Scoring Guideline

for
Job Evaluation
Principle of Position Evaluation
There is a need to constantly recall the following principle in order to come up with objective results
of the position evaluation.

Principle of Position Evaluation

 Evaluate the ‘position’ itself, not the person.

- It is inevitable that the evaluation results get distorted if the personal quality, competency and
performance of the person who carries out the job get reflected in the evaluation of the ‘position’
value.
(Example of wrong evaluation: Job carried out by a high performer > Job carried out by a weak
performer)

- The position value and the value of the position holder are two very different things and in some
cases, the person holder can change.

 Apply common evaluation factors consistently.

- This position evaluation is to evaluate the relative value within the group and evaluate the value of
each position as objectively as possible based on the relevant evaluation criteria.

- Also, in order to rule out any unnecessary controversies about equity, the standard plan on
evaluation levels of each factor, provided across the group as the standard, can be actively utilized
and applied.

Mercer 1
Criteria for Each Position Evaluation Factor
Position evaluation factors for LGE are consist of 4 areas and 10 factors, and the definitions are as
following

Position Evaluation Factor for LGE Group (Summary)

Size of Organization  Revenue and total employee number, and function within the org.
1
Nature of Impact  Scope of impact to organization
Impact

Contribution  Contribution level to organization

2 Communication  Communication level to be required in organization

Communi-
cation  Whether the communication is internal or external and the
Frame
interests are shared or divergent

3 Innovation  Depth of innovation level to be required

Innovation
Complexity  Breadth of innovation

Knowledge  Knowledge/experience level to be required

4
Knowledge Teams  Context of team

Breadth  Cultural knowledge

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 Factor 1: Impact on the Organization (Impact) – Nature of Impact

Levels on decision making authority are granted in line with one’s role within the organization. It is
evaluated by considering affiliate’s contribution and status within the group.

1 - 2. Nature of Impact (Types of Decision made)

 Impact means the scope and nature of decisions made for the organization in which the job is sized.
 Consider layer and function within the organization (No deduct 0.5 point, 1 point adjustment in evaluation in
Definition
every level within the organization)
 Decision making authority can be set by considering features of business concerned and career streams and
career level

Scoring Role Business Leader Management Professional

Range The role is focussed on The role is focussed on managing
The role is intended for individual
defining strategic people and implementing policies
Definition for LGE contributors without a supervisory
objectives for the and strategies to meet the
responsibility
organisation. organisation’s objectives.

5 (Visionary)
Executive levels
4 (Strategic)
Head of org/
level and Original Degree

* Please note that

Function Head
Scoring range 3 Sr.
can be used Manager
(Tactical) Expert
only for Manager
reference; it is Specialist/
not the finalized Super- Senior
guideline visor
** In case of 2
Head of org. (Operational) Experienced/
Function head, Entry
he/she is not
the executive
level of Top 1
mgmt category (Delivery)

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 Factor 1: Impact on the Organization (Impact) – Contribution Im Co
Kn In
Contribution Level of the position is set according to company’s impact to the group and extent
of contribution to organization performance.

1 -3. Contribution

 Contribution means the impact of position to the organization at the impact level it was assigned
Definition  It is set considering the ripple effects arising from failure of any decision making
 Impact Level and role level are considered to determine each contribution Level
Contribution
Scoring Role
Range Major Significant Direct Some Limited
Has substantial Serves critical Lead critical move in achieving the Performance result has relatively Within one’s R&R scope, make
impact on making role within the result while directly aligned with low impact in achieving some contribution to a limited
• Please note that any decision on company and organizational performance organizational goal. Influences extent in achieving specific result.
Scoring range key performance. affects to achievement outcomes indirectly. Alternatively, The actions by this role are limited
can be used Takes achieve the goal the influence is diffused, as many to the area or function of which it
Definition
only for responsibility in position holders share the same is a part. Contributions to
reference; it is performance level of impact. Positions in this achievement of results are mainly
result category often are in support supportive in nature and have little
not the finalized
functions effect on other areas
guideline

• Skilled & Semi- Level 5 4 3.5 3 2.5 2 1.5 1

skilled worker
are included to 5 Executive levels
help IPE users
understanding
the matrix of Head of org/
4 Function Head
Factor Impact.
L Head of org/
e Function Head
Sr. Manager
Impact v 3 Expert
e Manager / Supervisor
l
Experienced/
2 Specialist/Senior
Entry

Skilled worker/labor
1 Semi-skilled worker/labor

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Factor 1: Impact – Key Considerations & Check Points Im Co
Kn In
Pay attention to the four key considerations before the evaluation and use the following
checklist when conducting the evaluation.

