The relative values of various factors depend upon their significance to the job. The final job evaluation method is the point method, which measures performance through scales and job factors rather than focusing on entire job functions and ranking employees against each other. Under this method, jobs are ranked in order of its importance from the simplest to the hardest, or from most difficult to least difficult, or from more skilled to low skilled and so on. Methods of Job Evaluation Job-evaluation methods are of two categories:- a) Analytical Methods Point Ranking Methods Factor Comparison Method b) Non-analytical Methods Ranking Method Job-grading Method Non-analytical Methods Ranking and job-classification methods come under this category because they make no use of detailed job factors. Before publishing your Article on this site, please read the following pages: 1. (c) This system is difficult to operate if the number of jobs increases in the organisation. The following demerits of the system are as follows: (a) The system is based on certain assumptions which may not be true in practice. Having ranked all the jobs, they are classified into 8 to 12 categories. The following methods assess the overall jobs’ requirements. 12), and Painter in working conditions (Rs. In the second procedure, the number of degrees is ascertained, and points per degree are determined. Under this method, various jobs are ranked in their order of relative difficulty in performance or jobs are ranked from highest to lowest, or in the reverse order, in order of their value to the organisation. job evaluation method also serves as the basis for many other important human capital applications, such as clarifying organization structures, defining job interdependencies and accountabilities; identifying capability requirements needed for talent development, and setting competitive pay practices. According to I.L.O. comparison”job evaluation method and modified it in its Guide Charts in the early 1950s. C. Collecting Job Information – Detailed information about the jobs is obtained using job analysis techniques. iv. Factor comparison . (vi) New jobs can easily be evaluated and ranked in the hierarchy. Although the number of jobs may be numerous, these are squeezable only to a few identical or similar groups for the purpose of remuneration. 0000004478 00000 n Point method . viii. Hay Group’s job evaluation approach,in fact,is the world’s most widely accepted—used by an estimated 8,000 organizations,including half of the Fortune 50 companies. It all depends on employer’s compensation philosophy. Sometimes key jobs are analysed first and their descriptions used in developing grade descriptions; then the other jobs are analyzed and graded. The scores allotted to compensable factors or their degrees in a job are added to obtain the total score for the job. Points or weightage are assigned to each factor depending on … iii. In short, Job evaluation concerns itself with the pricing of jobs in relation to other jobs on the basis of concern, that is consistent, fair, logical and equitable and not on the basis of arbitrary, variable judgments dictated by short-term expediency or arrived at through rule of thumb methods. It is the process of determining systematically the relative worth or value of various jobs in an organisation. (b) It is more objective and easy to explain to employees. The most prevalent one, the Point Factor Plan, uses a quantitative approach that will be explained in this guide. i. The method may consider the "whole job" by ranking a set of jobs, or by comparing each job to a general level description. Defining Compensable Factors and Their Degrees: Defining compensable factors and the degree or level of each factor is an important step in the application of the method. Skill ; Education ; Experience ; Initiative ; Effort ; Physical Demand ; Mental Visual Demand; 10 Job Factors. 0000001371 00000 n 8 Methods of Job Evaluation. Conduct job evaluation useful as a number of. – Benchmark jobs are those that are commonly found in the market. 2. ii. Evaluation of Job is something that everyone in the organization must be aware of. 1. (i) A major advantage of the point method is the stability of the rating scale. All other jobs are compared with the list of key jobs and wage rates are determined. (v) The method is also difficult to explain. The method analyses jobs on the basis of following five factors: This factor is measured on the basis of concentration of attention (tension) intensity and frequency of thought necessary. 0000008422 00000 n The points of each factor are added and total point value for a job is obtained. This method vastly differs from the other job evaluation, methods of conducting job analysis as only here the employee behaviour is not recorded when it is performed but later when the behaviour has been evaluated to be futile or useful depending on the results. Typically the number of compensable factors is small (4 or 5). The factors common to all jobs are selected and defined clearly namely skill, physical effort, mental effort, responsibility and working condition. iii. Hay Job Evaluation is a method used by corporates and organizations to map out their job roles in the context of the organizational structure. This system may not be suitable for large organizations because of job rigidity. Update your pay grades and management, conditions and job information in job and duties and degree or a wage. Job evaluation committee grades or classifies the job on the basis of pre-determined grades in the first place, jobs are then simply graded in terms of information collected from job analysis. (iii) There is the possibility of ignoring certain more relevant compensable factors. iv. Job comparison scale based on these “key jobs” may lose its original utility. The common factors selected include education, skill, training, physical ability, mental requirement, responsibility, job conditions, etc. Referring to previous job analysis and evaluations done in organization. 