JOB EVALUATION
Meaning:
Job evaluation means determining the relative worth of a job in an organization by comparing it with other jobs within the organization and job market outside.
DEFINITION:
According to Edvin B. flippo,” job evolution is a systematic and orderly process of determining the worth of a job in relation to other jobs”.
Objectives of job evaluation :
1) To establish satisfactory wages and salary differentials. 2) To select employees more accurately and train ,promote or transfer them within the organization objectively and impartially .In addition to provide information for work organization ,employees selection, placement and other similar problems. 3) To promote employee goodwill , strengthen and maintain morale and loyalty and provide an incentive or efficiency. 4) To provide management with a basis for proper control and to eliminate nepotism and minimize waste through proper assignment and recognition o skills and responsibilities. 5) To determine the rate of pay for each job which is fair and equitable in relation to other jobs in the plant.In fact ,the primary objective of job evaluation is to set wages and salary as per the relative work or jobs in the organization. 6) Miscellaneous purposes : a) To determine air minimum and maximum wages or salaries. b) To facilitate recognition o merit. c) To eliminate unfair inequalities in wage payment .
Job Evaluation Methods :
Ranking Method: Jobs are compared one with another and arranged or valued in the order of their importance or their difficulty or their value to the firm. It is a highly subjective method anddepends upon the experience of the people doing the ranking.
Factor-Comparison Method: This is associated with the name of E.J.Benge. Each factor (as inthe point method) is ascribed a money value. Key jobs, representing the various levels or gradesare ranked factor by factor and upon this ranking, a scale of pay/money value is prepared. Thesum of the values for each factor is taken to be the money value of job.
Point Method: Jobs show characteristics which are common to all or most. The se characteristics, called factors, generally fall under the four headings- skill, effort, responsibility and conditions. To each factor is attached a number of points, the number varying according tothe ‘degree’ of the factor involved. The sum of all the points for a job permits its comparison with other jobs and thus a scale of pay is arrived at.
Advantages of Job Evaluation :
1. Job evaluation is a logical and an objective method of ranking jobs relatively to each other. It may thus help in removing inequities in existing wage structures and in maintaining sound and consistent wage differences in a plant or an industry. 2. The method replaces accidental factors occurring in less systematic procedures of wage bargaining by more impersonal and objective standards, thus establishing a clearer basis for negotiation. 3. The method may lead to greater uniformity in wage rates and simplify the process of wage administration. 4. Information collected in a process of job description and analysis can be used for improvement of selection, training, transfer and promotion, procedures on the basis of the comparative job requirement. 5. Job evaluation removes grievances and disputs among employees over relative wages and makes the wage system acceptable to all employees.
? Process of Job Evaluation : a) Securing acceptance from employees:
Before undertaking job evaluation , top management of the company must explain the purpose and uses of job evaluation programme to the employees and their unions. There will be overall acceptance to the programme by the employees and their unions .This will also avoided possible opposition from them in the near future.
b) Creating / forming job evaluation committee.
It is neither possible nor desirable for a single person to evaluate all the key jobs in an organizations. For this ,normally a job evaluation comitee consisting o experienced and matured employees,union representatives nad HR experts is created to set the ball rolling.The committee has to make all prelimnary work or job evaluation purpose.
c) Finding/ deciding the jobs to be evaluated.
Every job available in an organization need not be evaluated. Such exercise may prove too taxing, costly and time consuming .Here,certain Key Jobs in each department may be identified. While selecting jobs for evaluation purpose , care needs to be taken to ensure that they represent the type of work performed in that department.
d) Analyzing & preparing job description.
In this stage of job evaluation process, the job elected for evaluation will be studied / analysed in detailed. This is necessary for the preparation of a job description and also for an appropriate analysis ofjob needs for successful performance.
e) Selecting the method of evaluation.
Here, the method of job evaluation will be selected. The most appropriate method of evaluating the jobs must be identified here, keeping the job actors as well as organizational demands in mind. This stage in the job evaluation process is important as the beniits of job evaluation will be available only when the method of job evaluation selected is appropriate.
f) Classifying jobs.
In this stage ,the realative worth of various jobs in an organization may be found out after arranging jobs in order of importance using criteria such as skill requirement, experience needed, the conditions under which the job is performed ,etc.
g) Installing the program.
Once the job evaluation process is over and a plan of action is ready , the management must explain it to employees and put it into operation in the whole organization .This tep is essential in order to clear the doubts ,etc. of the employees and unions. It is acceptable to employees when the programme is explained to them properly.
h) Periodical review.
The jobs in an organization need periodical review in the light of changes in environment conditions which may change from time to time .In the absence of such periodical review, employees may feel that all the relevant job factors have not been evaluated properly, based on which their pay scale has been determined. This suggest the importance periodical review in the process of job evaluation.
doc_394539482.docx
Meaning:
Job evaluation means determining the relative worth of a job in an organization by comparing it with other jobs within the organization and job market outside.
