l i t i c a l p h i l o s o p h i e s have brought in t o fo c u s
The new
o f th e t w e n t ie t h cen tu ry
th e r e s p o n s i b i l i t y
o f governm ent
a s a s o c i a l agency to g u id e s o c i e t y as r eg a r d s c e r t a in so c io -e c o n o m ic f a c t o r s .
The minimum wage c o n c e p t w h ic h
was i n c o r p o r a t e d i n t h e N a t i o n a l R e c o v e r y A c t , w h ic h a t t e m p t s t o s e t a b a s i c w age f o r t h e e n t i r e c o u n t r y , i s
an
i n d i c a t i o n o f th e w i l l i n g n e s s o f th e f e d e r a l governm ent t o m eet t h i s r e s p o n s i b i l i t y . One I m p o r t a n t i s s u e w h ic h l o c a l g o v e r n m e n t a l a g e n c i e s m u st f a c e and r e s o l v e
is
th e ir p o lic y
o f c o m p lia n c e o r n o n -
c o m p l i a n c e w i t h t h o s e m o r a l o b l i g a t i o n s w h ic h h a v e b e e n m a n d a ted on p r i v a t e e m p l o y e e s by f e d e r a l . . o r s t a t e l a w , b u t from w h ic h p o l i t i c a l
e n titie s
l e g a l minimum wage f a l l s
are exem p t.
w ith in t h i s
The m a t t e r o f a
sp here.
I t is
i c a l t o a ssu m e t h a t w h a t g o v e r n m e n t h a s d i c t a t e d o r g a n iz a tio n s
t o b e a g o o d and f a i r l a b o r p o l i c y ,
illo g
to p r iv a te c o u l d be
i g n o r e d by g o v e r n m e n t i t s e l f a t w h a t e v e r l e v e l p o l i c y i s
19
d eter m in e d . p o lic y
The i m p o r t a n c e o f d e f i n i n g t h e minimum wa ge
o f an o r g a n i z a t i o n w as su m m a rize d b y M osher and
K i n g s l e y when t h e y s a i d t h a t
" s u c h e m p h a s is i s
on t h e g r o u n d t h a t t h e l e v e l
o f t h e minimum w a g e ,
l e v e l r u n g o f t h e wage l a d d e r , w i l l a f f e c t p o sitio n
of a ll
wage l e v e l s
oth er l e v e l s .
ju s tifie d th e f i r s t
th e r e l a t i v e
The p r i n c i p l e
o f fix in g
f o r a l l g r a d e s o f e m p l o y e e s w i t h r e g a r d t o an
a ccep ted stan d ard o f l i v i n g i s o v e r lo o k e d .
13
Op. c i t . . p . 4 5 7 .
on e t h a t c a n n o t b e w i s e l y
CHAPTER-
IV
SALARY SETTING METHODS INCENTIVE PLANS Any s y s t e m o f w age paym ent h a s a s i t s
b a s e th e
d e t e r m i n a t i o n o f w h e t h e r t h e amount o f money t o be p a i d to
th e e m p lo y e e s h a l l b e r e l a t e d t o t i m e w ork ed o r o u t p u t *
The m a j o r i t y o f a l l e m p l o y e e s a r e p a i d b y a u n i t o f tim e m e a su r e m e n t w i t h i t s m u l t i t u d e o f m o d i f i c a t i o n s . is
e sp e c ia lly
tru e o f th e p u b lic
i n d u s t r y , ho\*rever,
se r v ic e .
T h is
In p r iv a te
a s u b s t a n t i a l number o f w o r k e r s r e c e i v e
c o m p e n s a t i o n w h ic h v a r i e s w i t h t h e amount o f t h e i r o u t p u t . W h ile t h i s p a p e r h a s a s i t s
p r im a r y p u r p o s e a d i s c o u r s e
p u b lic a g en cy s a l a r y - s e t t i n g m eth od s,
1
on
a b r i e f r ev iew o f
some o f t h e p r a c t i c e s w h ic h a r e fo u n d p r i m a r i l y i n p r i v a t e I n d u s t r y may p r o v e b e n e f i c i a l a s b a c k g r o u n d i n f o r m a t i o n . Wage s y s t e m s b a s e d on o u t p u t .
The o l d e s t and m o st
p r e v a l e n t m eth od o f p a y i n g f o r l a b o r i s b y t i m e w o r k e d . O r i g i n a l l y , p aym en t o f l a b o r f o r t o a g r ic u lt u r e p ie ce w o r k .
its
o u t p u t w as r e s t r i c t e d
Soon a f t e r t h e i n d u s t r i a l r e v o l u
t i o n , how ever, w ith th e
tr e m e n d o u s g r o w t h o f t h e f a c t o r y
sy stem ,
in th e s u p e r v i s i o n o f th e e x p a n d in g
in e ffe c tiv e n e ss
1
Wage P a y m e n t . S y s t e m s , S t u d i e s i n P e r s o n n e l P o l i c y , No* 9 1 , N a t i o n a l I n d u s t r i a l C o n f e r e n c e B o a r d , I n c . , (New Y ork : J u n e , 1 9 4 8 ) , p . 3 .
21 la b o r fo r c e l e d to in c e n t iv e was th e
o n ly such sy stem
system s o f pay.
t h e n known and i s
p r e v a le n t o f th e i n c e n t i v e s y s te m s ,o f p ay. p iecew o rk , s y s te m ,
th ere is
u n i t o f work p r o d u c e d .
By t h i s
c e r ta in
or o th e r o b j e c t i v e .
o f w h ic h e n t i t l e s stan d ard r a t e .
In the
in h i s p r o d u c tio n . system i s
to in c r e a s e p r o d u c tio n ,
stan d ard i s
2
t h e m o st
m eth od an e m p l o y e e 1s p a y
A m o d i f i c a t i o n o f th e p ie ce w o r k
reduce w a ste ,
still
a f i x e d r a t e f o r e a c h c o m p le te d
i n c r e a s e s d i r e c t l y w i t h an i n c r e a s e
a d d s an i n c e n t i v e
P ie c e w o r k
one w h ic h
im p r o v e q u a l i t y ,
In th e se p la n s ,
s e t fo r each o p e r a tio n ,
th e
a
su r p a ssin g
t h e workman t o a b o n u s o v e r and a b o v e t h e
The term premium i s u s e d i n s t e a d o f b o n u s
i n t h o s e p l a n s w h ere a n y s a v i n g s a r e d i v i d e d b e t w e e n th e e m p lo y e e and th e e m p l o y e r . T h e r e a r e many v a r i a t i o n s
o f w age i n c e n t i v e p l a n s ,
some o f w h ic h a r e d e s c r i b e d a s f o l l o w s .
The G a n t t T ask
and B onus P l a n c o m b in e s t h e paym ent o f w a g e s on a tim e b a s i s w ith a bonus fo r p r o d u c tio n a t or above th e sta n d a r d
2
Wage Paym ent S y s t e m s , o p . c i t . , p .
7.
22
task .
The H a l s e y Premium P l a n
was one o f t h e e a r l i e s t
a t t e m p t s t o c r e a t e a d i r e c t mage i n c e n t i v e * p la n ,
a d e fin ite
t im e i s
any s a v i n g o f t i n e
is
d e t e r m i n e d f o r a c e r t a i n t a s k and
d i v i d e d in v a r io u s r a t i o s betw een
t h e e m p lo y e r and t h e w o r k e r . teed .
U nder t h i s
A t im e wage i s
alxvays g u a r a n
. The E m erson P l a n d i v i d e s w o r k e r e a r n i n g s i n t o t h r e e
groups.
The f i r s t
is
a f i x e d r a t e o f p a y f o r p e r fo r m a n c e
up t o 6 6 - 2 / 3 p e r c e n t o f a sta n d a r d p r o d u c t io n r a t e . p r e m i u m .r a t e b e g i n s a f t e r t h i s e f f i c i e n c y r a t i o
The
and g o e s
from a . 0 1 p e r c e n t b o n u s f o r a 6? p e r c e n t p r o d u c t i o n up t o 2 0 p e r c e n t f o r w hat i s th ir d step i s
c o n s id e r e d th e stan d ard t a s k .
The
a b o n u s r o u g h l y e q u i v a l e n t t o an a d d i t i o n a l
one p e r c e n t wage b o n u s f o r e a c h p e r c e n t i n c r e a s e i n p r o d u c 5 t io n above ta s k . The P o i n t o r U n i t S y s t e m s a r e b a s e d on t h e amount o f work an o p e r a t o r may p e r f o r m i n any one m in u te o f t i m e . T h ere a r e many v a r i a t i o n s
of th ese p la n s,
b e i n g t h e B edau x P o i n t s y s t e m , th e Dyer U n it sy s te m .
t h e m o st p o p u l a r
t h e H aynes M a n it s y s t e m ,
and
In e a c h o f t h e s e s y s t e m s , e m p l o y e e f s
_ M e t r o p o l i t a n L i f e I n s u r a n c e Co.., ^ I n d i v i d u a l Wage I n c e n t i v e P l a n s ” , (New Y ork: 1 9 3 7 ) , p . 7 . 4 W a lte r l'D . . S c o t t , R o b e r t C l o t h i e r , a n d 'W illia m R. S p r i e g e l , P e r s o n n e l M anagem ent, (New Y o r k : M cC r a w -H ill Book Company, I n c . , 1 9 4 9 ) , p . 3 2 9 . 5 M e t r o p o l i t a n , ojo. c i t . , p . 8 .
23
e a r n i n g s a r e d e t e r m i n e d b y t h e number o f u n i t s
c o m p leted ,
60 u n i t s r e p r e s e n t i n g t h e s t a n d a r d f o r one h o u r o f w ork. In a l l t h r e e
sy stem s,
r a t e w h ic h i s
t h e w o r k e r i s p a i d a minimum h o u r l y
g u a r a n t e e d f o r a l l work p e r f o r m e d up t o t h e
6 0 -p o in t stan d ard .
A bove t h e s t a n d a r d t a s k ,
the w orker’ s
e a r n i n g s a r e i n c r e a s e d by a c e r t a i n p e r c e n t a g e th at is
o f th e tim e
saved . I n c e n t iv e pay in p u b lic s e r v i c e .
A lth o u g h th e r e i s
an e v i d e n t l a c k
o f th e p r o f i t m o tiv e i n th e p u b lic s e r v i c e ,
th ere has s t i l l
b e e n a s t r o n g e f f o r t t o i n t r o d u c e what i s
f r e q u e n t l y . r e f e r r e d to a s govern m en t.
“s c i e n t i f i c
S p er o p o i n t s o u t t h a t t h e v e r y f a . c t t h a t
governm ent d o es n o t o p e r a te i t s is
m a n a g e m en t” i n t o
p la n ts
th o u g h t o f as a m odel e m p lo y er ,
fo r p r o f it ,
th at i t
and t h a t e v e r y new
p erso n n el p o lic y u s u a lly r e c e iv e s o u ts ta n d in g p u b l i c i t y , h a s made p u b l i c s e r v i c e p on en ts o f v a r io u s
th e c e n t e r o f a t t r a c t i o n f o r p r o 6 sy s te m s or p roced u res-. T h is f a c t h a s
b e e n e s p e c i a l l y t r u e o f t h e , T a y l o r s y s t e m w h ic h i t s b a c k e r s p u sh e d f o r many y e a r s i n t h e O rdnance D e p a r tm e n t o f t h e Army b u t w i t h n o f i n a l
su ccess.
From 1 9 1 1 u n t i l 1 9 1 5
t h e r e was a c o n s t a n t s t r u g g l e b e t w e e n t h e u n i o n s on th e one s i d e and t h e O rd nan ce D e p a r t m e n t , u n d e r t h e l e a d e r s h i p
6
S p ero, 0£ .
c it.
p . 449.
24
o f G e n e r a l C r o z i e r , on t h e o t h e r s i d e * se r ie s of d ir e c tiv e s , g r e ssio n a l
s tr ik e s ,, l e g i s l a t i v e
in v e stig a tio n s,
a p p ro p ria tio n b i l l s
In 1 9 1 5 ,
a fter a
a c t i o n s and c o n
a r i d e r t o th e Army and Navy
w as a p p r o v e d .
T h is r i d e r p r o v i d e d t h a t
n o f u n d s a p p r o p r i a t e d c o u l d be u s e d t o pay t h e s a l a r y o f an y p e r s o n u s i n g a s t o p w a tc h o r o t h e r tim e m e a s u r i n g d e v i c e t o make a t im e s t u d y on any j o b ,
and t h a t no f u n d s
c o u l d b e u s e d t o p a y prem iu m s o r b o n u s e s I n a d d i t i o n t o r e g u la r w a g e s, e x c e p t f o r s u g g e s t io n s r e s u l t i n g i n im p r o v e7 m e n ts o f t h e s e r v i c e . Q
F eld m an
a l s o d i s c u s s e s t h i s g e n e r a l p r o b le m and
i n t i m a t e s t h a t m easured p r o d u c tio n i s governm ent s e r v ic e *
h ig h ly d e s ir a b le fo r
He s a y s t h a t " t o i n t r o d u c e a s y s t e m
o f p rop er rew ards f o r c a p a c it y ,
e ffo r t,.a n d
a c c o r d w i t h m odern o r g a n i z a t i o n m e t h o d s ." ^ made t o t h e f a c t t h a t i n t h e e a r l y 1 9 3 0 ‘ s ,
o u tp u t, i s
in
R eferen ce i s o v e r 90 p e r c e n t
o f th e p r o d u c t iv e l a b o r in th e c l o t h i n g f a c t o r y o p e r a te d b y t h e q u a r t e r m a s t e r c o r p s i n P h i l a d e l p h i a was on a p i e c e work b a s i s .
H ow ev er,
th e a p p l i c a b i l i t y
o f such in c e n tiv e
s y s t e m s t o t h e g r e a t b u l k o f g o v e r n m e n t e m p lo y e e s , i s , a d m itte d ly ,
in a d v is a b le .
The r e a s o n f o r t h i s
7 3 8 - S t a t * . 9 5 3 and 1 0 8 3 , 1 9 1 5 . 0 £ .-c lt.i 9 L oc. c i t .
p . 1 7 4 -1 7 5 .
is
th at govern-
25
m en t, b e in g a s e r v i c e
typ e o r g a n iz a t io n , i s
engaged in th e p r o d u c t io n o r a sse m b ly l i n e le n d s i t s e l f
to p r e c is e
u s u a lly not o p e r a t i o n , w h ic h
tim e and m o t i o n s t u d y m e a s u r e m e n t,
and t h e r e f o r e p r e c i s e xvork s t a n d a r d s a r e n o t a v a i l a b l e # Summary«
The i n c r e a s e o f v a r i o u s t y p e s o f i n c e n t i v e
p l a n s f o r d e t e r m i n i n g w o r k e r s* w a g e s t h r o u g h m ea su rem en t o f o u t p u t , h a s b e e n c a u s e d , i n t h e m a in , by t h e g r o w t h o f th e f a c t o r y sy stem .
Su ch p l a n s f a l l
i n t o t h e m a in c l a s s i
f i c a t i o n s o f p ie c e w o r k ,p r e m iu m o r b o n u s s y s t e m s , and u n i t s y s t e m s .
I n t h e p i e c e w o r k and premium s y s t e m s ,
th e w orker*s p r o d u ctio n i s g ea red d i r e c t l y r e c e iv e d .
or p o in t
I n t h e p o i n t and u n i t s y s t e m s ,
to
t h e wage
th ere
is a pre
d e t e r m i n e d s t a n d a r d b e l o w w h ic h a minimum wage i s a b o v e w h ic h t h e r e i s u s u a l l y a g r a d e d
set,
and
s y s t e m o f premium p a y
d ep en d in g u p o n .th e p e r c e n t a g e o f in c r e a s e d e f f i c i e n c y rea c h e d and m a i n t a i n e d . A t t e m p t s t o i n t r o d u c e i n c e n t i v e wage p l a n s i n $ o t h e g o v e r n m e n t s e r v i c e h a v e met w i t h v e r y l i t t l e h a s b e e n c a u s e d by ( 1 ) e m p lo y e e o r g a n i z a t i o n s ,
su ccess.
T h is
t h e o p p o s i t i o n o f u n i o n s and o t h e r and ( 2 ) t h e u n i q u e c h a r a c t e r i s t i c s
o f m ost g o v e r n m e n t j o b s w h ic h make them d i f f i c u l t t o d e s c r i b e i n te r m s o f e x a c t p r o d u c t i o n o r w ork m e a s u r e m e n t.
CHAPTER
V.
rSALARY SETTING METHODS IN GOVERNMENT SERVICE F u n d a m en ta l and c h a r a c t e r i s t i c
o f a l m o s t any p u b l i c
s e r v i c e pay p la n i s t h e p h ilo s o p h y o f " l i k e - p a y f o r l i k e w ork”.
T h is common p h r a s e h a s f o u n d i t s e l f u t i l i z e d
as
t h e b a s e f o r s a l a r y - s e t t i n g m eth o d s r a n g i n g fro m t h e c o n v e n tio n a l p o s it io n c l a s s i f i c a t i o n
sy stem t i e d
in w ith
a p r e v a i l i n g wage s u r v e y , t o t h e more r e c e n t* and m ore, h i g h l y p u b l i c i z e d f a c t o r and p o i n t e v a l u a t i o n s y s t e m s . In each o f th e s e a b ility
sy stem s,
su ccess i s
p r e d ic a te d
on t h e
t o d e s c r i b e an i n d i v i d u a l p o s i t i o n i n p r e c i s e and
c le a r term s, re q u ir e d ?
i n d i c a t i n g d u t i e s and r e s p o n s i b i l i t i e s
From t h i s p o i n t o n , h o w e v e r , t h e r o a d s b e g i n
t o d i v i d e u n t i l a t t h e e n d , an y common b a s e i s l o s t wake o f c o n f l i c t i n g c l a i m s o f s u p e r i o r i t y .
in th e
A d isc u ssio n
o f some o f t h e more b a s i c f u n d a m e n t a l s o f s u c h p l a n s may serve to i l l u s t r a t e It.
t h is a ss e r tio n . POSITION CLASSIFICATION
The im p o r t a n c e o f p o s i t i o n c l a s s i f i c a t i o n p u b lic p erso n n el te c h n ic ia n s i s
o f th e h ig h e s t order.
The f u n c t i o n o f p o s i t i o n c l a s s i f i c a t i o n as
t o m ost
may b e d e s c r i b e d
"the p r o c e s s o f g r o u p i n g t o g e t h e r t h o s e p o s i t i o n s
sin g le c la s s
th a t are s u f f i c i e n t l y a lik e
in a
i n d u t i e s and
27
r e s p o n s ib ilitie s
t o be c a l l e d b y t h e same d e s c r i p t i v e t i t l e ,
t o be a c c o r d e d t h e same p a y s c a l e u n d e r l i k e
c o n d itio n s,
and t o r e q u i r e s u b s t a n t i a l l y t h e same q u a l i f i c a t i o n s on t h e 1 p a r t o f t h e . i n c u m b e n t s . ,f I t can r e a d ily be se e n th a t i f t h e p h i l o s o p h y o f “l i k e to ,
it is
pay fo r l i k e
w ork0 i s
t o be ad h ered
n e c e s s a r y t h a t t h e w a g e - r s e t t i n g a g e n c y m ust f i r s t
know w h at t h e work o f e a c h j o b i s ?
O b v io u s ly ,
th ou gh ,
any l a r g e a g e n c y i t w o u ld b e a l m o s t i m p o s s i b l e
to ,s ta r t
t i n g s a l a r i e s f o r e a ch in d iv id u a l job or p o s i t i o n . p o sitio n c la s s if ic a t io n
com es t o t h e r e s c u e .
it
set
H ere,
F o r , rw i t h t h e
p r e d e te r m in e d g r o u p in g o f a l l s i m i l a r p o s i t i o n s c la s s,
in
in to a s in g le
th e n becom es n e c e s s a r y o n ly to a l l o c a t e a s a la r y
t o t h e one c l a s s ,
r e g a r d l e s s o f t h e number o f i n d i v i d u a l
p o s i t i o n s w h ic h h a v e b e e n g r o u p e d ' t o g e t h e r .: and g i v e n t h e common c l a s s
title .
I n t h i s m ann er we a r e a s s u r e d t h a t
at le a st a ll
j o b s w i t h e q u a l d u t i e s and r e s p o n s i b i l i t i e s
w i l l b e r e c e i v i n g t h e same pay? P o sitio n c la s s if ic a t io n ,
w h i l e b a s i c t o . a n y co m p en sa
t i o n p l a n h a s many o t h e r v i r t u e s t o commend i t . sa id th a t
I t has been
“among t h e t e c h n i c a l r e q u i r e m e n t s o f a s a t i s f a c t o r y
Ism ar Baruch, e d . , P o s i t i o n C l a s s i f i c a t i o n i n the P u b l i c S e r v i c e , ( C h i c a g o : C i v i l S e r v i c e A s s e m b ly o f t h e U n i t e d S t a t e s and C an ad a, 1 9 4 2 ) , p . 3 .