7), Welder in mental requirements (Rs. Jobs within the organization are arranged in some order from the most difficult to the simplest or in the reversed order. i. (iv) Even where other methods of job evaluation are adopted, classification of jobs is also involved. This method is simple enough to be understood by all. This method was developed by Merrill Lott in 1925. (iii) When the grades of each job are defined, wage and salary administration become easier. A description is developed for each job. (vii) The pricing of jobs becomes easy under this method. In this method a job is ranked related to other jobs in an organization. Analytical Job Evaluation Methods. Other organizations are asked to match comparable jobs that have similar job activities and incumbent requirements for fixing pay rates. A systematic criterion is followed in grading the job. The raters are then asked to rank jobs from the highest to the lowest. v. Since awarding points to various job factors is judgemental, it may be difficult to convince trade union leaders about the rationality of a point system of job evaluation and wage fixation. Which is best for you? For instance, menial job is put in grade 4, clerical job is assigned to grade 3, technical job is taken to grade 2 and decision/making policy formulation job is assigned grade 1. i. This is again a simple method in concept. Pay is then assigned by comparing the weights of the factors required for each job, i.e., the present wages paid for key jobs may be divided among the factors weighed by importance. Job descriptions and job specifications are written for selected jobs; c. Find the factors in terms of which the jobs are evaluated. However, none of them de-termines precisely the value of individual job evaluation within organization. It is also called Benge Plan. If a large number of jobs are being ranked, the ranking method makes finer distinctions in job difficulty and importance than are necessary or even possible. In the example given below, ‘Z’ is highest ranked job while ‘V’ is the lowest ranked job. This method is understandable by all as various degrees in terms of which points are allocated are well defined. This method is also further divided into two types: This is systematic and more scientific method of job evaluation. With this method, … The most prevalent one, the Point Factor Plan, uses a quantitative approach that will be explained in this guide. • A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. 0000004950 00000 n 0000009466 00000 n These factors may be different for different groups of jobs to be evaluated. 20 0 obj <> endobj Job analysis is a process that consumes more time. The most common are job ranking, factor comparison, point evaluation and job comparison methods. This would help in finding the relative worth of a job. Each job is paired with every other job in the series. A description is developed for each job. The Hay System is a job performance evaluation method that is widely used in North America and Europe. The money values of these jobs are determined accordingly. An example of such a distribution of wage-rates by compensable factors in respect of a “key job” in a jute mill as per Table 7.1 may be cited as follows. The “point method” of job evaluation generally involves the following steps: The first step in the method is to select the type of jobs to be evaluated. (a) Length of training needed for an average employment acceptable proficiency. Then final rank for each job factor is found through consensus agreement; e. Allocate the current money to each factor and determine the wage rates for each key job; and. (i) Ranking method is simple and easily explainable. v. Assigning Point Values to Compensable Factors and Degrees in Each Compensable Factor: This step involves determination of the points to be allotted to each of the compensable factors, and each degree in a particular compensable factor. In this step, compensable factors, such as job-complexity, responsibility involved and mental ability required, are selected. Methods of Job Evaluation – Non-Quantitative and Quantitative Methods (With Merits and Demerits), Methods of Job Evaluation – Most Widely Used Methods of Job Evaluation (With Advantages and Disadvantages). Job evaluation determines the value of one job in relation to others in the organization in order to ensure a fair job hierarchy and/or salary system is in place. (d) This system is rigid and not suitable for a large organisation. Training in the use of the system takes several days, followed by several months of organizational experience to become proficient in its evaluation style. This method is further divided into two types: This is oldest method of job evaluation useful in small organisation. Non Quantitative 2. Ranks obtained through job description and paired comparisons are spread along a line. 25), Machinist in physical effort (Rs. Some of the methods of job evaluation are:- 1. So, download our Job Evaluation PPT template right away. There are many different types of job evaluation systems to choose from. ii. Errors may happen if the assigned point values are not realistic. Complicated tasks requiring specialization. The second step in the method involves classification of jobs by type, such as accounting jobs, engineering jobs, clerical jobs and so on. 0000006423 00000 n (d) The same criteria is used to assess the all other jobs in the organisation is some time questionable by the employees. But every business can attempt. Factor Comparison 5. It includes a scale for each element by means of which varying degrees are to be appraised. Factor comparison is systematic and scientific method designed to carry out job evaluation which instead of ranking job as a whole, ranks according to a series of factors. This line is known as the wage trend line, drawn using a statistical technique known as least squares method of regression. On the basis of analysis of such factors one may rank or grade the jobs. (d) It is very economical and less time consuming. This preview shows page 1 - 12 out of 13 pages.. Job Evaluation Methods & How to Create a Market-Competitive Pay Plan X X X X X Unit 10.3 Pricing Managerial and Professional Jobs X X X X Week # 11: Pay for Performance and Financial Incentives 11 X X X X X Unit 10.3 Pricing Managerial and Professional Jobs X X X X Week # 11: Pay for Performance and Financial Incentives 11 Ranking each job by arranging them in ascending order starting with the one with the minimum needs and ending up with the maximum needs. 