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  • 1. 14-1 EXCE B L OOKS Chapter 14 JOB EVALUATION
  • 2. 14-2 ANNOTATED OUTLINE INTRODUCTION The purpose of job evaluation is to find the relative worth of a job and determine what a fair wage for such a job should be. Job evaluation, it should be noted, 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. Job evaluation is different from performance appraisal too. Performance appraisal is the systematic description of an employees job related strengths and weaknesses.Job Evaluation
  • 3. 14-3 Features of job evaluation  It tries to assess jobs  The standards of job evaluation are relative, not absolute  It gets the basic information through job analysis  It is generally carried out by groups, not individuals  Some amount of subjectivity is always present in job evaluation  It does not fix pay scales but offers a sound basis for determining a rational wage structureJob Evaluation
  • 4. 14-4 The Process Of Job Evaluation The process of job evaluation involves the following steps  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 periodicallyJob Evaluation
  • 5. 14-5 Essentials For The Success of A Job Evaluation Programme Guidelines for conducting the job evaluation programme  Rate the job and not the person on the job  Collect all the relevant facts accurately  List the distinguishing features of a job and its relationship with other jobs  Study the jobs independently and objectively and then discuss views openly and thoroughly  Cover all groups and grades of employees  Make it easy to understand  Gain acceptance and support from employees, unions etc.Job Evaluation
  • 6. 14-6 Job Evaluation Methods A. Ranking method: The job ranking method arranges jobs in numerical order on the basis of the importance of the jobs duties and responsibilities to the organization. This method, though easy to understand, is highly subjective in nature. B. Classification method: The job classification method slots jobs into preestablished grades. Higher-rated grades demand more responsibilities, tougher working conditions and varied job duties. This method is easy to understand and takes care of all relevant factors affecting the performance of a job. However, it is not easy to write all inclusive descriptions of a grade. Further, the method oversimplifies sharp differences between different jobs and different grades. C. Factor comparison method: In this method, jobs are ranked according to a series of factors such as mental effort, physical effort, skill needed, responsibility, supervisory responsibility, working conditions, etc. pay will be assigned in this method by comparing the weights of the factors required for each job.Job Evaluation
  • 7. 14-7 An example of factor comparison method F a c to rs D a ily P h y s ic a l F a c to rs S k ill R e s p o n s ib ility W o rk in g K ey W age e ffo rt m e n tal c o n d itio n s Job R a te e ffo rt E l e c t r ic ia n 60 11 (3 ) 1 4 (1 ) 1 5 (1 ) 1 2 (1 ) 8 (2 ) F itt e r 50 1 4 (1 ) 1 0 (2 ) 9 (2 ) 8 (2) 9 (1 ) W e ld e r 40 1 2 (2 ) 7 (3 ) 8 (3 ) 7 (3 ) 6 (3 ) C le a n e r 30 9 (4 ) 6 (4 ) 4 (5 ) 6 (4 ) 5 (4 ) L a b o u re r 25 8 (5 ) 4 (5 ) 6 (4 ) 3 (5 ) 4 (5 ) Suppose the job of a painter is found to be similar to electrician in skill (15), fitter in mental effort (10), welder in physical effort (12), cleaner in responsibility (6) and labourer in working conditions (4) then the wage for the job would be 47.Job Evaluation
  • 8. 14-8 Job Evaluation Methods D. Point method: The point system of job evaluation uses a point scheme based on the compensable job factors of skill, effort, responsibility and working conditions. The more compensable factors a job possesses, the more points are assigned to it. Jobs with higher accumulated points are considered more valuable to the organization.  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.Job Evaluation
  • 9. 14-9 Point values to factors along a scale P o in t v a lu e s f o r D e g r e e s T o ta l F a c to r 1 2 3 4 5 S k i ll 10 20 30 40 50 150 P h y s ic a l e ffo rt 8 16 24 32 40 120 M e n ta l e ffo rt 5 10 15 20 25 75 R e s p o n s ib ilit y 7 14 21 28 35 105 W o r k i n g c o n d it io n s 6 12 18 24 30 90 M a x im u m t o t a l p o in t s o f a ll f a c t o r s d e p e n d in g o n t h e ir im p o r t a n c e t o jo b = 540 ( B a n k O ffic e r)Job Evaluation
  • 10. 14-10 Conversion of job grade points into money value P o in t r a n g e D a ily W a g e r a t e ( R s ) J o b g r a d e s o f k e y b a n k o ff ic ia ls 5 0 0 -6 0 0 3 0 0 -4 0 0 1 O ffic e r 6 0 0 -7 0 0 4 0 0 -5 0 0 2 A c c o u n ta n t 7 0 0 -8 0 0 5 0 0 -6 0 0 3 M a n a g e r I S c a le 8 0 0 -9 0 0 6 0 0 -7 0 0 4 M a n a g e r II S c a le 9 0 0 -1 0 0 0 7 0 0 -8 0 0 5 M a n a g e r I II S c a leJob Evaluation
  • 11. 14-11 A Comparative Picture of Major Job Evaluation Methods Major job evaluation methods M e th o d W h a t fa c e t o f H o w is jo b Typ e of M a jo r M a jo r jo b is e v a l u a t e d ? e v a lu a t e d ? m e th o d a d v a n ta g e s ( s ) d is a d v a n t a g e ( s ) R a n k in g W h o le jo b J o b s a r e s u b je c t i v e ly N o n - q u a n t it a t iv e R e l a t i v e ly q u ic k E n t ir e ly s u b je c tiv e ( c o m p e n s a b le o r d e r e d a c c o r d in g a n d in e x p e n s iv e fa c to r s a re t o r e la t i v e w o r t h im p lic it) C la s s if ic a t io n W h o l e jo b C o m p a re jo b to N o n - q u a n tita tiv e R e a d i ly a v a il a b l e C u m b e rs o m e d e s c r ip t io n s o f jo b a n d in e x p e n s iv e s y s te m g ra d e s F a c to r C o m p e n s a b le C o m p a r e jo b to k e y Q u a n t i t a t iv e E a s y to u s e H a r d to c o n s tru c t; c o m p a r is o n fa c to r s o f jo b jo b s o n s c a le s o f in a c c u r a te o v e r tim e c o m p e n s a b le f a c t o r s P o in t m e t h o d C o m p e n s a b le C o m p a r e jo b t o Q u a n t i t a t iv e A c c u r a te a n d M a y b e c o s t ly fa c to r s o f jo b s ta n d a r d is e d s t a b le o v e r t im e d e s c r ip t io n s o f d e g r e e s o f u n iv e rs a l c o m p e n s a b le f a c t o r s a n d s u b fa c to rsJob Evaluation