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Job evaluation

Job evaluation






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    Job evaluation Job evaluation Document Transcript

    • Job EvaluationJob evaluation is a practical technique, designed to enable trained and experienced staffto judge the size of one job relative to others. It does not directly determine pay levels,but will establish the basis for an internal ranking of jobs.An approach designed to enable a job to be compared to all other jobs in an Institution ina systematic and transparent way in order to create a fair rank order of jobs, usually as thebasis for a grading and pay structure, to ensure equal pay for work of equal valueSome Principles of Job Evaluation  Clearly defined and identifiable jobs must exist. These jobs will be accurately described in an agreed job description.  All jobs in an organisation will be evaluated using an agreed job evaluation scheme.  Job evaluators will need to gain a thorough understanding of the job  Job evaluation is concerned with jobs, not people. It is not the person that is being evaluated.  The job is assessed as if it were being carried out in a fully competent and acceptable manner.  Job evaluation is based on judgement and is not scientific. However if applied correctly it can enable objective judgements to be made.  It is possible to make a judgement about a jobs contribution relative to other jobs in an organisation.  The real test of the evaluation results is their acceptability to all participants.  Job evaluation can aid organisational problem solving as it highlights duplication of tasks and gaps between jobs and functions.Job Evaluation - The FutureAs organisations constantly evolve and new organisations emerge there will bechallenges to existing principles of job evaluation. Whether existing job evaluationtechniques and accompanying schemes remain relevant in a faster moving and constantlychanging world, where new jobs and roles are invented on a regular basis, remains to beseen. The formal points systems, used by so many organisations is often already seen tobe inflexible. Sticking rigidly to an existing scheme may impose barriers to change.Constantly updating and writing new jobs together with the time that has to be spentadministering the job evaluation schemes may become too cumbersome and timeconsuming for the benefits that are derived.Does this mean that we will see existing schemes abandoned or left to fall into disrepute ?Will providers of job evaluation schemes examine and, where necessary, modify them toensure they are up to date and relevant ? Simply sticking rigidly to what is already inplace may not be enough to ensure their survival.Job Evaluation - MoreJob evaluation is essentially one part of a tripartite subject, which is collectively referredto as Job Study (other names exist). The three parts are Job Analysis; Job Evaluation - the
    • information collected is evaluated using a numerical scale or ranking and ratingmethodology; and Merit Rating - BSI definition (32542).BSI definition - 32529 – “Any method ranking the relative worth of jobs which can thenbe used as a basis for a remuneration system”It is essentially a comparative process.Job evaluation evaluates selected job factors, which are regarded as important for theeffective performance of the job, according to one of several alternative methods. Theresulting numerical gradings can form the basis of an equitable structure of job gradings.The job grades may or may not be used for status or payment purposes.Explanation:Job Evaluation is concerned with measuring the demands the job places on its holder.Most factors that contribute to this job pressure, e.g. physical strength required,knowledge of mathematics required, are assessed and the result is a numerical estimate ofthe total job pressure. When evaluations are carried out on all hourly paid personnel thetechnique’s uses include establishing relative wage rates for different tasks. It is possibleto use it for all grades of personnel, even senior management.Illustration:The Time Span of Discretion is an interesting and unusual method of job evaluationdeveloped by Elliot Jaques for the Glacier Metal Company. In this method the jobpressure is assessed according to the length of time over which managers decisionscommit the company. A machine operative, for example, is at any moment committingthe company only for the period needed to make one product unit or component. Themanager who buys the machine is committing the company for ten years.Job evaluation is the process of determining the appropriate Career Group and Role towhich a position is assigned. The job evaluation process has four steps:Selecting the Occupational Family: The first step is to determine the appropriateOccupational Family by reviewing the vocational characteristics (the nature and type ofwork performed) outlined in the Employee Work Profile.Comparing and Selecting the Career Group: The second step is to compare the Conceptof Work capsule that describes the array of work performed in the various Career GroupDescriptions to the Employee Work Profile in order to determine the appropriate CareerGroup.Comparing and Selecting a Role within a Career Group: The third step is to evaluate andcompare the Work Description (position objective; purpose of position; knowledge,skills, abilities and competencies; education, experience, certification and licensure; coreresponsibilities and special assignments) outlined in the Employee Work Profile to thevarious Role Descriptions and the factor matrices to determine the appropriate Role.
