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Job Evaluation
Job Evaluation
evaluation is a systematic process of analyzing and evaluating the jobs to determine the relative worth of each job in an organization. It forms the basis for designing the compensation management system in an organization. Since the compensation management and the perceived fairness of compensation administration have a big influence on employee morale and satisfaction.
Job evaluation is the evaluation or rating of jobs to determine their positions in the job hierarchy. the evaluation may be achieved through assignment of points or use of some other systematic method for essential job requirements such as skill, experience and responsibility.
To
determine the position and place of a job in the clarify the responsibility and authority manage internal and external consistency in the
organizational hierarchy.
To
compensation.
To
to the compensation.
To
administration.
To
or changed jobs.
The job dimensions have to be properly selected and should be rated in accordance with the demands of the job.
The evaluation program should be explained and illustrated to the employees at all levels. The employees as well as the supervisors should have confidence in the system of evaluation.
The
evaluation program. This helps develop a sense of trust in the whole exercise.
Market
Analysis
Description & Job Specification of job dimensions of jobs of the evaluation
Selection
Classification
Implementation Maintenance
Quantitative
NonQuantitative
Ranking Method
Ranking
is the method in which the jobs in an organisation are assessed based on the knowledge, skills, effort and other job dimensions associated with each job. Ranking involves preparation of brief job descriptions and assigning ranks to the jobs in accordance with their worth in the organization. Once the ranking of the jobs is complete, a monetary value is attached to each job. Techniques Of Ranking
In
this method of job evaluation, the jobs are classified and graded based on their significance and their worth to the organization, the jobs at various levels in an organization are placed under different grades, which are clearly defined. Grades are formulated on the basis of the nature of the tasks and responsibilities of the jobs. For e.g.:-a grade may comprise jobs like Financial Accountants, Management Accountants, Cost Accountants
In this method, a quantitative point scale is developed to evaluate the jobs. The number of scales to be used and other aspects of implementation are determined by the job evaluation analyst or the human resource function. Steps in Point method
Determine the job factors or compensable factors Determine the sub factors Define the degree statements or profile statements Assign points to factors, sub-factors and degrees (For e.g. if experience is critical to a job, degree I might be 20 points, degree II might be 40 points, degree III-60 points, degree IV -80 points). Preparation of chart Applying point system
It
ranking.
Steps
involved-
their importance
Assigning monetary values and adding up to pay of the bench mark job and evaluation.
It is more popular in both public & private firms for more than 25 years. It was developed by Prof. Emeritus Thomas T. Paterson in 1970s and further developed & refined by Ernst & Youngs compensation specialist in client organisation. The basic premise of DBM is that the value of a job depends on its decision-making requirements. Decision-making is logical and equitable basis for comparing jobs because all jobs involved decision-making on all levels. The DBM distinguishes six levels of decision making or decision-bands", ranging from the most far reaching decisions on organizational goals to the simplest decisions, such as how fast to key-enter data. The DBM job evaluation produces a decisionbased structure.
It is logical and objective method of ranking and grading jobs for the purpose of compensation management.
It helps in maintaining higher worker satisfaction level by logical explanation of issues related to job differentials
It facilitates the entry of new jobs into the organizational wage structure and help in appropriate evaluation and pay structure fixation accordingly.
It helps in comparison of organizations wage structure with that of competitors and market rates.
Changes in jobs and its factors can render job evaluation techniques outdated and irrelevant.
It introduces rigidity into the pay system and reduces opportunities for mangers top exercise discretion.