Job evaluation
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This document discusses job evaluation, which is defined as a systematic process for determining the relative worth of jobs within an organization in order to establish pay structures. Job evaluation is important for maintaining accurate job descriptions, setting fair job rankings and pay scales, and reducing grievances. There are analytical methods that use quantitative factors and rankings, like point-ranking and factor comparison, and non-analytical methods like ranking, paired comparison, and job grading that rely more on subjective evaluations. To make job evaluation effective, organizations should involve employees, train evaluators well, get management support, clearly define job factors, focus on jobs not individuals, and consider union views.
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Job evaluation
- 1. Job Evaluation Basant Lamsal M. Phil. Edu. Leadership 2016
- 2. Definitions… “… a systematic process for defining the relative worth or size of jobs within an organization in order to establish internal relativities and provide basis for designing an equitable grade and pay structure, grading jobs in the structure and managing relativities.” (Armstrong et al., 2005, p. 4) … is an attempt to determine and compare the demands which the normal performance of a particular job makes on normal workers, without taking in to account the individual abilities or performance of the workers concerned.” (ILO Report, 1961, as cited in Durai, 2010)
- 3. Why…? to maintain accurate job descriptions or role profiles and determine qualifications and skills required for them to set a fair and consistent ranking (job structure) and pricing (pay structure) of jobs for wage and salary negotiations helps in selection process helps attract and retain best talents eliminate grievances and fosters cordial relationship among employees and managers
- 4. Basic Principles rate jobs and not the job holder explain job rating methods to the job holders involve senior managers in job evaluation process during evaluation focus on job description rating
- 5. How…? form job evaluation team identify jobs to evaluate gather relevant information about the jobs determine job ranking select benchmark jobs conduct wage and salary surveys periodic reviews and feedback
- 6. Methods… Analytical Methods comprises quantitative methods some factors are defined for evaluation their presence or absence in the jobs is checked jobs are looked upon in parts part of jobs compared and their worth determined Non- Analytical mostly subjective evaluation Evaluators’ views and judgment vital Jobs are evaluated as whole
- 7. Analytical Point-Ranking Method factors (i.e.- effort, skill, responsibility and job conditions) determined factors assigned ranges of points based on significance jobs evaluated against the factors and points awarded jobs with more valued factors get more points and vice versa
- 9. Factor Comparison Method another quantitative method taken as improvement on the ranking method common factors for all jobs identified weightage assigned based on degree of importance each job compared with each other for each factor and ranked points secured by each job for each factor totaled Analytical Contd.
- 10. Factor Comparison Method Sample
- 11. Merits/Demerits of Analytical Methods Merits more objective and accurate more convincing to employees for accepting pay scale due attention given to all compensable factors Demerits complex and time consuming method difficult to explain to average worker not ideal for jobs needing non-quantifiable traits
- 12. Non- Analytical Ranking Method based on job analysis and job description statement one most critical factor considered for ranking jobs listed in vertical order of most to least important simple, least expensive, less time consuming and flexible method overemphasis on one factor overlooking others Subjective evaluation inefficient to indicate extent of difference between two successive jobs
- 13. Non- Analytical Contd. Paired-Comparison Method also based on job description statement each job compared with every other in organization reward points are given based on importance simple and easy method equal attention for each job in multiple comparisons subjective comparison overlooking unique job characteristics Inconvenient to use for a large number of jobs
- 15. Non- Analytical Contd. Job-Grading Method based on class description statement jobs with common class characteristics are grouped more like job classification jobs in one group eligible for equal pay or grade simple, cheap but more practical than ranking simplifies wage administration preparing class description time consuming and difficult subjective evaluation may not convince all employees
- 16. How to Make J.E. Effective taking employees in confidence training evaluators well ensuring support from top management clearly defined job factors focusing on job not job holders using reliable and accurate source documents taking views of trade unions in consideration
- 17. References Armstrong, M. (2010). A handbook of human resource management practice (10th ed.). London: Cambridge University Press. Armstrong, M., Cummins, A., Hastings, S. & Wood, W. (2005). Job evaluation: A guide to achieving equal pay. London: Kogan Page. Banfield, P. & Kay, R. (2009). Introduction to human resource management. New York: Oxford University Press. Durai, P. (2010). Human resource management. Delhi: Pearson. Saiyadain, M. S. (2011). Human resources management (4thed.). New Delhi: Tata McGraw-Hill.