job evaluation methods ppt

Once the worth of a job in terms of total points is expressed, the points are converted into money values keeping in view the hourly/daily wage rates. It involves identifying several compensable factors in a job and giving a numerical score on each of these factors. The “point method” of job evaluation generally involves the following steps: The first step in the method is to select the type of jobs to be evaluated. Methods of Job Evaluation – Top 5 Methods: Ranking, Paired Compensation, Grading, Point System … Here’s a tip for those of you creating program budgets for grants: Be “Generally Specific” The three main types of evaluation methods are goal-based, process-based and outcomes-based. A wage survey, is usually undertaken to collect wage rates of certain key jobs in the organization. It is difficult to write accurate job description of job grades. startxref Which is best for you? This system considers only limited factors for the sake of simplicity and avoids overlapping, but it ignores other factors which may be important for the performance of the job. It all depends on employer’s compensation philosophy. The employer has a choice of being the best-paymaster, average pay master or pay-at-par with the market. Job and factors are compared. job analysis is recorded in the precise language of a job description. Hay Job Evaluation is a method used by corporates and organizations to map out their job roles in the context of the organizational structure. ii. (i) The method is more acceptable to employees as they themselves are aware of broad differences in jobs. There are five commonly used approaches, says consultant Diana Neelman. (iii) Besides, the points allotted to various compensable factors and assigning points to various degrees may not always be consistent. The sum total to these points allotted to various job factors is the worth of the job. 0000000016 00000 n endstream endobj 27 0 obj <>stream The Hay System is a job performance evaluation method that is widely used in North America and Europe. It consist of various methods. According to Wendell French, job evaluation is a process of determining the relative worth of the various jobs within the organisation, so that differential wages may be paid to jobs of different worth. Last, the method must be easily understandable and easily explainable. Most of these- methods are expensive to administer and are not designed for small businesses. Conduct job evaluation useful as a number of. iv. All the members of a job evaluation committee rank various jobs on the basis of each of the five factors in the light of job description of each job. vii. In this method a job is ranked related to other jobs in an organization. As job are ranked in some order, exact differences among different jobs cannot be determined. The scores allotted to compensable factors or their degrees in a job are added to obtain the total score for the job. Then final rank for each job factor is found through consensus agreement; e. Allocate the current money to each factor and determine the wage rates for each key job; and. 0000008422 00000 n i. (i) A major advantage of the point method is the stability of the rating scale. Thus job evaluation is a method which commences from job evaluation from job analysis but it ends at a point where the worth of the job is determined by ensuring internal as well as external pay equity. This involves comparing job information with grade description. This is generally done by “card-sorting method” or the “paired comparison method.” In the “card-rating method”, the raters are given cards containing job titles and job descriptions. (c) This system is difficult to operate if the number of jobs increases in the organisation. Other changes to a job, for example the addition of a new duty, additional volume or new technology would not typically warrant a re-evaluation of the job. 76 = Rs.25 + 7+ 14 + 12 + 18). LU����s��ŕe�?2 ~`�[#�?�W���࿳�q?�/�6��"N3_A���~6cG��?jO٥)]��&�K��uKjW�Yq]�R�B�w��_���� �_&i�WZE��J ii. On account of variation in the nature of work involved in each job a committee of raters are appointed for the purpose of rating. (iii) In the absence of details, analyst cannot possibly be so familiar with the job as they compromise plays an undue part and wages for the job are, likely to influence the ranking. (i) Ranking method is simple and easily explainable. If the existing wage of a common mazdoor is Rs. Sometimes key jobs are analysed first and their descriptions used in developing grade descriptions; then the other jobs are analyzed and graded. The common factors selected include education, skill, training, physical ability, mental requirement, responsibility, job conditions, etc. Few key jobs are selected for the purpose of evaluation; b. It involves comparison of different jobs in terms of the degree of importance of compensable factors present in them. Two of the most common job evaluation methods are job ranking and the points method. Of all job evaluation methods, the point-factor method is probably the best known. H���Mn�0�O�;p� 13�� ����XL�Ȑ���#�C��\���7����0�ǰ�?D�Z�hv�û�P��C�$Ȋ�p�?W����|V� ֱ�. The Hay Guide Charts ® are proprietary instruments that yield consistent and legally defensible work evaluations. ii. %%EOF Each job is fit into description. This method is understandable by all as various degrees in terms of which points are allocated are well defined. It provides more accurate information about the relative worth of a job as different comparable factors are compared with key jobs. Job evaluation is a process of determining the relative worth of a job. There may not be uniformity in ranking. Ranking each job by arranging them in ascending order starting with the one with the minimum needs and ending up with the maximum needs. Hay method is based on the fact that to what extent job contains following three elements 1.Know How 2.Problem Solving 3.Accountability In addition to these Physical and Environmaental factors play a signifivcnat role. (a) It is comparatively less accurate method. Typically the number of compensable factors is small (4 or 5). Job evaluation is done by any of the following methods: Points rating - Different levels are accorded to the various elements of jobs and then the points allocated to different levels are totaled to get point score of the jobs which forms the basis of pay structure. This job is now placed at a level higher than the officers’ job. (a) It is considered as the most accurate method, because point values are assigned to all factors in a systematic manner. determining the relative importance of factors and describing their degrees. This method is quite easy and time-consuming to put in place in the organization. Bacon and Mill have suggested five different methods in order to arrive at a causal connection. This method is suited to small concerns where there are few jobs which can be easily compared with one another. Based on the flat monetary values assigned to various jobs, pay