Amity Business School
JOB EVALUATION
Introduction
Amity Business School
Job evaluation is a systematic way
of determining the value/worth of a job in relation to other jobs in an organisation. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. .
OR..
A
Amity Business School
systematic comparison done in order to determine the worth of one job relative to another.
Purpose
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The purpose of job evaluation is to produce a defensive ranking of jobs on which a rational and acceptable pay structure can be built.
Features of job evaluation
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It tries to assess jobs, not people. The standard of job evaluation are relative, not absolute. The basis information on which job evaluation are made is obtained from job analysis. Job evaluations are carried out by groups, not by individuals. Some degree of subjectivity is always present in job evaluation.
Essentials for the success of job evaluation programme.
Operating manager should be convinced about the techniques and program of job evaluation. All the employee should be provided with complete information about job evaluation techniques and programme. All groups and grades of employees should be covered by the job evaluation programme.
Amity Business School
Amity Business School
The programme of- techniques selected for- job evaluation should be easy to understand by all the employees.
Contd.
Trade unions acceptance and support to the programme should be obtained.
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Content
Job Analysis
Job Description
Job Pricing
Job Evaluation
Job Specification
Job Classification
Job Grading
General Procedure
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Select the group of jobs
Job Analysis
Device an evaluation plan Establish a committee to rate Group the job
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Contd.
Convert job grade to monetary value
Establish a grievance procedure
Ranking Method
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Jobs are arranged from highest to lowest , in order of their value or merit to the organization. Jobs are examined as a whole rather than on the basis of important factors in job. Jobs are usually ranked in each department and then the department rankings are combined to develop an organizational ranking.
Amity Business School
The following table is a hypothetical illustration of ranking jobs
Rank 1.Accountant 2.Accounts Clerk 3.Purchase Assistant 4.Machine Operator 5.Typist 6.Office Boy
Monthly Salaries Rs 3000 Rs 1800 Rs 1700 Rs 1400 Rs 900 Rs 600
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Amity Business School
Advantages: It is simplest of al procedure. It is les time consuming. Disadvantages: Rankings are difficult to develop in large and complex organization. This kind of ranking is highly subjective in nature.
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Ranking Method
Amity Business School
Jobs are arranged from highest to lowest , in order of their value or merit to the organization. Jobs are examined as a whole rather than on the basis of important factors in job. Jobs are usually ranked in each department and then the department rankings are combined to develop an organizational ranking.
Amity Business School
The following table is a hypothetical illustration of ranking jobs
Rank 1.Accountant 2.Accounts Clerk 3.Purchase Assistant 4.Machine Operator 5.Typist 6.Office Boy
Monthly Salaries Rs 3000 Rs 1800 Rs 1700 Rs 1400 Rs 900 Rs 600
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Amity Business School
Advantages: It is simplest of al procedure. It is les time consuming. Disadvantages: Rankings are difficult to develop in large and complex organization. This kind of ranking is highly subjective in nature.
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POINT METHOD OF JOB EVALUATION
Steps
Select jobs to be evaluated Input job information Writing job descriptions Selecting appropriate plan for jobs to be evaluated Define factors Define factor degrees Determine total points in plan Write job evaluation manual
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TABLES
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JOB CLASSIFICATION
Amity Business School
According to this method, a predetermined number of job groups or job classes are established and jobs are assigned to these classifications. This method places groups of jobs into job classes or job grades. Separate classes may include office, clerical, managerial, personnel, etc.
Class I - Executives: Further classification under this Amity Business School category may be Office manager, Deputy office manager, Office superintendent, Departmental supervisor, etc.
Class II - Skilled workers: Under this category may come the Purchasing assistant, Cashier, Receipts clerk, etc.
Class III - Semiskilled workers: Under this category may come Stenotypists, Machine-operators, Switchboard operators, etc. Class IV - Unskilled workers: This category comprises Daftaris, File clerks, Office boys, etc.
PROS AND CONS OF THE METHOD PROs CONs
The job classification method is less subjective when compared to the earlier ranking method. The system is very easy to understand and acceptable to almost all employees without hesitation. One strong point in favor of the method is that it takes into account all the factors that a job comprises. This system can be effectively used for a variety of jobs.
Amity Business School
Even when the requirements of different jobs differ, they may be combined into a single category, depending on the status a job carries. It is difficult to write all-inclusive descriptions of a grade. The method oversimplifies sharp differences between different jobs and different grades. When individual job descriptions and grade descriptions do not match well, the evaluators have the tendency to classify the job using their subjective judgments.
Comparison of Job Evaluation MethodsSchool Amity Business
Advantage Ranking Fast, simple, easy to explain. Disadvantage Cumbersome as number of jobs increases. Basis for comparisons is not called out. Descriptions may leave too much room for manipulation.
Classification
Can group a wide range of work together in one system.
Point
Compensable factors call Can become out basis for bureaucratic and rulecomparisons. bound. Compensable factors communicate what is valued.
