20 the 160 points are equivalent to Rs. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. By assigning money value to each factor of various jobs, a wage structure is determined by summing up the various values. 4. Job Evaluation has its … The two methods of job evaluation are as follows: 1. 2. Content Guidelines 2. job analysis is recorded in the precise language of a job description. The committee does not have specific factors before it but the things like nature of job, working conditions, supervision required, responsibilities involved etc. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. This method determines the relative ranks of the jobs to be evaluated in relation to monetary scale. The key jobs are carefully chosen from major departments or main functions. Content Filtrations 6. The Point method is the most widely used job evaluation method, primarily because the approach forces raters to view and quantify all key job factors and sub factors. The job evaluation unit and the job analysis process 40 3. Job evaluation methods can be divided into two categories i.e. Wanda Thibodeaux is a freelance writer and editor based in Eagan, Minn. She has been published in both print and Web publications and has written on everything from fly fishing to parenting. 3. The persons preparing the job descriptions should be given the proper explanation of these factors. 2. 4. The choice of an evaluation method is important and will depend on the number and type of jobs … It can be installed without any delay as it requires minimum time. Under this method, jobs are … This method is expensive and small units cannot afford to use it. 4. 5. Under this method … Job evaluation is a process of determining the relative worth of a job. Despite the limitations or problems, job evaluation is the most appropriate technique for fixing and revising the wage as it is a systematic and objective method of wage fixation. First of all certain key jobs are identified, selected and then compared with other jobs. Moreover, Job Evaluation methods play a vital role in the success of an organization by providing management power and systematic functioning of the hired employees. A committee of several executives is constituted, which analyze the description of jobs and ranks them in order of importance. The ranking is provided to the job on the basis of this comparison. Does not consider market compensation rates. On the basis of job analysis, each member of the job evaluation committee ranks each job independently either against the benchmark job or against all other jobs. Plagiarism Prevention 4. 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. Hay Job Evaluation is a method used by corporates and organizations to map out their job roles in the context of the organizational structure. The degree of each factor is also determined for assigning points. Companies use different approaches to job evaluation and creating job structures largely because every company is different and has its own needs. Because factors like skill, responsibility, efforts etc. Qualitative Methods 2. 2. The ranking method is suitable in small concerns only where each job can be compared with the other for determining their ranks. This of course varies depending on the company's objectives and methods of operation. There are primarily three methods of job evaluation: (1) ranking, (2) classification, (3) Factor comparison method or Point method. Various factors are assigned points and sum of them gives us an index for the relative importance or weight age of the job that are related. A small company, by contrast, could find the ranking method is suitable because there are not that many positions to define. The job requirement of supervisor will be different from that of an unskilled worker or semi skilled labour. The selection of factors and then sub factors is a difficult proposition. Image Guidelines 5. 2 JOB EVALUATION METHODS/TECHNIQUES Jobs are evaluated on the basis of various techniques. The points of different jobs are later on , converted into wage rates. In the ranking method of job evaluation, a whole job is compared with others and rank is provided on the basis of this comparison. Each job … Following steps are taken under factor comparison method. It was first developed by E.J. It is a process which is helpful even for framing compensation plans by the personnel manager. Following steps are taken for job evaluation: There are number of jobs in every organization and these may range form top executive to unskilled one. The money value of jobs is also determined with this comparison. The system of job evaluation being systematic and objective is more acceptable to workers as well as management. In this method the relative rank of the various jobs is evaluated in relation of monetary scale some key jobs are identified in the organization at the first instance and then ranked considering one factor at a time, in this method five factors are generally evaluated for each job i.e. Each component has a specific point value assigned. Privacy Policy 8. The scale, once decided can be used for fairly a long period. Perhaps the simplest method of job evaluation … All jobs are compared with key job factor by factor to find out their relative importance and position in the scale of jobs. Job evaluation is an orderly and systematic technique of determining the relative worth of the various jobs