Job Evaluation
1. JOB EVALUATION Presented by- Sandeep Singh
2. Meaning of Job EvaluationJob evaluation : Systematic way of determining the value or worth of a job in relation to other jobs in an organization.It tries to make a systematic comparison b/w jobs to assess their relative worth for the purpose of establishing a rational pay structure.
3. Features of Job Evaluation Tries to assess jobs, not people. Standards of J/E are relative, not absolute. Basis of Job Evaluation is job analysis. Carried on by groups not individuals. Degree of Subjectivity is always present.
4. Job Evaluation Vs Performance AppraisalPoint Job Evaluation Job Appraisal1.Meaning Finding the relative worth Finding the worth of a of a job. jobholder.2.Aim Determine wage rates of Determining incentives different jobs. and rewards for superior performance.3.Shows How much a job is worth How well an individual is doing an assigned work.
5. Job Evaluation Vs Job Analysis Job Analysis : A systematic way of gathering information about a job. Job Evaluation begins with job analysis and ends at the point of determination of worth of a job.
6. Process of Job Evaluation Gaining Acceptance Creating Job evaluation Committee Finding the jobs to be evaluated Analysing and preparing job description Selecting the method of evaluation Classifying jobs Installing the programme Reviewing periodically
7. Conducting Job Evaluation: Guidelines Rate the job-not the person or employee on the job. Strive to collect all the facts accurately. Look especially for distinguishing features of jobs and relationship to other jobs. Job evaluation must be conducted systematically, based on factual and accurate information. The result must be fair, rational and unbiased to the individuals being affected.
8. Benefits of Job Evaluation Link pay with the requirements of the job. Systematic procedure for determination the relative worth of jobs. Outcome is an equitable wage structure. Employees and unions are also an active part of the Job evaluation process. Helps in evaluation of new jobs. Points out possibilities of more appropriate use of the plant’s labour force.
9. 2.Classification1.Ranking Method Method Methods of Job Evaluation 3. Factor 4.Point Methodcomparison Method
10. 1. Ranking Method As per this method, jobs are arranged from highest to lowest, in order of their values or merit to the organisation. Jobs can also be arranged according to the relative difficulty in performing them. The job at the top has the highest value and job at the lowest has the lowest value. Jobs are arranged in each department and then department ranking are combined to develop an organisation ranking. Cont…..
11. e.g.- Ranking of jobs in any department can be done as follows- Rank Monthly Salaries(in INR) 1. Accountant 3000 2. Accounts Clerk 1800 3. Purchase 1700 Assistant 4. Machine- 1400 operator 5. Typist 900 6. Office boy 600The variation in payment of salaries depends upon the nature of the job performed by the employees. Also the ranking shows the variation in type of job being performed. Cont….
12. Merits of Ranking Method Simple to understand and practice. Best suited for small organisation. Demerits of Ranking Method- Ranks are highly subjective in nature. Rankings are difficult to develop in large, complex organisation. May offend employees.
13. 2. Classification MethodAs per this method, a predetermined group ofjobs are assigned to their classification.Classification is- Class Rank Employees Class1 Executives Office manager, Deputy office manager, Office superintendent etc. Class2 Skilled Workers Purchasing Assistant, Cashier, Receipts clerk etc. Class3 Semiskilled Stenotypists, Machine-operators workers etc. Class4 Less skilled Daftaris, File clerks, Office boysThe variation in class workers ofetc. depends upon the jobsnature of the job performed by the employees.Also the class shows the variation in type of jobbeing performed. Cont…
14. Merits of Classification method- Less subjective as compared to ranking method. Very easy to understand Acceptable to all employees without hesitation. Takes into account all the factors that a job comprises. Demerits of Classification Method- Requirement of jobs is not taken into account. Difficult to write all-inclusive descriptions of a grade. Oversimplifies sharp differences b/w different jobs and grades. Due to mismatch of jobs and grades, the evaluator have the tendency to classify the job using their subjective judgment.
15. 3. Factor comparison method Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors. These factors include mental effort, physical effort, skill needed, responsibility, working conditions etc. Pay will be assigned in this method by comparing the weights of factors required for each job Wages are assigned to the job in comparison to its ranking on each job factor. Cont….
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