JOB EVALUATION

Seminar By AKSHAYA MALLYA B.

MEANING

DEFINITION
OBJECTIVE

PRINCIPLES
PROCEDURE

METHODS
ADVANTAGES PROBLEMS JOB EVALUATION AND PERFORMANCE APPRAISAL / MERIT RATING

MEANING
Job evaluation is a process of determining the relative worth of jobs, ranking and grading them by comparing the duties,. Responsibilities, requirements like skill, knowledge of a job with other jobs with a view to fix compensation payable to the concerned job holder.
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The International Labour Organization defined job evaluation as , as attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned.
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DEFINITION

 Wendell L. French defined job evaluation

Definition

as, a process of determining the relative

worth of the various jobs within the organization, so that differential may be

paid to the jobs of different worth.

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OBJECTIVES OF JOB EVALUATION

TO GATHER DATA AND INFORMATION RELATING TO JOB DESCRIPTION, JOB SPECIFACATION AND EMPLOYEE SPECIFICATIONS OF VARIOUS JOB IN AN ORGANIZATION TO COMPARE DUTIES, RESPONSIBILITIES AND DEMANDS OF A JOB WITH THAT OF OTHER JOBS.

TO DETERMINE THE HIERARCHY AND PLACE OF VARIOUS JOBS IN AN

ORGANISATION TO DETERMINE THE RANKS OR GRADES OF VARIOUS JOBS TO MINIMISE WAGE DISCREMINATION BASED ON SEX, AGE, CASTE, REGION, RELIGION ETC.
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PRINCIPLES OF JOB EVALUATION PROGRAMME

JOB EVALUATION PROGRAMME SHOULD BE IMPLEMENTED CAREFULLY: 1. RATE THE JOB BUT NOT THE EMPLOYEE. RATE THE ELEMENTS ON THE BASIS OF JOB DEMANDS. 2. THE ELEMENTS SELECTED FOR RATING SHOULD BE EASILY UNDERSTOOD. 3. THE ELEMENTS SHOULD BE DEFINED CLEARLY AND PROPERLY SELECTED 4. SUPERVISORS SHOULD BE ENCOURAGED TO PARTICIPATE IN RATING THE JOBS. 5. DO NOT ESTABLISH TOO MANY OCCUPATIONAL WAGES. 8

Procedure of Job Evaluation

Indian Institution of Personnel Management has involved the following step's for evaluating jobs: Analyse and prepare job description Select and prepare job evaluation plan Classify jobs Install the Programme Maintain the Programme`
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JOB EVALUATION METHODS

QUANTITATIVE

NON-QUANTITATIVE

POINTS RATING METHOD

FACTORS COMPARISON METHOD

RANKING METHOD

JOB CLASSIFICATION AND GRADING METHOD

RANKING METHOD

a) SIMPLE RANKING b)RANKING THE KEY JOBS c) PARIED COMPARISON

d) SINGLE FACTOR RANKING METHOD
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GRADING METHOD

GRADING THE JOB

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GRADING THE JOBS:---

MANAGING DIRECTOR

VI V IV

GENERAL MANAGER I
MRKETING MANAGER

GENERAL MANAGER II
FINANCE MANAGER
PRODUCTION MANAGER

GENERAL MANAGER III

PERSONNEL MANAGER

DEPUTY MARKETING MANAGER

DEPUTY FINANCE MANAGER

DEPUTY PRODUCTION MANAGER

DEPUTY PERSONNEL MANAGER

III
II I
PERSONNEL ASSISTANTS

Asst. PERSONNEL MANAGER

Asst. PERSONNEL MANAGER

PERSONNEL OFFICER PERSONNEL ASSISTANTS

PERSONNEL OFFICER

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POINT METHOD OR POINT RATING METHOD

MEANING METHOD
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DEGREES SKILL 1.EDUCATION 2.EXPERIENCE 3.KNOWLEDGE EFFORT 4.PHYSICAL DEMAND 5.MENTAL DEMAND

TYPICAL POINT PLAN POINTS 1st 2nd 3rd

4th

5th

14 22 14

28 44 28

42 66 42

56 88 56

70 110 70

10 5

20 10

30 15

40 20

50 25

RESPONSIBILITY
6.EQUIPEMENT/PROCESS 7.MATERIAL/PRODUCT 8. SAFTETY OF OTHERS 9. WORK OF OTHERS JOB CONDITIONS 10.WORKING CONDITIONS 11.HAZARDS 10 5 20 10 30 15 40 20 50 25 5 5 5 5 10 10 10 10 15 15 15 15 20 20 20 20 25 25 25 25

FACTOR COMPARISON METHOD MEANING

METHOD

ADVANTAGES OF JOB EVALUATION

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ADVANTAGES OF JOB EVALUATION

Job evaluation has certain advantages over other techniques of pay fixation , 1. It is logical and to a certain extant an objective method of ranking and grading the job. 2. It helps to fit the newly created jobs in the existing structure. 3. It satisfies the principles of fair wage, wage equity, uniformity in wages, etc. 4. It helps to re-design the jobs for minimizing wide wage differentials 5. It ensures employee satisfaction about wage level and wage equity

PROBLEMS OF JOB EVALUATION

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PROBLEMS OF JOB EVALUATION

1. Job evaluation is not exactly scientific.
2. The factors taken by the Programme are not exhaustive.

3. Jobs equal content or grades may not attract the workers

equally.

4. Job evaluation Programme once structured may not be useful

for next time.

5. Job evaluation is only one among several factors in

determining the wage level , some time other factor like

government policy may dominate the job evaluation.

JOB EVALUATION AND PERFORMANCE APPRAISAL

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JOB EVALUATION PERFORMANCE

It is determining the relative worth of jobs
It is the basis for designing a satisfactory wage structure It explains the relative wage rates of the jobs

APPRAISAL /MERIT RATING

It is evaluating employee against the job description
It is used for determining promotions and transfers

It provides guidelines to employees for better performance

CONCLUSION
Despite limitation or problems, job evaluation is the most appropriate

techniques for fixing and revising the wage

as it is a systematic and objective method of wage fixation.

REFFERENCE
PERSONNEL AND HUMAN RESORCE MANAGEMENT---P. SUBBA RAO PRINCIPLES AND PRACTICE OF MANAGEMENT---L. M. PRASAD www.managers-content.com www.scribd.com www.enotes.com www.igoogle.com www.yahoo.com www.free-animations.co.uk

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ORG434: Advanced HRM

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