What you evaluate is the position and not the employee occupying the position. However, comparison method has several limitations. Classification method. However, it provides a basis for evaluating a rational wage structure. Standardization of wage structure – Job evaluation performs an important function of designing a standardised wage structure for different jobs. Getting the acceptance from employees once explained them the aim and use of the job evaluation … It is important to remember that the fundamental principles of job evaluation are to evaluate the position and not the person. The job evaluation … Keep in mind that many companies have forced rankings and can only mark a certain percentage of employees as exceeds expectations. She has covered HR for The Balance Careers since 2000. Job evaluation is a methodical way of confirming the value of job in relation to other jobs in an organisation. Job evaluation is the systematic process for assessing the relative worth of jobs within an organization. Job evaluation is a term which is applied to a number of distinct but related administrative methods which rank or assess the relative value of different jobs or occupations. They increase the chance of a voluntary termination. Such ambiguous words as “low”, “medium”, and “high” should be avoided, as they lend themselves to different interpretations by different analysts. By limiting acceptance to universities, a limited supply of available professionals is set. Under each of these three main headings are listed the various factors, with each factor clearly defined and under each factor a description of the degrees required, the number of points allotted to each degree. It is desirable to associate workers in the construction of the job description and in rating the job. It is an analytical and quantitative method which determines the relative worth of a job on the basis of points alloted to each specific factor of a job. If education is used as a compensable factor, a bachelor’s degree might be worth 200 points, a junior college degree 150, a high school diploma 100, and an elementary diploma 50 points. In this case mental (intelligence) requirements might be credited with 40 P.; skill require­ments, 10 P.; physical requirements, 50 P.; responsibility, 10 P.; and working conditions 15 P. This process is followed for each key job with due attention being given to the factor rankings of the previous survey. In some cases, farmers may compete for labor within a broader labor market. Training and development – Job evaluation process determines the significance and necessity of training and development of the employees associated with a particular job. An employee evaluation is the assessment and review of a worker’s job performance. The fifth degree, on the other hand, carries 70 points and involves a high level of knowledge, such as technical university training. Performance Evaluation is defined as a formal and productive procedure to measure an employee’s work and results based on their job responsibilities. The objective of this process is to determine the correct rate of pay. 2. (The job analysis created during the selection process can help.) Market price fluctuations can also make cost control more difficult since labour costs are less predictable under this system. You decide how much weight to allot various compensable factors and how to distribute points within each job. It is a conventional method in which jobs are compared one with another, and arranged or ranked in the order of their importance, their difficulty, or their value to the organisation. Job evaluation is the systematic process for assessing the relative worth of jobs within an organization. The importance of the job evaluation technique may be judged from the following facts: Wage and salary structure is designed on the basis of weight allotted to different factors in job-evaluation. As it is a practical technique, "theoretical" training is of limited value - evaluators learn how to apply the technique by evaluating jobs in their own organization, which they know and understand. 9. Each other factor is considered in the same manner, and the total base rate for the job is determined by summing the factor values. Unless the same detailed analysis is pursued as that used in the various point systems, the analyst or committee cannot possibly be familiar with all the jobs. It makes a systematic comparison between jobs to come to a continuation of their relative expectancy or worth for the purpose of making a logical pay structure. The Ranking or Grading System of Job Evaluation: ii. Individual abilities or efforts are reflected in the workers’ earnings, but this is something entirely different from the ratings of the job. For each sub-factor 5 degrees of importance are defined, and a specified number of points is associated with each degree. Under-reward, over-reward, and inconsistency in reward not only tend to lead to lower satisfaction but encourage behaviour that often proves dysfunctional to organizational objectives.”. The following conditions are necessary for the successful operation of a job evaluation programme: (a) It must be carefully established by ensuring that- (i) the management’s aims are clear to all concerned and that not only the manual workers but also all levels of supervision and management employees fully understand its implications; and (ii) all the relevant internal and external factors have been taken into account in arriving at the final form of the scheme. That is, if you were hired in February, your evaluation is in February, and if you were hired in December, your evaluation is in December. Surveys should seek information about benefits given employees (e.g., farm products, housing). Job evaluations compare positions in an organization with respect to such factors as education, responsibility, experience and physical effort. While they may be perceived as focusing only an individual's performance, they actually help the organization take a look at its structure, allowing it to make changes to improve its competitiveness or efficiency. It is practically impossible to encompass each and every variable of a job that makes it attractive and valuable to a worker. By writing this up, you can influence your manager's final decision about your performance rating. Terms of Service 7. According to Alford and Beatty, “Job Evaluation is the application of the Job Analysis technique to the qualitative measurement of relative job worth, for the purpose of establishing consistent wage rate differentials by objective means. When compensating mechanics or welders, for instance, you may have to check what those in industry are