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JOB EVALUATION
Job evaluation is the process of analysing &
assessing the various jobs systematically to
ascertain their relative worth in an org.
• purpose being fixation of satisfactory wage
differentials among various jobs.
• provides logical basis for setting up of
comparative values of jobs in a plant or industry.
.
Job evaluation, 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.
• evaluation or ranking of jobs to determine their position in the job hierarchy.
Job Evaluation Systems
Job Evaluation The systematic process of determining the
relative worth of jobs in order to establish which jobs should be paid more than others within an organization.
Job evaluation
Performance appraisal
Define Relative worth of a job
Find the worth of a job holder
Aim
Shows
Determine wage rates for diff.jobs
How much a job is worth
Determine incentives & rewards for superior performance
How well an individual is doing on assigned work
Job description –a statement of duties &
responsibilities of a job
Job specification– a statement of human qualities to fill the job.
Job Rating– assigning a relative
score to each job
Money allocation --assigning a money rate
of pay to each job acc. to its worth
Job classification--grading jobs acc. to
scale of pay
Job Analysis-a process of obtaining job facts.
Process of job evaluation
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
The process of job evaluation involves the following steps
METHODS OF JOB EVALUATIONJob evaluation involves evaluation of various jobs in terms of certain factors. Imp. factors are• skill : mental & manual• Education• Experience• Efforts & initiative• responsibility• working environment• supervision needed
More difficult job more worthMore scarce supply higher demand
more worth
Different Job Evaluation Systems
JOB AS JOB PARTSBASIS FOR A WHOLE OR FACTORSCOMPARISON (NONQUANTITATIVE) (QUANTITATIVE)
Job vs. job Job ranking Factor comparison system system
Job vs. scale Job classification Point system system
SCOPE OF COMPARISON
A.Ranking method:
Arranges jobs in numerical order from highest to lower on the basis of the importance of the job's duties and responsibilities to the organization.
Jobs examined as a whole rather than imp.
factors in the job.
A committee of several executives evaluates job descriptions & ranks them in order of importance.
Rank order is determined by averaging the respective ranking of all committee members.
Suitable for small org.s
Rates of pay are associated with jobs in rank order.
B. Grading or job Classification method:
A no. of pre –determined grades /classifications are first established by a committee & then various jobs are assigned within each grade/ class.
Grade descriptions are derived from job analysis.
Eg. Executives -office mgr., deputy office mgr., office superintendent
Skilled worker- cashier, receptionist
Semi skilled worker– file clerks, office boys
C.Factor comparison method:
• Needs expertise knowledge
• Used mostly for white collar workers
• Mostly following 5 factors are evaluated for each jobmental effort, physical effort, skill needed, responsibility,working conditions
Select key jobs (say 15 to 20)representing wage / salary levels across the org. Selected jobs must represent as many deptt.s as possible
Find the factors in terms of which the jobs are evaluated (skill, mental effort etc.)
Rank the selected jobs under each factor ( by each & every member of the job evaluation committee) independently.
Assign money value to each factor & determine the wage rates for each key job.
Wage rate for a job is apportioned along the identified factors.
All other jobs are compared with list of key jobs & wage rates are determined.
D. Point method: Select key jobs Identify the factors to all identified jobs such as skill, effort, responsibility etc. Divide each major factor into a number of sub factors. Each sub factor is defined and expressed in order of importance. Find the maximum number of points assigned to each job Once the worth of a job in terms of total points is known, the points are converted into money values, keeping the wage rates in mind.