Post on 15-Jul-2015
Job Evaluation
Job evaluaton is a systematic way of determining the value/worth of a job in an organisation.
Process of Job evaluationDecide which jobs are to be evaluated
Job Analysis and preparing job
description.
systematically rate each job based on the
job evaluation factors selected. The points
assigned for each of the factors are
totalled for each job.
A Job is evaluated in the following three
categories
1. Know-how
Know-how is the sum total of every kind of knowledge and
skill however acquired, e.g. experience, education, etc.
needed for accept-able job performance. Know-how
includes three elements:
A. Specialized, technical or practical know-how: the basic job
knowledge needed.
B. Managerial know-how: The degree with which the job
deals with planning and organizing the employee’s activities
and coordinating with others.
C. Human relations skills: The persuasion and communication
skills for motivating, training, and developing others.
2. Problem Solving
Problem solving is the amount of original self-starting
thinking required by the job for analyzing, evaluating,
creating, reasoning, arriving at and coming to
conclusions. Problem-solving has two elements:
A. Thinking environment – defines the degree to which
the incumbent is free to develop answers to problems,
ranging from the day-to-day decisions based on
simple memory to those which require creative
thinking or long-range strategies.
B. Thinking challenge – defines the complexity and
uniqueness of problems and may range from
repetitive to highly creative.
Accountability is the answerability for action
and for the consequences of that action.
Accountability has three elements:
a) Freedom to act is the degree to which the
position can take action without consulting
a higher authority.
b) Impact on end results- advisory or
decision
c) Magnitude is the size of the area in
which the job functions, i.e, whole
organization, single department, etc.
Compare and see how much value does
this job have in the industry .
Decide the amount of compensation to
be given
Process of Job evaluationSelecting the method of evaluation.
Classifying jobs.
Installing the programme.
Reviewing periodically.
Features of Job Evaluation
It tries to assess jobs, not people.
The standards of job evaluation are relative, not absolute.
The basic information on which job evaluations are made is obtained from job analysis.
Features of Job EvaluationJob evaluations are carried out by groups, not by
individuals.
Some degree of subjectivity is always present in job evaluation.
Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure.
Benefits of job evaluationIt tries to link pay with the requirements of the job.
It offers a systematic procedure for determining the relative worth of jobs.
An equitable wage structure is a natural outcome of job evaluation
An unbiased job evaluation tends to eliminate salary inequalities by placing jobs having similar requirements in the same salary range.
Benefits of job evaluationEmployees as well as unions participate as members
of job evaluation committee.
Job evaluation, when conducted properly and with care, helps in the evaluation of new jobs.
It points out possibilities of more appropriate use of the plant’s labour force by indicating jobs that need more or less skilled workers than those who are manning these jobs currently.
RANKING METHOD
It is the simplest method of job evaluation.
In this method, jobs are arranged from highest to lowest, in order of their value or merit to the organisation.
Jobs can also be arranged according to the relative difficulty in performing them.
Jobs are usually ranked in each department and then the department rankings are combined to develop an organisational ranking.
JOB CLASSIFICATIONAccording to this method, a predetermined number of
job groups or job classes are established and jobs are assigned to these classifications.
This method places groups of jobs into job classes or job grades.
Separate classes may include office, clerical, managerial, personnel, etc.
JOB CLASSIFICATION Following is a brief description of classification in an
office: Class 1- Executives: Office manager, deputy office
manager, department supervisor, etc.
Class 2- Skilled workers: Purchasing assistant, cashier, receipts clerk, etc.
Class 3- Semiskilled workers: Stenotypists, machine operators, switchboard operator, etc.
Class 4- Semiskilled workers: file clerks, office boys, etc.
POINT METHODThis method is widely used currently.
In this method jobs are expressed in terms of key factors.
Points are assigned to each factor after priortising each factor in order of importance.
The points are summed up to determine the wage rate for the job.
Jobs with similar point totals are placed in similar pay grades
Factor Comparison MethodIt is more systematic and scientific method of job
evaluation.
Though it is the most complex method of all, it is consistent and appreciable.
Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors.
These factors include: >mental effort. >physical effort. >skills needed. >responsibility. >working conditions. >know-how. >problem solving abilities. >accountibility, etc. Wages are assigned to the job in comparison to its
ranking on each job factor.
Comparison of Job Evaluation Methods
Advantage Disadvantage
RankingRanking Fast, simple, easy to Fast, simple, easy to explain, suitable for explain, suitable for small org, not expensive.small org, not expensive.
Not very accurate , not Not very accurate , not useful for large org.,least useful for large org.,least used methodused method
ClassificationClassification Can group a wide range Can group a wide range of work together in one of work together in one system, simple, more system, simple, more accurate than raking accurate than raking method.method.
Not useful for large org, Not useful for large org, time consuming, not time consuming, not involved detailed job involved detailed job analysis.analysis.
PointPoint Compensable factors call Compensable factors call out basis for out basis for comparisons. comparisons. Compensable factors Compensable factors communicate what is communicate what is valued.valued.
Can become Can become bureaucratic and rule-bureaucratic and rule-bound.bound.
Comparison of Job Evaluation Methods
Advantage Disadvantage
Factor comparison Factor comparison methodmethod
Finds wages for a job, Finds wages for a job, wages can be calculated wages can be calculated speedily, greater speedily, greater consistency in the consistency in the judgment, size of jobs judgment, size of jobs can be measured.can be measured.
Expensive, time Expensive, time consuming, consuming,