paid. Simplicity – The Plan does not require a translation from points to money. Under the Factor Comparison System of job evaluation the analyst or evaluation committee selects key jobs for which there- exist clearly understood job descriptions and counterparts in other organisations, and for which the money rates are considered satisfactory. The evaluation may be achieved through the assignment of points or the use of some other systematic rating method for essential job requirements, such as skill, experience, and responsibility. In this method, each factor of a job is compared with the same factor of the other jobs or the … (iii) How will the employees be consulted in regard to the method of putting the programme through? It provides the basis for the comparison of jobs within the organisation and with similar jobs in other organisations and the industry and thus helps in wage and salary survey. It assists in keeping down the rate of labour turnover or in other words retaining the workers in the organisations because wage and salary is the single common factor which controls the labour turnover. The final stage in the factor comparison method is to evaluate other non-key jobs in the organisation using the factor comparison scales. The evaluation may be achieved through the assignment of points or the use of some other systematic rating method for essential job requirements, such as skill, experience, and responsibility. All types of job evaluation strive to eliminate personal whims and to introduce scientific procedures. Job Evaluation Programmes 12. It is the technique of analysis and assessment of jobs to determine their relative value within the firm so that a fair wage and salary structure can be established for various jobs. The performance evaluation process in organizations is ongoing - every day - as the manager or supervisor observes and coaches each employee's performance. An important pay decision is whether one will pay the going market rate. Human Relations Effects of Job Evaluation 11. The farmer has fewer viable options when the market would pay a higher wage than the job evaluation. Content Filtration 6. The Experience factor pertains to the amount of job training necessary to gain satisfactory proficiency. The advantages of the Factor Comparison Plan are as follows: a. The Factor Comparison Plan, or the Weighted-in Money Method; and. Managers cannot possibly know everything you do every day. This system, thus, permits management to place added weight upon those characteristics which are selected as the most important in the establishment of a suitable job hierarchy. This is because it is difficult to standardise jobs throughout an industry unless the plants in it are so familiar that they can be treated as being virtually a single firm. Purpose of Job Analysis. Job evaluations, then, reflect the relative value or contribution of different jobs to an organization. Suits to large organizations where HR practices are formalized. What you evaluate is the position and not the employee occupying the position. It is a process which is helpful even for framing compensation plans by the personnel manager. a. Most companies have an employee evaluation system wherein employees are evaluated on a regular basis (often once a year). The Indian Institute of Personnel Management lays down the following steps which should be taken to install a job evaluation programme: 1. In a proper and rational job-evaluation system the position of job is fixed. Other managers feel that unless you were awarded a Nobel prize, you're nothing more than an average performer. When one completes the same steps for every job in the organisation an overall wage structure has been established. For example, the prevailing wage for the filing clerk may be established at Rs.1.25 per hour. “Job evaluation is the process of analysis and assessment of jobs to ascertain reliably their relative worth using the assessment as a basis for a balanced wage structure.” —The British Institute of Management, The Bureau of Labour Statistics of USA has described job evaluation as follows – “Job evaluation is the evaluation or rating of jobs to determine their position in a job hierarchy. One Plan uses three major divisions under which the various job characteristics are classified, namely- (a) Job conditions, (b) Physical ability required, and (c) Mental requirements. Acts as the only factor among several factors that determine wage level, thus it cannot be considered as a comprehensive method to establish wage levels, vii. A farmer such as Cecilia who pays different rates for different jobs usually first classifies the jobs on her ranch. Each of these jobs is analysed in terms of the following factors, and that portion of the money rate which is considered appropriate is assigned to the factor – (a) Mental requirements; (b) Skill requirements; (c) Physical requirements; (d) Responsibility; (e) Working conditions. Human Resource Management, Employees, Job Evaluation. Does the tentative evaluation match your expectations? 2. This means that the ranking may be somewhat superficial and lead to the ranking of the job-holder rather than the job itself. We suggest the following measures and steps for improving the working of evaluation programmes: 1. In this process, human judgment has to be exercised at a number of points. Selection and Prepare a Job Evaluation Plan – Job must be broken down into its components parts. It is a standardize process of determining the wage differentials for various jobs. 10 steps to developing a successful job evaluation 1. Although factual evidence is die bases of job evaluations this has to be interpreted. Typically these assessments are done at year-end or on the employee's service anniversary. “Job evaluation may be defined as an attempt to determine and compare the demands which the normal performance of particular jobs makes on normal workers without taking into account of the individual abilities or performance of the workers concerned.” —International Labour Office (ILO), 1. It is a process which is helpful even for framing compensation plans by the personnel manager. a. Job Evaluation Methods. Job evaluation does not fix pay scales. WHAT IS JOB EVALUATION? Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. There is an attempt to build into jobs a higher sense of challenge and achievement, through vertical job loading. When key jobs have been ranked, a monetary value is assigned to them. Managers and Employee Scores in an Evaluation. Read More: Point Rating Method of Job Evaluation Selection of employees – The job evaluation procedure considers the skill required to perform the job, responsibility associated with performing the job. This is also known as job analysis and its findings are what goes into a job description. Job evaluation as a process is advantageous to a company in many ways: Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. Job evaluation is an assessment of the relative worth of different occupations on the premise of a reliable arrangement of employment and individual variables, for example, capabilities and abilities required. Job evaluations allow managers to perform a "physical" on the health of the business. Through a job evaluation she rates the jobs on the farm according to their relative ”importance.” Each job might be given its own rate, or jobs of comparable importance may be grouped or banded into a single wage classification, or pay grade. Points given to each degree of a sub-factor vary from one sub-factor to another according to the relative importance placed upon each. Evaluate the job by taking a view of the job as it would be done at fully acceptable performance. Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization. A scheme is better administered by the Industrial Relations staff of a company than by the Industrial Engineers who may have developed it. This system should be preceded by careful job analysis and the writing of accurate job descriptions before the rating process is undertaken. 1.2 JOB EVALUATION AND ITS PURPOSE Coetzee and Schreuder (2016:102) defined job evaluation as the formal assessment and systematic comparison of the relative value or worth of a job to an organisation with the aim of determining appropriate compensation, or reward and remuneration. The objective of this process is to determine the correct rate of pay. In wage setting, it is usually more beneficial to reconcile market information and job evaluation results than to singly rely on either. The objective of job evaluation is to determine which employments ought to … It is very similar to the factor comparison method in that separate scales are developed for each compensable factor. The market may also influence the migratory patterns of farm workers, for example- whether a worker stays in Mexico or travels to Texas, Florida or Oregon. 7. These managers rate their employees lower than they should. b. Co-operation with associates outside the line of authority- ex­change of opinion on controversial matters involving tact, diplomacy, appreciation of the other person’s point of view; necessity for and degree of teamwork, exchange of information, etc. Job evaluation ranks all positions within the organization on the same set of criteria and ultimately results in an internal ranking of all positions within the university. Key jobs represent the full range of jobs from the highest to the lowest levels and are typical of the various job families. Flexibility – There are no limits to the value that may be assigned to each factor. The demand made on the workers by a particular job is the worth of that job. Job evaluation is a methodical way of confirming the value of job in relation to other jobs in an organisation. viii. This can demoralize employees and lead them to seek out new employment. What is Job Evaluation – Job Evaluation and Market Consideration. Our computer program was designed to apply the “weighted point method” approach to job evaluation for the purpose of providing a sound wage and salary administration program. For example, skill requirements are evaluated according to education required, experience required, and the necessary initiative and ingenuity of a satisfactory job holder. A scheme which provides for single rates and for definite ratios between the rates for classes of workers (A, B, C, etc.) Selection and placement can be made objectively by matching the qualifications of the candidate with job specification. The system is fairly simple, and the organisation may already have access to pay survey information for the purpose of attracting quality employees. It is not concerned with the internal equity of pay, compensable factors, or assigning relative worth to jobs except in relation to the going rate in the labour market. ix. Merely paying more than another farm enterprise, however, does not automatically result in higher performance and lower labor costs. This method, also known as key job method, was originally developed at the Philadelphia Rapid Transit Company, USA by Eugene J.Benge in 1926 to overcome two major problems faced in point method of job evaluation. It is always applied to jobs rather than the qualities of individuals on the jobs.”. within a job grade is easier to administer than one which establishes rate ranges and has no fixed ratios. In the first stage, a job evaluation committee selects and rank-orders the “key jobs” in the organisation. Thus, it promotes harmonious industrial relations in the organisation because wage inequality is the biggest single factor for labour disputes. The Point System of evaluating jobs consists of several plans using points for job evaluation as a basis of establishing relative job worth. Rating the jobs, by ranking method, should also ignore the qualifications of the person filling the jobs at the time, since the ranking is of the jobs and not of the workers. Job evaluation is an assessment of the relative worth of various jobs on the basis of a consistent set of job and personal factors, such as qualifications and skills required. Information and facts about the job are all evaluated in the same way within established parameters. 2. You can test the job evaluation by comparing a few jobs you value differently. Additionally, some organizations determine, in advance, the percentage of employees whom you can rank one, two, three, four, and five. These are elements of skill, effort, responsibility and working conditions significant to the types of work done in the workplace. Therefore, any wage policy based on a scientific job evaluation is bound to be systematic and sound. Job evaluation helps to determine salary and wage structure on rational basis and establishes fairness and justice. Job evaluation is concerned with differences in the work itself, not in differences that are found between people. Achieves a fair system of pay. Content Guidelines 2. Install the Programme – This involves explaining it to employees and putting it into opera­tion. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. To provide information for the work organisation, employee’s selection and training and numerous other important purposes. Job Evaluation: Objectives, Principles and Methods of Job Evaluation! The purpose of the job evaluation is to have a satisfactory wage differential. 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