0000000736 00000 n All the members of a job evaluation committee rank various jobs on the basis of each of the five factors in the light of job description of each job. Job evaluation as a process is advantageous to a company in many ways: Reduction in inequalities in salary structure - It is found that people and their motivation is dependent upon how well they are being paid. 0000006903 00000 n The Paterson System requires written job descriptions that should be read and signed by the workers. Job description – Job analysis is conducted and job description is prepared for each and every job. These pay- scales or pay-ranges generally contain minimum and maximum pay with provision of increments in the middle. vi. ii. If new jobs are added, these can be evaluated in the light of degrees specified. (ii) When compared to other methods, it involves much less time. Job evaluation: objectives, principles and methods of job evaluation. It was originated by Eugene in 1928. The method is simple enough to be understood by anyone in the organization. For example, you may determine that skill is one of the factors. The aim of job evaluation is to define the major aspects of the job and compare it to the other jobs in order to set payment for it and see its effectiveness. The points of different jobs are converted into money value or wage rate. No matter which method is used, the result of the evaluation procedure is the ranking of jobs in order of importance. The main features of the four methods are explained as follows: This method of job evaluation is generally adopted in small-sized organisations having smaller number of jobs. 2. (ii) There are chances of subjectivity in ranking jobs. Then key jobs should be selected next. (iv) The installation of the method consumes much time. There are several job evaluation methods from which to select. vi. Point rating method of job evaluation | evaluation | cognition. When the magnitude of an operation justifies the paper work, this test of job requirements may be used to make written job specifications i.e. Methods of job evaluation: the best way to match salaries ppt. Job and factors are compared. 0000001022 00000 n job evaluation as “an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking account of the individual abilities or performance of the workers concerned.”. (b) It is easy to explain to employees of the organisation. (b) The variety of complexity of the operations or of the job. a list of all functions needed of employee who fills each job. There are several jobs involving different skills, efforts, working conditions, etc. These jobs should not be compared with one another. (a) It is simple to understand and operate. This involves comparing job information with grade description. Job-evaluation methods are of two categories (1)Non-analytical and (2) Analytical; 9 Job Factors. The factors chosen must be acceptable to both management and workers. These degrees determine the number of points to be credited to the job. PreserveArticles.com: Preserving Your Articles for Eternity. 41 0 obj <>stream It is within the grasp of an average employee. (i) A major disadvantage of the method is only the use of certain well-recognized compensable factors. The sum total to these points allotted to various job factors is the worth of the job. (iii) The method enables the development of objective guidelines in its installation. iv. In a larger organization, it is more complex to use, but sometimes it can still work if jobs are grouped by job families—professional level, etc. Many methods like surveys and experiments can be used to do evaluation research. Based on the flat monetary values assigned to various jobs, pay ranges or pay-scales are developed for similar groups of jobs. Using same criteria for all jobs within the organization is questionable as jobs differ across and within the organization. (ii) It needs less time than other systems. 2. The variation in the monthly pay is due to the variation in the nature of job performed by the employees in the organisation. Training 3. methodology that is a key input to job and organisational design; it can form the foundation of today’s integrated HR systems. This method works by identifying key job factors and then assigning points based on importance. Job evaluation ppt. Preparation of manual for various jobs fixation of values for key and sub-factors and establishment of wage differentials for various grades are time consuming process. (d) It takes into account all the factors that a job comprises. Other jobs are spaced according to its closeness to the highest ranked job. Next, benchmark jobs are identified. So there is no scope for bias at any stage. “Job classification method,” also known as “grade description method,” involves demarcation of a number of classes and grades of jobs, and fitting various jobs in these classes and grades at their appropriate places. Each job is treated as a whole in determining its B. Assigning Point Values to Compensable Factors – There after the job evaluation committee determines the relative weight-age of various compensable factors and assigns point values to them. Under the point method, a detailed analysis of job’s worth is made for determining the fair wages. trailer The steps involved in this method are as follows: b. In either event, you are encouraged to work with your HR Rep/Contact to determine the best course of action. Job ranking . PreserveArticles.com is a free service that lets you to preserve your original articles for eternity. (b) It is not suited for large organisation because rater will not be thoroughly familiar with all the jobs. 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