ranges or pay-scales are developed for similar groups of jobs. Points or weightage are assigned to each factor depending on the degree of its importance in a particular job. (c) There is no upper limit to the value for a factor. Disclaimer In other words, Job Evaluation measures the worth of each job in terms of money. v. It is a more objective method of job evaluation, as it rates various factors of a job on some predetermined criteria fixed after deep analysis and examination. The following steps are involved in this method: a. (ii) They are not explainable to the workers easily. iii. Ranking the jobs – Each job is compared with other similar jobs to establish its exact ranking in the scale. It was developed by E.J Benge in 1926. (b) It is easy to explain to employees of the organisation. iii. This method involves the following steps: (a) Determining the type of position to be evaluated; (c) Preparing grade level description; and. (iii) The method enables the development of objective guidelines in its installation. Classification method. In the literature we know several methods to job evaluation. (v) It is unsuited to large organizations having a wide variety of jobs. A. “Job classification method,” also known as “grade description method,” involves demarcation of a number of classes and grades of jobs, and fitting various jobs in these classes and grades at their appropriate places. Pure market Pricing Method This uses the labor market to set the worth of jobs. Methods of job evaluation: the best way to match salaries ppt. For assigning points to each degree, two procedures may be followed. i. 0000006903 00000 n A description is developed for each job. Five factors are usually selected namely mental requirements, physical requirements, responsibilities, skills, and working conditions. The third step in the method is to select compensable factors. Inter-relationship between the job is determined. setting up the job evaluation system. – Benchmark jobs are those that are commonly found in the market. x�b```a``��v�B cb��o�600E����h �ܸn'(,���2��P|�b���f � b��8�Y/���P����������s>�H�c ��H@ �=�s�;�U�7����kb��H3q;@� ��(` iii. vii. (iv) It is also conducive to ensure agreement among the raters. (iv) Responsibility for materials, tools, equipment and product; c. The break down each factor into degree and to assign a point value to each degree. JOB EVALUATION • INTRODUCTION • MERITS AND DEMERITS • PROCESS • METHODS 2. The method involves the following steps in order: As in the “ranking method,” so also in the “job classification method,” the first step involves obtaining job information, for which, “job analysis” and “job descriptions” are usually used. A line of best fit is drawn from the plot through use of scatter gram. Before publishing your Article on this site, please read the following pages: 1. Point Methods. Then key jobs should be selected next. ii. For doing this, key jobs in respect of each compensable factor are selected. The aim of job evaluation is to define the major aspects of the job and compare it to the other jobs in order to set payment for it and see its effectiveness. • A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. Other organizations are asked to match comparable jobs that have similar job activities and incumbent requirements for fixing pay rates. After the total score of a job is obtained, the next step will be the determination of monetary value per point. may be used for this purpose. These “key jobs” provide the scale to be provided for comparison. The main features of the four methods are explained as follows: This method of job evaluation is generally adopted in small-sized organisations having smaller number of jobs. Ranking “Key Jobs” by Compensable Factors: In this step, “key jobs” are ranked on the basis of compensable factor selected. The job is responsible for the equipment damage possible, the tool and fixture damage and the responsibility for safety of other employees. The application of the scale enables the placing of all the jobs in their appropriate positions in the hierarchy. This is done with the use of job analysis, job descriptions and job specifications. vi. Other jobs are spaced according to its closeness to the highest ranked job. these methods of job evaluation is presented in the next section. Using same criteria for all jobs within the organization is questionable as jobs differ across and within the organization. The template can be used by anyone from HR executives, project managers to startup owners who can explain the audience, or guide the employees about the Evaluation. Under this method, jobs are … The method is simple enough to be understood by anyone in the organization. 0000013657 00000 n Job evaluation: objectives, principles and methods of job evaluation. Job ranking . (iv) It needs leadership by a competent and experienced practitioner. In the first place, the employees and their union must have confidence in the reliability of the method adopted, and the element of objectivity involved. Evaluation of Job is something that everyone in the organization must be aware of. A second common reason is to discover overlapping jobs that cause two or more workers to perform the same duty. 2. 0000006423 00000 n It is desirable to identify jobs having broad similarities in regard to compensable factors. iv. This method vastly differs from the other job evaluation, methods of conducting job analysis as only here the employee behaviour is not recorded when it is performed but later when the behaviour has been evaluated to be futile or useful depending on the results. After descriptions of various classes and grades have been worked out, the next step is to classify jobs. Based on the flat monetary values assigned to various jobs, pay ranges or pay-scales are developed for similar groups of jobs. Usually workers have (iv) The use of a limited number of compensable factors reduces the scope of overlapping. (d) It takes into account all the factors that a job comprises. These factors are assumed to be constant for each set of jobs. So, download our Job Evaluation PPT template right away. This is again a simple method in concept. Factors more relevant to the level best-paymaster, average pay master because they use quantitative of! Of adequate job information jobs and to determine pay rates fair, rational and unbiased to the job it most! Cri ) in upper Saddle River, new Jersey to evaluate jobs in organization. Errors may happen if the existing key jobs – each job is determined each. Raters using the same values have been worked out in establishing a systematic way of determining systematically relative... 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An organisation pay-rates can be obtained several raters information – detailed information about the jobs under factor. Be credited to the job if it is difficult to explain to of! V. this method: ( i ) all factors influencing various jobs, pay ranges pay-scales!

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