Job evaluation & merit rating


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Job evaluation & merit rating

  1. 1. Job EvaluationDefined as a practical technique, designed to enable trained and experiencedstaff to judge the size/worth of one job relative to othersIt does not directly determine pay levels, but will establish the basis for aninternal ranking of jobsIt is essentially a comparative processEvaluation is done by assessing the job pressureFactors that contribute to this job pressure, e.g. physical strength required,knowledge required, are assessed and the result is a numerical estimate of thetotal job pressure
  2. 2. Job Evaluation- Principles• Job evaluation is concerned with jobs, not people. It is not the person that isbeingevaluated• All jobs in an organisation will be evaluated using an agreed job evaluationscheme• Job evaluators will need to gain a thorough understanding of the job• The job is assessed as if it were being carried out in a fully competent andacceptable manner
  3. 3. Job Evaluation- Principles Cont..• Job evaluation is based on judgement and is not scientific• The real test of the evaluation results is their acceptability to all participants• Job evaluation can aid organisational problem solving as it highlights duplicationof tasks and gaps between jobs and functions
  4. 4. Job Evaluation-Process• Establish Job Evaluation Objectives• Conduct Job Analysis – Results in Job Description & Job Specification• Job evaluation Programme• Wage Survey• Employee Classsification
  5. 5. Job AnalysisDefined as the process of studying and collection informationrelating to the operations and responsibilities of a specific jobThe main focus of Job analysis is on the Job, not on theindividual holding the jobProducts – Job Description & Job Specifications
  6. 6. Job DescriptionDefined as a statement that explains the jobInclude: Job Title Location Job Summary Machines, Tools & Equipment to be used Materials to be used Supervision needed Working conditions Hazards
  7. 7. Job SpecificationDefined as a statement that indicates human qualifications necessary to do the jobInclude: Educational Qualification Experience Training Physical Effort Physical Skills Communication Skills Emotional Characteristics Sensory demands such as sight, smell, hearing
  8. 8. Job Evaluation- Methods• Analytical MethodsPoint Ranking MethodFactor Comparison Method• Non-Analytical MethodsRanking MethodJob-grading Method
  9. 9. Job Evaluation- Methods• Analytical MethodsPoint Ranking Method In this method the number of grades is first decidedSelect key jobs. Identify the factors common to all the identified jobs such asskill, effort, responsibility, working conditions etc Fix a relative value for each key factor Divide each major factor into a number of sub factors. Each sub factor isdefined and expressed clearly in the order of importance, preferably along ascale Construct degrees for each subfactors Assign points to each degree A given job is placed in a particular grade depending on the number of points itscores
  10. 10. Job Evaluation- MethodsSub factorsSkill :Education, Training required, Breadth/Depth of experience required,Social skills required, Problem-solving skills, Degree of discretion/use ofjudgment, Creative thinkingResponsibility/Accountability: Breadth of responsibility, Specialisedresponsibility, Complexity of the work, Degree of freedom to act, Number andnature of subordinate staff, Extent of accountability for equipment/plant,Extent of accountability for product/materialsEffort: Mental demands of a job, Physical demands of a job, Degree ofpotential stress
  11. 11. Job Evaluation- MethodsDegrees of Subfactor - Educational Requirement expressed in the order ofimportanceDegree Define1. Able to carry out simple calculations; High School educated2. Does all the clerical operations; computer literate; Graduate3. Handles mail, develops contacts, takes initiative and does workindependently; Post Graduate
  12. 12. Job Evaluation- MethodsExampleAssign point values to degrees after fixing a relative value for each key factorPoint values for Degrees TotalFactor 1 2 3Skill (Education) 10 20 30 60Physical effort 8 16 24 48Mental effort 5 10 15 30Responsibility 7 14 21 42Working conditions 6 12 18 36Maximum total points of all factors depending on their importance to job = 216
  13. 13. Job Evaluation- Methods Factor Comparison Method Begins with the selection of factors which include mental requirements, skillrequirements, physical exertion, responsibility and job condition The factors are assumed constant for all the jobs Assign money value/ weightage to each factor depending upon the nature ofthe job Each factor is ranked individually for each jobs The worth of the job is obtained by adding together all the points
  14. 14. Job Evaluation- Methods• Non-Analytical MethodsRanking Method In this method the evaluation committee assesses the worth of each jobon the basis of its title or on its contents Each job is compared with others and its place is determined Normally Jobs are arranged according to the difficulty in performing them
  15. 15. Job Evaluation- MethodsJob-grading Method / Classification Method In this method the number of grades is first decided upon, and the factorscorresponding to these grades are then determined Facts about jobs are collected and are matched with the grades and jobs areassigned to each grades The essential requirement of job grading method is to frame gradedescriptions to cover differences in degree of skill, responsibility, and otherjob characteristics
  16. 16. Job Evaluation- MethodsJob-grading Method / Classification MethodBrief description of job classification in an office1.Class I - Executives: Further classification under this category may be Officemanager, Deputy office manager, Office Superintendent, Departmentalsupervisor, etc2.Class II - Skilled workers: Under this category may come the Purchaseassistant, Cashier, Receipts clerk, etc3.Class III - Semiskilled workers: Under this category may come Stenotypists,Machine-operators, Switchboard operators, etc4.Class IV - Semiskilled workers: This category comprises File clers, officeboys etc
  17. 17. Merit RatingDefined as a payment system in which the personal qualities of an employee arerated according to organisational requirements, and a pay increase or bonus is madeagainst the results of this ratingMerit rating has been in use since the 1950sUnlike new performance-related pay systems, which focus rewards on the output ofan employee, merit rating examines an employees input to the organisationFor example, their attendance, adaptability, or aptitude as well as the quality orquantity of work producedIn merit rating programs, these factors may be weighted to reflect their relativeimportance and the resultant points score determines whether the employee earns abonus or pay increase