28
p e r s o n n e l s y s t e m , non e e x c e e d s i n im p o r t a n c e t h a t o f e f f e c t - . in g a s y s te m a tic c l a s s i f i c a t i o n . a n d p o sitio n s
c o v e r e d by t h e s y s t e m .
sta n d a r d iz a tio n o f a l l . . . S u ch a c l a s s i f i c a t i o n
and
s t a n d a r d i z a t i o n o f p u b l i c em p loym en t c o n s t i t u t e s i n d e e d , t h e s t a r t i n g p o i n t o r t h e b a s e s upon w h ic h t h e w h o le p e r s o n 2 n e l s t r u c t u r e must r e s t . 11 ed a s s i f i c a t i o n i s
Baruch i n d i c a t e s t h a t p o s i t i o n
n o t an end i n i t s e l f , b u t a means f o r
fa c ilita tin g
t h e a c c o m p l i s h m e n t o f t h e many e n d s o f p e r s o n n e l 3 a d m in is tr a tio n . Among t h e many u s e s o f a c l a s s i f i c a t i o n p l a n are
(1) u n ifo rm o c c u p a t io n a l te r m in o lo g y ;
pay p la n ; b u d gets;
(3 ) (4)
a ss is ta n c e
in o r d e r ly ,
e f f e c t i v e r e c r u itm e n t
( 5 ) and u s e i n p r o v i d i n g f o r l i p e s 4 t r a n s f e r and s i m i l a r p e r s o n n e l p r o c e s s e s . It
p la n
a b a se f o r th e
an a i d i n t h e p r e p a r a t i o n o f i n f o r m a t i v e
and s e l e c t i o n ; tio n ,
(2)
sh o u ld be r e c o g n i z e d ,
o f p rom o-
h o w e v e r , t h a t rw h i l e t h e p a y
i s u s u a l l y p r e d i c a t e d on t h e p o s i t i o n c l a s s i f i c a t i o n
p la n ,
the
tw o a r e n o t i d e n t i c a l .
Care m ust b e t a k e n - t o
rem em ber t h a t a l l o c a t i n g a p o s i t i o n t o a c l a s s d o e s n o t f i x its
ra te
of pay.
W hereas t h e c l a s s i f i c a t i o n p l a n g r o u p s
2
W. F W i l l o u g h b y , P r i n c i p l e s o f P u b l i c A d m i n i s t r a t i o n , ( W a s h in g t o n , D .C .; The B r o o k i n g s I n s t i t u t e , 1 9 2 7 ) , p . 2 4 6 . 3 . . . Ism ar B aruch, ° B a s ic A s p e c ts o f P o s i t i o n - c l a s s i f i c a t i o n , 11 P u b l i c P e r s o n n e l R e v i e w , 1 : 8 , O c t. 1 9 4 0 . 4
Baruch,
op. c l t . , pp.
8 -1 2 .
29 p o sitio n s
to g eth er
ib ilitie s ,
it
on t h e b a s i s o f l i k e
does n o t tak e in to c o n s id e r a t io n
a b l e s a s w o r k in g c o n d i t i o n s , a ll
d u t i e s and r e s p o n s such v a r i
g eo g ra p h ic d i f f e r e n c e s , e t c . ,
o f w h ic h may b e i n c l u d e d a s a . b a s i s f o r d e v i a t i o n ' from
th e sta n d a r d s a l a r y f o r th e c l a s s . tio n s,
if
Such em p lo y m en t c o n d i
r e c o g n i z e ^ i n t h e wage p o l i c y o f t h e
o r g a n iz a tio n ,
may r e q u i r e v a r y i n g r a t e s o f p ay f o r p o s i t i o n s
i n t h e same
c l as s • From t h i s p o i n t o n , p u b l i c pay p l a n s b e g i n t o f o l l o w v a r io u s p a th s .
The m o s t common i s
th e u s e o f a p r e v a i l i n g
wage s u r v e y w h ic h a t t e m p t s t o a s c e r t a i n t h e " m a r k e t” r a t e f o r c e r t a i n k e y c l a s s e s p la n ?
T h is p r o c e s s ,
fr e q u e n tly fin d s
attem p ts to f i x
o r c l a s s e s w h ere t h e r e tr y to su r v e y .
It
in th e c l a s s i f i c a t i o n
w h ic h w i l l b e d i s c u s s e d i n g r e a t e r
d e t a il in l a t e r c h a p te r s, c u l t y when i t
" g o in g ” or
is
its e lf
in d i f f i
s a la r ie s fo r th ose p o s itio n s
are no c o u n te r p a r ts in p r iv a t e in d u s w ith th e se c la s s e s
th a t th e r e fin e d
s a l a r y - s e t t i n g m e th o d s make t h e i r b i d f o r fa m e . II.
JOB EVALUATION
’i n an e f f o r t t o e s t a b l i s h an o b j e c t i v e
and e q u i t a b l e
wage p l a n ,
t h e r e h a v e b e e n a number o f j o b - e v a l u a t i o n p l a n s
in tr o d u ce d
in t o b o th p r iv a t e
la s t th ir ty
years.
and p u b l i c a g e n c i e s 1 d u r i n g t h e
‘A l l o f t h e s e p l a n s have a s a common
30
p u r p o s e t h e r a t i n g o f j o b s on a r e l a t i v e b a s i s
in order to
a d e q u a t e ly r e f l e c t d i f f e r e n c e s i n jo b req u irem en ts* recen t years,
In
t h i s demand f o r o b j e c t i v i t y h a s l e d t o t h e
i n c r e a s e d u s e o f j o b e v a l u a t i o n s y s t e m s w h ic h a t t e m p t t o u s e a m a t h e m a t i c a l b a s e , h o p i n g t h e r e b y t o a d h e r e t o t h e them e o f o b je c tiv e
sa la r y d e ter m in a tio n *
As I n d i c a t e d by one
g o v e r n m e n t a g e n c y w h ic h h a s a d o p t e d a p o i n t e v a l u a t i o n system ,
“o n e o f t h e c h i e f f a u l t s o f m o st c l a s s i f i c a t i o n
p la n s i s
t h a t I f an e m p lo y e e w i t h an i n q u i r i n g m ind b e c o m e s
in q u isitiv e to a c e r ta in
a b o u t t h e m eth o d i n w h ic h h i s c l a s s was a l l o c a t e d g r a d e and o c c u p a t i o n a l l e v e l ,
th e c l a s s i f i c a t i o n
a n a l y s t m u st g e n e r a l l y d e f e n d a ju d g m en t on w h ic h t h e r e i s 14 n o w r i t t e n r e c o r d . 11 V a r i o u s m e th o d s a r e u s e d b y p o s i t i o n - c l a s s i f i e r s , m o st p r e v a l e n t b e i n g
a m o d i f i e d form o f j o b r a n k i n g .
the
H ere
t h e c l a s s i f i e r c o m p a r e s one p o s i t i o n w i t h a n o t h e r p o s i t i o n ( o r w i t h an e s t a b l i s h e d c l a s s )
and d e t e r m i n e s w h ic h i s ' h i g h e r ,
B a s i n g h i s . c o n c l u s i o n on a number o f l o o s e l y d e f i n e d c r i t e r i a or fa c to r s .
F r e q u e n tly s p e c i f i c
fa c to r s are c a lle d
in to use
i n t h e e v a l u a t i o n p r o c e s s , b u t i n m o s t c a se 's t h e f a c t o r s a r e c h a n g e d from p r o b le m t o p r o b l e m , a b ility
so e s s e n t i a l
to a v a lid
and t h e c o n t i n u i t y and r e l i e v a l u a t i o n p r o c e s s becom e l o s t .
14
. . G la ss E v a l u a t i o n , F l i n t C i v i l S e r v ic e ( F l i n t , ' M i c h i g a n : O ctob er 1 5 , 1 9 4 3 ) , p . 4 .
C o m m issio n ,
31
I n an e f f o r t t o a c h i e v e t h i s v a lid ity ,
o b j e c t i v i t y and t o i n c r e a s e
a d v o c a t e s o f t h e n ew er j o b . e v a l u a t i o n s y s t e m s h a v e
b r o u g h t f o r t h p la n s w hereby a l l p o s i t i o n s
( j o b s ) i n an o r g a n
i z a t i o n a r e a n a l y z e d and b r o k e n down i n t o t h e w h ic h d e t e r m i n e t h e r e l a t i v e v a l u e o r g a n iz a tio n #
The i d e n t i f i c a t i o n
“b a s i c f a c t o r s ' 1
o f th e p o s i t i o n
to th e
and d e s c r i p t i o n o f t h e s e
f a c t o r s a r e p r o b a b l y tw o o f t h e b i g g e s t o b s t a c l e s i n t h e e v a l u a t io n program .
One w r i t e r d i s p o s e d o f t h i s p r o b le m b y s t a t i n g
t h a t “i f we make t h e e f f o r t , w h ic h g i v e a p o s i t i o n w o r t h . may seem t o o
in ta n g ib le
we c a n i d e n t i f y At f i r s t b l u s h ,
th e y w ill,b e c o m e
m only u n d e r s t o o d .
th ese fa c to r s
f o r any p r a c t i c a l a p p l i c a t i o n
m e a s u r in g j o b v a l u e ; b u t by a n a l y s i s , itio n ,
th o se fa c to r s
d isc u ssio n ,
in
and d e f i n
c l o t h e d w i t h m e a n in g s t h a t a r e com
By t h i s p r o c e s s ,
t h e w h o le p r o b le m o f
d e t e r m i n i n g t h e w o r t h o f one t y p e o f work c o m p o n e n ts i s more 15 e a s i l y s o l v e d . 11 rThe two m o s t p r e v a l e n t s y s t e m s f o r t h e u t i l i z a t i o n o f o r g a n iz e d ,
o b je c tiv e
a n a ly s is
c o m p a r is o n and p o i n t r a t i n g .
o f j o b s a r e known a s f a c t o r
B oth o f t h e s e s y s te m s in v o lv e
th e u se o f fsecto rs su ch as t r a i n i n g , ity
and s u p e r v i s i o n .
le v e ls
.Each c l a s s i s
e x p e r ie n c e , r e s p o n s ib il com p ared a c c o r d i n g t o
o f t h e s e p r e d e te r m in e d f a c t o r s ,
such co m p a riso n s r e s u l t -
1 5 J 0 hn F. F i s h e r , "Job E v a l u a t i o n t h r o u g h P o i n t R a t i n g , 11 P u b lic P e r so n n e l R e v iew , 2 : 1 9 - 2 6 , Ja n u a ry , 1 9 4 4 .
32
I n g e v e n t u a l l y i n a n u m e r ic sum o r d o l l a r v a l u e .
The f a c t o r s
m e n t i o n e d a b o v e a s e x a m p l e s a r e o n l y a f e w o f t h e many f a c t o r s u se d , th e
a c t u a l num ber r a n g i n g from a u s u a l minimum o f f o u r
up t o a s many a s f o r t y . F a c to r c o m p a r iso n .
The f a c t o r c o m p a r is o n s y s t e m b u i l d s
a c t u a l s a l a r i e s b a s e d on d o l l a r v a l u e s a l l o t e d f a c t o r s and d e g r e e s t h e r e i n .
t o th e v a r io u s
H ere c e r t a i n k e y c l a s s e s
( s e l e c t e d b e c a u s e o f t h e i r a c c e p t e d v a l i d w a g e s w h ic h can b e e a s i l y d e t e r m i n e d i n t h e c o m m u n ity ) . a r e r a n k e d from h i g h e s t t o l o w e s t u n d e r e a c h o f th e f a c t o r s .
Then e a c h k e y c l a s s and t h e t o t a l
is
e v a l u a t e d on t h e b a s i s
of every fa c to r
sa la r y
( p r e v i o u s l y d eterm in ed
by wage s u r v e y s ) i s d i s t r i b u t e d b e t w e e n
e a c h o f t h e f a c t o r s by e s t i m a t e s a s t o how much e a c h o f t h e v a r io u s f a c t o r s c o n t r ib u t e s t o th e t o t a l The r e s u l t
is
a lis t
ranked
and e a c h c l a s s u n d e r a n y one f a c t o r
has been g iv e n a d o lla r v a lu e , p r e d e te rm in ed s a l a r y . r a t e . o th er c la s s e s
o f th e c l a s s .
o f key c l a s s e s under e a ch f a c t o r ,
from h i g h e s t t o l o w e s t ,
a ll
sa la r y
.
a s s ig n e d as a p o r tio n o f th e
W ith t h i s
as a b a s ic p a tte r n ,
a r e a n a l y z e d and i n s e r t e d i n t o
th e l i s t
of
key c l a s s e s under e a c h f a c t o r i n t h e i r p ro p er r e l a t i v e p o s i tio n s.
What r e s u l t s
each fa c to r ;
is
th e t o t a l
r a te fo r th e c l a s s .
a
d o l l a r v a lu e
of th ese d o lla r
fo r each c l a s s under v a lu e s b e in g ,th e
sa la r y
33
P o in t sy stem . and f a c t o r s .
H ere,
The p o i n t s y s t e m a l s o u s e s k e y c l a s s e s h o w e v e r , more p r e c i s e d e f i n i t i o n s
t h e f a c t o r s and d e g r e e s o f e a c h f a c t o r a r e u s e d .
for
T h ese
g r a d a t i o n s a r e a s s i g n e d a s p e c i f i c number o f p o i n t s . a n a ly s is
o f each c la s s
and g r a d a t i o n t h e r e o f ,
The
i s made by c o m p a r is o n w i t h e a c h f a c t o r and an a s s i g n m e n t o f p o i n t s a c c o r d i n g
t o the g r a d a t io n o f e a c h f a c t o r .w h i c h m ost a d e q u a te ly d e s c r ib e s th e c l a s s is
in q u e stio n .
The t o t a l f o r e a c h c l a s s
t h e n p l o t t e d . o n a s c a t t e r d ia g r a m w i t h h o r i z o n t a l and
v e r tic a l
sc a le s.
th e v e r t i c a l sa la r ie s
The h o r i z o n t a l
rep resen ts d o lla r s .
f o r th e k ey c l a s s e s ,
s c a l e r e p r e s e n t s p o i n t s and U s i n g t h e p o i n t s and
a lin e
c a n b e drawn from t h e
lo w e s t p l o t t e d p o in t to th e h i g h e s t . from t h e
The p o i n t s d e r i v e d
e v a l u a t i o n o f o t h e r j o b s c a n th e n be p u t on th e
d ia g r a m and b y r e f e r e n c e a c r o s s t o t h e h o r i z o n t a l a x i s , sa la r y i s
th e n a sc er ta in e d '?
The n e t r e s u l t i s jo b .
the
an lio b j e c t i v e 11 e v a l u a t i o n o f e a c h
Many q u e s t i o n s h a v e b e e n r a i s e d r e g a r d i n g t h e s e p l a n s
w h ic h a r e p e r t i n e n t t o t h i s d i s c u s s i o n . ^ F a c to r w e i g h t ! n g . system i s
W e ig h tin g o f f a c t o r s
i n any p o i n t
one o f t h e m o st i m p o r t a n t i t e m s and y e t i s
th e w eakest l in k s in th e e n t ir e p la n . p l a n s show v e r y l i t t l e
one o f
C o m p a riso n s o f v a r i o u s
u n i f o r m i t y i n f a c t o r w e i g h t i n g and
e v e n l e s s m a th e m a tic a l v a l i d a t i o n
f o r the a llo t m e n t o f p o in t s ?
Why a f a c t o r s u c h a s e d u c a t i o n ,
w h ic h i s
o r m onth s o f a c a d e m ic t r a i n i n g ,
sh o u ld ca rry d i f f e r e n t r e l a
t i v e w e ig h ts in d i f f e r e n t p la n s i s e x p la in .
d e s c r i b e d by y e a r s
so m e th in g d i f f i c u l t
to
D i f f e r e n c e s b e t w e e n f a c t o r y and c l e r i c a l o c c u p a t i o n s
are r e l a t i v e l y
o b v i o u s , b u t e v e n h e r e we f i n d p l a n s w h ic h u s e
t h e same m e a s u r i n g s t i c k
fo r b o th ty p e s o f jo b s .
F lin t,
M ic h
i g a n , was v e r y f r a n k i n t h e i r e x p l a n a t i o n o f t h e f a c t o r w e i g h t in g u sed in t h e i r ,p la n :
’’E q u a l w e i g h t o f one p o i n t i s
t o e a c h e l e m e n t . . . . a l s o , e v e n t h o u g h i t was r e a l i z e d fa cto rs
a r e more i m p o r t a n t th a n o t h e r s ,
t h a t some
e q u a l w e i g h t s o f one
p o i n t on e a c h e l e m e n t w e r e a s s i g n e d b e c a u s e i t tic a b le
a ssig n e d
seem ed im p r a c
t o a t t e m p t t o w e i g h t e a c h one d i f f e r e n t l y .
A ttem p ts
to a s s ig n d i f f e r e n t w e ig h ts t o th e f a c t o r s m u lt ip ly th e p o s s ib ility
o f e r r o r s i n j u d g m e n t, and v a r y i n g w e i g h t s a r e d i f f i 16 c u l t t o e x p l a i n and u s e . ” Y et p r e v a il i n g p r a c t i c e i n d ic a t e s th a t th e fa s io n a b le
t h i n g t o do i s
on e a c h f a c t o r and s u b - f a c t o r ,
to have v a r y in g w e ig h ts
su ch v a lu e s u s u a l l y d eterm in ed
b y t h e p o o l e d ju d g m en t o f e x p e r t s ,
^Tew p o i n t s y s t e m s ,
if
any,
make t h e c l a i m t h a t t h e a s s i g n e d w e i g h t s w e r e d e v e l o p e d a s the r e s u l t u sed '.
o f any s t a t i s t i c a l
a n a l y s is o f th e b a s ic f a c t o r s
As a m a t t e r o f f a c t m ost a d v o c a t e s o f t h e
a d m it t h e . s e l e c t i o n procedure?
system w i l l
o f t h e p o i n t s was a p u r e l y a r b i t r a r y
35
C r o w ley s a y s ,
wMany p e o p l e who h a v e a p p l i e d p o i n t
r a t i n g te c h n iq u e s have d e c id e d t h a t w e ig h ts a re u n n e c e ss a r y a s t h e f a c t o r s u s e d a r e d e v i s e d s o t h a t some d e g r e e o f e q u a l 17 i t y o f im p o rta n ce i s a t t a c h e d t o e a c h ." T h is i s p r a c t i c a l l y a r e s t a t e m e n t o f th e c o n c lu s i o n r ea c h e d by F l i n t , M ic h i g a n ,
in t h e ir p la n .
A s id e fro m a p p l y i n g c o m p l i c a t e d ,
cum bersom e,
and t i m e - c o n s u m i n g s t a t i s t i c a l m e t h o d s , we know
very l i t t l e
a s y e t a b o u t t h e e x a c t m e a s u r a b le
o f in d iv id u a l fa c t o r s . o f ty p es o f fa c to r s in
T h is i s
im p ortan ce
b o r n e o u t b y t h e w id e v a r i e t y
sy stem s a lr e a d y in u s e .a n d a l s o by
t h e d i f f e r e n c e s i n w e i g h t s when t h e y a r e u s e d . th is le a d s
to c o m p lic a te d s t a t i s t i c s ,
but in th e o p in io n o f
a t l e a s t some who h a v e a p p l i e d p o i n t r a t i n g , of s ta tis tic a l a p p lic a tio n
As i n d i c a t e d ,
flt h e - u s e f u l n e s s
r e fin e m e n ts d e c lin e s r a p id ly in p r a c t ic a l
t o t h e s e p e r s o n n e l p ro b lem s f o r th e j u g g l i n g
p r o c e s s o f s u b j e c t i v e ju d g m en t c a n n o t h o n e s t l y b e a v o i d e d 10 a t s e v e r a l p o i n t s a l o n g th e l i n e . H The c o n c l u s i o n s r e a c h e d a b o v e w o u ld seem t o i n d i c a t e th a t ra th er
th a n t r y i n g t o e s t a b l i s h a v a l i d m ea su r e o f j o b s
17
J o h n C. O r o w l e y , uJ o b E v a l u a t i o n M eth od s i n S a l a r y A n a l y s i s , 11 P u b l i c P e r s o n n e l R e v i e w , 7 : 1 9 8 , O c t o b e r , 1 9 4 6 . 18
Loc. c i t .
36
th r o u g h s t a t i s t i c a l
r e fin e m e n ts,
a s y s t e m w h ic h p e r m i t s a l i t t l e
one s h o u l d be s a t i s f i e d w i t h h o n e s t j u g g l i n g when n e c e s
sa r y to r e a c h c e r t a in p r e d e te rm in ed o b j e c t i v e s .
One a d v o c a t e
o f su ch s y s t e m s . t o l d t h i s w r i t e r t h a t e v e r y p la n sh o u ld have a l o t o f p o in ts.
