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JOB EVALUATION

GROUP EIGHT PRESESNTATION

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JOB EVALUATIONINTRODUCTIONDEFINITIONSPROCESS OF JOB EVALUATIONTECHNIQUES/METHODSADVANTAGES AND DISADVANTAGES CONCLUSION

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Meaning of the word job?Why job evaluation? Its purpose in an organisationObjectives of job evaluationPrinciples of job evaluationProcess of job evaluationMethods of job evaluationAdvantages and disadvantagesBenefits of job evaluationconclusion

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INTRODUCTION

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what do we mean by the word ‘job’?

Question1:

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Job: a piece of work, especially a specific task done as part of the routine of one's occupation or for an agreed price (dictionary.com)

Evaluation: The process of examining a system or system component to determine the extent to which specified properties are present. (dictionary.com). or Evaluation is the systematic collection and analysis of data needed to make decisions, a process in which most well-run programs engage from the outset. (defined by. American Evaluation Association)

“Job evaluation is the systematic and orderly process of determining the worth of job in relation to other jobs.”( Edwin B. Flippo)

“Job evaluation is the process of analysis and assessment of jobs to ascertain reliably their relative wealth, using the assessment as a basis for a balanced wage structure.”(British Institute of Management.)

Key definitions:

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In an organization, different employees perform different jobs and salary is also not the same. But how do companies decide the importance and hierarchy of jobs. The answer is job evaluation. Job evaluation is done on the basis of the value of the particular job and how important it is to the organization. One cannot judge the worth of a job unless it is evaluated to make visible the distribution of rewards where credit is due in order to bridge the discrepancies that occur in organization in terms of remuneration and reward system.

Why job evaluation?

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The purpose of job evaluation techniques is to measure the relative worth of jobs so that the relationship between the jobs can be expressed in salary and wages scales, based on logical, ordered system. ‘Job evaluation’ is a term used in general way for a number of techniques that are in different forms. These techniques entail analyzing and assessing the content of jobs so that they may be classified in an order relating to one another and to the marketplace.

Purpose of job evaluation

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Who performs job evaluation in an organization?

Question2:

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To establish impartial judgementTo promote employee goodwillTo select employees more accuratelyTo establish satisfactory wage and salaryTo determine the rate of pay for each jobTo provide management with a basis for

proper control

Objectives of job evaluation

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Rate the Job And Not The ManEasily Explained Elements Of Rating

Exposure Of Plan To EmployeesEmployees Participation In Rating

Principles of Job Evaluation

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The process of job evaluation is lengthy and has to be taken in a systematic manner. The process of job evaluation involves the following steps;

Securing Acceptance from Employees Forming Job Evaluation Committee Deciding The Jobs To Be Evaluated Analyzing And Preparing Job Description Selecting The Method of Evaluation Classify Jobs Executing The Programme Periodic Review

PROCESS OF JOB EVALUATION

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There are four basic methods of Job evaluation:

Ranking Method

Classification Method

Factor Comparison Method

Point method

METHODS OR TECHNIQUES

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This method is one of the simplest to administer. According to this method, jobs are arranged from the highest to lowest, in order of their value or merit to the organisation. Jobs are compare to each other based on the overall worth of the job to the organization. The “worth” of the job is usually based on the judgement of skill, effort (physical and mental), responsibility (supervisory and fiscal ) and working conditions. Jobs are usually ranked in each department and then the department rankings combined to develop an organizational ranking.

Ranking method:

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Table: Array of jobs according to the Ranking method

The following table is a hypothesis illustration of ranking of jobs

RANK MONTHLY SALARIES

Medical Doctor Gh¢ 3,000

Pharmacist Gh¢ 2,500

Nurse Gh¢ 2,000

Stores Manager Gh¢ 1,500

Secretary Gh¢ 700

Security Gh¢ 300

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Its simple to understand and practice Most effective when there are relatively few

jobs to be evaluated (less than 30)

advantages of RM

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Difficult to develop in large and complex organization.

Rank judgements are subjective.Since there is no standard used for

comparison, new jobs would have to be compared with the existing jobs to determine its appropriate rank. In essence, the ranking process would have to be repeated each time a new job is added to the organization. There is therefore the call for more fruitful and scientific approach.

Disadvantages Of RM

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According 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 classes or job grades. Separate classes may include office, clerical, managerial, personnel, etc. following is brief description of such a classification in an office.

Class I – Executives: further classification under this category may be office manager, deputy office manager, office superintendent, department supervisor, etc.

Class II-Skilled workers : under this category may come the marketing assistant, cashier, receipts clerk, etc.

Class III – semiskilled workers: under this category may come stenotypists, machine-operators, etc.

Class IV – semiskilled workers: this category comprises Daftaris, File clerks, office boys, etc.

Classification method

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It is less subjective when compared to ranking method.

Easy to understand and accepted to almost all employees without hesitation.

It takes into account all the factors that a job comprises

This system can be effectively used for a variety of jobs.

Advantages Of CM

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Its is difficult to write all-inclusive descriptions of grade.

The method oversimplifies sharp difference between different jobs and different grades

When individual job descriptions and grade description do not much well, the evaluators have the tendency to classify the job using their subjective judgements.

More so, where the requirements of different jobs differ, they may be combined into a single category, depending on the status a job carries which is one weakness of this method.

Disadvantages Of CM

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This method is more scientific and systematic. 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, skill needed, supervisory responsibility, working conditions and other relevant factors.

Factor comparison method

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Analytical and objective Money values are assigned in a fair way

based on an agreed rank order fixed by the job evaluation committee

Flexible as there is no upper limitation on the rating of a factor

Reliable and valid as each job is compared with other jobs in terms of the key factors.

Advantages of FCM

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Difficult to understand, explain and operateThe use of the same criteria to assess all

jobs is questionable as jobs differ across and within organizations

Time consuming and costly

Disadvantage of FCM

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Point method is widely used currently in the world and the best method according to Microsoft. The point method techniques entails the analysis and comparison of jobs according to compensable factors, which are represented by a number of points, the amount depending on the degree of each factor present. The number of points each position is worth equals an assigned monetary value.

Point method

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The procedure involved may be explained in these steps.

Determine or Collect Information

Select or Define the jobs Define or Determine the jobs

Assign or Rate the jobs

procedure

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Skill and Knowledge

Responsibility/Accountability

Effort

Factors employed in point system

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diagram2.0

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It is superior and widely used method of evaluating jobs

It faces rates to look into all key factors and sub-factors of the job

Point values are assigned to all factors in a systematic way, eliminating bias at every stage

It is reliable because raters using similar criteria would get more or less answers

It accounts for the difference in wage rates for various jobs on the strength of job factors

When jobs are changed overtime, the rating scale of the point method is unaffected.

Merits

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It is complex

Time consuming process

Expensive to implement

demerits

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It indicates the relative worth of different jobs

It helps to Establish the hierarchy of jobsUseful for introducing a satisfactory,

rational and balanced wage structureProvides scientific base for promotions and

transfersAvoids injustice to employeesRemoves grievances and disputes among

employees

benefits of job evaluation

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conclusion