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job evaluation methods-Ch-04.pptx
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- 2. Process of systematicallydetermining the relative worth of jobs to create a job structure for the organization. Evaluation is based on a combination of job content, skills required, value to the organization, organizational culture and the external market. (Note: focus is the job, not the person doing a job.) What Is Job Evaluation?
- 3. How job structuremay be formed? Internal alignment Job analysis Job evaluation Job structure Work relationships within organization
- 4. Page 4 of15 Job Evaluation Methods ◦ Factor comparison method ◦ Point method ◦ Ranking method ◦ Classification method
- 5. Job Evaluation Methods ComparisonAnalysis Entire Job Job Factors Job Against Scale Job Against Job Classification Point Method Ranking Factor Comparison
- 6. Page 6 of15 Method Input Process Output Factor Comparison Method A set of compensable factors; wages for a group of benchmark jobs Rank benchmark jobs on each factor; Allocate benchmark wages across factors; Compare factor and wage allocation ranks; Construct the job comparison scale; Apply the scale Non- benchmarked Job positioned in the job comparison scale Point Method Compensation factors Establish factor scales and factor weights; Calculate the weighted sum Job points Ranking Method Predetermined value or contribution Order the jobs from highest to lowest according to the predetermined value or contribution Job ranking Classification Method Jobs Create a set of job categories; Sort jobs into categories Jobs sorted into categories
- 7. Job Evaluation Methods(1 of 4) Job Ranking ◦ Raters examine job description and arrange jobs according to value to company. ◦ Importance ◦ How tough it is Or ◦ Ordering the job descriptions from highest to lowest based on a predetermined definition of value or contribution.
- 8. How it works Data collection from job analysis Selection of raters Ranking of jobs Decide the pay structure 8
- 9. Page 9 of15 Jobs Rank Number Title Most valued 1 Shear operator Master welder 2 Electrician Electrician 3 Punch press operator 4 Master welder 5 Grinder 6 Receiving clerk Receiving clerk Least valued Example of Ranking Method
- 10. Ranking of AcademicInstitution Jobs Ranking order Pay Scale Professors / Registrar / Librarian BDT 56,500 to 74,400 Readers / Deputy Registrar / Deputy Librarian BDT 43,000 to 69,850 Lecturer/Asst. Registrar /Asst. Librarian BDT 22,000 to 53,060 10
- 11. Ranking Method Advantages Simpleto understand and practice Fast Most commonly used Best suited for small organization Disadvantages Comparisons can be problematic depending on number and complexity of jobs May appear illogical/ illogical to employees Can be legally challenged Unreliable
- 12. Job Evaluation Methods(2 of 4) Job Classification ◦ Classes or grades are defined to describe a group of jobs. ◦ Create a set of job categories ◦ Sort jobs into job categories ◦ For example- 1st class: Grade-1 to Grade-9 2nd class: Grade-10 3rd class: Grade-11 to Grade-17 4th class: Grade-18 to Grade-20 12
- 13. The following fivesteps are generally involved in the process of job classification. 1. Prepare job description for basic information about the job 2. Prepare job grading description for identification of different levels of jobs. Each grade level must be distinct from the grade level adjacent to it. After establishing the grade level, each job is assigned to an appropriate grade level on the basis of the complexity of duties, nonsupervisory responsibilities and supervisory responsibilities 13
- 14. 3. Select gradesand key jobs about 10 to 20 jobs, which include all the major departments and functions and cover all the grades 4. Grade the key jobs. Key jobs are assigned to an appropriate grade level and their relationship to each other studied. 5. Classify all the jobs on the basis of grade definitions. All the jobs in the same grade receive the same wage or range of rate. For instance, managers may be put into one class; clerks in another; junior officers in a higher class; and the tope executives in the top class. 14
- 15. Grades Job Classification Head Clerk Thosehandling or capable of taking a major decision on the work they do; complicated work requiring much independent thinking; able to consider details outside the control. Senior Clerk Technically varied work, occasionally independent thinking and action due to difficult work which require exceptional clerical ability and extensive knowledge of principles and fundamentals of the business of is department. Clerical Grade -III Pure routine concentration, speed and accuracy, works under supervision; may be held responsible for supervision Clerical Grade -II No supervision by others, especially skilled for the job by having an exhaustive knowledge of the details. Clerical Grade- I Must have the characteristic of a second class clerk and assume more responsibilities 15
- 16. Classification Method Advantages Usesjob families/groups instead of individual jobs May produce same results as Point Method, but is less costly Disadvantages Not useful when jobs are very different from each other May be confusing to employees about why jobs are included in a class
- 17. Job Evaluation Methods(3 of 4) Factor Comparison ◦ Raters make decisions on separate aspects of the job; try and estimate dollar worth
- 18. Page 18 of15 Factor Comparison Method (steps) 1. Conduct job analysis 2. Select Benchmark ( key) jobs 3. Rank benchmark jobs on each factor 4. Allocate benchmark wages across factors 5. Compare factor and wage allocation ranks 6. Construct the job comparison scale 7. Apply the scale
- 19. Page 19 of15 Example of Factor Comparison Method
- 20. Page 20 of15 Example of Factor Comparison Method
- 21. Page 21 of15 Example of Factor Comparison Method
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- 23. Factor Comparison Method Advantages Customized to the organization Relatively easy to use once it’s set up Results in ranking of jobs and a specific dollar value for each job, based on allocating part of the job’s total wage to each factor Disadvantages Using dollar values may bias evaluators by assigning more money to a factor than a job is worth Hard to set up Not easily explained to employees Every time wage rates change, the schedule becomes obsolete
- 24. Job Evaluation Methods(4 of 4) Point-factor Method ◦ Numerical values are assigned to specific job components; sum of values provides quantitative assessment of job’s worth
- 25. Page 25 of15 Point Method (Steps) 1. Conduct job analysis 2. Choose compensation factors 3. Establish factor degree 4. Establish factor weights 5. Evaluate jobs (job points)
- 26. Page 26 of15 Points = 0.4*2+0.3*3+0.2*5+0.1*2 = 2.9 Weight Factors Degrees (1-5) 0.4 Skill Required 2 0.3 Effort Required 3 0.2 Responsibility 5 0.1 Working Condition 2 Example of Point Method
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- 28. Point Method Advantages Highlystable over time Perceived as valid by users and employees Likely to be reliable among committee that assesses the jobs Provides good data to prepare a response to an appeal Disadvantages Time, money, and effort required to set up Relies heavily on key (benchmark) jobs, so if key jobs and correct pay rates don’t exist, the point method may not be valid
- 29. Comparison of JobEvaluation Methods Advantage Disadvantage Ranking Fast, simple, easy to explain. Cumbersome as number of jobs increases. Basis for comparisons is not called out. Classificati on Can group a wide range of work together in one system. Descriptions may leave too much room for manipulation. Point Compensable factors call out basis for comparisons. Compensable factors communicate what is valued. Can become bureaucratic and rule- bound.
- 30. Thanks a lot for attendingthis session 30