H is r e a s o n i n g wa& t h a t i f . n o t ,
th en each
p o i n t b e c o m e s a m a t t e r o f u t m o s t i m p o r t a n c e . ■ W h e r ea s, th e r e are 2000 p o s s ib le
p o in ts,
t h e a n a l y s t can c o n c e d e f i v e
or te n p o i n t s w ith o u t a f f e c t i n g th e f i n a l outcom e. fran k n ess i s
if
Such
r e f r e s h in g , b u t h a r d ly ten d s to d e v e lo p c o n f i
dence in such sy ste m s. E v a lu a tio n p r o c e s s .
The p r e m i s e on w h ic h a d v o c a t e s
o f p o in t system s u s u a lly r e s t t h e i r c a se i s th e job i n
its
tru e w o rth t o the o r g a n i z a t i o n .
we f i n d h a p p e n in g ? se le c te d ,
The p o i n t p l a n i s
p o in t v a lu e s a ssig n e d
" e v a lu a te* 1 th e j o b s .
to th e f a c t o r s
jo b s f i t
N a tu r a lly ,
Y e t , w hat do
a d o p ted , key jo b s a re
t h a t t h e y c om p ly w i t h j o b r a n k i n g r e s u l t s ) to
t h a t we m ust p a y
(m a k in g s u r e
and t h e n we p r o c e e d
ou r k e y or b enchm ark
r i g h t i n t o th e p r e c p n c e iv e d p la n b e c a u se th e p o in t s
a r e b a s e d on t h e s e
same j o b s .
Then we c o n v e r t p o i n t s i n t o
m o n e ta r y v a l u e s by p l o t t i n g p o i n t s . a l o n g a h o r i z o n t a l a x i s and s a l a r i e s referen ce lis h
a lo n g a v e r t i c a l a x i s .
C o n n e ctin g th e p o i n t s
of
f o r t h e k e y j o b s and t h e p r e v a i l i n g w a g e , we e s t a b
a c u r v e on w h ic h we a r e a b l e t o p l a c e
o th er jo b s depend
i n g on t h e number o f p o i n t s t h e y c a n g a r n e r .
3?
HThe S o u t h e r n C a l i f o r n i a A i r c r a f t I n d u s t r y p l a n i s s e t up p r i m a r i l y on t h e p o i n t r a t i n g p r i n c i p l e .
H ow ever,
th e v a lu a b le lo n g range approach o f th e k e y jo b g r a d in g ( r a n k i n g ) m eth o d i s c ip le
not lo s t
sig h t o f.
The o v e r a l l p r i n
o f g r a d in g i s u s e d a s a ch eek to v e r i f y th e r e s u l t s
o f th e p o i n t r a t i n g and t o i n s u r e t h a t a l l j o b s f a l l i n 19 th e ir proper r e la tiv e ' p o s itio n ." H ere we f i n d t h e same m eth od b e i n g u s e d a s a c h e c k , w h ic h i s
so s t r o n g ly o b je c te d
to as b e in g to o s u b j e c t iv e . F a c t o r s e l e c t i o n . T h is p o i n t i s
r e l a t e d t o th e q u e s t io n
o f f a c t o r w e ig h t in g b e c a u s e by u s i n g c e r t a i n are a p p lic a b le
o n ly to a p a r t ic u la r
we g i v e a d d i t i o n a l w e i g h t ,
f a c t o r s w h ic h
job or group o f j o b s ,
in ten tion ally
or o th e r w is e .
F or
e x a m p le , p h y s i c a l e f f o r t i s u s e d i n a . p l a n w h ic h e v a l u a t e s b oth c l e r i c a l be o f v a l u e
and f a c t o r y o c c u p a t i o n s .
W h ile t h i s f a c t o r may
i n d e t e r m i n i n g r a t e s f o r manual o c c u p a t i o n s ,
do we i n c l u d e i t
for c le r ic a l
v a lu e w h atsoever?
o c c u p a t i o n s w h ere i t i s
T h is l e a d s u s i n t o
why
o f no
a d i s c u s s i o n o f th e
v a l u e i n u s i n g any p l a n w h ic h a t t e m p t s t o make c o m p a r is o n s b e t w e e n m e c h a n i c a l t r a d e s and c l e r i c a l
o c cu p a tio n s.
It
is
a
w id e ly a c c e p te d f a c t t h a t e x te r n a l p r e s s u r e s have caused c e r ta in
c la s se s
o f e m p l o y e e s t o e n j o y h i g h e r w a g e s and b e t t e r
w o r k in g c o n d i t i o n s , w h i l e t h e i r l e s s
—
”"T£T~
In d u stry,
fo r tu n a te b r e th er n have
Job E v a lu a t io n P la n , S ou th ern C a l i f o r n ia A i r c r a f t N ovem ber, 1 9 4 1 , p . 3 .
38
seen r e l a t iv e l y fa cto r is
f e w e r and s m a l l e r wage i n c r e a s e s .
A n o th e r
t h e t y p e o f wage w h ic h h a s b e e n i n f l u e n c e d by c u s
tom and t r a d i t i o n . . w o r k e r s and o t h e r s .
H ere we f i n d n u r s e s ,
tea ch ers,
Few o r g a n i z a t i o n s a r e w i l l i n g t o d e f y
p u b l i c o p i n i o n by l o w e r i n g t h e t r a d e s t o t h e l e v e l c l e r i c a l h e l p when a p o i n t s y s t e m i n d i c a t e s t h e same l e v e l . to r a is e
so c ia l
By t h e
th e c le r k s to
same t o k e n , th e l e v e l
o f th e
t h a t t h e y a r e on
fe w e m p l o y e r s a r e w i l l i n g
of the t r a d e s .
M ost p l a n s
e v a d e t h i s p r o b le m by v a r i o u s m e th o d s o f a d j u s t m e n t s p o i n t s and l o a d i n g o f v a r i o u s f a c t o r s .
in
O t h e r s make no
a t t e m p t t o make a e r o s s - c o m p a r i s o n and h a v e d i f f e r e n t p l a n s fo r th e is
two g r o u p s .
The S o u t h e r n C a l i f o r n i a A i r c r a f t I n d u s t r y
a g o o d e x a m p le o f t h e l a t t e r . F a cto r v a l i d i t y .
in th e f i e l d o f c e r ta in
Many i n d e p e n d e n t s t a t i s t i c a l
o f p o i n t r a t i n g h a v e shown t h e
fa c t o r s as used in r a tin g p la n s .
a p o in t sy stem w ith e le v e n f a c t o r s
stu d ie s
in e ffe c tiv e n e ss 20 B en ge stu d ie d
o f v a r y in g w eig h ts*
A com
p a r a t i v e a n a l y s i s was. m ade o f t h e f i n a l r a n k i n g o f t h i r t y - t w o j o b s o b t a i n e d u n d e r t h e . b a s i c m eth o d w i t h t h e r a n k i n g s i f f e w e r f a c t o r s w e re u s e d .
R e s e a r c h show ed t h a t t h e f a c t o r
“E x p e r i e n c e H g a v e a r a n k i n g v e r y c l o s e th e e le v e n f a c t o r s . two more f a c t o r s ,
t o t h a t , o b t a i n e d from
The c o r r e l a t i o n w as p l u s
*97.
By a d d i n g
“S a f e t y t o O t h e r s 11 and “W orking C o n d i t i o n s 1',
P0"~ E u g en e J . B e n g e , “S t a t i s t i c a l S tu d y o f a J o b E v a l u a t i o n P o i n t S y s t e m , “ Modern M anagem ent, 7 : 1 7 - 8 5 . A p r i l , 1 9 4 7 .
39
t h e c o r r e l a t i o n w as i n c r e a s e d t o p l u s a lm o st p e r f e c t r e l a t i o n s h i p . f a c t o r s w ere u s e d ,
.9 9 ,
r e p r e s e n t i n g an
When s e v e n o f t h e e l e v e n
t h e c o r r e s p o n d e n c e was s o h i g h t h a t a l l
b u t two J o b s w o u ld p l a c e i n t h e same g r a d e s a s r e s u l t e d from u s e o f t h e e l e v e n
fa cto rs.
Lav/she
21
, R ogers
pp
and
o t h e r s s t u d y i n g t h e same p r o b le m w i t h d i f f e r e n t s t a t i s t i c a l te c h n iq u e s,
r e a c h e d s u b s t a n t i a l l y t h e same c o n c l u s i o n s .
Why t h e n do we c o n t i n u e
t o f i n d su ch e la b o r a t e p la n s?
The
a n sw e r se e m s t o b e t h a t r e g a r d l e s s o f t h e s t a t i s t i c a l a ccu ra cy of su ch s t u d i e s ,
th e lo n g e r p la n s
E m p lo y e e s a r e i m p r e s s e d .
One i n d u s t r i a l i s t s a i d t h a t he
p r e fe r r e d th e lo n g e r p la n s even i f
“l o o k g o o d " .
t h e y d i d n ' t add a n y t h i n g
t o th e a b b r e v i a t e d p l a n s , p r o v i d i n g t h e y d i d n ' t c h a n g e t h e fin a l r a tin g s.
Face v a l i d i t y
at a ll
co sts
seem s t o b e t h e
answ er. F a cto r d u p lic a t lo n .
T h ose f a c t o r s w h ic h can b e
e x p r e s s e d in c o n c r e t e term s are u s u a l l y n o t d u p l i c a t e d in th e p la n .
F or e x a m p l e ,
and e x p e r i e n c e years)
such th in g s as e d u c a tio n or t r a i n in g
( b o t h o f w h ic h c a n be e x p r e s s e d i n m onth s and
as a r u le ,
c a r r y no o t h e r c o n n o t a t i o n s w h ic h c o u l d b e
e x p r e s s e d by d i f f e r e n t t e r m s . 21
H o w ever, t h e f a c t o r s o f i n t e l -
'
C. H. L a w sh e , J r . , " S tu d .ie s i n Job E v a l u a t i o n , " J o u r n a l o f A p p l i e d P s y c h o l o g y , 3 0 : 5 7 9 - 8 5 , D ece m b e r, 1 9 4 6 . C. R o g e r s , " A n a l y s i s o f Two P o i n t R a t i n g J o b E v a lu a t io n P la n s ," J o u r n a l o f A p p lie d P s y c h o lo g y , 3 0 : 5 7 9 - 8 5 , D ecem b er, 1 9 4 6 .
lig e n c e ,
sk ill,
r e sp o n s ib ility
and o t h e r s , p r o v i d e a f e r t i l e
fie ld .fo r
th e g i f t e d a n a ly s t to d is p la y h i s e x t e n s iv e v o ca b i As a r e s u l t , we g e t s u c h te r m s a$ v e r s a b i l i t y , a n a l y
u la r y .
tic a l a b ility , a lso fin d
in itia tiv e ,
a p p lic a tio n ,
(su ch a s i n t e ll i g e n c e ) y a n d a ls o
(su ch a s i n i t i a t i v e ) .
F is h e r sa y s ,
one o f i t s
" In o r d e r t o a v o i d t h e s e p r o b le m s i t in v o lv in g th e
o f a s m a l l number o f b r o a d l y d e f i n e d f a c t o r s .
in sta n c e s in c lu d e
We
.
a p p e a r s t h a t m ost c o m p a n ie s h a v e a.dopted p l a n s use
etc.
i n many p l a n s t h a t t h e y h a v e ^ i n e l u d e d t h e g e n e r a l
c h a r a c te r istic c o m p o n e n ts
a p titu d e ,
it
I n some
a p p e a r s t h a t t h e f a c t o r s a r e s o b r o a d and
s u c h a c o n g e r i e s o f work c o n s i d e r a t i o n s t h a t t h e
pu rp ose o f t h e i r u se a tta in e d .
i n o b j e c t i f y i n g ju d g m en t i s
never
The ways i n w h ic h s u c h d e c i s i o n s may a f f e c t t h e
v a lid ity
o f a p la n s u g g e s t e x tr e m e . c a u t io n in th e s e l e c t i n g 23 and nam ing o f f a c t o r s o f jo b w o r t h ." P r e v a ilin g ra te sc ie n tific
v a lid ity ,
c o n flic ts.
L e a v in g th e q u e s t io n
t h e r e are c e r t a in
of
o th er p r a c t i c a l
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41
e x a m p le s o f t h e s e . (w h eth er v a l i d
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or n o t )
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job s.
for o f f i c i a l s ,
th u s p la c in g a c e i l i n g
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s t r i c t a d h e r e n c e t o any e v a l u a t i o n p r o g r a m . To w h a t u s e s ,
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i n d u s t r y and e v e n no s i m i l a r a r r a n g e
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t h e same h i e r a r c h y o r f a m i l y g r o u p i n g . t i v e p l a c e m e n t on th e
sc a le ,
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e v a lu a tio n ,
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42
III,
COST-OF-LIVING- SALARY PLANS
The m o s t f r e q u e n t c a u s e o f s t r i k e s among p u b l i c 24 e m p lo y ee s, a c c o r d in g t o Z is k in d , has been th e f a i l u r e w a g e s t o r i s e w i t h an i n c r e a s e i n t h e c o s t o f l i v i n g * c a t e s o f the
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e c o n o m ic c y c l e ,
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t h e p u b l i c e m p lo y e e w i l l b e g u a r a n t e e d a c o n
s t a n t p u r c h a s i n g p o w e r ; p u r c h a s i n g p o w er b e i n g c o n s i d e r e d t h e r e a l m easure o f w orth o f a s a l a r y .
The D e t r o i t B u reau o f
G o v e r n m e n ta l R e s e a r c h h a s p u b l i s h e d an e x c e l l e n t summary o f 25 su ch p la n s* F or m ost o f t h e s u c c e e d i n g m a t e r i a l c r e d i t m u st be g iv e n t o t h i s p u b lic a t io n p r e se n ta tio n o f t h is
s i n c e t h e s u c c i n c t and c l e a r
s u b j e c t w as o f g r e a t v a l u e
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and u n d e r s t a n d i n g t h e b a s i c c o n c e p t s o f t h e c o s t - o f - l i v i n g s a l a r y p la n * The o r i g i n a l c o s t - o f - l i v i n g p l a n f o r p u b l i c e m p l o y e e s w as I n t r o d u c e d a t S t . P a u l , M i n n e s o t a ,
in 1 9 2 0 .
The f i r s t
p l a n c o v e r e d o n l y a p o r t i o n o f t h e . e m p l o y e e s b u t was e x t e n d e d in 1922 to co v er th e e n t i r e
_
system .
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,
D a v id Z i s k i n d , One T h o u sa n d S t r i k e s of. g o v e r n m e n t E m p l o y e e s , (New Y o rk : C o lu m b ia U n i v e r s i t y P r e s s , 1 9 4 0 ) , p * 1 9 2 . 25
J . M. L e o n a r d and R o s i n a M ohaupt, C o s t o f L i v i n g S a l a r y A d ju stm en t P la n s f o r M u n ic ip a l E m p lo y e e s, ( D e t r o i t : D e t r o i t B u rea u o f (^G overnm ental R e s e a r c h , J u l y , 1 9 4 4 ) , 4 2 pp*
43
a u t o m a t i c a d j u s t m e n t s on an a n n u a l b a s i s t o c o i n c i d e w i t h the r is e 1 9 16*
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The e x p r e s s e d r e a s o n f o r t h i s
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th a t in 1 9 2 2 ,
in q u ir y
among e c o n o m i s t s i n d i c a t e d t h a t 1 9 1 6 was t h e l a s t norm al year su ita b le In 1938,
as a b ase f o r a c o s t - o f - l i v i n g ad ju stm en t.
c o m p l a i n t s from e m p l o y e e s f o r c e d a # 6 0 a y e a r b o n u s
f o r a l l e m p l o y e e s w h ic h was add ed t o t h e 1 9 1 6 b a s e . was g r a n t e d t o make a l l o w a n c e f o r t h e
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demands
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endum e l e c t i o n was h e l d r e s u l t i n g i n a # 2 2 6 p e r y e a r a v e r a g e in c r e a s e f o r the u n ifo r m e d s e r v i c e s * O th e r c o s t - o f - l i v i n g s a l a r y p l a n s h a v e s i n c e b e e n in s ta lle d
in v a r io u s go vern m en tal o r g a n iz a t io n s th rou gh ou t
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The C i t y o f D u lu t h i n
p l a n p r o v i d e s f o r m o n t h ly i n s t e a d o f a n n u a l a d j u s t m e n t s
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c h a r a c te r istic s
o f th e in d iv id u a l p la n s b u t
a l s o o f t h e b a s i c p h i l o s o p h y on w h ic h t h e s y s t e m i s b a s e d . T h ere h a s b e e n a t e n d e n c y ,
f o r e x a m p le, t o r e g a r d b a se r a t e s
a s s a c r e d and t h u s t ° make more d i f f i c u l t t h e c o r r e c t i o n o f 26 27 o r ig in a l in e q u it ie s . J u c iu s w r itin g o f th e s e p la n s as th ey p e r ta in
to p r iv a te
w a g e s and l i v i n g
co sts
in d u str y ,
sa y s th a t th e
t i e b etw een
i s u s u a l l y made d u r i n g p e r i o d s o f
r i s i n g p r i c e s when e m p l o y e r s a r e n o t r e l u c t a n t t o g r a n t wage i n c r e a s e s .
D u r in g d e f l a t i o n a r y p e r i o d s h o w e v e r ,
e m p l o y e e s may becom e i r r i t a t e d b y t h e p e r i o d i c
(even though
s m a l l ) r e a d j u s t m e n t o f w a g e s t h a t a r e made a s l i v i n g c o s t s 23 go down. L itc h fie ld a l s o m a in ta in s t h a t (1 ) by l i m i t i n g t h e amount o r p e r c e n t a g e o f c h a n g e i n any y e a r ,
th e pay
,
M osher and K i n g s l e y , 27
o p . c i t >, p . 4 7 8 .
M ic h a e l J . J u c i u s , P e r s o n n e l M anagem ent, R i c h a r d D. I r w i h , I n c . , 1 9 4 8 )," p 7 3 6 7 . 28
( C h ic a g o :
Edward D. L i t c h f i e l d , "T h eory and P r a c t i c e i n P u b l i c S e r v i c e , ” P u b lic P e r so n n e l R e v iew , 6 : 7 7 - 8 4 , A p r il, 1 9 4 5 .
45
ad ju stm en ts fr e q u e n tly r ig h t d ir e c tio n ;
(2 )
are l i t t l e
more t h a n g e s t u r e s i n t h e
in a lm o st e v er y in s t a n c e th e f u l l
b e n e f i t o f th e ad ju stm en t a p p lie s o n ly t o th e lo w e r s a la r y g r o u p s and t h e m i d d le and h i g h in c o m e b r a c k e t s a r e u n j u s t l y p e n a liz e d ;
and ( 3 ) t h e a d j u s t m e n t s a r e s e ld o m made c o n c u r
r e n t l y w i t h e c o n o m ic c h a n g e s , t h u s c r e a t i n g a t im e l a g w h ic h p e n a l i z e s t h e e m p l o y e e , c u r in g a p e r i o d o f r i s i n g p r ic e s,
and w o rk s an un du e h a r d s h i p on t h e t a x p a y e r d u r i n g
d e fla tio n . m ade, i s
The f i n a l c r i t i c i s m ,
and t h e one m o s t f r e q u e n t l y
th e p u r p o rte d in a d eq u a cy o f th e c o s t - o f - l i v i n g
s t a t i s t i c s o r i n d e x on T w h ie h t h e a d j u s t m e n t s a r e made. 29 R ic h e y p o in t s o u t t h a t i t i s e x tr e m e ly d i f f i c u l t , i f not im p o ssib le ,
to .a d ju s t s a la r ie s
l i v i n g in d ex e s. change,
in accord an ce .w ith c o s t - o f -
S i n c e m o st s u c h f i g u r e s g i v e
su ch f a c t o r s a s changes in s t a n d a r d s .o f l i v i n g
not r e fle c te d
in the
c o s t - o f - l i v i n g pay p la n .
f o r e x a m p l e , h a s shown t h a t t h e amount o f t h e sp en t f o r fo o d v a r i e s le v e l
an o v e r a l l
in r e la t io n
t o t h e number o f p e r s o n s ite m s,
fa m ily budget
in flu e n c e
in th e f a m ily .
when w e i g h t e d i n t o t h e t o t a l
fr e q u e n tly lo s e
and e v e n t u a l l y t h e i r
R esearch,
c o n s i d e r a b l y d e p e n d i n g u p o n t h e in com e
O th e r e q u a l l y v a r i a b l e c o st of liv in g ,
are
t h e ir in d iv id u a l
im p o r t a n c e
on w hat s h o u l d b e t h e f i n a l
— D e t e r m i n i n g P.ay P o l i c y , o p . c i t . p .
22.
46
d e ter m in a n ts o f a .s a l a r y o f in s ig n ific a n c e * c r itic ism
ad ju stm en t d im in ish e s to a p o in t 30 Baruch i n c o m m e n tin g on t h i s g e n e r a l
m e n t i o n s th a ,t c o s t - o f - l i v i n g
i n d e x e s a ssu m e c e r
ta in so c io -e c o n o m ic f a c t o r s as c h a r a c t e r is t ic and h i s
fa m ily .
