If they are not, a scheme becomes too inflexible because of the narrow coverage of the job descriptions. This is again a simple method in concept. 5. A job evaluation is a tool used by an organization, often by the human resources department, to identify the value of a job. Limitations of Job Evaluation. Another procedure, which is in reality merely a modification of the simple rating described above, is to establish a series of grades, or zones, and arrange all the jobs in the plant into groups within these classifications, or groups. The time element – Unless carried to the detailed point used by the company, it requires less time. Surveys need to consider the number of workers per farm in a given classification. To determine a rate of pay for each job which is fair and equitable with relation to other jobs in the plant, community and industry. Each of these categories is then broken up into subgroups. Supervision and leadership of subordinates. 5. A. It is costly to install, and somewhat difficult for anyone who is not acquainted with the general nature of job evaluation techniques to grasp. She has covered HR for The Balance Careers since 2000. For this purpose, quorum is considered to be three (3) members of the appropriate job evaluation committee. To provide information for the work organisation, employee’s selection and training and numerous other important purposes. In practice, results of job evaluations are often compromised or even overshadowed by market considerations. What is Job Evaluation – Meaning, Definition, Scope, Objectives, Features, Types, Methods, Programmes and Limitations, What is Job Evaluation – Scope: Selection of Employees, Training and Development, Standardization of Wage Structure and Settlement of Disputes, What is Job Evaluation – Job Evaluation Systems: Ranking or Grading Method, Weighted-in Money Method and Various Point Methods. Job evaluation is a process of determining the relative worth of a job. This can demoralize employees and lead them to seek out new employment. Thus, job evaluation is the basis for rational wage and salary administration. Posted: (1 months ago) Posted: (3 days ago) The purpose of job evaluation is to produce a ranking of jobs on which a rational and acceptable pay structure can be built. Further, the complexity of this method makes it difficult for employees to understand and accept. The Factor Comparison Plan, or the Weighted-in-Money Method: (1) It is a technique by which a rational and consistent wage structure is involved: (2) It eliminates inequalities in grades: (3) It also eliminates personal prejudices: (4) It maintains harmonious employer-employee relation: (5) Wage controversies are solved by justifying wage-rates: (6) Important job-factors are used in evaluation: (7) A job-evaluation technique provides the basis for comparison of each job: (8) It lowers cost of recruitment and selection: (9) Multifarious use of job-evaluation data: (10) It helps in the development of workers: What is Job Evaluation – 5 Basic Methods of Job Evaluation: Ranking,Classification, Factor Comparison, Point Method and Market Pricing Method, : Steps, Essential of Success and Suggestions, Essentials of Success of Job Evaluation Programmes, What is Job Evaluation – 10 Major Limitations, Essays, Research Papers and Articles on Business Management, Term Paper on Job Evaluation | Organisation | Management, Job Evaluation: Objects, Principles and Methods, Methods of Job Evaluation | Personnel Management, Job Evaluation: Objectives, Principles and Methods of Job Evaluation, Advantages and Disadvantages of Franchising, What is Job Evaluation – Definition Propounded by ILO, British Institute of Management and Bureau of Labour Statistics of USA, What is Job Evaluation – 5 Main Features: Not Concerned with External Relativities, Judgmental, Assess Job not the Person, Factual Evidence and Evaluates the Wage Structure, What is Job Evaluation – Job Evaluation and Market Consideration, What is Job Evaluation – Human Relations Effects, What is Job Evaluation – Programmes: Steps, Essential of Success and Suggestions, Meaning and Characteristics Job Evaluation, Human Relations Effects of Job Evaluation. The process of job evaluation uses selected criteria to compare jobs within an organisation so that they can be ordered for the purpose of assigning differential pay. It is also too easy to use because evaluators rate jobs in terms of well-known jobs in their own organisation. All the point systems are based on the assumption that it is possible to assign points to the respective factors considered pertinent in evaluating the individual jobs and that the sum of these points will give an index of the relative significance of the jobs being rated. Workplace performance evaluations provide employees with insight as to how they’re perceived, what they’re doing well and where they can improve. Thus, job values are established only after taking various job-factors into consideration. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Copyright 10. Achieves a fair system of pay. In order to create an effective performance evaluation, take into consideration the following components: Performance analysis; Descriptive phrases; Strengths and weaknesses; Employee potential; Constructive feedback; Goals; 1. At this point the analyst using the factor comparison system can begin evaluating the jobs of undermined value. (c) It must have obtained the acceptance of trade unions. Each of these jobs is analysed in terms of the following factors, and that portion of the money rate which is considered appropriate is assigned to the factor – (a) Mental requirements; (b) Skill requirements; (c) Physical requirements; (d) Responsibility; (e) Working conditions. This method is widely used for salaried jobs, including those in government and service occupations. Does not consider the impact of technology, industry standards, government policies, and values and aspirations of employers on their job evaluation, iv. The scheme should be introduced on a plant-to-plant basis than applied to a whole industry. The job evaluation … 5. It involves job analysis and appraisal which are of great use while recruiting the personnel. The ground rules for defining the job for evaluation purposes: Evaluate the job not the job holder. Outlining the job. For each sub-factor 5 degrees of importance are defined, and a specified number of points is associated with each degree. The system is fairly simple, and the organisation may already have access to pay survey information for the purpose of attracting quality employees. Features 6. Training and development – Job evaluation process determines the significance and necessity of training and development of the employees associated with a particular job. Types. Farmers who pay too much may find it difficult to remain competitive. “Job evaluation is the process of analysis and assessment of jobs to ascertain reliably their relative worth using the assessment as a basis for a balanced wage structure.” —The British Institute of Management, The Bureau of Labour Statistics of USA has described job evaluation as follows – “Job evaluation is the evaluation or rating of jobs to determine their position in a job hierarchy. 