Key Considerations : Impact Checklist for Evaluation

1 ‘Impact’ factor has the highest weighted value among 4 factors Was there a review of the
organizational hierarchy and the
 As the ‘Impact’ factor takes 705 points out of a total of 1,210 points, it has a difference in status of positions
significant influence on the PC value. that the employees generally
 As the position evaluation results largely depend on the ‘Impact’ factor evaluation, accept when conducting the
the current difference in status and impact/contribution of positions within the evaluation?
organization should be reflected in the factor evaluation Level.
Was the same evaluation level
Organizational hierarchy influences the no.1 priority given to positions with same org.
2 hierarchy?
when conducting the evaluation
 ‘Impact’ factor evaluates the size of the decision making authority within the Is there any positions that require
organization, thus it may evaluate by subtracting points from the upper position. differentiation in terms of strategic
(e.g.., -0.5 points from the upper position is appropriate) importance, contribution to
revenue and function
Function Classification (Line function, Support function, etc.) can classification?
3
be the differentiating point for positions with the same hierarchy
Was the rationale & standard for
 Differentiating the positions with the same hierarchy will reflect the importance
evaluation result properly
of the function.
organized?
Was a consistent standard used
for evaluation based on judgment,
not facts?

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Factor 1: Impact – Leveling Summary for Impact

Nature of Impact Contribution

 Differentiated evaluation can be difficult due to level 1
Considerations for Leveling

 Independent contribution level range can be assigned to each

impact level
 Most mgmt. stream positions are level 3
 Level 0.5 scale can be used
 Level 2 manager level does occasionally exist
(manager level only)
 Despite similar career level, primary (line) function may receive level
0.5 more
 Most Professional streams are level 2~3, occasionally level 1
for some entry levels
 Depending on function, there could be a position with high impact/low
contribution (likely to be found in support function)
 Most level 1 holders are Para-professional stream

 Level 4~5: Most executive levels

 Contribution effectively a “modifier” of impact level
 Level 3: Most positions in Management career stream, expert
 Measure of autonomy in decision making
Leveling Range

(some positions may be up to level 4) and some specialist

 Jobs at common level (e.g., managers) are often spread across the
positions in professional career stream
contribution levels from 1 to 5
 Direct reports to Head of Organization often 1.5 level below Head of
 Level 2: Supervisor in mgmt. career stream, mostly Senior or
Organization
under for professional career stream
 At Tactical supervisor and subordinate at least one level difference
 At Operational and Delivery at least 0.5 level difference between
 Level 1: Very few positions in professional career stream
lower and higher level jobs
 In Professional career stream, level 2~3 are relevant

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Factor 2 : Communication Im Co
Kn In
Communication level ranges from 1.0~5.0 in line with context, scope and communication mode.

2 -1. Communication Type

 Communication type assesses the level of message and importance of such message delivery.
Depending on organization’s function, the level can be different.
Definition
 Define the type of communication in which the position holder is frequently involved. If the
communication level occurs only occasionally, decrease the evaluation result by a half degree. If the
level of communication occurs continuously, add a half degree
Role Directive Consultative Adaptive Receptive Convey
Scoring
Makes key decision on Encourage to build a Low frequency of Generally have Usually have communication
Range
issues with substantial consensus in making communication on communication for for giving and obtaining
Definition impact on organization any decision on overall business undertaking working level information. Just conveying the
for LGE in mid and long term strategic issues strategic issues, such as tasks and unit department information by statement,
from corporate strategy through discussion giving direction and suggestion, gesture
perspective and negotiation encouraging discussion

Original Strategic Negotiate Negotiate Influence Adapt & Exchange Convey

Degree Long term

5 Executive
Head of org/
4 Function Head
L 3.5 Expert
Sr.
E Manager
3 Manager
V Super- Specialist/
2.5 visor Senior
E
Experienced/
L
2 Entry

1.5
1
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Factor 2 : Communication – Communication Situation (Frame) Im Co
Kn In
Level for communication frame ranges from 1 to 4 in line with communication target and
situation.

2 - 2. Communication Situation (Frame)

 It means difficulty of communication with the target from interest perspective. Regardless of
organization layer, it is evaluated based on function’s key characteristics.
Definition
 Evaluation result is granted whether key communication target is internal/external stakeholder, or
whether the situation can be shared or negotiated.
 Rather than level difference based on Career streams & Career level, it is categorized based on the
characteristic of position (communication)
 Level is granted by one level.