Where t h e s e f a c t o r s
o f th e w orker
a r em o d ified , se r io u s
e r r o r s a r e p r e s e n t i n any a t t e m p t t o t r a n s l a t e
su ch in d ex e s
i n t o th e a c t u a l c o s t s . o f m a in ta in in g th e p r e v a i l i n g sta n d a r d o f l i v i n g by a w orker.
" C e r ta in ly ,
i n d e x e s b a s e d on s t u d i e s
o f b u d gets o f la b o r in g c la s s f a m ilie s u sed to d e f l a t e
ca n n o t p r o p e r ly be
in c o m e s o f n o n - l a b o r i n g g r o u p s o r o f w h i t e -
c o l l a r e m p lo y ee s,
and i n d e x e s d e v e l o p e d i n one l o c a l i t y
or
f o r t h e n a t i o n a s a w h o le may o r may n o t b e a p p l i c a b l e t o e m p l o y e e s i n any d i s t r i c t o t h e r t h a n t h a t i n w h ic h t h e b u d g e t s t u d y h a s b e e n m a d e." T h e o r e tic a lly , n e c e ssa r y to
to be s t r i c t l y
c o m p a r a b le , i t w o u ld b e
c o m p i le a s e r i e s o f c o s t - o f - l i v i n g i n d e x e s w h ic h
concern a stan d a rd o f l i v i n g
a n d .a group o f ite m s o f good s
and s e r v i c e s w h ic h do n o t c h a n g e . not a tru e p ic tu r e
S u ch s t a g n a n c y i s
of e x is t in g c o n d itio n s.
o b v io u sly
In o r d e r t o n e g a t e
30
~ I s m a r B a r u c h , "Some A s p e c t s o f Pay S t a b i l i z a t i o n " , P u b lic P e r so n n e l R e v iew , 4 : 7 9 - 8 0 , A p r il 1 9 4 2 . 3 1 L oc . o l t . . c i t i n g D a le Y o d e r , P e r s o n n e l and L a b o r R e l a t i o n s " ( h e w Y ork : P r e n t i c e - H a l l , 1 9 3 8 ) , p p . 3 2 1 - 3 2 2 .
47
th is c r itic ism ,
th en ,
new s u r v e y s
on l i v i n g
stan d a rd s f o r a
number o f d i f f e r e n t e c o n o m ic l e v e l s w o u ld b e i n v o l v e d s o t h a t c h a n g e s i n p u r c h a s i n g and c o n s u m in g h a b i t s w ou ld be r e fle c te d . It
c a n t h e r e f o r e b e s a i d , w i t h some v a l i d i t y ,
th a t
a d j u s t in g s a la r y r a t e s by a d i r e c t r a t i o w ith c o s t - o f - l i v i n g changes i s ,
at b est,
o n l y one o f many m e th o d s o f m a i n t a i n i n g
a sotm d and e q u i t a b l e p a y p l a n . c i s e n e s s and o b j e c t i v i t y
C la im s t o m a t h e m a t i c a l p r e
n o tw ith sta n d in g ,
th ere
Is e v id e n c e
to su p p ort a c o n te n tio n th a t th e need f o r in t e r n a l c o n s is t e n c y t o be m a i n t a i n e d on a c u r r e n t b a s i s u s u a l l y r e q u i r e s a d j u s t m e n ts i n s a l a r i e s b a s e d
on f a c t o r s o t h e r t h a n c o s t - o f - l i v i n g
Indexe s a l o n e . Summary.
P o sitio n c la s s if ic a t io n
h a v e a common p u r p o s e ;
and j o b e v a l u a t i o n
th e a l i g n i n g o f jo b s or p o s i t i o n s in
an o r d e r l y f a s h i o n s o t h a t d i f f e r e n c e s or s i m i l a r i t i e s d u tie s,
r e sp o n s ib ilitie s ,
r e c o g n iz e d . a t in te r n a l
and r e q u i r e m e n t s may b e c o n s i s t e n t l y
T h e se p l a n s may be c h a r a c t e r i z e d by t h e i r a t t e m p t c o n siste n c y .
does n o t , how ever, e sta b lish e d ,
in
The p o s i t i o n
c l a s s i f i c a t i o n p la n
a t t e m p t t o p r i c e t h e c l a s s e s w h ic h a r e
le a v in g t h is
fu n c tio n
to th e pay p la n , u s u a l l y
t o b e d e t e r m i n e d by a p r e v a i l i n g r a t e s u r v e y .
48
The j o b e v a l u a t i o n p l a n s b y e s t a b l i s h i n g m a t h e m a t i c a l d i f f e r e n t i a l s b etw een jo b c l a s s e s a tte m p t t o n o t o n ly rank c l a s s e s . b u t a l s o t o q u a n t i t a t i v e l y m easure th e d i f f e r e n c e s i n rank*
W ith an i n t e r n a l l y c o n s i s t e n t pay s t r u c t u r e ,
sh o u ld th e n be p o s s i b l e
it
t o d e ter m in e th e p r e v a i l i n g r a t e s
pay f o r c e r t a i n k e y j o b s .
T h ese k e y r a t e s ,
of
a p p lie d to jo b s
o f v a r y i n g i m p o r t a n c e t h r o u g h o u t t h e h i e r a r c h y , w o u ld t h e n p e r m it th e e s t a b l i s h m e n t o f w ages f o r o th e r jo b s d ep en d in g on t h e i r p r e d e t e r m i n e d q u a n t i t a t i v e d i f f e r e n c e s jo b s.
It is
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th a t b e c a u se of th e v e ry n a tu r e t h e r e w i l l be c o n f l i c t s b etw een
o f j o b s and t h e l e v e l s d e t e r m i n e d by
t h e p r e v a i l i n g r a t e f o r t h e work i n t h e co m m u n ity .
S u ch
d i f f e r e n c e s u s u a l l y a r e r e s o l v e d by te m p o r a r y a d j u s t m e n t s in th e e v a lu a t io n p r o c e s s
or by a b a s i c m o d if ic a t io n
(su ch
a s u s i n g tw o e v a l u a t i o n p l a n s f o r b l u e c o l l a r and w h i t e c o i l a r wo rk e r s ) . The c o s t - o f - l i v i n g s a l a r y p l a n b e g i n s w i t h an i n t e r n a l l y c o n s i s t e n t p a y p l a n a nd u t i l i z e s
c h a n g e s.in c b s t - o f - l i v i n g
i n d e x e s a s t h e p r im a r y e x t e r n a l m o d i f i e r .
H ere a g a i n p r o b
le m s o f c h a n g e s i n I n t e r n a l r e l a t i o n s h i p s ,
p o ssib le
quacy o f a v a i l a b l e
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sta tistic s,
in a d e
and u n u s u a l
m a n -p ow er c o n d i t i o n s i n d i c a t e t h a t o t h e r f a c t o r s m ust be ta k en i n t o c o n s i d e r a t io n .
49
The m o s t i m p o r t a n t f a c t o r i s u s e by t h e s a l a r y - f i x i n g a g e n c y , o f the l i m i t a t i o n s
t h a t w h a t e v e r m eth od i n
fu ll
a w a r e n e s s m ust b e h ad
o f t h e , m e t h o d and c o m p e n s a t o r y s t e p s m ust
be ta k e n t o o v erco m e them*
In t h e c a s e o f t h e c o s t - o f -
l i v i n g p l a n , p e r i o d i c r e v i e w s must b e .m a d e o f t h e i n t e r n a l s t r u c t u r e and o f t h e b a s e r a t e i t s e l f . system ,
?/hen u s i n g a p o i n t
c o n s i d e r a t i o n m ust b e g i v e n t o e x c e s s i v e
w age c o n d i t i o n s
in th e
com m u n ity .
sy stem i s p e r f e c t or s c i e n t i f i c
It is
or u n u s u a l
e v i d e n t t h a t no
and m ust be m o d i f i e d i n t h e
l i g h t o f p r a c t i c a l a d m i n i s t r a t i v e p r o b le m s i n o r d e r t o be even p a r t i a l l y
su c c e ssfu l.
CHAPTER
VI.
THE PREVAILING WAGE SURVEY R e g a r d l e s s o f t h e m eth o d o r p l a n i n u s e by an y p u b l i c agency,
th e c o l l e c t i o n ,
c o m p ila tio n ,
and I n t e r p r e t a t i o n o f
r a t e s o f p a y i n t h e com m u nity f o r j o b s s i m i l a r t o t h o s e i n th e p u b lic p la n . is
agency i s th e
s i n e qua non o f t h e c o m p en sa tio n
From a p u r e l y e c o n o m ic p o i n t o f v i e w ,
a c o m p etin g fir m w it h o t h e r b u s i n e s s e s ,
p r o b le m s o f r e c r u i t m e n t and r e t e n t i o n The e m p l o y e e s a r e i n t e r e s t e d ever.
As B a r u c h s a y s ,
i n g them l e s s
th e governm ent
w ith s im ila r
o f q u a lifie d personn el
from a c o m p a r a t i v e b a s i s , how
"The f a c t t h a t t h e i r e m p lo y e r i s
o r more t h a n w hat t h e y c o u l d e a r n i n t h e s$me
k i n d o f ?/ork e l s e w h e r e i s
a t a n g i b l e and r e a l i s t i c
W h ile t h e p r im a r y e m p h a s is o f m o s t e m p l o y e e s i s in te r n a l is
c o n s is t e n c y o f th e pay s t r u c t u r e ,
o fte n to
in p r iv a te
test its
t h i n g . 1,1
on t h e
th e t e n d e n c y
a d e q u a c y b y c o m p a r is o n w i t h p a y r a t e s
fir m s or o th e r p u b lic a g e n c ie s .
The d e t e r m i n a t i o n o f w h a t i s r a t e f o r an y s p e c i f i c sid e r a b le
pay
c la s s
o f work i s
d a n g e r s and p i t f a l l s
d e ta ile d a tte n tio n
th e p r e v a i l i n g or g o in g a p r o j e c t w ith con
and d e s e r v e s c a r e f u l and
on t h e p a r t o f t h e s a l a r y - f i x i n g a g e n c y .
I s m a r B a r u c h , "S u r v e y i n g P r e v a i l i n g Wage R a t e s " , P u b lic P e r so n n e l R e v iew , 3 :8 8 , A p r il, 1942.
51
The J o i n t Wage and S a l a r y S u r v e y .
Each y e a r s in c e
1 9 4 1 , w i t h t h e e x c e p t i o n o f 1 9 4 3 and 1 9 4 5 , t h e C i t y o f L os A n g ele s,
C ou n ty o f L o s A n g e l e s ,
School D i s t r i c t s ,
th e Los A n g e le s C ity
t h e L o s A n g e l e s C i t y H o u s in g A u t h o r i t y ,
and, u n t i l 1 9 4 9 , th e
S ta te of C a lifo r n ia ,
i n a com m u n ity w age and s a l a r y s u r v e y . no l e g a l
have c o o p e ra ted
The a c t i v i t y
has
f o u n d a t i o n b u t i s m e r e l y an i n f o r m a l a g r e e m e n t
b etw een th e c o o p e r a t in g a g e n c ie s . survey p o lic y
r e sid e s
The d i r e c t i o n o f o v e r a l l
i n t h e S a l a r y S u r v e y S t e e r i n g C o m m ittee
made up o f r e p r e s e n t a t i v e s from e a c h o f t h e p a r t i c i p a t i n g a g e n c ie s.
V a r i o u s w o r k i n g s u b - c o m m i t t e e s a r e a l s o form ed
t o d e t e r m i n e t h e number and t y p e s o f k e y j o b s t o b e i n c l u d e d , th e d e f i n i t i o n s f o r th e key j o b s , A d isc u ssio n o f in th e co n d u ct o f
th e p r o c e d u r e s and p r o b le m s i n v o l v e d
s u c h a s u r v e y and a c o m p a r is o n w i t h t h e
m e th o d s u s e d i n t h e j o i n t
com m unity s a l a r y
in th e Los A n g e le s A rea w i l l w h ic h a r i s e
and o t h e r w o r k i n g d e t a i l s .
su r v e y con d u cted
serve to i ll u s t r a t e
th e q u e s t io n s
and t h e m anner b y w h ic h one s u r v e y h a s a n s w e r e d
th e m . D e f in it io n of p r e v a ilin g w age. wage h a s b e e n d e f i n e d i n many w a y s . ophy o f t h e
in d iv id u a l
agency,
or even th e t h ir d q u a r t i l e
it
The te r m p r e v a i l i n g D e p e n d in g on t h e p h i l o s
may be t h e m o d a l, a v e r a g e ,
o f t h e w age d a t a o b t a i n e d .
The
52
f e d e r a l governm ent in c o n n e c tio n w it h i t s
p u b l i c w orks
program d e f i n e s t h e p r e v a i l i n g wage a s f o l l o w s : 1. The r a t e o f w a g es p a i d i n t h e c i t y , to w n , v i l l a g e or o th e r c i v i l d i v i s i o n o f th e s t a t e (h e r e i n a f t e r r e f e r r e d t o a s t h e l o c a l i t y ) i n w h ic h t h e work i s t o b e p e r f o r m e d , t o t h e m a j o r i t y o f t h o s e i n t h e c o r r e s p o n d i n g c l a s s e s o f l a b o r e r s or m e c h a n ic s ( h e r e i n a f t e r r e f e r r e d t o a s t h e c r a f t s ) on p r o j e c t s t h a t a r e s i m i l a r t o t h e c o n t r a c t w ork; o r 2. In th e e v e n t th a t t h e r e i s not a m a jo r ity p a i d a t t h e same r a t e , t h e n t h e r a t e p a i d t o t h e g r e a t e r n u m b e r ,p r o v i d e d s u c h g r e a t e r number c o n s t i t u t e s t h i r t y p e r c e n t o f t h o s e s o e m p lo y e d ; o r 3. In the e v e n t t h a t l e s s th a n t h i r t y 'p e r c e n t o f t h o s e s o e m p lo y e d r e c e i v e t h e same r a t e , t h e n the a v e r a g e r a te * A c tu a lly ,
t h e p r e v a i l i n g r a t e m u st b e d e f i n e d w i t h i n
t h e fram e o f r e f e r e n c e w i t h w h ic h i t e x a m p le F eld m an lis ts
in h is
is
to be u se d .
For
stu d y o f fe d e r a l p e r so n n el p o l i c i e s
t h e f o l l o w i n g r a n g e o f a p p l i c a t i o n s o f w age d a t a t o
sa la r y fix in g : 1* The l o w e s t w age a t w h ic h e m p l o y e e s c a n be s e c u r e d , even i f t h i s i s b e lo w what p r i v a t e in d u s tr y i s p a y in g ; 2*
The c o m p e t i t i v e , g o i n g o r p r e v a i l i n g r a t e ;
3*
The h i g h e r l e v e l
o f t h e more l i b e r a l e m p l o y e r s ;
4, The i n d e p e n d e n t s c a l e o f t h e e x c e p t i o n a l c o n c e r n s p a y in g w ages o u t o f l i n e w it h t h o s e o f i n d u s t r y as a w h o le . 2
R e g u la tio n s p r e s c r ib e d by th e S e c r e ta r y o f L ab or, S e p te m b e r 3 0 , 1 9 3 5 , • . . . A P e r s o n n e l P ro g ra m ,
op.
c i t . , p. 55.
53
I f an a g e n c y w i s h e s t o d i s r e g a r d a l l
p r iv a t e firm s
e x c e p t t h o s e w h ic h a r e c o n s i d e r e d t h e more " l i b e r a l e m p lo y ers" , th en th e r e s u l t s
of its
w ith p r e v a ilin g r a t e s ,
are in r e a l i t y
r a te s in
s u r v e y , w h ile s t i l l
concerned
a sa m p le o f p r e v a i l i n g
c e r ta in ty p e s o f fir m s.
It is
i m p o r t a n t t o n o t e t h a t a l m o s t any wage s u r v e y
w i l l c o n s i s t o f . s a m p l i n g s from a l a r g e g r o u p o f n o n - i n t e g r a t e d wage s t r u c t u r e s .
S u b s t a n t i a l d i f f e r e n c e s i n w age r a t e s
q u e n tly appear f o r the same t y p e o f i n d u s t r y .
same c l a s s
r a r e ly a s in g le
c r ite r io n is
u tiliz e d
in th e
lim ite d
In stea d ,
or in d ic a tio n
th at
the p r e v a il i n g
it
w hat u s u a l l y r e s u l t s
o n l y by t h e s t a t i s t i c a l d e v i c e s
as r e p o r t in g m eth od s.
in g r a te range i s
su rvey,
r a t e w h ic h ca n be u s e d a s t h e s o l e
f o r f i x i n g w ages.
a range o f r a t e s ,
o f work e v e n w i t h i n t h e
B e c a u s e o f s u c h v a r i a t i o n s among t h e
c o m p a n ie s and r a t e s c o v e r e d ra te is
The v a l u e o f s u c h a p r e v a i l
can s e r v e . a s a good g e n e r a l g u id e
o f o u t s id e pay l e v e l s .
In s p i t e
o f th e a p p ea r
ance o f m a th e m a tic a l p r e c i s e n e s s , p r e v a i l i n g r a t e s h o u l d n e v e r be i n t e r p r e t e d a s t h e e x c lu s io n
fre
surveys
s o le sta n d a r d , to th e
of a l l o th er c o n s id e r a tio n s .
S u ch a m e c h a n i c a l
a p p l i c a t i o n p l a c e s a c o n f i d e n c e and t r u s t i n t h e v a l i d i t y and. o b je c tiv ity ted .
o f th e
s u r v e y r e s u l t s w h ic h i s
I t s h o u l d be rem em bered t h a t s i n c e t h e r e
p r e v a ilin g r a te ,
th e s u r v e y m e r e ly r e p r e s e n t s
r a r e ly w arran i s no s i n g l e a g r a p h ic
54
p ic tu r e
o f th e ran ge o f w ages p a id t o c e r t a i n k ey c l a s s e s ,
t o s e r v e as a g u id e in s e t t i n g
s a l a r i e s and c a n n e v e r e n t i r e l y
o b v ia te th e n e c e s s i t y f o r a p p ly in g such b a la n c in g f a c t o r s a s p e r s o n n e l , e c o n o m ic and f i n a n c i a l c o n s i d e r a t i o n s . SURVEY iETHODS S e le c t io n o f key j o b s *
I n m o st p u b l i c a g e n c i e s t h e r e
a r e some c l a s s e s o f p o s i t i o n s w h o se c o m p o s i t i o n and d u t y s t r u c t u r e make them u n l i k e any i n p r i v a t e
i n d u s t r y and som e
tim e s u n l i k e any e v e n in o th e r p u b l i c a g e n c i e s . t i m e , e v e n when c o m p a r i s o n s ca n b e m ade,
it
is
At t h e same fr e q u e n tly
u n d e s i r a b l e from t h e v i e w p o i n t o f i n t e r n a l c o n s i s t e n c y t o a t t e m p t t o m a tc h j o b s t h r o u g h o u t t h e h i e r a r c h y w i t h j o b s o u t s id e o f th e s e r v i c e .
It is
th e re fo re n ecessary to s e le c t
a g r o u p o f k e y o r b enchm ark c l a s s e s w h ic h w i l l
c o n stitu te
t h e s c o p e o f t h e wage s u r v e y . Key j o b s , th e ir p o s itio n
in g e n e r a l,
are s e le c t e d b eca u se o f
i n t h e wage s t r u c t u r e
(1 )
o f th e a g e n c y , and ( 2 )
t h e im p o r ta n c e p la c e d
on them b y c e r t a i n . g r o u p s s o t h a t t h e y 4 becom e b e n c h m a r k s o r p o i n t s o f r e f e r e n c e . Some o f t h e c r i t e r ia used in th e ir
s e le c tio n are:
1. They s h o u l d o c c u p y an i m p o r t a n t p l a c e i n th e p o s i t i o n c l a s s i f i c a t i o n p la n , w ith s i g n i f i c a n t r e l a 2H P a v i d W. B e l c h e r and H e r b e r t Gr. Heneman, J r . , How t o Make a Wage S u r v e y , ( M i n n e a p o l i s : U n i v e r s i t y o f M in n e s o t a , 1 9 4 8 ), p. 14.
55
t i o n s h i p s t o o t h e r c l a s s e s and t h e r e f o r e b e g o o d r e f e r ence p o in t s . 2. They s h o u l d be d i s t r i b u t e d s o a s t o c o v e r a w id e r a n g e o f v a l u e s and d i f f i c u l t y o f w o r k . 3. T hey s h o u l d b e r e a s o n a b l y w e l l - k n o w n and be s u s c e p t i b l e t o c l e a r and c o n c i s e d e s c r i p t i o n s . 4. They s h o u l d i n c l u d e a c o n s i d e r a b l e number o f p o s i t i o n s b o t h w i t h i n t h e s e r v i c e and w i t h i n t h e c o m p a n ie s o r j u r i s d i c t i o n s p a r t i c i p a t i n g i n t h e s u r v e y .5 5.