10. Job Evaluation Committee. 3. The difference in the various systems arises mainly from the number of characteristics used in establishing the relative requirements of the various jobs. An important pay decision is whether one will pay the going market rate. Job evaluations are performed for these reasons. It is a process which is helpful even for framing compensation plans by the personnel manager. Our computer program was designed to apply the “weighted point method” approach to job evaluation for the purpose of providing a sound wage and salary administration program. i. Advantages to the Employer:. This method is most appropriate for small organisations and for those with a limited number of different jobs. Most of the point systems include the following 5 items in evaluating jobs – (a) Mental requirements; (b) Physical requirements; (c) Skill; (d) Responsibility; and (e) Job or Working conditions. b. Co-operation with associates outside the line of authority- exchange of opinion on controversial matters involving tact, diplomacy, appreciation of the other person’s point of view; necessity for and degree of teamwork, exchange of information, etc. Job-evaluation evolves standard rates for similar or comparable jobs in the organisation and thus inequalities in base compensation are removed by this technique. Managers and Employee Scores in an Evaluation. Makes use of in-exhaustive factors that are not universal in nature while performing job evaluation, iii. Moreover, workers tend to feel more insecure and cling to their present jobs because they may not have the qualifications for another job. For good industrial relations, each employee should – (i) receive sufficient wages or salaries to sustain himself and his dependents, and (ii) feel satisfied with the relationship between his wages and the wages of other people performing the same type of work in some other organisation. For example, the first degree under education may be defined as “the ability to read, or add or subtract” – and be awarded 14 points. Analysis and Prepare Job Description – This requires the preparation of job description and also an analysis of job requirements for successful performance. Job evaluation is an assessment of the relative worth of different occupations on the premise of a reliable arrangement of employment and individual variables, for example, capabilities and abilities required. One can write the title of each job on a card, with one card being used for each job, and then arrange the cards so that the top one holds the most important job title, the next holds the next most important job title, and so on. 4. Job evaluations, then, reflect the relative value or contribution of different jobs to an organization. A job evaluation allows an organization to make well-informed decisions on recruitment, retention and compensation. It is not concerned with the internal equity of pay, compensable factors, or assigning relative worth to jobs except in relation to the going rate in the labour market. Job Analysis plays an important role in recruitment and selection, job evaluation, job designing, deciding compensation and benefits packages, performance appraisal, analyzing training and development needs, assessing the worth of a job and increasing personnel as well as organizational productivity. Selection and Prepare a Job Evaluation Plan – Job must be broken down into its components parts. It is practically impossible to encompass each and every variable of a job that makes it attractive and valuable to a worker. Job evaluation minimises subjectivity and enables rational, consistent and transparent decisions to be made about roles. What you evaluate is the position and not the employee occupying the position. 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. If a manager fires an employee for poor performance in June, but the employee can produce an evaluation from December that rates them highly, the company will have a hard time defending the decision to terminate. The Purpose of the Job Fact Sheet The Job Fact Sheet is used in many areas of human resource management. You generally can meet with a Human Resources manager and your manager, and sometimes your boss's boss, to go over the reasons for your rating. This system should be preceded by careful job analysis and the writing of accurate job descriptions before the rating process is undertaken. In a traditional employee evaluation, the manager or supervisor writes and presents the employee's contributions and shortcomings to the employee. So a well-written self-evaluation with successes and complex projects listed can inform, or remind, your manager about the goals you've accomplished and the contributions you've made during the year. It is less mechanistic and theoretical than the point system. First, the focus of job evaluation is upon the job itself, its content or its demands upon the normal average or standard worker performing it rather than upon the person doing it and what he/she may choose to put into it. In practice, the bureaucratic nature of job evaluation makes it time consuming and less efficient. In this case mental (intelligence) requirements might be credited with 40 P.; skill requirements, 10 P.; physical requirements, 50 P.; responsibility, 10 P.; and working conditions 15 P. This process is followed for each key job with due attention being given to the factor rankings of the previous survey. Job evaluation does not fix pay scales. Job evaluation systems must measure work in terms of Skill, Effort, Responsibility and Working conditions - these 4 factors are required by the Pay Equity Act. The determination