DEFINITION:
According to Edvin B. flippo,” job evolution is a systematic and orderly process of determining the worth of a job in relation to other jobs”.
Objectives of job evaluation :
1) To establish satisfactory wages and salary differentials. 2) To select employees more accurately and train ,promote or transfer them within the organization objectively and impartially .In addition to provide information for work organization ,employees selection, placement and other similar problems. 3) To promote employee goodwill , strengthen and maintain morale and loyalty and provide an incentive or efficiency. 4) To provide management with a basis for proper control and to eliminate nepotism and minimize waste through proper assignment and recognition o skills and responsibilities. 5) To determine the rate of pay for each job which is fair and equitable in relation to other jobs in the plant.In fact ,the primary objective of job evaluation is to set wages and salary as per the relative work or jobs in the organization. 6) Miscellaneous purposes : a) To determine air minimum and maximum wages or salaries. b) To facilitate recognition o merit. c) To eliminate unfair inequalities in wage payment .
Job Evaluation Methods :
Ranking Method: Jobs are compared one with another and arranged or valued in the order of their importance or their difficulty or their value to the firm. It is a highly subjective method anddepends upon the experience of the people doing the ranking.
Factor-Comparison Method: This is associated with the name of E.J.Benge. Each factor (as inthe point method) is ascribed a money value. Key jobs, representing the various levels or gradesare ranked factor by factor and upon this ranking, a scale of pay/money value is prepared. Thesum of the values for each factor is taken to be the money value of job.
Point Method: Jobs show characteristics which are common to all or most. The se characteristics, called factors, generally fall under the four headings- skill, effort, responsibility and conditions. To each factor is attached a number of points, the number varying according tothe ‘degree’ of the factor involved. The sum of all the points for a job permits its comparison with other jobs and thus a scale of pay is arrived at.
Advantages of Job Evaluation :
1. Job evaluation is a logical and an objective method of ranking jobs relatively to each other. It may thus help in removing inequities in existing wage structures and in maintaining sound and consistent wage differences in a plant or an industry. 2. The method replaces accidental factors occurring in less systematic procedures of wage bargaining by more impersonal and objective standards, thus establishing a clearer basis for negotiation. 3. The method may lead to greater uniformity in wage rates and simplify the process of wage administration. 4. Information collected in a process of job description and analysis can be used for improvement of selection, training, transfer and promotion, procedures on the basis of the comparative job requirement. 5. Job evaluation removes grievances and disputs among employees over relative wages and makes the wage system acceptable to all employees.
? Process of Job Evaluation : a) Securing acceptance from employees:
Before undertaking job evaluation , top management of the company must explain the purpose and uses of job evaluation programme to the employees and their unions. There will be overall acceptance to the programme by the employees and their unions .This will also avoided possible opposition from them in the near future.
b) Creating / forming job evaluation committee.
It is neither possible nor desirable for a single person to evaluate all the key jobs in an organizations. For this ,normally a job evaluation comitee consisting o experienced and matured employees,union representatives nad HR experts is created to set the ball rolling.The committee has to make all prelimnary work or job evaluation purpose.
c) Finding/ deciding the jobs to be evaluated.
Every job available in an organization need not be evaluated. Such exercise may prove too taxing, costly and time consuming .Here,certain Key Jobs in each department may be identified. While selecting jobs for evaluation purpose , care needs to be taken to ensure that they represent the type of work performed in that department.
d) Analyzing & preparing job description.
In this stage of job evaluation process, the job elected for evaluation will be studied / analysed in detailed. This is necessary for the preparation of a job description and also for an appropriate analysis ofjob needs for successful performance.
e) Selecting the method of evaluation.
Here, the method of job evaluation will be selected. The most appropriate method of evaluating the jobs must be identified here, keeping the job actors as well as organizational demands in mind. This stage in the job evaluation process is important as the beniits of job evaluation will be available only when the method of job evaluation selected is appropriate.
f) Classifying jobs.
In this stage ,the realative worth of various jobs in an organization may be found out after arranging jobs in order of importance using criteria such as skill requirement, experience needed, the conditions under which the job is performed ,etc.
g) Installing the program.
Once the job evaluation process is over and a plan of action is ready , the management must explain it to employees and put it into operation in the whole organization .This tep is essential in order to clear the doubts ,etc. of the employees and unions. It is acceptable to employees when the programme is explained to them properly.
h) Periodical review.
The jobs in an organization need periodical review in the light of changes in environment conditions which may change from time to time .In the absence of such periodical review, employees may feel that all the relevant job factors have not been evaluated properly, based on which their pay scale has been determined. This suggest the importance periodical review in the process of job evaluation.
doc_394539482.docx