T hey s h o u l d b e r e l a t i v e l y s t a b l e
The number o f k e y j o b s t o b e s e l e c t e d o f v a r y in g c o n d it io n s .
jo b s .®
i s s u b j e c t t o a number
C o n s i d e r a t i o n m ust b e g i v e n t o th e
r a n g e o f f i r m s and j u r i s d i c t i o n s t o b e c o v e r e d b y t h e s u r v e y and a l s o
t o t h e p u r p o s e o f t h e s t u d y and t h e t im e and money
a v a ila b le .
One a u t h o r s a y s o f t h i s p h a s e t h a t ,
"M any.wage s u r v e y s made i n t h e p a s t h a v e s e c u r e d t h e i n f o r m a t i o n i n t o o c r u d e a form t o p e r m i t d e t a i l e d a n a ly s is .... . The s o l u t i o n i s t o c o l l e c t . t h e d a t a i n s u c h a manner a s t o r e v e a l t h e number o f i n d i v i d u a l s th a t r e c e iv e each p a r tic u la r r a te rep o rted . D e ta ile d i n f o r m a t i o n f o r a l i m i t e d number o f o c c u p a t i o n s m a k in g ad eq u ate a n a l y s i s p o s s i b l e , i s p r e f e r a b le t o i n s u f f i c i e n t d a t a f o r a l a r g e number o f o c c u p a t i o n s . " ?
0 How t o Make a Wage S u r v e y ,
op. c i t . ,
p. 15.
7 . C. Canby B a l d e r s t o n , Wage S e t t i n g B a s e d on J o b A n a l y s i s and E v a l u a t i o n , I n d u s t r i a l R e l a t i o n s C o u n s e l o r s , New Y o r k , 1940, p. 58. -
56
O t h e r a u t h o r i t i e s i n d i c a t e d t h a t a s many a s o n e . 8 9 h u n d re d c l a s s e s o r a s fe w a s t h i r t y may b e d.e s i r a b l e . The L o s A n g e l e s S u r v e y i n 1 9 4 9 i n c l u d e d c la s se s*
10
Of t h e s e ,
in g c la s s e s ;
2 7 w ere s k i l l e d ,
1 2 w ere c l e r i c a l
62 k e y j o b
se m i-s k ille d ,
or l a b o r
o r o f f i c e m a c h in e o p e r a t o r s ;
4 w ere i n t h e a c c o u n t i n g f i e l d ; 1 1 w e r e i n t h e e n g i n e e r i n g group;
and 8 . w ere c l a s s i f i e d
or t e c h n ic a l*
as p r o fe s sio n a l,
se m i-p r o fe ss io n a l
An a n a l y s i s o f t h e e n t i r e g r o u p i n d i c a t e s
th at
m o st o f th e c l a s s e s m eet th e c r i t e r i a m en tio n ed p r e v io u s l y in th e c h a p t e r .
.T h e r e a r e some s p e c i f i c
may be d i s c u s s e d .
e x c e p t i o n s F/hich
P lu m b e r F orem an, A d m i n i s t r a t i v e A n a l y s t ,
and P h y s i c i a n a l l c o n t r a d i c t one o r more o f t h e c r i t e r i a f o r a key c la s s *
P lu m b e r F orem an, f o r e x a m p l e ,
is
r e fe r e n c e p o in t to u se a s a key jo b s in c e th e such a c l a s s i s s h i p w i t h th e it
a very poor sa la r y fo r
a l m o s t a lw a y s e s t a b l i s h e d . o n a r e l a t i o n
jo u r n e y m a n c l a s s
c o n f l i c t s w ith th e
o f p lu m b e r .. In a d d it io n ,
th ir d c r it e r io n ,
i.e.,
e x is tin g
l a r g e num bers i n t h e c o m p a n ie s p a r t i c i p a t i n g i n The r e s u l t s
th e s u r v e y .
show t h a t o u t o f 6 4 4 f i r m s o n l y 1 9 e m p lo y e d
su ch p e p s o n s ; p ro ject.
in
o b v i o u s l y a p o o r r e t u r n from s u c h an e x t e n s i v e
A d m in istr a tiv e a n a ly s t i s
an e v e n m ore s t r i k i n g
e x a m p le o f t h i s p o i n t f o r o n l y t h r e e f i r m s e m p lo y e d s u c h .................... ...
......‘ " " S
9 10
"""~
Baruch,
op. c i t . , p. 92.
How t o Make a Wage S u r v e y , l o c . c i t . S e e A p p e n d ix f o r c o m p l e t e l i s t
of c l a s s e s .
57
persons.
T h is c l a s s i s
m ent s e r v i c e ,
one w h ic h e x i s t s p r i m a r i l y i n g o v e r n
and t h e n o n l y i n t h e l a r g e r j u r i s d i c t i o n s .
The p h y s i c i a n c l a s s
is
a n oth er in t h i s group,
f e w p r i v a t e a g e n c i e s e m p lo y f u l l - t i m e
d o ctors
sin c e very in a c a p a c it y
s i m i l a r t o t h o s e e m p lo y e d by g o v e r n m e n t . The t h r e e c l a s s e s named a r e n o t t h e o n l y k e y j o b s i n t h e s u r v e y w h ic h a r e i l l - c h o s e n .
They s e r v e ,
how ever,
as
e x c e l l e n t e x a m p le s o f t h e n e c e s s i t y f o r c a r e f u l and c o n s i d e r ed s c r e e n in g o f key jo b s b e fo r e s e l e c t i o n . sh o u ld be the
su b ject of a s p e c ia l,
e l s e have t h e ir s a l a r i e s
s m a l l e r wage s u r v e y o r
s e t by i n t e r n a l co m p a riso n .
D e v e l o p i n g k e y j ob d e s c r i p t i o n s * a ccu rate,
Su ch c l a s s e s
c o n c i s e and i n t e l l i g i b l e
The d e v e lo p m e n t o f
job d e s c r ip t io n s
is
of
t h e u t m o s t i m p o r t a n c e i n t h e c o n d u c t o f a wage and s a l a r y su rvey.
It
is
f r e q u e n t l y f o u n d t h a t wage s t u d i e s a r e c o n
d u c t e d on t h e b a s i s o f j o b ' t i t l e s
a lo n e .
d a n g e r o u s and u n d e s i r a b l e p r a c t i c e .
T h is i s
a very
T h ere a r e f e w jo b c l a s s e s
e ith e r
i n i n d u s t r y o r i n p u b l i c s e r v i c e w h ose d u t i e s and
title s
a r e s u f f i c i e n t l y s t a n d a r d iz e d to th e e x t e n t t h a t th e
title
a lo n e
c o u l d s e r v e a s a b a s i s f o r jo b c o m p a r i s o n .
Such c o m p a r i s o n s w i t h o u t s u b s t a n t i a t i n g o r v e r i f y i n g j o b c o n t e n t c o u l d l e a d t o an i n v a l i d
wage d i s t r i b u t i o n w h ic h
w o u ld u l t i m a t e l y b u i l d s u s p i c i o n and d i s t r u s t o f t h e e n t i r e wage s e t t i n g p r o c e s s .
58
For th e s e r e a s o n s , and r e s p o n s i b i l i t i e s c r ib e d in w r itin g .
it
is
im p e r a tiv e t h a t
s h o u l d be c l e a r l y
th e d u t i e s
and a d e q u a t e l y d e s
T hese d e s c r i p t i o n s a r e u s u a l l y i n c o r
p o r a t e d i n t o q u e s t i o n n a i r e form s o r s c h e d u l e s and " p r o v id e an i m p o r t a n t f a c t u a l b a s i s f o r i n t e r v i e w s ,
con feren ces,
and d e c i s i o n s on t h e c o m p a r a b i l i t y o f p o s i t i o n s and s a l a r y 11 r a t e s ”. The s u r v e y d e s c r i p t i o n s a r e r a r e l y a s c o m p l e t e or d e t a i l e d a s the u s u a l c l a s s s p e c i f i c a t i o n H ow ever, tio n s
it
is
im p o r ta n t t h a t t h e s e
or d e s c r i p t i o n .
a b b r e v ia t e d job d e s c r i p
sh o u ld : (1 )
C le a r ly r e p r e s e n t th e d eg ree
r e sp o n s ib ility (2)
fo r
Be c o u c h e d
i n te r m s w h ic h may b e e a s i l y u n d e r of p r iv a te
I n d i c a t e e i t h e r by i m p l i c a t i o n
ment t h e
and
the jo b ;
s t o o d b y th e r e p r e s e n t a t i v e s (3 )
of d if f ic u lt y
in d u str y ; or d i r e c t s t a t e
amount a n d t y p e o f t r a i n i n g and e x p e r i e n c e
req u ire d ; (4 )
U tiliz e
t i o n when t h i s S e le c tio n
sp e c ia l is
ter m in o lo g y o f th e key occupa
co n d u civ e to in c r e a s e d s p e c i f i c i t y .
of fir m s.
The number and t y p e s o f f i r m s
t o be i n c l u d e d i n t h e s u r v e y d e p e n d s i n p a r t upon t h e t i m e , f i n a n c e s and p e r s o n n e l
a v a ila b le ,
p h i l o s o p h y o f th e a g e n c y ? /h ic h i s '
IX
Baruch,
op. c i t . . p .
9.2.
and i n p a r t upon th e c o n d u c tin g th e
survey.
59
I f th e agency f o llo w s m e n t,
t h e m od el e m p l o y e r c o n c e p t o f g o v e r n
t h e n t h e s u r v e y w i l l be l i m i t e d t o t h e l a r g e s t and
m ost p r o g r e s s i v e fir m s hand, th e
i n th e c o m m u n ity .
If,
on t h e o t h e r
a g e n c y I s i n t e r e s t e d i n t h e more c o m p l e t e p i c t u r e
o f w hat w a g e s a r e b e i n g p a i d f o r a g i v e n o c c u p a t i o n , le ss
of th e p e r q u i s i t e s ,
oth er c h a r a c te r is tic s
regard
adequacy o f th e s a la r y p la n ,
o f th e
th e sco p e o f th e su rv ey i s
or
f i r m ' s p e r s o n n e l program ,
th en
a p p r e c ia b ly in c r e a s e d .
Many s u r v e y s f i n d t h a t t h e i r
sev erest c r itic ism s
come
as a r e s u l t o f t h e i r s e l e c t i o n o f th e firm s to be su r v e y e d . The r e a s o n s a r e f a i r l y
o b v io u s s i n c e th e so u r c e o f th e d a t a
w i l l p erh a p s have a .g r e a t e r I n f lu e n c e o th er s in g le
fa cto r.
th a n p r a c t i c a l l y a n y
The com m u nity c o n s i s t s o f b o t h p u b l i c
and p r i v a t e e m p l o y e r s ,
and t h e s u r v e y s h o u l d i n c l u d e wage
r a t e s from o t h e r g o v e r n m e n t a g e n c i e s i n t h e a r e a . tio n
o f th e se a g e n c ie s i s
t h e y a r e more l i k e l y
a c o m p a r a tiv e ly sim p le ta sk s in c e
t o e m p lo y a l a r g e number o f t h e k e y
c la s se s
f o r w h ic h . in fo r m a tio n i s
r e a d ily
a v a ila b le . The s e l e c t i o n
c o m p le x p r o b l e m . cover a ll
The s e l e c
s o u g h t , and t h e d a t a i s
o f t h e p r i v a t e f i r m s p r e s e n t s a more
In g e n e r a l , h o w e v e r ,
th e fir m s sh o u ld
o f t h e m a jo r t y p e s o f i n d u s t r i e s w i t h t h e s e l e c t i o n
o f f i r m s w i t h i n e a c h t y p e o f b u s i n e s s , d e p e n d i n g upon t h e
60
t o t a l num ber o f e m p l o y e e s and t h e num ber o f e m p l o y e e s i n th e key c l a s s e s , th e in d u s tr y .
and t h e d i s p e r s i o n
It
o f wage r a t e s w i t h i n
is u s u a lly n ot p o ssib le
to o b t a in in fo r m a
t i o n from e v e r y i n d u s t r i a l f i r m i n t h e a r e a , . s o t h a t some form o f s a m p l i n g t e c h n i q u e b e c o m e s n e c e s s a r y . in sta n c e s,
t h i s sa m p lin g i s
c o n fin e d to a s e l e c t io n
th e l a r g e s t firm s in a s p e c i f i e d th e s e firm s c o n s t i t u t e
I n some of o n ly
a r e a on t h e t h e o r y t h a t
th e c o m p e t i t i v e m arket f o r e m p lo y e e s.
At t h e
o th e r ex trem e,
t h e B u reau o f L a b o r S t a t i s t i c s
(B .L .S .)
in i t s
i n d u s t r y s u r v e y s o f wage r a t e s h a s d e v e l o p e d an i n t r i
c a t e and h i g h l y i n v o l v e d s a m p li n g t e c h n i q u e .
A lt h o u g h t h e
o b je c tiv e s
th e typ e
o f th e
B u r e a u ’ s s u r v e y d i f f e r fro m
p r e v a i l i n g wage s u r v e y u n d e r d i s c u s s i o n , 12 may p r o v e b e n e f i c i a l . B .L .S .
has
sh o u ld depend n o t
d eterm in ed t h a t th e s i z e
it
ffA” , a l l
of
It
is
firm s p a id i d e n t i c a l
c le a r th a t i f
in flu e n c e
any
in In d u stry
r a te s for c le r k - t y p is t s ,
w ou ld b e n e c e s s a r y t o o b t a i n o n l y t h e b a s i c
t h e n t o w e i g h t th e
t h e sa m p le
t h e d e g r e e o f d i s p e r s i o n o f wage
r a te s w ith in each In d u stry . ty p e
some e l a b o r a t i o n
o n l y on t h e t o t a l number o f f i r m s i n
in d u s tr y ty p e , b u t a ls o
of
ra te,
and
in d u s tr y r a te w ith the p r o p o r tio n a te
f o r th e t o t a l
s a m p le .
— ------------ j-g----------------
The s o u r c e f o r a l l i n f o r m a t i o n r e g a r d i n g t h e B u reau o f L a b o r S t a t i s t i c s , U . S . D e p a r tm e n t o f L a b o r , i s t h e I n d u s t r y Wage S t u d i e s Manual o f P r o c e d u r e s , U . S . D e p a r t m e n t o f L a b o r ; W a s h i n g t o n , D.'C.', F e b r u a r y 1 , 1 9 4 9 . '
61
The u t i l i z a t i o n
o f an y s u c h r e f i n e d
d e p e n d s i n a g r e a t p a r t on t h e It
sa m p lin g t e c h n iq u e
adequacy o f th e u n iv e r s e d a ta .
i s n e c e s s a r y t h a t in fo r m a tio n be c o l l e c t e d
i n th e a r e a so t h a t s i z e , tio n ,
u n io n iz a tio n ,
number o f e m p l o y e e s i n v a r i o u s
tio n s,
on e a c h f i r m
in d u s tr ia l, c l a s s i f i c a
ty p e s o f job c l a s s i f i c a
and o t h e r r e l e v a n t c h a r a c t e r i s t i c s a r e a v a i l a b l e .
From t h i s m a s t e r l i s t , s e t as the c r i t e r i o n
th e
sa m p le i s
f o r the
d e ter m in e d .
B .L .S . has
sa m p le t h a t o c c u p a t i o n a l a v e r a g e s
o b t a i n e d from an e x p a n d e d sa m p le w i l l i n n i n e c a s e s o u t o f t e n be w i t h i n if
a ll
f i v e p e r c e n t o f the a v era g e
th e p la n ts
i n t h e u n i v e r s e w e re i n c l u d e d i n t h e s t u d y .
The d e g r e e o f d i s p e r s i o n o f is
t h a t v/ould b e o b t a i n e d ,
wage r a t e s
d e t e r m i n e d from i n f o r m a t i o n c o l l e c t e d
A sta tistic a l
f o r an i n d u s t r y
on p r e v i o u s s u r v e y s .
t e c h n i q u e , d e v e l o p e d b y B*L*,S* and c a l l e d a
c o e f f i c i e n t o f v a r i a t i o n , p r o v id e s th e d eg ree o f d is p e r s io n or in t e r p la n t v a r ia t io n . a sc e r ta in
T h is c o e f f i c i e n t
is
th en u sed to
t h e number o f f i r m s t o be c o n t a c t e d w h ic h w i l l
p r o v id e th e r e q u ire d r e s u l t s *
I t h a s b e e n s t a t e d by B.L*B*
t h a t t h i s m e th o d o f s a m p l i n g w i l l y i e l d a s m a l l e r s a m p li n g e r r o r t h a n a n y o t h e r sa m p le o f g i v e n s i z e o v e r a ll
f o r o b t a i n i n g an
o cc u p a tio n a l a v era g e. The s e l e c t i o n
the n e c e s s i t y
o f firm s w i l l
a l s o be c o n d i t i o n e d b y
f o r s e c u r i n g i n f o r m a t i o n on c e r t a i n
sp e c ia l-
62
i z e d j o b c l a s s e s w h ic h may be f o u n d o n l y i n a r e s t r i c t e d number o f f i r m s .
As a g e n e r a l r u l e ,
s u c h j o b s s h o u l d n o t be
I n te r m in g le d w ith a su r v e y o f w id e ly u sed c l a s s e s , b u t sh o u ld b e made t h e
su b ject o f a sp e c ia l
• s h o u ld a l s o b e g i v e n
su rvey.
t o th e d i s t r i b u t i o n
C a refu l a t t e n t io n o f th e
firm s so as
t o p r e v e n t on e t y p e o f b u s i n e s s o r one e x c e s s i v e l y l a r g e c o n c e r n from u n d u l y w e i g h t i n g t h e f i n a l
sta tistic s
o f th e s u r v e y .
The 1 9 4 9 J o i n t S a l a r y S u r v e y i n c l u d e d d a t a from 644 e m p lo y er s i n th e L os A n g e le s A rea. to ta l
o f 4 0 7 ,7 8 5 em p lo y ee s,
T h ese f i r m s r e p o r t e d a
5 5 , 5 4 4 o f whom w ere w o r k in g i n
j o b s d i r e c t l y c o m p a r a b le t o t h e 62 b enchm ark j o b s b e i n g s u r veyed.
The e m p l o y e e s s u r v e y e d w e r e d i s t r i b u t e d a s f o l l o w s :
ESTIMATED LABOR DISTRIBUTION— LOS ANGELES COUNTY1 3 A E m p lo y e e s W orking J an. 1 5, 1949
Type Manu f ac t u r i n g U tilitie s T rade and S e r v ic e C o n str u c tio n T o ta l
13
B
fo
C T o t a l Emp io y e d in F ir m s S u r veyed
D E m p lo y e e s M eetin g S u rv e y S ta n d a rd s
E
%
4 0 9 ,3 5 0 1 2 2 ,6 0 0
29 9
1 4 2 ,0 3 5 4 3 ,9 5 5
1 7 ,0 0 7 4 ,9 3 8
31 9
8 2 7 ,8 0 0 7 3 ,0 0 0
57 5
2 0 6 ,2 2 0 1 5 ,5 7 5
3 1 ,0 3 7 2 ,5 6 2 .
55 5
1 ,4 3 2 ,7 5 0 100
4 0 7 ,7 8 5
5 5 ,5 4 4
100
• S a l a r y and Wage S u r v e y i n L o s A n g e l e s C o u n ty , M arch, 1949, p. 2 .
63
Sh e s i z e c ie n tly
o f t h e sa m p le i n d i c a t e s t h a t t h e s u r v e y was s u f f i in c lu siv e
so a s t o tak e i n . a l a r g e v a r i e t y o f ty p e s
o f f i r m s and em p loym en t c o n d i t i o n s . w arran ts a l i t t l e rep o rted th a t
The s a m p l i n g t e c h n i q u e
c lo s e r s c r u t in y , how ever.
The s u r v e y
" i n f o r m a t i o n was s o u g h t from p r i v a t e e m p l o y - -
m ent i n p r o p o r t i o n t o t h e e n t i r e e m p lo y e d p o p u l a t i o n i n L o s A n g e l e s C ou nty i n t h e f o u r g e n e r a l c a t e g o r i e s o f I J a n u -. fa e tu r in g ,
U tilitie s ,
T rade and S e r v i c e ,
The r e s u l t s show t h a t t h e n o t by t h e
and C o n s t r u c t i o n " .
14
s a m p li n g was c o n d i t i o n e d
t o t a l number o f e m p l o y e e s i n t h e f i r m s c o n t a c t e d ,
b u t r a t h e r by t h e t o t a l number o f e m p l o y e e s who m et s u r v e y sta n d a rd s.
S i n c e t h e u n i v e r s e w as s t a t e d a s t h e t o t a l
em p loy m en t i n L os A n g e l e s C o u n ty and n o t t h e t o t a l e m p lo y e d in th e s i x t y - t w o k ey job c l a s s e s , has been a s h i f t
is
apparent th a t th ere
o f e m p h a sis.
