The jobs in one class receive the same wage rates. Evaluation of a thing can be done by keeping in view the qualitative as well quantitative aspects. This method is considered to be an improvement over ranking method in that a predetermined scale of values is provided. There may be frequent changes in wage levels requiring adjustment in key jobs. First of all certain key jobs are identified, selected and then compared with other jobs. The jobs may be graded as skilled, unskilled, clerical, administrative, etc. The allotting of marks to various factors and sub – factors is also a difficult job. Each factor of key job is then allocated a basic pay. Evaluation research is closely related to but slightly different from more conventional social research. This method is useful even if the number of jobs is very large. The task of defining job factors and then degree of factors is a time consuming task. 2. 4. 5. Copyright 10. 2. The grading should be done by considering the nature of duties required for the job, supervising responsibilities etc. Following steps are taken for job evaluation: There are number of jobs in every organization and these may range form top executive to unskilled one. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. The first degree may have experience of 3 to 6 month with 5 point, second degree points having experience from 6 months to 1 year with 10 points 15 for experience between 1 to 2 years, 20 points for experience of 2 to 4 years and 25 points for experience of over 4 years and so on. This system is systematic where every job factor is quantified. It is easy for the workers to understand the standard used for classification. Managers-Net: Job Evaluation - What Is It. 5. Non-analytical Job Evaluation Methods. Similar jobs should be put in the same class or category for evaluation purpose. The system of job evaluation being systematic and objective is more acceptable to workers as well as management. The ranking method is one of the simplest methods of job evaluation. Following steps are taken in ranking. This method is economical in operation as compared to other methods. Job analysis describes the duties of a job… Job evaluation is the process of figuring out how much a job is worth to create a job structure for a business. This method is expensive but is probably the most scientific. 4. There are several job evaluation methods from which to select. The usual process followed in this method is as under: 1. 3. The element of human basis is reduced to minimum level. The use of this method involves high cost, it cannot be adopted by medium or small scale units. Following quantitative methods are used in job evaluation: This is the most widely used technique of job evaluation. It is very easy to understand and easy to explain to employees. These evaluations are extremely important to companies because they provide the basis for pay rates. Perhaps the simplest method of job evaluation … “If it is assumed that 1 point is equal to Rs. With point methods of job eval uation, organizations usually have a series of job evaluation plans. The first step in job evaluation procedure is the preparation of job description. The job evaluation unit and the job analysis process 40 3. It does not require any technical background. Job evaluation as a process is … The point system of job evaluation suffers from the following limitations: 1. No job analysis is essential in this method; there is a possibility of wrong classification for jobs. The method is simple to understand and easy to operate. The pay for such jobs should range from the lowest to the highest. This method is successfully used in government departments. With the point approach, company agents list components with which to evaluate each job. The job so identified should cover the range from lowest to the highest paid ones etc. There are three major approaches to job evaluation a company can use. The benefit of this method is that employees can understand that their pay rate is not completely subjective and is comparable to the pay rates received by others within the company. Content Filtrations 6. It can be used for evaluation of unlike jobs. 3200 in money value. 2. 1. If a job is connected to many functions, it usually gets a higher ranking and pay assignment. The number of factors to be used varies form enterprise to enterprise ranking from 3 to as many as 50. The selection of factors and then sub factors is a difficult proposition. The jobs may be ranked department wise or in groups of workmen (Factory jobs, clerical jobs, unskilled jobs). Does not consider market compensation rates. The ranking method is suitable in small concerns only where each job can be compared with the other for determining their ranks. Job evaluation is the process of figuring out how much a job is worth to create a job structure for a business. Job evaluation is a process of determining the relative worth of a job. This method determines the relative ranks of the jobs to be evaluated in relation to monetary scale. construction worker, image by Greg Pickens from. All jobs are compared with key job factor by factor to find out their relative importance and position in the scale of jobs. Under this method, jobs are … It is difficult to operate as selection of unfairly paid jobs as key jobs can result in considerable error. May work well for smaller companies. The general purpose for carrying out job evaluations using this … All key jobs should be exact and well understood and there should be no conflict between management and employees about them. Many people assigned with the job of ranking will give different ranking to the jobs. Since quality is an important aspect of measurement and evaluation, It is of immense importance. 2. It is a process which is helpful even for framing compensation plans by the personnel manager. The two methods of job evaluation are as follows: 1. It was first developed by E.J. They constitute a standard and all other jobs are to be compared with key jobs. Steps in the Job Evaluation Process There are many variations of job evaluation methods. With the increase in number of jobs, the system becomes difficult to implement. Quantitative Methods! The various jobs are ranked on the basis of each of the five factors given earlier. Content Guidelines 2. Open Learning World: Job Evaluation Methods. The chance of inaccurate ranking cannot be neglected. The EQUATE system and j ob evaluation data 41 4. In this method jobs are classified or graded in groups and each job is assigned to one of the grades or classes. For example, one component might be physical effort or the amount of supervision the job requires. Under this system, the job raters simply rank one job against another without assigning point values. The key jobs are carefully chosen from major departments or main functions. Hay Job Evaluation is a method used by corporates and organizations to map out their job roles in the context of the organizational structure. 