Role External Divergent Internal Divergent External Shared Internal Shared

Scoring
Communicate with external Communicate with internal Communicate with external Communicate with internal
Range
stakeholders who have different stakeholders who have different stakeholders who have the stakeholders who have the
Definition view on key issues view on key issues. same view on key issues same view on key issues.

4 Sales & legal roles

L
E 3 Labor Relations

V
E 2 Purchasing, PR

1 Other functions

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Factor 2 : Communication – Communication Situation (Frame) Im Co
Kn In
In line with four different types of communication, get the level considering the feature of each type.

Frame Evaluation Approach

Definition Examples of Manager and Staff Level

 Communicate with external  Some sales, legal roles

External stakeholders who have different
Divergent view on key issues 4

 Communicate with internal  Generally, labor relations, HR (including labor relations

Internal stakeholders who have different function) position
Divergent view on key issues 3

 Communicate with external  Generally, purchasing and PR position

External stakeholders who have the same
Shared 2
view on key issues

 Communicate with internal  R&D, Manufacturing, Logistics, HR (excluding labor

Internal stakeholders who have the same relations), IT, General Affairs team
Shared
view on key issues  Applied R&D/ Engineering 1
 Strategy, Finance and others

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Factor 2 : Communication – Key Considerations & Checklist Im Co
Kn In
Pay attention to the four key considerations before the evaluation and use the following
checklist when conducting the evaluation.

Key Considerations : Communication

1 Weight of ‘Frame’ is higher than ‘Nature of Communication’

 Mercer IPE™ considers situation with the communication target (shared/conflicting

interests) to be more important than the characteristics of communication (decision
making/give instructions/info delivery/ understanding etc.). Total level of
Communication acts sensitively to the frame level

‘Nature of Communication’ is not dependent on

2
organization hierarchy

 Consider act of communicating not setting policy

 Highest level jobs may be lower its communication, if communications are delegated

3 ‘Frame’ is function oriented. ‘No hierarchy effect’

 The frame level is granted based on the defined functions of each position (strategy,
sales & marketing etc.), regardless of org. hierarchy

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Factor 3 : Innovation – Level of Innovation Im Co
Kn In
In order to evaluate the level of innovation required to undertake the tasks, level is given at
0.5 point in line with features of the function and role level.

3 -1. Level of Innovation

 Innovation falls into one of the broad categories: innovations that are constrained by existing policies and procedures;
innovations that are focused on modification and improvement of techniques and methods; or innovations that result in
truly new processes and products that have a significant effect on the organization
Definition  The level of innovation required to carry out the job of the position. Depending on the feature of the function, evaluation
matrix can be referred in line with the scope and extent that can be newly developed.
 Sr. Manager ~ entry position within organization can show innovation at the level of 1.0~4.5 points while it is
differentiated depending on the feature of function.
Role Breakthrough & Creator Modifier & Improver Check & Follower
Scoring
Range Continuously required to adopt or Enhance existing values or quality in everyday activity. No change or minor
create new approach and concept, Improve/revise/complement existing working approach and change which happens in
Definition which are totally different from the implementation measures. everyday activity according
for LGE existing ones. Truly new to the existing policies and
techniques and methods with major procedures
advances
Original Breakthrough, Create/Conceptualize Modify, Improve Check, Follow
Degree
6
5
4.5 Expert
L
Head of org/
4 Executive levels only
E Function Head
Sr.
3.5 Manager Manager Specialist/
V Senior
3 Super-
E visor
2.5 Experienced/
L Entry
2
1.5
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Factor 3 : Innovation – Job Complexity Im Co
Kn In
Job complexity grants the level at 0.5 point to assess the level of job complexity and
involvement

3 -2. Job Complexity

 The number of areas in which innovation occurs in operational, financial and human.
Definition  Since complexity for team leaders is rarely as high as that for executives, all team leaders in
charge of single function organization are rated 2.

Role Multi-dimensional Complex Difficult Defined

Scoring
Range Considering multi Considering two of the Not clearly defined function/role. Clearly defined function/job. Check and
dimensional factors of any three dimensional factors Require understanding and analyze simple problem within defined
problem and impending (operation, finance, HR), consideration in other jobs as well job process.
Definition issues, thorough solution comprehensive solution while carrying out the tasks.
to have direct impact on on any problem and
operation, finance and HR impending issue is
all together is required. required.

4
Executive levels only
3.5
L
3
E Head of org/
Function Head
V 2.5
Sr.
E Manager Expert
2
L Manager Super-
visor
1.5 Specialist/ Experienced/
Senior Entry
1
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 Factor 3 : Innovation – Job Complexity Im Co
Kn In
Followings are evaluation criteria of complexity.