T h is ty p e o f sa m p lin g i s its
it
a ttem p t to s t r a t i f y
o f s i g n i f i c a n t v a lu e
t h e com m u nity and t o o b t a i n a v a l i d
p i c t u r e o f t h e r a t e s p a i d t o benchm ark c l a s s e s . some e v i d e n c e , h o w e v e r , w r ite r ,
T h ere i s
t o s u p p o r t a c o n t e n t i o n , by t h e
t h a t some more r e f i n e d s a m p l i n g t e c h n i q u e w o u ld be
d e sir a b le . is
in
In r e a l i t y ,
t h e u n i v e r s e from w h ic h t h e sa m p le
t o b e drawn I s n o t t h e
Op. c i t .
t o t a l w o r k in g p o p u l a t i o n b u t r a t h e r
64
o n l y t h o s e p e r s o n s w o r k i n g In t h e benchm ark c l a s s e s w h ic h s a l a r y d a t a i s
t o b e o b t a i n e d and r e p o r t e d .
would*- b e t o know e x a c t l y how many o f a c e r t a i n
in fo r m a tio n ,
The i d e a l
c l a s s w ere
w o r k in g i n e a c h o f t h e m a jo r t y p e s o f i n d u s t r i e s * th is
for
W ith
t h e s u r v e y c o u l d o b t a i n d a t a on i n d u s t r y
a v e r a g e s and t h e n w e i g h t t h o s e a v e r a g e s p r o p o r t i o n a t e l y . Such an optimum s i t u a t i o n , h o w e v e r , d iffic u lt, a v a ila b le .
if
not im p o ssib le ,
I t is
is
e x tr em e ly
to o b ta in w ith th e in fo r m a tio n
th erefo re n ecessary
t o make c e r t a i n e s t i
m a t e s and a s s u m p t i o n s w h i c h , w h i l e n o t e n t i r e l y v a l i d . , make f o r more a c c u r a t e r e p o r t i n g th a n no e s t i m a t e s
at a ll.
S a m p lin g s h o u l d be t h o u g h t o f i n te r m s o f a s p e c i f i c tio n ,
r a t h e r th an o f b ro a d i n d u s t r i a l g r o u p in g s .
c l a s s s e r v e s a s an e x a m p le o f t h i s a s a g r o u p do n o t f a l l
a ss e r tio n .
occupa
The c a r p e n t e r
C arp en ters
i n t o t h e same p e r c e n t a g e s w i t h i n t h e
t y p e s o f i n d u s t r i e s a s d o e s t h e g e n e r a l w o r k in g p o p u l a t i o n . W hereas c o n s t i m e t i o n h a s o n l y tio n ,
it
o f th e
t o t a l w o r k in g p o p u l a
p r o b a b l y h a s a t l e a s t b0% o f t h e c a r p e n t e r s .
th e c o n s t r u c t io n c a r p e n te r f i t s w o u ld w a n t t o g i v e t h e
our d e s c r i p t i o n ,
If
t h e n we
c o n s tr u c tio n in d u str y r a te fo r c a rp en -.
t e r s a w e i g h t o f 5 0 f9 o f t h e t o t a l a v e r a g e r a t e f o r t h a t c l a s s . The w r i t e r c a n o f f e r no f i n i s h e d s o l u t i o n i n t r i c a t e p r o b le m o f s a m p l i n g .
It
s u ffic e s
to t h is
to r a is e
th e
65
q u e s tio n s,
p o in t out th e d i f f i c u l t i e s
and d e m o n s t r a t e th e
need fo r fu r th e r r e se a r c h . D e v e lo p in g th e s c h e d u l e . g a th e re d d u rin g th e s c h e d u l e u se d ..
The i n f o r m a t i o n t o be
s u r v e y w i l l d e ter m in e th e
S in ce i t
scope o f th e
i s a ssu m e d w i'th o u t q u e s t i o n t h a t
t h e i n f o r m a t i o n w i l l b e g a t h e r e d by p e r s o n a l i n t e r v i e w , t h e te r m s c h e d u l e i s u s e d i n l i e u ( u s u a l l y c o m p l e t e d by t h e
o f q u e s tio n n a lr e
firm w it h o u t p e r s o n a l
co n ta ct,
b e in g s e n t by m a i l ) . It
is
th e b e l i e f
o f th e w r it e r th a t th e
o n ly d a ta
w h ic h s h o u l d b e g a t h e r e d on a p r e v a i l i n g wage s u r v e y a r e as f o llo w s : ( 1 ) . B a s i c wage r a t e s f o r h e y c l a s s e s e x c l u s i v e o f o v e r t i m e , s h i f t d i f f e r e n t i & l s and n o n - p r o d u c t i o n bonuses. (2) p e r io d .
Number o f h o u r s o f ’w ork p e r day and p e r p a y
(3 ) Type o f r e p o r t i n g o r g a n i z a t i o n and s i z e i n d i c a t e d by number o f e m p l o y e e s .
as
(4) Number o f e m p l o y e e s i n e a c h k e y c l a s s and at each r a te of pay. (5) A d d i t i o n a l m o n e ta r y b e n e f i t s l o d g i n g , u n ifo rm s or r e g u la r b o n u s e s .
such as m e a ls,
I t w i l l be n o te d t h a t e x c e p t f o r th e in f o r m a t io n c o n c e r n in g m on etary b e n e f i t s a b o v e , fr in g e b e n e f it s
n o th in g i s
such as h o lid a y s
sa id , o f t h e many o t h e r
and s i c k p a y .
A d isc u ssio n
66
o f th ese
item s f o llo w s
in th e n e x t c h a p te r .
O b ta in in g the in f o r m a t io n *
T h e r e a r e tw o b a s i c p a r t s
t o t h e p r o b le m o f o b t a i n i n g t h e d a t a on a wage s u r v e y . it
F ir st,
i s n e c e s s a r y to e s t a b l i s h r a p p o r t b etw een th e agency co n
d u c tin g th e
s u r v e y and t h e c o n t r i b u t i n g f i r m s .
a c c o m p l i s h e d i n many w ays*
T h is i s
The v a r i o u s t r a d e and e m p l o y e r
a s s o c i a t i o n s may b e c o n t a c t e d and t h r o u g h th e m , bers.
P u b lic ity
t h e i r mem
t h r o u g h n ew s r e l e a s e s c a n f r e q u e n t l y c r e a t e
p u b l i c i n t e r e s t and a p p r o v a l .
I n any e v e n t ,
th e
e m p lo y e r s h o u l d b e made a w a re o f t h e n e c e s s i t y im p o r ta n c e o f p a r t i c i p a t i n g
in th e
survey.
in d iv id u a l
f o r and t h e
Second,
th e
d a ta u s e d sh o u ld a lw a y s be o b ta in e d through p e r s o n a l i n t e r v i e w by a t r a i n e d j o b a n a l y s t .
T h i s m eans t h a t t h e f i e l d
man s h o u l d n o t o n l y b e t r a i n e d i n t h e t e c h n i q u e s o f g a t h e r in g in fo r m a tio n , but a l s o be f a m i li a r w ith c l a s s i f i c a t i o n m eth o d o lo g y ,
a s w e l l a s t h e k e y c l a s s e s and a n y p e r i p h e r a l 15 in fo r m a tio n r e l a t i n g t h e r e t o . Baruch o b ser v es th at
p e r s o n a l i n t e r v i e w s a r e b e t t e r c a l c u l a t e d t o s a v e tim e and expense f o r th e c o n tr ib u to r s , and c r e a t e
e o n fid e n c e ,
t o rem ove m i s u n d e r s t a n d i n g s
and t h e r e f o r e
c o o p e r a tio n .
Op. c i t . , p* 9 5 .
to r e s u lt
in e f f e c t i v e
67
In th e J o i n t S a la r y S u rvey, a l l ed by p e r s o n a l g a to rs,
in t e r v ie w s co n d u cted by tr a in e d f i e l d
P r i o r t o an y f i e l d w o r k , a l l
an i n t e n s i v e
to fa m ilia r iz e in itia l
o b ta in In v e sti
in te r v ie w e r s are g iv e n
o r i e n t a t i o n program d e s i g n e d t o a c q u a i n t them
w ith th e n a tu r e ,
A ll
in fo r m a tio n i s
scope
and h i s t o r y
them w i t h th e
o f t h e s u r v e y and a l s o ,
s u r v e y j o b s and d e s c r i p t i o n s .
c o n t a c t s a r e made t h r o u g h an i n t r o d u c t o r y l e t t e r ,
f o l l o w e d by a p e r s o n a l i n t e r v i e w . R e p o r tin g th e d a t a .
A fter th e fie ld , in te r v ie w e r s
h a v e c o m p l e t e d th e s c h e d u l e s , r e su lts
it
is d e sir a b le
t o e d i t th e
f o r c o m p a r a b i l i t y o f t e r m i n o l o g y and r a t e s .
A ll
r a t e s s h o u l d be c o n v e r t e d t o a s t a n d a r d b a s e , u s u a l l y a m o n t h ly r a t e
sin c e t h is
i s a common m ethod o f e x p r e s s i n g
govern m en tal s a l a r i e s . N e x t , , s o m e m eth o d o f g r o u p i n g t h e d a t a s t a t i s t i c a l l y is n ecessary.
I t I s o b v io u s t h a t f o r e a s i e r i n t e r p r e t a t i o n ,
w h e t h e r b y an a d m i n i s t r a t i v e o f f i c e r
or a t e c h n i c i a n ,
th e
g r e a t b u l k o f raw d a t a c o l l e c t e d m ust b e g r o u p e d , a n a l y s e d , and c o n v e r t e d i n t o
sta tistic a l
r e a d i l y be d e a l t w it h . two m ain c a t e g o r i e s :
m e a s u r e s w h ic h may more
T h e se s t a t i s t i c a l
d e v ic e s f a l l
(1 ) m easures o f c e n t r a l
(2 ) m ea su res o f d i s p e r s i o n o r v a r i a b i l i t y .
ten d en cy ,
in to and
68
T h e r e a r e t h r e e comm only u s e d m e a s u r e s o f c e n t r a l ten d en cy.
T h ese a r e t h e w e i g h t e d a v e r a g e ,
t h e m ode.
The w e i g h t e d a v e r a g e i s
t h e m e d ia n , and
o b ta in e d by
(1 ) m u l t i p l y
i n g e a c h s a l a r y r a t e by t h e number o f e m p l o y e e s r e c e i v i n g th at r a te ,
(2 ) a d d in g t h e s e p r o d u c t s ,
sum by t h e t o t a l number o f e m p l o y e e s . m i d d le r a t e
d iv id in g th e ir
The m ed ia n r a t e i s
the
o f pay when a l l r a t e s a r e r a n k e d fro m l o w e s t
t o h i g h e s t . . The m e d ia n d i v i d e s equal p a r ts .
and ( 3 )
The mode i s
th e d i s t r i b u t i o n
th e s i n g l e
i n t o two
sa la r y r a te r e c e iv e d
by th e l a r g e s t number o f e m p l o y e e s . The m e a s u r e s o f v a r i a b i l i t y
r e v e a l th e d egree to
w h ic h t h e s a l a r i e s a r e g r o u p e d a r o u n d th e c e n t e r o r a v e r a g e fig u r e .
S u c h m e a s u r e s may b e t h e t o t a l r a n g e ,
q u a r t i l e r a n g e , the d e v ia tio n .
survey d a ta .
s t a n d a r d d e v i a t i o n and t h e a v e r a g e
Of t h e s e ,
commonly u s e d i n t h e
th e i n t e r
th e
i n t e r q u a r t i l e r a n g e i s m o st
in te r p r e ta tio n
H ere t h e
fir st
o f p r e v a i l i n g wage
and t h i r d q u a r t i l e s a r e ’ com
p u t e d b y d e t e r m i n i n g t h e i r a t e b e l o w w h ic h t h e l o w e s t t w e n t y f i v e p e r c e n t o f t h e e m p l o y e e s a r e p a i d and t h e . r a t e a b o v e w h ic h t h e h i g h e s t t w e n t y - f i v e p e r c e n t a r e p a id * betw een th e
fir st
and t h i r d q u a r t i l e s
o f r a t e s p a id t o th e m id d le f i f t y
The r a n g e
show s u s t h e r a n g e
p e r c e n t o f e m p lo y ees.
69
Each o f the s t a t i s t i c a l
m easures p r e v io u s ly r e fe r r e d
t o h a s c e r t a i n a d v a n t a g e s and d i s a d v a n t a g e s . average,
fo r .e x a m p le ,
d is tr ib u tio n . lo w r a t e s ,
is
The w e i g h t e d
a f f e c t e d b y e v e r y wage r a t e i n t h e
I f t h e r e a r e an e q u a l number o f h i g h and
th en th e w e ig h te d a v era g e i s
r e p r e se n ta tiv e .
Any e x t r e m e l y h i g h o r l o w r a t e s , h o w e v e r , w i l l
t e n d t o ske?/
t h e d i s t r i b u t i o n b y e x e r t i n g an i n f l u e n c e u n w a r r a n t e d by t h e i r num bers.
In t h e m e d ia n , w h e r e e a c h r a t e h a s a v a l u e
o f o n ly o n e , r e g a r d l e s s o f i t s
siz e ,
th e ex trem es are n e g a te d .
The mode i s u s e d p r i m a r i l y t o i n d i c a t e
the r a t e .p a i d
l a r g e s t group o f e m p lo y ee s f o r a s i n g l e k ey Job .
to th e
It is
i m p o r t a n t t o b e aw are o f w h e t h e r t h e r e a r e o t h e r c l u s t e r s o r g r o u p s o f e m p l o y e e s w h ose nu m bers a r e o n l y s l i g h t l y s m a l l e r and w h o se wage r a t e s d i f f e r m a r k e d ly from th e l a r g e s t m od al g r o u p . As a r u l e ,
th e w e ig h te d a v e ra g e i s
m o st i m p o r t a n t s i n g l e wage s u r v e y ,
sta tistic a l
c o n s id e r e d th e
m e a su r e i n a p r e v a i l i n g
w i t h t h e m d e ia n , m od e,
and i n t e r - q u a r t i l e
r a n g e s e r v i n g a s c h e c k s a g a i n s t any u n u s u a l
or u n b a l a n c e d
d is tr ib u tio n s. The j o i n t s a l a r y s u r v e y u t i l i z e s poses, m ode,
t h e m e d ia n , w e i g h t e d a v e r a g e , and t h e
in te r -q u a r tile
range.
fo r r e p o r tin g pur
f i r m m ode, e m p lo y e e In a d d itio n ,
t h e num ber
70
o f f i r m s and t h e num ber, o f e m p l o y e e s w o r k in g i n e a c h o f t h e key c la s s e s i s Summary.
rep o rted * As h a s b e e n p r e v i o u s l y s t a t e d ,
a p r e v a i l i n g w a g e .su r v e y i s c o m p en sa tio n p la n .
th e u se o f
an e s s e n t i a l p o r t i o n o f any
E a ch y e a r t h e f o u r l a r g e s t l o c a l
govern
m e n t a l a g e n c i e s i n t h e L o s A n g e l e s C ou nty a r e a c o o p e r a t e i n a j o i n t com m u n ity wage and s a l a r y in
survey.
The p r o b le m s f o u n d
su ch a su r v e y b e g in w it h th e a tte m p t t o d e f i n e
v a i l i n g w age.
In v e s tig a tio n
th e p r e
sh ow s t h a t th e p r e v a i l i n g wage
h a s b e e n d e f i n e d a s t h e m ean, t h e m ode, t h e t h i r d q u a r t i l e or t h e i n t e r - q u a r t i l e
range.
A c tu a lly ,
th e te r m p r e v a i l i n g
wage c a n o n l y be d e f i n e d w i t h i n t h e fra m e o f r e f e r e n c e w i t h w h ic h i t
is
to be u s e d .
A r e v i e w o f s u r v e y m eth o d s i n d i c a t e s a t t e n t i o n m u st be g i v e n t o t h e s e l e c t i o n be c o v e r e d i n th e s u r v e y . a v a ila b le
as g u id e s.
m ost o f t h e s e c r i t e r i a
in d ic a te d
t o the b a s i c c r i t e r i a
o f th e key jo b s to
C e rta in s p e c i f i c
c r ite r ia
are
The L o s A n g e l e s S u r v e y i n 1 9 4 9 m et a l t h o u g h t h e r e w ere a f e w e x c e p t i o n s .
The i n s u f f i c i e n t d a t a c o l l e c t e d mark c l a s s e s
th a t c o n sid e r a b le
on t h e s e
ill- c h o s e n bench
th e n e c e s s a r y f o r c l o s e r adh erence f o r key job c l a s s e s .
The d e v e lo p m e n t o f j o b d e s c r i p t i o n s and th e s e l e c t i o n o f t h e f i r m s t o be s u r v e y e d a l s o m e r i t c l o s e s c r u t i n y .
71 The B u rea u o f L a b o r S t a t i s t i c s
in i t s
i n d u s t r y wage s t u d i e s
h a s d e v e l o p e d a h i g h l y r e f i n e d s a m p l i n g p r o c e d u r e w h ic h may s e r v e a s a g u i d e t o l o c a l s a l a r y s u r v e y s *
The L o s
A n g e l e s S u r v e y s a m p le d a p p r o x i m a t e l y 3 0 p e r c e n t o f t h e t o t a l w o r k in g p o p u l a t i o n i n t h e f o u r m ain i n d u s t r i a l c a t e g o r i e s o f M a n u fa c tu r in g , U t i l i t i e s , and C o n s t r u c t i o n .
Some c r i t i c i s m
T rade and S e r v i c e ,
h a s b e e n made o f t h e
m eth o d o f s a m p li n g and f u r t h e r r e s e a r c h i n t o t h i s p r o b le m is
recom m end ed . The d e v e lo p m e n t o f t h e s c h e d u l e and t h e m ethod o f
g a th e r in g d a ta r e q u ir e by t r a i n e d
th a t a ll
c o n t a c t s b e made i n p e r s o n
j o b a n a l y s t s who h a v e b e e n f u l l y
o r ie n te d
to
t h e k e y j o b c l a s s e s and t o t h e p u r p o s e and s c o p e o f t h e su rvey.
A lth o u g h th e r e
a r e nu m erous s t a t i s t i c a l
in use by su rv ey g r o u p s ,
m easures
t h e m o st p r e v a l e n t and d e s i r a b l e
a r e t h e w e i g h t e d a v e r a g e , m e d ia n , m ode, and i n t e r - q u a r t i l e r a n g e , w i t h t h e w e i g h t e d a v e r a g e s e r v i n g a s t h e m ost u s e f u l s i n g l e m easure.
CHAPTER
V III.
PERQUISITES In c r e a sin g a tte n tio n
I s b e i n g g i v e n t o t h e p r o b le m
o f e v a lu a tin g p e r q u is it e s or fr in g e b e n e f i t s , i n a ccu ra te on t h i s
a p p l i c a t i o n o f p r e v a i l i n g wage d a t a .
R ecent r e se a r c h 1 s u b j e c t r e v e a l s a h i g h l y c o m p le x s i t u a t i o n . A s id e
from th e b a s i c d i f f i c u l t i e s tio n ,
sta tistic a l
of th e
in te r p r e ta tio n ,
o f a p r e v a i l i n g ?v*age s u r v e y , la te
d eter m in in g
it
w e e k ly ,
m o n tly ,
c la s sific a
and p u b l i c r e l a t i o n s a s p e c t
is
th e r e s u l t s o f su ch a su rvey
h o u r ly , d a i l y ,
o r g a n iz a tio n ,
r e la tiv e ly
sim p le to ta b u
i n te r m s o f t h e r e p o r t e d
or ann ual r a t e s .
T h e se
d a t a may t h e n ' be c o n v e r t e d t o c o n f i r m w i t h t h e p a y p e r i o d u n its o f a p a r tic u la r j u r is d ic t io n . A d d it io n a l c o m p en sa tio n in f o r m a t io n , fo r liv in g
q u a rters,
su ch as th a t
r e la tiv e
to p r o v isio n s
m e a ls , or c a sh
bonuses,
may a l s o be c o n v e r t e d t o m o n e ta r y v a l u e s and t h e n
c o m b in e d w i t h t h e b a s i c wage r a t e s f o r a more c o m p l e t e p i c tu r e o f p r e v a ilin g w ages.
The p r o b le m i s
c o m p lic a te d ,
how ever,
when a u t h o r i t i e s go b e y o n d t h e a b o v e c o m p a r is o n and a t t e m p t to e v a lu a te
th e a d d it io n a l
s i m i l a r i t i e s and d i f f e r e n c e s
fo u n d i n p u b l i c and p r i v a t e e m p lo y m e n t.
^*The d e v e l o p m e n t o f t h i s c h a p t e r was f i r s t p r e s e n t e d a s a r e s e a r c h p r o j e c t by I r v i n C a r t n e r and t h e a u t h o r f o r t h e P e r s o n n e l C o m m is s io n , L os A n g e l e s C i t y S c h o o l D i s t r i c t s , i n D ecem ber, 1 9 4 9 .