    • Comparing to other positions within a Role to ensure consistency: The final step is toconfirm the assignment of the position to the Role by checking to make sure that it isconsistent with other positions assigned to the same RoleJob Evaluation: Methods: The two most common methods of job evaluation that havebeen used are first, whole job ranking, where jobs are taken as a whole and rankedagainst each other. The second method is one of awarding points for various aspects ofthe job. In the points system various aspects or parts of the job such as education andexperience required to perform the job are assessed and a points value awarded - thehigher the educational requirements of the job the higher the points scored. The most wellknown points scheme was introduced by Hay management consultants in 1951. Thisscheme evaluates job responsibilities in the light of three major factors - know how,problem solving and accountabilityRankingRanking This method is one of the simplest to administer. Jobs are compared to eachother based on the overall worth of the job to the organization. The worth of a job isusually based on judgements of skill, effort (physical and mental), responsibility(supervisory and fiscal), and working conditions.AdvantagesSimple.Very effective when there are relatively few jobs to be evaluated (less than 30). DisadvantagesDifficult to administer as the number of jobs increases.Rank judgements are subjective.Since there is no standard used for comparison, new jobs would have to be comparedwith the existing jobs to determine its appropriate rank. In essence, the ranking processwould have to be repeated each time a new job is added to the organization.--------------------------------------------------------------------------------Ranking MethodsOrdering Simply place job titles on 3x5 inch index cards then order the titles by relativeimportance to the organization.WeightingPaired ComparisonJob Evaluation: Methods: ClassificationClassification Jobs are classified into an existing grade/category structure or hierarchy.Each level in the grade/category structure has a description and associated job titles. Each
    • job is assigned to the grade/category providing the closest match to the job. Theclassification of a position is decided by comparing the whole job with the appropriatejob grading standard. To ensure equity in job grading and wage rates, a common set ofjob grading standards and instructions are used. Because of differences in duties, skillsand knowledge, and other aspects of trades and labor jobs, job grading standards aredeveloped mainly along occupational lines.The standards do not attempt to describe every work assignment of each position in theoccupation covered. The standards identify and describe those key characteristics ofoccupations which are significant for distinguishing different levels of work. They definethese key characteristics in such a way as to provide a basis for assigning the appropriategrade level to all positions in the occupation to which the standards apply.AdvantagesSimple.The grade/category structure exists independent of the jobs. Therefore, new jobs can beclassified more easily than the Ranking Method. DisadvantagesClassification judgments are subjective.The standard used for comparison (the grade/category structure) may have built in biasesthat would affect certain groups of employees (females or minorities).Some jobs may appear to fit within more than one grade/category.Job Evaluation: Methods: Factor ComparisonFactor Comparison A set of compensable factors are identified as determining the worthof jobs. Typically the number of compensable factors is small (4 or 5). Examples ofcompensable factors are:SkillResponsibilitiesEffortWorking ConditionsNext, benchmark jobs are identified. Benchmark jobs should be selected as having certaincharacteristics.equitable pay (not overpaid or underpaid)range of the factors (for each factor, some jobs would be at the low end of the factorwhile others would be at the high end of the factor).The jobs are then priced and the total pay for each job is divided into pay for each factor.See example matrix below:Job Evaluation: Factor Comparison The hourly rate is divided into pay for each of the following factors:Job Hourly Rate . Pay for Skill Pay for Effort Pay for Responsibility Pay for WorkingConditions
    • This process establishes the rate of pay for each factor for each benchmark job. Slightadjustments may need o be made to the matrix to ensure equitable dollar weighting of thefactors.The other jobs in the organization are then compared with the benchmark jobs and ratesof pay for each factor are summed to determine the rates of pay for each of the other jobs.AdvantagesThe value of the job is expressed in monetary terms.Can be applied to a wide range of jobs.Can be applied to newly created jobs.DisadvantagesThe pay for each factor is based on judgements that are subjective.The standard used for determining the pay for each factor may have build in biases thatwould affect certain groups of employees (females or minorities).Job Evaluation: Methods: Point MethodPoint Method A set of compensable factors are identified as determining the worth ofjobs. Typically the compensable factors include the major categories of:SkillResponsibilitiesEffortWorking ConditionsThese factors can then be further defined.SkillExperienceEducationAbilityResponsibilitiesFiscalSupervisoryEffortMentalPhysicalWorking ConditionsLocationHazardsExtremes in EnvironmentThe point method is an extension of the factor comparison method.Each factor is then divided into levels or degrees which are then assigned points. Eachjob is rated using the job evaluation instrument. The points for each factor are summed toform a total point score for the job.Jobs are then grouped by total point score and assigned to wage/salary grades so thatsimilarly rated jobs would be placed in the same wage/salary grade.