Job Complexity Evaluation Approach

Definition Scoring Example and Standard level

4.0
 Considering multi dimensional factors of any
 CEO, COO, Head of company
Multi-Dimensional
problem and impending issues, thorough solution
to have direct impact on operation, finance and  C-suit level, Overseas Region Head, 4
HR all together is required.

3.0 ~ 3.5  Considering two of the three dimensional factors

(operation, finance, HR), comprehensive solution
on any problem and impending issue is required.
 Head of org.
 Function Head
3.5
Complex  Team that is responsible for more than two teams,  Head of office
such as large scale team and more than two sub-
teams.
 PBL/RBL 3.0
2.0 ~ 2.5  Single function part/group leader
 Not clearly defined function/role. Require
understanding and consideration in other jobs as
position
 Senior mgr/Expert
2.5
Difficult well while carrying out the tasks.
 Group/Part leader position with single function  Manager/Supervisor 2.0
1.0 ~ 1.5  Clearly defined function/job. Check and analyze
simple problem within defined job process.  Experienced/Entry
1.5
Defined  Team with single function, or small job area of
 Specialist/Senior
 Group/part members and others
~
organization.
1.0
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Factor 3 : Innovation – Key Considerations & Checklist Im Co
Kn In
Pay attention to the three key considerations before the evaluation and use the following
checklist when conducting the evaluation.

Key Considerations: Innovation Checklist for Evaluation

‘Specialist’ type of innovation category for Innovation Matrix is only Is org. job/function
1
applicable for positions in R&D function
characteristics properly
 Evaluation matrix addresses organizational hierarchy and the characteristics of reflected in the innovation
functions
evaluation result?
 R&D is basically required to ‘create’ something new (invention, discovery), so
R&D positions level higher on this factor than other functions, on the same
Are there any cases that
level, do
require differentiation between
‘Modifier& Improver’ type of innovation category for Innovation same area (i.e. Expert /
2
Matrix is only applicable for positions in business (Primary) function Sr.manager in “Modifier &
 The logic of Mercer IPE™ is designed to place more weight on R&D/Engineering, Improver” role ) positions within
Sales & Marketing for ‘Innovation’ than other positions, which is considered in the the evaluation matrix?
matrix make-up
 Positions in Sales and Marketing are assigned ‘Modifier & Improver’ rating, Is there sufficient rationale for
except for positions that focuses only on maintaining existing business accounts differentiation?
3 ‘Complexity’ is about job areas or disciplines
Is the ‘function’ of position
not about ‘organization’
clearly defined?
 Complexity is about the problems and issues to be addressed generally fall within
job areas, disciplines and dimensions – operational, financial and human. It is all If the definition of the function
about jobs and functions of work not organization related complexity of some positions were unclear,
was a consistent standard set
up and applied?

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 Factor 3 : Innovation – Leveling Summary for Innovation

Level of Innovation Job Complexity

 Level should be defined based on position characteristics,

Considerations for

not hierarchy within organization

 Professional career stream can have higher innovation level  Innovation is influenced by the complexity of a problem – whether it is
Leveling

than managerial career stream (especially R&D, Engineering simple or multi-dimensional. “A multi-dimensional” problem is one
function) with direct operational, financial and human considerations.
 Manager / Sr. manager are generally difficult to get 5 point or
more in innovation (Limited role as manager)

 Above level 5: Most of positions are for pure research roles in

the professional career streams
 Level 4: CEO, COO, Head of company, most of them are C-suit level,
Overseas Region Head
 Level 3~4: Executives and head of org, function head, Sr.
Leveling Range

manager, manager, most expert level

 Level 3~3.5: Head of org, Function Head, Head of office, PBL/RBL
 Level 2.5~3: Supervisor position of mgmt. career streams.
 Level 2~2.5: Single function part/group leader position Senior
Professional career streams senior & experienced level
mgr/Expert
position
 Level 1~1.5: Experienced/Entry, Specialist/Senior, Group/part
 Below level 2.5: Experienced & entry position in professional
members and others
career stream

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Factor 4 : Knowledge & Experience (Knowledge) Im Co
Kn In
Depth of Knowledge evaluates the minimum level of knowledge/competency/experience
required for job
4 -1. Job Knowledge

 It means level of knowledge required at one’s position in undertaking the role/tasks. It is defined as
Definition acquisition and usage of most up-to-date/professional knowledge, rather than the level of skills on
simple knowledge. Knowledge level is set by the level of required knowledge.