73 In p r e p a r a tio n f o r th e p u b l i c a t i o n
o f a t e x t b o o k on
p a y p l a n s b y t h e C i v i l S e r v i c e A s s e m b ly o f t h e U n i t e d S t a t e s 2 and C an ada, Is m a r B a r u c h and h i s C om m ittee on P o s i t i o n C l a s s i f i c a t i o n and P ay P l a n s h a v e made a number o f fundam en ta l
o b se r v a tio n s r e l a t i v e
t o t h i s p r o b le m w h ic h h a v e p r o
v i d e d t h e m a jo r p o r t i o n o f t h e m a t e r i a l on w h ic h t h i s i s based.
ch ap ter
A f t e r g a t h e r i n g t h e b a s i c wage d a t a and t h e n
a d d in g s u c h r e a d i l y c o n v e r t e d a d d i t i o n a l m o n e t a r y b e n e f i t s a s l i v i n g q u a r t e r s and m e a l s , and p r i v a t e
c o m p en sa tio n i s
a te c h n ic a l v ie w p o in t.
th e co m p a riso n b etw een p u b lic
still
not e n tir e ly
c o m p l e t e from
A more b a s i c q u e s t i o n r e m a i n s :
Is
th e co m p a riso n c o m p le te f o r p r a c t i c a l p u r p o se s? T here are th e a d d i t io n a l p o i n t s o f non -m on etary p r i v i l e g e s ,
in c e n tiv e s
o f c o m p a r is o n i n t e r m s or a d v a n ta g es o f
e m p l o y m e n t ,s u c h a s r e c r e a t i o n a l and o t h e r m o r a l e b u i l d i n g fa c ilitie s .
T h e se p r i v i l e g e s a r e a c c u r a t e l y c a l l e d n o n
m o n e ta r y i n c e n t i v e s o r a d v a n t a g e s o f em p lo y m en t In asm u ch a s th e y can r a r e l y be c o n v e r t e d in term s o f d e f i n i t e
fin a n c ia l
v a lu e s.
Ism ar B aru ch , e d . , Pay P la n s in th e P u b li c S e r v ic e t u n p u b l i s h e d b o o k , C i v i l S e r v i c e A s s e m b ly o f t h e U n it e d S t a t e s and Canada: C h i c a g o , 1 9 4 9 .
74
O t h e r d i f f e r e n c e s b e t w e e n p r i v a t e and p u b l i c e m p lo y m ent c a n r a r e l y , b e su m m a rize d i n m e n t s t o r e p o r t e d pay r a t e s .
term s o f d e f i n i t e a d j u s t
Among t h e s e a r e p r o v i s i o n s f o r :
V a c a tio n S ic k le a v e M e d ic a l f a c i l i t i e s R e t i r e m e n t or p e n s i o n p l a n s ( a s d i s t i n g u i s h e d from s o c i a l se c u r ity ) S e v e r a n c e p ay G-roup l i f e i n s u r a n c e p l a n s , s u r g i c a l o r m e d i c a l p l a n s T r a in in g program s S to c k -p u r c h a sin g p la n s Awards f o r l o n g s e r v i c e or c o n t i n u o u s a t t e n d a n c e . The amount o f s u c h b e n e f i t s a c c o r d in g t o th e s t a t u s fa cto rs
o f i n d i v i d u a l e m p l o y e e s , b a s e d on
su ch as le n g t h o f s e r v i c e ,
i d u a l com pany b u s i n e s s
in p r iv a te in d u s tr y v a r i e s ,
c o n d itio n s.
t y p e o f w o rk ,
and i n d i v
T h is o b s e r v a t i o n i s
b o r n e o u t s t a t i s t i c a l l y , by t h e r e c e n t s u r v e y o f t h e C a l i f o r n i a In stitu te
o f T e ch n o lo g y .
The N a t i o n a l
In d u str ia l " 4
B o a r d ’ s M anagement R e c o r d , Decem ber 1 9 4 6 ,
C o n feren ce
p r o v i d e s an e x c e l
l e n t e x a m p le i n t h e E a stm a n Kodak B onus P l a n , w h ic h p r o v i d e s a d i v i d e n d t o e m p l o y e e s w h ic h i s h i g h l y v a r i a b l e ,
r is in g or
o
' • S e l e c t e d P e r s o n n e l P r a c t i c e s ' i n L o s A n g e l e s C o u n ty a s o f A p r i l 1 , 1 9 4 9 , " C i r c u l a r N o. 1 8 , I n d u s t r i a l R e l a t i o n s S e c t i o n , ( C a l i f o r n i a I n s t i t u t e o f T e ch n o lo g y : P a sa d en a , C a l i f . , A u gu st, 1949 ) 12 pp. 4
'•Three D e c a d e s o f S h a r e d P r o f i t s , " The C o n f e r e n c e B oard M anagement R e c o r d , D e ce m b e r, 1 9 4 6 , p . 3 9 0 .
75 f a l l i n g w ith th e d iv id e n d d e c la r e d sto ck *
For e a c h d o l l a r o f d e c la r e d
$ 3 .5 0 , to ta l
on t h e com p a n y*s common annual d iv id e n d above
e m p l o y e e s r e c e i v e d o n e - h a l f o f on e p e r c e n t o f t h e i r s a l a r i e s or w a g e s f o r t h e f i v e
y e a r s im m e d ia te ly
p r e c e d i n g t h e d a t e o f p aym en t b u t i n no c a s e l e s s fifte e n
d o lla r s.
th a n
T h e s e and s i m i l a r p a y m e n ts a r e r a r e l y
t a k e n i n t o a c c o u n t by t h e i n d i v i d u a l company i n e s t a b l i s h i n g wage r a t e s .
They a r e p a i d i n r e c o g n i t i o n
em p lo y ees p l a y i n th e T hus,
su ccess of each p a r tic u la r b u sin e ss.
th ere i s
real d iffic u lty
a d d i t i o n a l m onetary v a lu e c la s se s
of p o sitio n s
of
o f th e p a r t ,
in e s t im a t in g th e
of th ese b e n e fits
in term s o f
o c c u p i e d by i n c u m b e n t s w i t h a v a r i e t y
in d iv id u a l s ta tu s e s 5 Fuhrman s t a t e s :
in s e v e r a l hundred d i f f e r e n t c o n c e r n s .
f r e q u e n t l y , th e c o m p en sa tio n o r r a t i n g p la n i s n o t c o n s i s t e n t w i t h c e r t a i n b a s i c m anagem ent p o l i c i e s or program s. F or i n s t a n c e , t h e p l a n may b e b a s e d upon p r e v a i l i n g l o c a l i t y wage r a t e s and o r g a n i z a t i o n s w h ere m anagem ent f i n a n c e s g r o u p h o s p i t a l i z a t i o n or p e n s i o n p l a n s w h ic h o t h e r e n t e r p r i s e s i n t h e a r e a may n o t h a v e . . . . I t m ig h t b e n e c e s s a r y f o r th e s a l a r y r a t e o f t h a t o r g a n i z a t i o n t o b e som ew hat lo w e r th a n t h o s e o f e m p lo y e e s in o th e r l o c a l e s t a b lis h m e n ts. T h ough , i f t h e amount c o n t r i b u t e d by th e o r g a n iz a t io n to th e h o s p i t a l i z a t i o n or p e n s io n p l a n w e r e t a k e n i n t o a c c o u n t , t h e e q u i v a l e n t com p e n s a t i o n o f t h e e m p l o y e e s w o u ld m eet l o c a l i t y r e q u ir e m e n ts. . . . H 5
H e r b e r t S. Fuhrman, ,fDo We F o r g e t t h e P r i n c i p l e s o f Wage A d m i n i s t r a t i o n ? ", P e r s o n n e l , M arch, 1 9 4 6 , p . 2 8 3 .
76
R e a s o n i n g o f t h i s n a t u r e b e c o m e s som ew hat b e w i l d e r i n g , when one a c c o u n t s f o r t h e v a r i e t y
o f d i f f e r e n c e s n o t o n ly
b e t w e e n p u b l i c and p r i v a t e o r g a n i z a t i o n s , p u b lic
but a l s o b etw een
j u r i s d i c t i o n s a m o n g . t h e m s e l v e s and b e t w e e n p r i v a t e
c o m p a n ie s among t h e m s e l v e s . th e f a c t o r
T h u s,
f o r e x a m p l e , b a s e d on
o f c o n t i n u o u s em p loym en t and som ew hat g r e a t e r down
w ard a d j u s t m e n t o f p u b l i c j u r i s d i c t i o n
sa la r ie s
p r iv a te
th e r e l a t i v e l y lo w
co m p a n ie s.
On t h e o t h e r h a n d ,
governm ent s a la r y c e i l i n g
in r e l a t io n
in term s o f u lt im a t e p o t e n t i a l
e a r n i n g s a s com p ared w i t h t h e l i b e r a l p o t e n t i a l e a r n i n g s i n p r i v a t e i n d u s t r y , w o u ld i n d i c a t e a n o t h e r c o n c l u s i o n . Baruch tiv e
6
m akes t h r e e r a t h e r b a s i c o b s e r v a t i o n s r e l a
t o t h e g e n e r a l n a t u r e o f t h e p r o b le m .
fo r a p r e c ise v a r ia tio n s
o r s ta n d a r d fo rm u la i s
in p r a c tic e
F ir st,
fu tile .
to search
The w id e
and i n t h e num erous t y p e s o f b e n e f i t s
t h a t go t o make w o r k i n g f o r one e m p l o y e r more a t t r a c t i v e th a n w o r k in g f o r a n o t h e r , th ere i s lin e
ju s tify
a d o u b t a s t o w h eth er
any way o f b r i n g i n g a p u b l i c j u r i s d i c t i o n i n t o
w ith l o c a l p r i v a t e e m p lo y e r s,o n a l l p h a se s o f'e m p lo y
m ent a d v a n t a g e s and c o m p e n s a t i o n s . 6
P a y P la n s .,
op. c i t .
to
77
S e c o n d , e v e n when em p lo ym en t b e n e f i t s su r v e y in g j u r i s d i c t i o n p r iv a te .e m p lo y e r s , c lu siv e . ta g eo u s,
a r e com pared t o t h o s e g r a n t e d by
the r e s u l t s are i n c l i n e d to be in c o n
I n some r e s p e c t s , w hereas,
o f f e r e d by t h e
p r i v a t e em p loym en t i s more a d v a n
in o th e r r e s p t s ,
the o p p o s ite
is
tru e-
D i f f e r e n c e s c o u n t e r b a l a n c e e a c h o t h e r i n many r e s p e c t s .
As
M osher and. K i n g s l e y s t a t e : f,I n t h e p u b l i c s e r v i c e s g e n e r a l l y , w o r k i n g c o n d i t i o n s a r e p r o b a b l y som ew hat b e t t e r th a n i n t h e a v e r ag e p r i v a t e e s t a b l i s h m e n t . On t h e o t h e r h a n d , th e ad van tages o f 's h o r t h o u rs, l i b e r a l v a c a tio n , a se c u r i t y o f t e n u r e , and s o f o r t h a r e o f f s e t b y t h e r e l a t i v e l y s l i g h t p r o m o t i o n a l o p p o r t u n i t i e s and t h e c o m p lete a b sen ce o f any o p p o r tu n ity f o r r e a l l y l a r g e e a r n in g s in th e p u b l i c s e r v i c e . I t i s p r o b a b le th a t n e i t h e r p u b l i c o r p r i v a t e . em p loy m en t o f f e r s s u b s t a n t i a l a d v a n t a g e s o v e r t h e o t h e r w h ic h a r e n o t m a tc h e d b y sub s t an t i a l d i s adv an t a ge s • n7 I t s h o u l d b e n o t e d , h o w e v e r , t h a t M osher and K i n g s l e y ’ s g e n e r a liz a tio n w ith -r e s p e c t to tio n ,
se c u r ity of ten u re,
a s th e e x i s t i n g
and s o f o r t h ” i s
T h ir d ,
change
p e n s i o n p l a n s and em p loym en t
i n many p r i v a t e c o m p a n i e s . th ere is
en ce o f th e p r e se n c e 7
su b ject to
t r e n d c o n t i n u e s to w a r d a f o r t y - h o u r work
w eek, l o n g e r p a id v a c a t i o n s , s ta b iliz a tio n
11s h o r t e r h o u r s , l i b e r a l v a c a
Op. c i t . ,
some d a n g e r o f e x a g g e r a t i n g t h e i n f l u
or a b s e n c e o f p e r q u i s i t e s .
p. 457.
F r e q u e n tly ,
78
ju r isd ic tio n s
assum e t h a t p a y l e v e l s
governed by th e d eg ree
c a n and s h o u l d b e
of adequacy o f th e o r g a n i z a t i o n ' s
e x i s t i n g m anagem ent p ro gram and t h a t ,
if
in a d e q u a c ie s e x i s t ,
t h e s e c a n b e c o m p e n s a t e d f o r b y a » h i g h e r g e n e r a l pay l e v e l . In th e r e v e r s e ,
it
i s b e l i e v e d t h a t a co m p re h en siv e p e r s o n n e l
program w i t h s e v e r a l
su b sta n tia l b e n e f it s ,
w o u ld p r o v i d e a
s u b s titu te
fo r p r e v a ilin g pay le v e ls *
in d u lg e in
s u c h a s s u m p t i o n s s h o u l d b e a v o i d e d in a s m u c h a s
n o n -fin a n c ia l
in c e n tiv e s,
in c lu d in g b a s ic pay r a t e s , m anagem ent p r o g r a m ,
Any t e n d e n c y t o
as w e ll as fin a n c ia l
in c e n tiv e s,
are a l l c o n s t i t u e n t p a r ts o f th e
and t h a t d e f i c i e n c i e s
in e it h e r
typ e o f
i n c e n t i v e p ro g ra m t e n d t o l i m i t t h e e f f e c t i v e n e s s o f th e oth er*
A pay p o lic y t h a t e s t a b l i s h e s b a s ic r a te
l o w e r th a n l o c a l c o m p e t i t i v e r a t e s , r e c r u itin g ,
sc h e d u le s
h a n d ic a p s e f f e c t i v e
p r e v e n ts th e u se o f h ig h e r q u a l if i c a t i o n
and e n c o u r a g e s th e l o s s
o f t h e m o st c o m p e t e n t p e r s o n n e l - -
e v e n when co m b in ed w i t h a l i b e r a l p e r s o n n e l p r o g r a m . R ich ey p o i n t s
stan d ard s,
As
ou t:
uThe a c t u a l amount o f c o m p e n s a t i o n p a i d i s g e n e r a l l y a m a jo r t e s t o f w h e t h e r o r n o t a g o v e r n m e n t a l u n i t a t t r a c t s h i g h g r a d e a p p l i c a n t s and r e t a i n s them i n t h e s e r v i c e a f t e r e m p lo y m e n t. T h erefo re, i t i s t im e t h a t g r e a t e r a t t e n t i o n b e g i v e n t o r a t e s o f pay p r e v a i l i n g in th e s o u r c e s o f r e c r u itm e n t f o r th e p u b l i c s e r v i c e . . , . L e t u s rem em ber t h a t e m p l o y e e s l i v e on w h at i s i n t h e i r p a y c h e c k s . To t h e e x t e n t t h a t f a v o r a b l e t e n u r e , h o u r s , l e a v e , and r e t i r e m e n t
79 p r i v i l e g e s a r e v a l i d , l e t u s u s e them a s a m eans o f a t t r a c t i n g c o m p e t e n t i n d i v i d u a l s and n o t a s a s u b s t i t u t e f o r d i r e c t c o m p en sa tio n . Summary.
In v ie w o f th e
c o m p lic a te d n a tu r e o f the
p r o b le m and t h e d e s i r e d i n t e g r a t i o n and m anagem en t p o l i c i e s e l u s i o n c a n b e m ade.
o f p e r so n n e l, pay,
and o p e r a t i o n s ,
th e f o l l o w i n g c o n - ,
P e r s o n n e l program s d e s ig n e d to b u i l d
m o r a le w i t h t h e r e s u l t i n g a d v a n t a g e s t o t h e
se r v ic e
sh o u ld
n o t be o f f e r e d a s a c o u n t e r b a l a n c e t o any d e f i c i e n c i e s pay p o l i c y .
The b a s i c p a y p o l i c y
t o p r iv a t e pay l e v e l s
sh o u ld be s e t
in r e l a t i o n
s u b je c t t o th e a v a i l a b i l i t y
so t h a t pay w i l l be a t l e a s t
of
o f fu n d s,
eq u al to th a t in la r g e r l o c a l
c o n c e r n s h a v i n g m odern i n d u s t r i a l r e l a t i o n s and p e r s o n n e l p r o g r a m s w i t h work o f c o m p a r a b le d i f f i c u l t y ib ility ,
and w h ere s i m i l a r q u a l i f i c a t i o n s
" D eterm in in g Pay P o l i c y " ,
o jd .
and r e s p o n s
are r e q u ire d .
c i t . , p.
21*
CHAPTER
V III.
CONCLUSIONS P r e v io u s c h a p te r s have r e v ie w e d th e g e n e r a l back g r o u n d t o t h e p r o b le m o f s a l a r y se rv ic e*
s e t t i n g in th e p u b lic
M e n tio n h a s b e e n made o f t h e s e q u e n c e
of h is to r
i c a l e v e n t s i n t h e f e d e r a l s e r v i c e w h ic h h a v e c o m b in e d t o form t h e p r e c i d e n t s f o r c u r r e n t l e g i s l a t i v e tiv e p r a c tic e s. o f w ages a l s o
and a d m i n i s t r a
The t h e o r e t i c a l o r p h i l o s o p h i c a l c o n c e p t s
t e n d t o r e v e a l t h e c a u s a t i v e f a c t o r s . w h ic h
l e a d t o t h e e s t a b l i s h m e n t o f o p e r a t i n g wage p o l i c y . It
is
d e lib e r a te ly
o b v io u s t h a t i n any governm ent a g e n c y , w h eth er or n o t ,
t h e r e i s b u i l t up a s e r i e s
and t h e o r i e s w h ic h s e t p o lic y .
t h e fra m e w o r k f o r a b a s i c - p a y l e v e l
T h is p o l i c y o p e r a t e s t o d e t e r m i n e t h e
o f th e a g e n c y 's pay s c h e d u l e s , pay o f o t h e r p r i v a t e
e ith e r
general le v e l
in r e l a t i o n
or p u b l i c a g e n c i e s ,
some o t h e r e x t e r n a l c r i t e r i o n T h is p o l i c y w i l l ,
of p r a c tic e s
to th e
or i n r e l a t i o n
such a s a c o s t - o f - l i v i n g
to a la r g e e x te n t,
be i n f l u e n t i a l
to Index.
in th e
e s t a b l i s h m e n t and m a i n t e n a n c e o f s t a n d a r d s f o r r e c r u i t i n g , te s tin g ,
and o t h e r p e r s o n n e l a c t i v i t i e s .
C o n flic tin g c o n sid e r a tio n s p e r so n n e l,
o f su p p ly o f q u a l i f i e d
b u d g e t or t a x l i m i t a t i o n s ,
o r l e g a l wage c e i l i n g s
81
o r f l o o r s may f r e q u e n t l y c r e a t e m u t u a l l y e x c l u s i v e w h ic h may b e r e s o l v e d
in flu e n c e s
o n ly by i n t e n s i v e r e s e a r c h or e v e n tu a l
c o m p r o m is e . The s o l u t i o n o f t h e p r o b l e m s i n v o l v e d
in f ix in g
w a g e s and s a l a r i e s m a y .b e f a c i l i t a t e d b y t h e a v a i l a b i l i t y of fa ctu a l
in fo r m a tio n .
Su ch i s
w age s u r v e y i n t h e t o t a l p i c t u r e
th e p la c e o f th e p r e v a il i n g of sa la r y -se ttin g .
The L o s A n g e l e s C i t y S c h o o l D i s t r i c t s h a v e b e e n a w a r e o f t h e i m p o r t a n c e o f a p r e v a i l i n g wage s u r v e y and e a c h y e a r p a r tic ip a te
in su ch a su rv ey in c o o p e r a tio n w ith the C ity
o f L o s A n g e l e s , C o u n t y . o f L o s A n g e l e s and t h e L o s A n g e l e s C i t y H o u s in g A u t h o r i t y .
The c o n d u c t o f t h i s J o i n t S a l a r y
S u r v e y h a s f o l l o w e d t h e p r o c e d u r e s a n d m e th o d s a d v o c a t e d by a u t h o r i t i e s
in th e
The s e l e c t i o n
fie ld ,
w i t h fe w m a jo r e x c e p t i o n s .
o f key jo b s ,
d e v e lo p m e n t o f jo b d e s c r i p
t i o n s and t h e m ethod o f o b t a i n i n g t h e d a t a h a v e b e e n r e v i e w e d and fo u n d t o b e s u b s t a n t i a l l y v a l i d . e v o k e d some c r i t i c i s m
The s a m p l i n g m ethod h a s
and f u r t h e r r e s e a r c h i s
recom m end ed .
The r e l a t i o n s h i p b e t w e e n p e r q u i s i t e s o r f r i n g e . b e n e f i t s and p r e v a il i n g wages i s b e lie v e s
a more c o n t r o v e r s i a l i s s u e .