of the relative value or size of the job is set on the basis of information on the characteristics of the job. Importance 8. Online availability of a Job Evaluation Form. You can arrive at appropriate wages for positions on your farm on the basis of two main management tools: (1) Job evaluations (based on compensable factors such as education, skill, experience, and responsibility), and. The purpose of the job evaluation is to have a satisfactory wage differential. f. Minimum education requirement – amount of schooling or study absolutely necessary to fill successfully the occupation. In selecting the factors, care should be taken to cover all phases of work with a few factors, without, of course, allowing overlapping of factors. It tends to eliminate in-equalities in wage structure within the organisation and the industry and also help eliminating personal prejudices. Having a job evaluation approach that is easily understood and systematic is essential to communicating or explaining the requirements for career growth in your organization. Figure 13.5 shows a sample job evaluation. In some cases, farmers may compete for labor within a broader labor market. Selection of employees – The job evaluation procedure considers the skill required to perform the job, responsibility associated with performing the job. Scope 4. When it is finally decided to install a formal system of job evaluation irrespective of which system is decided upon, the utmost care must be exercised to ensure that human as well as technical aspects are taken into account. It is a conventional method in which jobs are compared one with another, and arranged or ranked in the order of their importance, their difficulty, or their value to the organisation. If your business does this and does evaluations based on your service anniversary, you can find that employees hired at the end of the year receive disproportionate raises compared to their coworkers. It is very similar to the factor comparison method in that separate scales are developed for each compensable factor. A job evaluation system is usually made up of the parts below. The committee is accountable for determining evaluations for all positions. Labor groups, in the form of unions, can combine forces to protect their earnings. Wages paid in similar firms and social costs are also taken into consideration, while fixing the value for the job. It makes a systematic comparison between jobs to come to a continuation of their relative expectancy or worth for the purpose of making a logical pay structure. One disadvantage of the point method is that administrative costs may be too high to justify its use in small and medium-sized organisations. The Bureau of Labour Statistics of USA has described job evaluation as follows – “Job evaluation is the evaluation or rating of jobs to determine their position in a job hierarchy. In this, the worker, who has been assigned the job will get the wages fixed for the job, by job evaluation process hence, it leaves no chance of favouritism to any worker. It is an analytical and quantitative method which determines the relative worth of a job on the basis of points alloted to each specific factor of a job. viii. Job evaluation is a term which is applied to a number of distinct but related administrative methods which rank or assess the relative value of different jobs or occupations. In the second stage, the evaluation committee rank-orders compensable factors in terms of their relative importance in each job. x. The assignment of points to the major factors – skill required, effort required, responsibility of the job, and job conditions – is the next step. Precise definition of degrees is of extreme importance to the success of the system. The market may also influence the migratory patterns of farm workers, for example- whether a worker stays in Mexico or travels to Texas, Florida or Oregon. Flexibility – There are no limits to the value that may be assigned to each factor. Introduction 5 1. It is also used for manual jobs in some industries in which the same worker is called upon to perform a variety of more or less standardised jobs for which standardised rates of remuneration can be fixed, as in engineering workshops, and in the electrical and shoe industries. Evaluate the job as it is defined now, not as it was or will be. In order that a job evaluation system works efficiently, it is necessary that all those who are concerned with job evaluation should be fully conversant with the techniques and implications of the different available systems. Every worker knows the job description and job specifications of each job. c. The system lends itself admirably to the establishing of classification. The important features of job evaluation may be summarized as follows: It tries to assess jobs, not people. Thus, it is clear that job-evaluation promotes industrial relations by resolving several personnel problems through a sound, rational and consistent wage and salary structure. Settlement of disputes – The most common factor causing industrial unrest and dispute is inequitable wage and salary. Job evaluation differs from job analysis – the latter is the process of gathering information about a job, whereas job evaluation goes a stage further by placing a relative value on a job so that a fair and suitable pay framework can be produced. Simplicity – The Plan does not require a translation from points to money. 7. At times wages are driven so high that corporations cannot compete in a broader international market. Managers should keep in mind that low-performance ratings lessen an employee's chances of promotion and growth within the company. (0 points allotted) regardless of the educational qualifications of the person who may actually apply. This total is compared with that of other jobs and relative worth of various jobs is determined. By job evaluation we mean using the information in job analysis to systematically determine the value of each job in relation to all jobs within the organisation. The important features of job evaluation may be summarized as follows: It tries to assess jobs, not people. c. Frankness – It avoids the criticism of claiming to be scientific. Point method of job evaluationis widely used in business organisations. However, it is important to have a valid system which results in a structure acceptable to both employee and employer. 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