within the organisation … For executives mental requirements will have more weight age than physical requirements. Each factor may be assigned a weight as per its significance. Factors are prioritized and then assigned points by the job … It is often used for evaluating white collar, professional and managerial positions, although it is equally suitable for grading other jobs … Non-analytical Job Evaluation Methods Ranking Method: This is the simplest and an inexpensive job evaluation method, wherein the jobs are ranked from he... Job Grading Method: Also known a s Job-Classification Method. With the increase in number of jobs, the system becomes difficult to implement. Before publishing your articles on this site, please read the following pages: 1. This method ranks jobs in order based on each job’s perceived value in relation to the others, says Neelman. Job evaluation is the process of figuring out how much a job is worth to create a job structure for a business. Disclaimer 9. 4. In the ranking approach, company representatives take each job and figure out how much it is worth to the business. Job Ranking If you've been running your business long enough, you know how the jobs … For example, technical support might be more important to an online retailer than an on-site retailer. A number of jobs are graded, normally between 10 to 20 are selected. The selection of key jobs is the next very important step. While many variations of these methods exist in practice, the three basic approaches are described here. It is easy for the workers to understand the standard used for classification. 5. Non quantitative methods and quantitative methods. … The number of factors should be such that all aspects of a job are evaluated. The method is simple to understand and easy to operate. An educated, ex perienced employee mak es a gre ater contributi on t han an in experienc ed o ne, thus the non- The common factors to be selected are education, job conditions and other similar requirements training skills physical ability, mental requirements, responsibility. May work well for smaller companies. Each factor of evaluation should be further subdivided into degrees for example, experience which is commonly used factor in each job may be subdivided into five degrees. It involves quantitative and analytical approach to the measurement of job value. All key jobs should be exact and well understood and there should be no conflict between management and employees about them. Benge in 1926. The grading should be done by considering the nature of duties required for the job, supervising responsibilities etc. The general purpose for carrying out job evaluations using this … 4. In this method jobs are classified or graded in groups and each job is assigned to one of the grades or classes. Under this system the jobs are only ranked in some order and the exact difference between different jobs is not determined. The points assigned to each factor are summed up for finding out the value of job. 7. Steps in the Job Evaluation Process There are many variations of job evaluation methods. 2. Job evaluation is the process of figuring out how much a job is worth to create a job structure for a business. 6. MERIT RATING James Lundy defines merit rating as “the process of evaluating an employee’s performance on the job”. 1. 2. The first step in job evaluation procedure is the preparation of job description. It is very difficult to select the number of factors required for evaluating a job. Job analysis describes the duties of a job… The first step under this method is the selection of factors to be utilized for evaluation. The point system is based on these assumptions that important factors of each job can be determined for evaluating it. Job analysis, is the process of determining and recording all the pertinent information about a specific job, including the tasks involved, the knowledge and skill set required to perform the job, the responsibilities attached to the job and the abilities required to perform the job … The allotting of marks to various factors and sub – factors is also a difficult job. Jobs within the organization are … Job evaluation as a process is … The various jobs are ranked on the basis of each of the five factors given earlier. Each factor of key job is then allocated a basic pay. reflected in pre vious method s of job evaluation. There thus is not really a "best" approach, because all approaches can be used in conjunction with each other. Ranking Method: This is the simplest and an inexpensive job evaluation method, wherein the jobs are ranked from the highest to the lowest on the basis of their importance in the organization. For example, there may be one plan fo r skilled shop jobs, anot her plan for unskilled 3. Under this system, the job raters simply rank one job against another without assigning point values. This method is useful even if the number of jobs is very large. This method is successfully used in government departments. With the point approach, company agents list components with which to evaluate each job. It evaluates the position, not the performance of employees. This method suffers form the following drawbacks: 1. Though it is not essential to prepare job description under ranking system but it is better and helpful in this system. Job Evaluation: Objectives, Principles and Methods of Job Evaluation! Often, companies complete more than one evaluation using different approaches. This method is economical in operation as compared to other methods. The ranking method is one of the simplest methods of job evaluation. 