Role 8 7 6 5 4 3 2 1
Management Broad and Broad and in- Comprehensive Excellent Comprehensive Basic knowledge Simply repeated
Scoring experience in key practical depth knowledge knowledge in the knowledge and knowledge on required to work and basic
Range business/support management and management sector covering skills in one’s one’s specialized handle/manage knowledge level
Definition line of organization, experience in experience in one’s position is specialized field field certain skills and required to carry
for LGE in-depth most key parts of certain functions transaction/ out limited role.
required.
experience in company are required. deal
critical department

Original Broad and Deep Broad Practical Organizational Recognized Expertise Broad Job Basic Job Limited Job
Practical Experience Experience Generalist Professional Knowledge Knowledge Knowledge
Degree
7~8
Executive levels only
6 Head of org/
Function Head
5.5 Expert
Sr.
5 Manager
L Spe-
4.5 Manager cialist
E
4 Senior
V Super-
3.5 visor
E Experi
3 -enced
L
2.5 Entry

2
1.5
1
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Factor 4 : Knowledge & Experience – Teams & Breadth Im Co
Kn In

4 -2,3.Teams & Breadth

 Represents the excellence of knowledge/management, role within the position.

Definition  As for Teams, default level of team (group) leader (Sr. Manager, Manager) is 2.
 As for Breadth, level of 1~3 is given based on cultural knowledge required to be success in job.

Leveling
3  Leader with more than 2 sub-groups under one’s position
Teams

Range

2  Single Team/Group/part leader

1  Team/Group/part member

3  Global
Breadth

 For team leader position which requires knowledge and experience in more
2 than 2 countries, exceptionally grants this level.

 Grant this level to most team leader position. If one is working in overseas,
1 one level for one country.

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Factor 4 : Knowledge & Experience – Teams & Breadth (cont’d) Im Co
Kn In

4 -2,3.Teams & Breadth

Leveling
Teams & Breadth
Guide

Teams Breadth

 The position holder is an individual contributor and is  The position holder is required to apply knowledge and

1 directly responsible for personally performing activities or skills in only one country. Choose this degree level if the
Team
locations are in neighboring countries with similar

1
discharging responsibilities. Use a rating of “1.5” if the
Member Domestic cultures. If the position holder needs to apply the
position holder coordinates project activities or is expected
to act as a mentor in a team knowledge in a sub-region (e.g., Scandinavia,
Southeast Asia, US and Canada or Central America ,
then choose “1.5”
 The position holder leads a single team that is responsible

2
Team
Leader
for delivering outputs and results. For a group to be
designated a s a team, it should include at least three
members (excluding personal assistant or secretary)
2
Regional
 The position holder is required to apply knowledge and
skills in countries spread across defined regions. If the
position holder focuses primarily on two regions (e.g.,
Europe and Asia), then choose “2.5”.

 A team member directs multiple teams, each of which has

3
Teams
Manager
a team leader in charge. If a position holder is responsible
for one team with its own team leader and has another
team reporting directly, select “2.5”. 3
Global  The position holder is required to apply knowledge and
skills in all regions across the world

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Factor 4 : Knowledge & Experience – Key Considerations & Checklist Im Co
Kn In
Pay attention to the three key considerations before the evaluation and use the following
checklist when conducting the evaluation.

Key Considerations : Knowledge Checklist for Evaluation

1 ‘Skill’ acquired from experience of many years is not ‘Knowledge’

Is the evaluation on breadth
 The knowledge evaluated by Mercer IPE™ refers to the expertise of the knowledge solely based on the name of
required for the job, and it can be generally differentiated with the level of education the position such as ‘Overseas
(Master, PhD) required of the position holder
AA manager’ or ‘Overseas BB
 R&D is evaluated higher than other functions on the same level
team leader’?
2 ‘Teams’ evaluates the number of organizations controlled
Is it impossible to carry out the
position’s job, without the
 Evaluated based on the number of organizations controlled
overall knowledge of various
 Even if it carries out multiple functions, if the position is in charge of a single team, a
default of 2 points are given to such position countries?
 Even if the organization is not directly under the position’s control, if the position has Is the job simply gathering
the actual authority to evaluate and make decisions on the organization, this is taken
into account in the evaluation. information of multiple
‘Breadth’ comprehensively evaluates the actual details/nature countries, or consistently using
3
of job rather than number of countries knowledge on the skill/process
 The default level is 1, and 3 is only given to a position that requires overall knowledge,
(customs etc.) related to a
such as regarding biz./culture, of two or more continents (e.g., Executive levels only) certain country?
 Even if it is an overseas sales position, if the position carries out its job in one country,
level 1 is given.
 Even if a position covers multiple countries, characteristics/level of knowledge required
must be analyzed thoroughly to see if it needs to be differentiated from similar positions
with level 1.

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 END OF DOCUMENT

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