    • AdvantagesThe value of the job is expressed in monetary terms.Can be applied to a wide range of jobs.Can be applied to newly created jobs.DisadvantagesThe pay for each factor is based on judgments that are subjective.The standard used for determining the pay for each factor may have built-in biases thatwould affect certain groups of employees (females or minorities).Performance appraisal, also known as employee appraisal, is a method by which theperformance of an employee is evaluated (generally in terms of quality, quantity, cost andtime). The roots of performance appraisal can be found in Frederick Winslow Taylorstime and motion study[citation needed]. Performance appraisal is a part of careerdevelopment.Performance appraisals are a regular review of employee performance withinorganizations.Generally, the aims of a scheme are:Give feedback on performance to employees.Identify employee training needs.Document criteria used to allocate organizational rewards.Form a basis for personnel decisions-salary (merit) increases,promotions, disciplinaryactions, etc.Provide the opportunity for organizational diagnosis and development.Facilitate communication between employee and administrator.Validate selection techniques and human resource policies to meet federal EqualEmployment Opportunity requirements.A common approach to assessing performance is to use a numerical or scalar ratingsystem whereby managers are asked to score an individual against a number ofobjectives/attributes. Employees are also allowed the opportunity to assess the person(manager) at the same time. This is known as 360° appraisal.The most popular methods that are being used as performance appraisal process are:Management by objectives (MBO)360 degree appraisalThus performance appraisal is important for effective human resource management.Performance appraisal is a process of evaluating employee performance in order to guide
    • and develop the employees potential. In many extension organizations which aregovernment departments, the performance appraisal is nothing more than a confidentialjudgement of work done and a character report used to facilitate disciplinary action orpromotion. The employees do not get feedback about their performance. Extensionorganizations need to have an open appraisal system to provide feedback andopportunities for open discussion with employees on their performance, because theyhave immense potential to grow and develop. This system can create a healthy workingclimate and employee motivation.The performance appraisal which aims at facilitating employee development has thefollowing major purposes: (1) to provide feedback and guidance, (2) to set performancegoals, (3) to identify training needs, and (4) to provide inputs for management of payadministration, rewards, and promotion. The steps involved in effective performanceappraisal are (1) identification of key performance areas and setting yearly objectivesunder each KPA, (2) identification of critical attributes for effective performance, (3)periodic review of performance, (4) discussion of performance with employees, and (5)identification of training and developmental needs (Pareek & Rao, 1992).Potential AppraisalThe potential appraisal is a future-oriented appraisal by which the potential of anemployee to occupy higher positions and to assume higher responsibilities is evaluated.The potential appraisal can help the extension staff to know their strengths andweaknesses and can motivate them to further develop their skills. Thus the potentialappraisal helps in planning overall career development of employees. Some of thetechniques used for the appraisal are self-appraisals, peer rating, the management byobjectives (MBO) approach, psychological test and simulated work exercises, caseanalyses, and leadership exercises.