In wage setting, it is usually more beneficial to reconcile market information and job evaluation results than to singly rely on either. Point method of job evaluationis widely used in business organisations. The purpose of the job evaluation is to have a satisfactory wage differential. In most cases, farmers have freedom to satisfy both job evaluation and the market. Jobs having been analysed can then be fitted into these various grades. The objectives of job evaluation are enumerated below: 1. If not, are there any job factors missing or given too much or too little value? Privacy Policy 9. 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 possible that information provided regarding such jobs through job analysis may sometimes fails to provide a dear indication of the levels at which demands are present. 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. Additionally, some organizations determine, in advance, the percentage of employees whom you can rank one, two, three, four, and five. 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. The disadvantages of the system are as follows: a. The job evaluation … It takes into account the demands of the job in terms of efforts and abilities, but it does not take into account the individual abilities and efforts, which may of course be taken into consideration and reflected in the worker’s earnings under a system of payment by results or of merit rating or performance appraisal. Together, these distinguish job evaluation as a category of wages and salary determination. While some employers are content to lean over the fence and simply ask their neighbors what they pay, others conduct systematic wage and salary surveys. Labor market supply and demand forces are strong influences in the setting of wages. Susan Heathfield is an HR and management consultant with an MS degree. Use this learning aid as a resource for employees to effectively develop, introduce or update job evaluations. 7. This happens when managers either use too much of their raise budget early in the year or save everything until the end when they must either use the money or lose it. In such cases, the prevalent compensation practices are adopted instead of taking job evaluation in a formal way, v. Leads to differentiation in perception of the employees, trade union leaders, management, and the program operators in selecting the compensable factors and giving them weightage, vi. (iii) How will the employees be consulted in regard to the method of putting the programme through? Job evaluation is a systematic process for deciding on the relative worth or size of jobs within an organization. In theory, other jobs in the job evaluation can be adjusted correspondingly. In a proper and rational job-evaluation system the position of job is fixed. The important features of job evaluation may be summarized as follows: It tries to assess jobs, not people. 2. 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. Statistics collected for job evaluation by job analysis; job grading and job classification techniques are used in other spheres of personnel management. The ground rules for defining the job for evaluation purposes: Evaluate the job not the job holder. b. Promotions within a grade become more serious. Prohibited Content 3. Moreover, workers tend to feel more insecure and cling to their present jobs because they may not have the qualifications for another job. Usually a series of key jobs that are well known throughout the plant are first rated and the other jobs roughly compared with these key jobs to establish a rough rating, after which each job is compared in greater detail to establish its exact rank in the scale. Online availability of a Job Evaluation Form. The Indian Institute of Personnel Management lays down the following steps which should be taken to install a job evaluation programme: 1. You may refer to this as a "job structure" or a "classification structure." Job Evaluation Programmes 12. A job evaluation system is usually made up of the parts below. To provide a standard procedure for determining the relative worth or value of each job in a plant. “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. The objective of this process is to determine the correct rate of pay. 10 steps to developing a successful job evaluation 1. Though the committee could select their own compensable factors, the most commonly used factors for this purpose are mental requirement, skill requirement, physical effort, responsibility and working condition. The Attention Factor appraises the degree of mental or visual concentration required. 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. Job evaluation is an orderly and systematic technique which aims at determining the worth of various jobs in the organisation. Leadership is a factor which pertains to responsibility for the work of others. The basis of a sound wage structure is job evaluation. evaluation committee will be asked to review and evaluate the term job description. A farmer such as Cecilia who pays different rates for different jobs usually first classifies the jobs on her ranch. This evaluation process focuses on valuing the content of each position in terms of a series of well defined compensable factors. In other winds, it tries to make the assessment of jobs, not people. The final stage in the factor comparison method is to evaluate other non-key jobs in the organisation using the factor comparison scales. 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