Hr Job Evaluation-copied

JOB

EVALUATION

CONCEPT Job evaluation is the rating of jobs in an organization. It is a systematic method of appraising the value/worth of one job in relation to the other in an organization. It is essential that there should not be any inequality in the salaries of the persons working in the same job. Therefore a planned comparison of jobs is necessary to restrict the occurrence of such situations. Below are given some important definition of Job evaluation KIMBALL AND KIMBALL “Job evaluation is an effort to determine the relative value of every job in a plant to determine what the fair wage for such a job should be” WENDELL FRENCH “Job evaluation is a process of determining the relative worth of various jobs within the organization, so that differential wages may be paid to jobs of different worth. The relative worth of a job means relative value produced. The variables which are assumed to be related to value produced are such factors as responsibility, skill, effort and working conditions” So job evaluation is a process used to establish the relative worth of jobs in a job hierarchy. It is important to note the job evaluation is ranking of the job, not job holder. The job evaluation assumes normal performance of the job by a worker. Thus, the process ignores individual abilities of the job holder. OBJECTIVE • To determine wage rates for job irrespective of the attributes of the employee. • Provide a standard procedure for determining the relative worth of each job in a plant • Eliminate wage inequalities • Form a basis for fixing incentives and different bonus plans • Serves as a useful reference for settling the individual grievances on wage rates • To establish a systematic wage structure at organizational level which“ Job evaluation will be agreeable to the organization and individual employees.

• •

To provide means of employment participation in wage determination because usually job evaluation is undertaken by the management as a joint exercise with union Provide bench mark for making careers planning for the employees.

METHODS OF JOB EVALUATION RANKING METHOD The ranking method is the simplest form of job evaluation. In this method each job as a whole is compared with other and this comparison of jobs goes on until all the jobs have been evaluated and ranked. All jobs are ranked from in the order of their importance from the simplest to the hardest or from the highest to the lowest. The importance of the order of the job is judged in terms of duties, responsibilities and demands on the job holder. Finally, divide all the ranked jobs into appropriate groups or classifications by considering the common features of jobs as similar duties, skills or training requirements. All the jobs within a particular group or classification receive the same wages or range of rates. The ranking of jobs in a University, based on Ranking Method, may be like this: Ranking Order Professor Reader Lecturer

Pay Scale Rs. 16,400-450-20,900-50022,400 Rs. 12,000-420-18,300 Rs. 8,000-275-13,500

Merits • It is the simplest method • It is quite economical and less time consuming • It is also suitable for evaluating managerial jobs wherein job contents cannot be measured in quantitative terms. Demerits • The main demerit of ranking method is that there are no definite standard of judgment and also there is no way of measuring the difference between two jobs • Unmanageable when there are a large number of jobs.

CLASSIFICATION AND CATEGORIZATION METHOD This method is also known as Grading Method. In this method, unlike ranking method, grades are determined first which means the basis to measure the worth of the job. A job grade is defined as a group of different jobs of similar difficulty or requiring similar skills to perform them. Once the grades are established, each job is then placed into its appropriate grade or class depending on how well its characteristics fit in a grade. Merits • Very simple and easy to understand. • Economical and suitable for small organizations • Grouping of jobs into classifications makes pay determination problems easy and this method is very useful for government jobs Demerits • This method suffers from personal bias of the committee members • It cannot deal with complex jobs which will not fit neatly into one grade • This method is rarely used in industry FACTOR COMPARISON METHOD This system is usually used to evaluate white collar, professional, and managerial positions. The steps involved are First of all, the key or benchmark jobs are selected as standards. The key jobs selected should have standard contents. and should consist of representative cross section of all jobs that are being evaluated say from lowest to highest. The factors common to all jobs are identified, selected and defined precisely. The common factors to all jobs are usually five ie mental requirements, physical requirements, skill requirements, working conditions and responsibility. The key jobs are then ranked. And fair and equitable base rate is determined.

Key Jobs Electrician Welder Mechanist

Base Rate (Dail y) 60

Mental Requireme nts

Physical Requireme nts

Skill s

Working Conditio ns

Responsibil ity

13

12

5

12

18

50

10

17

5

4

14

80

25

5

23

24

3

The final step in factor comparison method is to compare and evaluate the remaining jobs in the organization. To illustrate, a ‘toolmaker’ job is to be evaluated. After comparison, it is found that is similar to electrician(13), mental requirements to welder(10), physical reqmt to electrician(12), working condition to machinist(3). Thus the wage rate for toolmaker will be Rs 62/-(13+10+12+24+3) Merits • It • It • It • It

is more objective method of job evaluation. is more flexible as there is no upper limit on the rating of a factor. is fairly easy method to explain to employees. facilitates determining the relative worth of different jobs.

Demerits • It is expensive and time consuming • Using the same five factors for evaluating jobs may not always be appropriate because jobs differ across and within organization POINT RATING METHOD This is most widely used method of job evaluation. 1. Under this method jobs are broken down based on various identifiable factors such as • skill • effort • responsibility

• and working condition 2. Thereafter, points are allocated to each of these factors. Weights are given to factors depending on their importance to perform the job. 3. Points so allocated to various factors of a job are then summoned. 4. Then, the jobs with similar total of points are placed in similar pay grades.

Merits • It is most comprehensive and accurate method of job evaluation • Prejudice and human judgments are minimized and the system cannot be easily manipulated. • Being a systematic method, workers of the organization favor this method • Jobs can be easily placed in distinct categories Demerits • It is both time consuming and expensive method • It is difficult to understand for an average worker. • It is not suitable for managerial jobs wherein the work content is not measurable in quantitative terms PREREQUISITES OF EFFECTIVE JOB EVALUATION 1. Well defined system of job analysis, job description, job specification, job and organizational design provide the basis. 2. The system should be simple and easy to understand rather than troo technical and complex 3. Participation of recognized union where it exists is imperative. 4. The industrial engineers should work closely with mgt and unions. 5. job evaluation exercise should not be viewed as an excuse to cut wages or retrench employees . it should not adversely affect the terms and conditions of existing employees. 6. Employees and union should be aware about the objective and implications of job evaluations. Active involvement of employees is a must. 7. it is appropriate to use outside experts in the exercise, 8. Job evaluation to be undertaken to support wage negotiation. 9. The scheme should be administered by Industrial Relations staff.