4. The number of factors used being limited, it helps in avoiding overlapping. Points Rating: This is the most widely used method of job evaluation. The use of this method involves high cost, it cannot be adopted by medium or small scale units. These techniques are grouped into two classes, viz., quantitative and non-quantitative techniques. The next step in the process of raining is the selection of raters. Many people assigned with the job of ranking will give different ranking to the jobs. In this method, jobs with similar requirements are kept together. Each job is then, attached to an appropriate grade. 3. Since quality is an important aspect of measurement and evaluation, It is of immense importance. There should be separate evaluation procedure for each class because the factors affecting them will be different. Qualitative Methods 2. There are three major approaches to job evaluation a company can use. construction worker, image by Greg Pickens from. The employees/workers may resent arbitrary ranking of jobs. 3200 in money value. This method is expensive but is probably the most scientific. A number of grades, different from each other, are selected. Following quantitative methods are used in job evaluation: This is the most widely used technique of job evaluation. The benefit of this method is that employees can understand that their pay rate is not completely subjective and is comparable to the pay rates received by others within the company. It evaluates the position, not the performance of employees. It can easily be explained to workers. The number of factors to be used varies form enterprise to enterprise ranking from 3 to as many as 50. Most Common Methods of Job Analysis Observation Method: A job analyst observes an employee and records all his performed and non-performed task, fulfilled and un-fulfilled responsibilities and duties, … With the help of job analysis, information about different jobs is collected and they are put under different grades as per their nature, importance, responsibility and other requirements. All the Jobs are put in Relevant Grades or Classifications: For example, all unskilled jobs are put in one class, clerical jobs in another class and so on. 2. It is difficult to operate as selection of unfairly paid jobs as key jobs can result in considerable error. Non-analytical Job Evaluation Methods. 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. The pay for such jobs should range from the lowest to the highest. are not analyed separately, the wage rate paid for different jobs influence the rates. The ranking is not based on standard criterion so human bias due to presences of human factor can not ruled out. “If it is assumed that 1 point is equal to Rs. These factors are not given any weight age. Managers-Net: Job Evaluation - What Is It. Copyright 10. The job so identified should cover the range from lowest to the highest paid ones etc. 3. 4. They constitute a standard and all other jobs are to be compared with key jobs. 2. This system suffers from the following draw backs : 1. The system enjoys stability so as factors remain relevant to these methods. The relative value of each job is determined by comparison with some key job. Key jobs are assigned appropriate grade level and their relationship with each other is studied. Prohibited Content 3. With point methods of job eval uation, organizations usually have a series of job evaluation plans. There are several job evaluation methods from which to select. Job evaluation panel – practice and procedures 42 5. It can be used for evaluation of unlike jobs. The jobs may be graded as skilled, unskilled, clerical, administrative, etc. 1. It is very easy to understand and easy to explain to employees. The classification of jobs is done by some of the executives, human bias exist in this method because no set standards are available for classification. Requests for reviews/grievances 42 … A job can easily be evaluated in money terms as these are assigned according to points connected with that job. Using this method requires businesspeople to ascertain how each job is connected to each business function. The classification approach puts jobs into classes or groups. Evaluation of a thing can be done by keeping in view the qualitative as well quantitative aspects. The point system of job evaluation suffers from the following limitations: 1. The jobs may be ranked department wise or in groups of workmen (Factory jobs, clerical jobs, unskilled jobs). 4. 2. TOS 7. Comparison of similar jobs is made to establish its exact ranking in the scale. FIGUREH Meritor Seniority (orboth) Baserate 549678LaborGrades CHARTn NomeofJob Labor Grade BasePayIncentivePay (average) TotalPay Janitor Latheoperator Toolmaker 4 6.95-1.05 1.25-1.45 1.40-1.60 Non … Some are more complicated than others. Factory jobs should not be compared with clerical jobs or unskilled jobs because of their different nature. For example, in a large company, the simplicity of the ranking method might be problematic, because there are dozens of individual positions. The EQUATE system and j ob evaluation data 41 4. Everything you need to know about the job analysis methods. 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