The w r i t e r
t h a t f r i n g e b e n e f i t s s h o u l d n o t be u s e d a s a l e v e r
82
to r a is e
or d e p r e s s w a g e s, b u t s h o u ld be a s e p a r a t e c o n s i d e r a
tio n u t iliz e d
to i n c r e a s e th e d e s i r a b i l i t y
c o n n e c tio n w ith a l l
o f e m p lo ym en t i n
o t h e r m anagem ent p r a c t i c e s .
I n common w i t h m o s t o f t h e l e a d i n g a u t h o r i t i e s th e f i e l d
of personn el
a d m in is tr a tio n ,
in
th e w r i t e r p l a c e s t h e
u t m o s t i m p o r t a n c e on t h e n e c e s s i t y f o r c o n t i n u i n g r e s e a r c h i n t o m e t h o d s and p r o c e d u r e s o f w age and s a l a r y m ore s p e c i f i c a l l y ,
s e ttin g ,
th e p ro ced u res in v o lv e d in th e conduct
o f a p r e v a i l i n g wage and s a l a r y
su rvey.
From a s o c i a l s t a n d p o i n t , Im p ro v ed m e th o d s o f wage d e t e r m i n a t i o n c a n r e s u l t i n more e q u i t a b l e c o m p e n s a t i o n , i n t h e e n c o u r a g e m e n t and s a t i s f a c t i o n o f e m p lo y ee s' a m b itio n s , in th e a c c e p ta b le v a lu a t io n o f s p e c i a l i z e d s e r v i c e s r en d e re d j o i n t l y , i n th e e n c o u r a g e m e n t o f c a p a b l e m an agem en t, and i n t h e e v o l u t i o n a r y a d j u s t m e n t o f w age l e v e l s t o c h a n g i n g c o n d itio n s.
1
and
J o h n ¥/. R i e g e l , U n i v e r s i t y o f M ic h i g a n ,
Wage D e t e r m i n a t i o n 1 9 3 4 ), p .131.
(Ann A rbor:
BIBLIOGRAPHY
84
A*
BOOKS
B a l d e r s t o n , C. Canby, Wage S e t t i n g B a se d on J o b A n a l y s i s and E v a lu a tio n . I n d u s t r i a l R e l a t i o n s C o u n s e l o r s , New Y o r k , 1940* 60 p p . Baruch, Ism ar, e d i t o r , P o s i t i o n - C l a s s i f i c a t i o n in th e P u b lic S e r v i c e , C h ic a g o : C i v i l S e r v i c e A s s e m b ly o f t h e U n i t e d S t a t e s and C anada, 1 9 4 2 * 4 0 4 p p . B aruch, Ism a r, e d i t o r , Pay P la n s in th e P u b l i c . S e r v i c e t u n p u b l i s h e d b o o k , C i v i l S e r v i c e A s se m b ly o f t h e U n i t e d S t a t e s and Canada: C h i c a g o 1 9 4 9 , u n p a g e d . B e l c h e r , D a v i d W. and Heneman, H e r b e r t G-., J r . , How t o Make a Wage S u r v e y , M i n n e a p o l i s : i n d u s t r i a l R e la tio n s C en ter, U n i v e r s i t y o f M i n n e s o t a , 1 9 4 8 . 60 p p . C ox, J a c o b D* , The E c o n o m ic B a s e s o f F a i r W a g e st New York: The R o n a ld P r e s s Company, 1 9 2 6 . 139 pp. D a v i d s o n , J o h n , The B a r g a i n i n g T h e o r y o f W ages, New York: P utnam and S o n s , 1 8 9 8 . 319 pp. D i c k e n s o n , Z . C . , C o l l e c t i v e Wage D e t e r m i n a t i o n f New Y ork: The R o n a ld P r e s s C o . , 1 9 4 1 . 6 4 0 p p . D o u g l a s , P a u l Howard, The T h e o r y o f W ages, New Y o rk : M a c m illa n Company, 1 9 3 4 . 639 pp.
The
D o u g l a s , P a u l Howard, Re a l Wages i n t h e U n i t e d S t a t e s f 1 8 9 0 1 9 2 6 , B o sto n : H o u g h to n -M ifflin C o ., 1 9 3 0 . 682 pp. D u n lo p , J o h n T . , Wage D e t e r m i n a t i o n U n der T ra d e U n i o n s , New Y o r k : The M a c m illa n Company, 1 9 4 4 . 2 3 1 p p . E lls ,
R a lp h W ., S a l a r y and. Wage Ad.nii n i s t r a t i o n , New Y ork: M cG ra w -H ill Book C o . , 1 9 4 5 . 1 2 0 pp.
F eld m a n , Herman, A*P e r s o n n e l P ro gram f o r t h e F e d e r a l S e r v i c e f W a s h i n g t o n , D. Ch :" U n i t e d S t a t e s G overnm ent P r i n t i n g O ffic e , 1931. 289 pp. H i c k s , J o h n R . , The T h e o r y o f W ages, New Y ork: Company, 1 9 3 2 . 24? pp.
The M a c m illa n
Hopwood, J» 0 * , S a l a r i e s , W ages, and L a b o r R e l a t i o n s » New Y o rk : The R o n a ld P r e s s C o . , 1 9 3 ? . 124 pp.
J u c i u s , M ic h a e l J . , P e r s o n n e l M an agem en t, C h ic a g o : R i c h a r d D. I r w i n , I n c . , 1 9 4 8 . 696 p p . L e e d s , M. E . , and B a l d e r s t o n , . Canby 0 . , W a g e s; A Means o f T e s t in g T h eir A dequacy, P h i la d e lp h ia : U n iv e r s i t y o f P e n n sy lv a n ia P r e s s , 1931. 79 p p . L o t t , M e r r i l l R . , Wage S c a l e s ' and -J o b E v a l u a t i o n , New Y o r k : * The R o n a ld P r e s s Company, 1 9 2 6 # 1 6 1 p p . M o s h e r , W i l l i a m E . , and K i n g s l e y , J . D o n a ld , P u b l i c P e r s o n n e l A d m i n i s t r a t i o n , New York and L o n d o n : H a r p e r and B r o t h e r s 1941. 671 p p . R i e g e l , J o h n W ., ' Wage P e t e r m i n a t i o n ,, Ann A r b o r : U n i v e r s i t y o f M ic h ig a n , 1 9 3 4 . 138 pp. R i e g e l , J o h n W ., ' S a l a r y D e t e r m i n a t i o n , Ann A r b o r U n i v e r s i t y o f M ic h i g a n , 1 9 4 0 . 278 pp. S c o t t , W a l t e r D . , R o b e r t . C l o t h i e r , and W i l l i a m R. S p r i e g e l , P e r s o n n e l M an ag em en t, New Y o rk : M cG ra w -H ill Book C o ., I n c ., 1949. 648 pp. S h e l d o n , O l i v e r , The P h i l o s o p h y o f M an agem en t, New York and L on d o n : P itm a n and S o n s , L t d . , 1 9 2 3 . 296 pp. S p e r o , S t e r l i n g D . , G overnm ent a s E m p l o y e r , New York: Remsen P r e s s , 1 9 4 8 . 487 pp. V o g t , W i l l i a m , Road t o S u r v i v a l , New Y o r k : A s so c ia te s, I n c ., 1948. 33 5 p p .
W illia m S lo a n e
W a l t e r s , J* E . , . A p p l i e d P e r s o n n e l A d m i n i s t r a t i o n , New Y o rk : J o h n W i le y and S o n s , I n c . , 1 9 3 1 . 338 pp. W i l l o u g h b y , . W. F . , P r i n c i p l e s o f P u b l i c A d r n i n i s t r a t i o n , W a s h i n g t o n , D .C .T The B r o o k i n g s I n s t i t u t e , 1 9 2 7 . 720 p p . Y o d e r , D a l e , L a b o r .E c o n o m i c s and L a b o r P r o b l e m s , New Y ork and L on don : M c G r a w -H ill B ook C o . , I n c . , 2 n d e d i t i o n , 1939. 669 p p . Y o d e r , D a l e , P e r s o n n e l Management and I n d u s t r i a l R e l a t i o n s , New Y o r k : P r e n t i c e H a l l , I n c . , 1 9 4 8 . 894 pp. Z i s k i n d , D a v i d , One T h o u sa n d S t r i k e s o f G overnm ent E m p l o y e e s , New Y o r k : C olu m b ia U n i v e r s i t y P r e s s , 1 9 4 0 . 279 pp.
86
B.
PERIODICALS
A m erica n Management A s s o c i a t i o n , 11S a l a r y and Wage A d m in is t r a t i o n , " P e r s o n n e l , 1 4 9 - 1 6 4 , May, 1 9 3 9 . B aruch, Ism a r, " S u r v ey in g P r e v a i l i n g S a la r y R a t e s ," P u b lic P e r s o n n e l R e v iew , 3 : 8 6 - 8 9 , A p r i l , 1 9 4 2 . B a r u c h , I s m a r , "The S t r u c t u r e o f a P a y ' S c a l e , " P e r so n n e l R e v iew , 7 :1 4 1 -1 4 7 , J u ly , 1 9 4 6 .
P u b l1 c
B a r u c h , I s m a r , " B a s ic A s p e c t s o f P o s i t i o n C l a s s i f i c a t i o n , " P u b lic P e r so n n e l R e v ie w , 1 : 1 - 1 7 , O ctob er, 19 4 0 . B a r u c h , I s m a r , "Some A s p e c t s o f P a y S t a b i l i z a t i o n , " P u b l i c P e r so n n e l R e v iew , 4 : 7 9 - 8 0 , A p r il, 1 9 4 3 . B en ge, E ugene J . , " S t a t i s t i c a l Stu d y o f a Job E v a lu a t io n P o i n t S y s t e m , 1* Modern M an agem en t, 7 : 1 7 - 2 3 , A p r i l , 1 9 4 7 . B u r k e , Sam uel L . , "A C ase H i s t o r y i n S a l a r y a n d ' Wage Admin i s t r a t i o n ," P e r s o n n e l, 1 5 :9 3 -1 2 9 , February, 1939. B u r k e , Sam u el L . , "Wage and S a l a r y A d m i n i s t r a t i o n , " M anagement R e v i e w , 3 5 : 3 2 5 - 7 , A u g u s t , 1 9 4 6 .
a b stra ct,
C h a n b e r l i n , H .C . , "M u n I c ip a l Wage R e g u l a t i o n ," P u b l i c A d m in istr a tio n , 1 6 :7 3 -8 5 , January, 1938. C o n y n g to n , M ary, "The G-overnment Wage P o l i c y D u r in g th e L a s t Q u a r t e r C e n t u r y ," M o n th ly L a b o r R e v i e w , J u n e , 1920, pp. 1 9 -3 5 . Cook, W. F . , " D e t e r m i n a t i o n o f P r e v a i l i n g Wage S c a l e s , " P e r s o n n e l , . 1 4 : 2 4 - 2 6 , A u g u st, 1 9 3 7 . C r o w le y , J o h n C*, "Job E v a l u a t i o n M eth od s i n S a l a r y A n a l y s i s , " P u b lic P e r so n n e l R e v iew , 7 : 1 9 4 - 1 9 9 , O cto b er, 1 9 4 6 . F i s h e r , J o h n F . , "Job E v a l u a t i o n T h ro u g h P o i n t ‘ R a t i n g , ” P u b li c P e r s o n n e l R e v iew , 5 : 1 9 - 2 6 , J a n u a ry , 1 9 4 4 . Fuhrman, H e r b e r t S . , "Do We F o r g e t t h e P r i n c i p l e s o f Wage A d m i n i s t r a t i o n ? " , P e r s o n n e l , 5 : 2 7 8 - 2 8 7 , M arch, 1 9 4 6 . H a n a w a lt , W. R . , "So Y o u ' r e M aking a Wage S u r v e y ," P e r s o n n e l , 2 4 : 1 7 9 - 1 8 5 , N ovem ber, 1 9 4 7 .
87
f,How t o D e t e r m in e an E q u i t a b l e Pay B a s i s f o r P u b l i c E m p lo y e e s , " P u b l i c M a n a g em en t, M arch, 1 9 3 4 . K r e s s , A. L . , "Making a S a l a r y S u r v e y , " O f f i c e P e r s o n n e l M an agem en t, O f f i c e Management S e r i e s No* 8 8 , New Y ork: A m e rica n Management A s s o c i a t i o n , 1 9 3 8 . L a w s h e , 0 . H*,. J r . , " S t u d i e s i n Job E v a l u a t i o n , " J o u r n a l o f A p p l i e d P s y c h o l o g y , 3 0 : 5 7 9 - 5 8 5 , D e ce m b e r, 1 9 4 6 . L e b e r g o t t , S t a n l e y , "Wage S t r u c t u r e s , " R e v ie w o f E c o n o m ic S t a t i s t i c s , 2 9 : , 4 , 2 7 4 - 2 8 6 , N ovem ber, 1 9 4 7 . L i t c h f i e l d , Edward I I . , "Theory and P r a c t i c e s i n P u b l i c S e r v ic e S a la r y D e te r m in a tio n ," P u b lic P e r so n n e l R e v iew , 6 : 7 7 - 8 4 , A p r il, 1 9 4 5 . R i c h e y , C a rl L . , " D e t e r m i n i n g P ay P o l i c y , " P u b l i c P e r s o n n e l R e v iew , 3 :2 0 - 2 4 , Ja n u a ry , 1 9 4 2 . R o g e r s , R . C . , " A n a l y s i s o f Two P o i n t J o b E v a l u a t i o n P l a n s , " J o u r n a l, o f A p p l i e d P s y c h o l o g y , 3 0 : 5 7 9 - 5 8 5 , D ecem b er, 1946. "Three D e c a d e s o f S h a r e d P r o f i t s , " The C o n f e r e n c e B oa rd M anagement R e c o r d , 8 : 3 9 0 , D ece m b e r, 1 9 4 6 . U p so n , L e n t D . , "How t o D e t e r m in e an E q u i t a b l e P ay B a s i s f o r P u b l i c E m p l o y e e s ," P u b l i c M anagem ent, 1 6 : 7 8 - 8 3 , M arch, 1 9 3 4 . C.
MONOGRAPHS AND PAMPHLETS
Am sden, C l i f f o r d N . , "M ethods o f S e t t i n g S a l a r i e s i n L o s A n g e l e s C o u n t y ," Town H a l l , A p r i l 8 , 1 9 4 8 . C l a s s E v a l u a t i o n , F l i n t C i v i i S e r v i c e C o m m is s io n , F l i n t , M ic h ig a n : . O cto b er, 1 9 4 3 . 14 pp. G r a y , R o b e r t D .,- " S y s t e m a t i c Wage A d m i n i s t r a t i o n i n t h e S ou th ern C a l i f o r n ia A i r c r a f t I n d u s tr y ," I n d u s t r ia l R e l a t i o n s M onograph No. 7 , I n d u s t r i a l R e l a t i o n s C o u n s e l o r s , I n c . , 90 p p . , 194-3. H e l l e r C o m m itte e f o r R e s e a r c h i n L a b o r . E c o n o m i c s , "Wartime B u d g e t s f o r T h r e e Incom e L e v e l s , " B e r k e l e y : U n i v e r s i t y o f C a lif o r n ia P r e s s , 1 9 4 4 , 106 pp.
88
H i s t o r y o f Wages i n t h e U n i t e d S t a t e s , U* S . D e p t , o f L a b o r , B u reau o f L a b o r S t a t i s t i c s , W a s h i n g t o n , D . C . , 1 9 3 4 . 574 p p . I n d u s t r y Wage S t u d i e s Manual o f P r o c e d u r e s , U . S . D e p t , o f L a b o r , W a s h in g t o n , D . C . , m im e o g r a p h e d , F e b r u a r y , 1 9 4 9 , unpaged. Jlob E v a l u a t i o n P l a n , S o u t h e r n C a l i f o r n i a A i r c r a f t I n d u s t r y , L o s A n g e l e s , N ov em b er, 1 9 4 1 , u n p a g e d . L e o n a r d , J . M. and R o s i n a M ohaupt, C o s t o f L i v i n g S a l a r y , A d j u s t m e n t P l a n s f o r M u n i c ip a l E m p l o y e e s . D e t r o i t : D e t r o i t Bureau o f G -overnm ental R e s e a r c h , J u l y , 1 9 4 4 . 42 pp. M e t r o p o l i t a n L i f e I n s u r a n c e C o . , " i n d i v i d u a l Wage I n c e n t i v e P l a n s , " New Y o r k : 1 9 3 7 . 4 4 p p . P e r s o n n e l C l a s s i f i c a t i o n B o a r d , C l o s i n g R e p o r t o f Wage and P e r s o n n e l S u r v e y , 7 1 s t . C o n g r e s s , 3 r d . S e s s i o n , House Docum ent N o . . 7 7 1 , 4 0 4 p p . 1 9 3 1 . R e y n o l d s , L l o y d G-., " R e s e a r c h on W a g e s," P a m p h le t 4 , S c ie n c e R esearch C o u n c il, 1 9 4 7 .
S o c ia l
S c h l i c t e r , Sumner H . , "Wage P o l i c i e s , " C olu m b ia U n i v e r s i t y Academy o f P o l i t i c a l S c i e n c e , 1 9 4 6 . " S e l e c t e d P e r s o n n e l P r a c t i c e s i n L o s A n g e l e s C ou n ty a s o f A p r il 1 , 1 9 4 9 ," C ir c u la r .N o . 1 8 , , I n d u s t r i a l R e la tio n s S e c t i o n , C a l i f o r n i a I n s t i t u t e o f T e c h n o l o g y : P a sa d .e n a , C a l i f o r n ia , A u g u st, 1 9 4 9 . 12 pp. Wage P ay m en t S y s t e m s , S t u d i e s i n P e r s o n n e l P o l i c y , No. 9 1 , N a t i o n a l I n d u s t r i a l C o n f e r e n c e B o a r d , I n c . , New Y o rk : June, 1948. 36 p p . Wage S e t t i n g M eth od s i n t h e L o c a l Q-overnment J u r i s d i c t i o n s t h e L o s A n g e l e s A r e a . U n p u b l i s h e d Town H a l l R e p o r t TLos A n g e l e s , May, 1 9 4 9 ) , u n p a g e d .
APPENDIX
90
LIST OF KEY JOB CLASSES 1 9 4 9 JOINT WAGE AND SALARY SURVEY SKILLED, SEMI-SKILLED AND LABORER GROUP 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24 , 25. 26. 27.
C arp en ter P lu m b er P lu m b e r Foreman P a in te r P a l n t e r Forernan E le c tr ic ia n E l e c t r i c i a n Forem an Cement F i n i s h e r R a d io T e c h n i c i a n M a c h in ist Auto M ech a n ic O f f i c e A p p l i a n c e R epairm an Truck O p e r a t o r — L i g h t .Truck O p e r a t o r - - H e a v y P ow er E q u ip m e n t O p e r a t o r G a ra ge A t t e n d a n t S t a t i o n a r y E n g i n e e r — H ig h P r e s s u r e Watc liman J a n ito r E l e v a t o r O p e r a t o r — M ale Stockm an Groundsman and G a r d e n e r L aborer Cook G a f e t e r i a Worker Laundrym an P h o to co p y O p erator
(1 5 L b s .
CLERICAL AND OFFICE MACHINE OPERATORS' GROUP 28, 29, 30, 31. 32. 33. 34. 35.
C le r k C le r k T y p i s t C le r k S t e n o g r a p h e r S te n o g r a p h ic S e c r e ta r y S e n io r C le rk T r a n sc r ib e r T y p is t Key P u n ch O p e r a t o r T a b u l a t i n g E q u ip m e n t O p e r a t o r
University of Southera
and o v e r )
36. 37. 38. 39.
C a l c u l a t i n g m a c h in e O p e r a t o r B o o k k e e p in g M a ch in e O p e r a t o r O f f s e t D u p l i c a t i n g M achine O p e r a t o r T e le p h o n e O p e r a t o r
ACCOUNTING GROUP 4 0 .. 41. 42. 43.
A c c o u n t i n g C le r k A ccou n tan t S e n io r A ccou n tan t T e lle r
E NGINEERING GROUP 44. 45. 46. 47. 48. 49♦ 50* 51. 52. 53. 54.
Rodman and Chairm an In s tr u m e n t m a n C i v i l E n g i n e e r i n g D r a fts m a n C iv il E n g in e e r in g A s s is t a n t C i v il E n g in e e r in g A s s o c ia te C i v i l E n g in e e r A r c h i t e c t u r a l D raftsm an A r c h ite c tu r a l A s so c ia te S t r u c t u r a l E n g i n e e r i n g D r a fts m a n S tr u c tu r a l E n g in e e r in g A s s o c ia te S t r u c t u r a l E n g in e e r
PROFESSIONAL. SEMI-PRPEESSIONAL AND TECHNICAL GROUP 55. 56. 57. 58. 59. 60. 61. 62.
B uyer .A d m in istr a tiv e A n a ly s t R i g h t o f Way A g e n t P h y s i c i a n , M.D. R e g i s t e r e d N u rse L a b oratory T e c h n ic ia n - C lin ic a l X -ray T e c h n ic ia n H o s p it a l A tten d an t