Job Evaluation L 11.ppt

Job evaluation

Definition • Job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organisation. • The purpose of job evaluation is to find the relative worth of a job and determine what a fair wage for such a job should be. Job evaluation, it should be noted, begins with job analysis (a systematic way of gathering information about a job) and ends at that point where the worth of a job is ascertained for achieving pay equity between jobs

Features of job evaluation – It tries to assess jobs – The standards of job evaluation are relative, not absolute – It gets the basic information through job analysis – It is generally carried out by groups, not individuals – Some amount of subjectivity is always present in job evaluation – It does not fix pay scales but offers a sound basis for determining a rational wage structure

The Process Of Job Evaluation – Gaining acceptance from employees and trade unions – Creating a job evaluation committee – Finding the jobs to be evaluated – Analyzing and preparing job descriptions – Selecting the method of job evaluation – Classifying jobs – Installing the programme – Reviewing the process periodically

Benefits It 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. 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.

Methods of Job Evaluation • Ranking method: The job ranking method arranges jobs in numerical order on the basis of the importance of the job, duties and responsibilities to the organization. This method, though easy to understand, is highly subjective in nature.

Classification method Classification method: The job classification method slots jobs into pre established grades. Higher-rated grades demand more responsibilities, tougher working conditions and varied job duties. This method is easy to understand and takes care of all relevant factors affecting the performance of a job. However, it is not easy to write all inclusive descriptions of a grade. Further, the method oversimplifies sharp differences between different jobs and different grades

Factor comparison method • Factor comparison method: In this method, jobs are ranked according to a series of factors such as mental effort, physical effort, skill needed, responsibility, supervisory responsibility, working conditions, etc. pay will be assigned in this method by comparing the weights of the factors required for each job.

Limitations of Job Evaluation Job evaluation is not exactly scientific. ‘The modus operandi’ of most of the techniques is difficult to understand, even for the supervisors.

The factors taken by the programme are not exhaustive. There may be wide fluctuations in compensable factors in view of changes in technology, values and aspirations of employers, etc.

Employees, trade union leaders, management and the programme operators may assign different weightage to different factors, thus creating grounds for dispute.