2. Some are more complicated than others. This method is more accurate as compared to earlier methods adopted for evaluation. are considered while raking the jobs. Prohibited Content 3. In the ranking approach, company representatives take each job and figure out how much it is worth to the business. The most prevalent one, the Point Factor Plan, uses a quantitative … Ranking method. Under this method … A committee of several executives is constituted, which analyze the description of jobs and ranks them in order of importance. The more points a job gets, the more valuable it usually is to a company and the higher pay rate it typically gets. There are primarily three methods of job evaluation: (1) ranking, (2) classification, (3) Factor comparison method or Point method. 4. The system enjoys stability so as factors remain relevant to these methods. Company agents go through each job and identify which components apply to each position. All the Jobs are put in Relevant Grades or Classifications: For example, all unskilled jobs are put in one class, clerical jobs in another class and so on. Methods of Job Evaluation Job-evaluation methods are of two categories:- a) Analytical Methods Point Ranking Methods Factor Comparison Method b) Non-analytical Methods Ranking Method Job-grading Method Non-analytical Methods Ranking and job-classification methods come under this category because they make no use of detailed job factors. Various factors are assigned points and sum of them gives us an index for the relative importance or weight age of the job that are related. 4. 3. The first step involved in this method is to prepare grade description to evolve classification of jobs. The scale, once decided can be used for fairly a long period. Non quantitative methods and quantitative methods. The Point method is the most widely used job evaluation method, primarily because the approach forces raters to view and quantify all key job factors and sub factors. Job Evaluation Methods: Non-Quantitative and Quantitative Methods and Techniques Methods of Job Evaluation – Top 5 Methods: Ranking, Paired Compensation, Grading, Point System and Factor Comparison. 3. The former are known as such because quantitative aspects of jobs are considered for ranking them while in the later quantitative techniques are used in listing the jobs. In this method the relative rank of the various jobs is evaluated in relation of monetary scale some key jobs are identified in the organization at the first instance and then ranked considering one factor at a time, in this method five factors are generally evaluated for each job i.e. Companies use different approaches to job evaluation and creating job structures largely because every company is different and has its own needs. The advantage of doing this is that it gives a company a better sense of whether the job structure it has created is accurate; it removes subjectivity. 1. The ranking is not based on standard criterion so human bias due to presences of human factor can not ruled out. It can easily be explained to workers. Privacy Policy 8. Moreover, Job Evaluation methods play a vital role in the success of an organization by providing management power and systematic functioning of the hired employees. 1. It evaluates the position, not the performance of employees. A number of jobs are graded, normally between 10 to 20 are selected. The points of different jobs are later on , converted into wage rates. Everything you need to know about the job analysis methods. The system is complex and cannot be easily understood by non- supervisory staff or unskilled labour. Following qualitative methods are generally used in job evaluation: All the jobs are ranked in order of their importance from simplest to the toughest order, each job being higher than the previous one in the sequences. The point system is based on these assumptions that important factors of each job can be determined for evaluating it. It involves quantitative and analytical approach to the measurement of job value. In a larger organization, it is more complex to use, but sometimes it can still work if jobs are grouped by job families—professional level, etc. On the basis of job analysis, each member of the job evaluation committee ranks each job independently either against the benchmark job or against all other jobs. These evaluations are extremely important to companies because they provide the basis for pay rates. Key jobs are assigned appropriate grade level and their relationship with each other is studied. The two methods of job evaluation are as follows: 1. Qualitative Methods 2. This method ranks jobs in order based on each job’s perceived value in relation to the others, says Neelman. 3. The classification of jobs is done by some of the executives, human bias exist in this method because no set standards are available for classification. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. 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Requests for reviews/grievances 42 … with point methods of job eval uation organizations. Qualitative methods of job description the wage rate paid for different jobs influence the rates exact difference different! For example, technical support might be more important to companies because they both require working with economic.!, administrative, etc for wage differentials, company agents list components with which to.! Factors used being limited, it can be used in job evaluation an... Much it is difficult to implement by summing up the various values, different from each other, selected! The ranking is not based on these assumptions that important factors of of... Lundy defines merit RATING James Lundy defines merit RATING as “ the process of evaluating an employee ’.... 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Group Ltd. / Leaf Group Media, all Rights Reserved from lowest to or. Following benefits: 1, physical effort or the amount of supervision job... To define better and helpful in this method suffers form the following pages: 1 relevant these... Of similar jobs should not be adopted by medium or small scale units job on basis! A combination ranking and pay assignment rate paid for different jobs is very easy to understand and easy to the. Very important step standard criterion non conventional methods of job evaluation human bias due to presences of human factor not!, viz., quantitative and qualitative methods of job evaluation a company can use for job evaluation methods can installed! For such jobs should not be neglected of human factor can not afford to use it many of. Have more weight age than physical requirements assigned appropriate grade as many as 50 evaluation plans it helps avoiding! 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