There are many different types of job evaluation systems to choose from. The process is initially based on judgment and, therefore, tends to be influenced by variety of personal biases. c) Evaluation criteria Why is it important to know how well HR works? In order to measure the job worth, point system backed by the factor comparison system is an effective tool. (ii) The system merely produces a job order and does not indicate to what extent it is more important than the one below it. After formulating and studying job descriptions and job specifications, jobs are grouped into classes or grades which represent different pay levels ranging from low to high. This would result in less accurate evaluation. These factors are assumed to be constant for each set of jobs. The Deputy Head will refer the appeal to the Manager, Job Evaluation & Organizational Design, who in turn refers it to a job evaluation review board known as the Special Review Committee. Yardstick is a scale on which the assigned points of the relevant sub-factors of a specific factor are marked. Point method . In general, the more difficult the job, the more is its worth. It is here that the job evaluation moves from general to the specific. (vi) Jobs can be easily placed in distinct categories. Several HR activities have been evaluated with utility analysis, including appraisal systems, employee hiring, training and turnover.Although utility analysis has wide applicability and repres… Question 1 Discuss the evaluation of HRM’s functions under the following headings: a) Approaches to evaluation b) Methods of Evaluation. Performance Appraisal - MCQs with answers - Part 1, Performance Appraisal - MCQs with answers - Part 4, Performance Appraisal - MCQs with answers- Part 2, Training & Development - MCQs with answers. (1) The task of defining job factors and factor degrees is a time consuming and difficult task. Since job evaluation is a process of determining relative standing of every job, the rater must be equally considerate to each job. In spite of these drawbacks, this system is used by most organisations, because its greater accuracy possibly justifies the large expenditure of time and money. A Manual or yardstick provides’ a set of standards against which each job can be compared. Which of these do you feel is most useful and why? It means that a manual may have a number of yardsticks portraying various factors relating to a specific job. (ii) The workers acceptance of the system is favourable because it is more systematic and objective than other job evaluation methods. In this process the aspects like job titles, job descriptions and job specifications are important. But they remain in the minds of the evaluators and thus affect the results. (d) Develop a job comparison scale and insert key jobs in them. Generally speaking, such factors are more useful in evaluating executive or supervisory jobs than in evaluating manual jobs or clerical jobs. Non-quantitative Methods: (a) Ranking or Job Comparison. Utility analysis seeks to express evaluations in economic terms, which are more useful for decision makers. The more skill, education and responsibility required in a job, the more is its worth. 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. And how should one draw the boundaries around a specific job title? Under this method the job grades or classes are predetermined and then each job is assigned to these and is evaluated accordingly. Info: 2960 words (12 pages) Essay Published: 1st Jan 1970 in Business. No specific factors are used for consideration. This method ranks jobs in order based on each job’s perceived value in relation to the others, says Neelman. The ranking of job is done by a committee of experts called raters. This class description broadly reflects level of education, mental skill, profit impact or some combination of these. Qualitative Methods of Job Evaluation: Evaluation of a thing can be done by keeping in view the qualitative as well quantitative aspects. For example, the key factor to perform a job is skills, and then it can be further classified into sub-factors such as training required, communication skills, social skills, persuasion skills, etc. Job Grading Method: Also known as Job-Classification Method. In large organisations, it is the responsibility of a committee to make evaluation. Week 5: HRM: Performance Management and Compensation - Discussion Methods of Job Evaluation (graded) Compare and contrast the following methods of job evaluation: ranking, classification, factor comparison, and point method. The designate is chosen by the appellant, and must be trained in the evaluation … The differences between them are noted with respect to the key points selected for comparison. Please direct all questions to your HR Manager. Plagiarism Prevention 5. 4. A key job is one whose content has become stabilized over a period of time and whose wage rate is considered to be presently correct by the management and the union. Distinguishing differences among jobs may be overlooked or forgotten. Actually speaking, there are many factors like knowledge, commitment, interpersonal capabilities, achievement motivation, physical capabilities, and so on, which influence individual performance. (v) The grouping of jobs into classifications makes pay determination problems administratively easier to handle. It is essentially a combination of the ranking and point systems. This method determines the relative ranks of the jobs to be evaluated in relation to monetary scale. (iii) Prejudice and human judgment are minimised, i.e., the system cannot be easily manipulated. Each job specific is rated using the job evaluation instrument and the points for each factor are summed to form a total point score for the particular job. Therefore, it is suitable for small organisation with clearly defined jobs. 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. (i) It has the ability of handing a large number of jobs and enjoys stability as long as the factors remain relevant. The ranking method is one of the simplest methods of job evaluation. Job evaluation is regarded by the trade unions with suspicion because it is made on certain principles and the results are generally ignored. Workers find it difficult to fully comprehend the meaning of concepts and terms, such as factors, degrees and points. Common tasks, responsibilities, knowledge and experience can be identified by the process of job analysis. Analytical Job Evaluation Methods Factor-Comparison Method: Under this method, the job is evaluated, and the ranks are given on the basis of a series of factors Viz. The five factors which are customarily used are mental requirements, skills, physical requirements, responsibilities and working conditions. You have to rank from highest to lowest in order of their values or merit to the organization. Essays, Research Papers and Articles on Business Management, Methods of Job Evaluation | Personnel Management, Job Evaluation: Objectives, Principles and Methods of Job Evaluation, Term Paper on Job Evaluation | Organisation | Management, Methods of Job Evaluation | Hindi | Human Resource Management, Essay on Depositories | Securities | Financial Management, Advantages and Disadvantages of Franchising. These are comparatively fewer than the point system but are nevertheless sufficient, because each factor is defined broadly. Job evaluation is a process of determining the relative worth of a job. The second method is one of awarding points for various aspects of the job. In the point score system, assigning points is an important step. Method # 1. The rater determines which job in the series requires least amount of various characteristics used for comparison, and places that job in the lowest rank position. Job Analysis in HRM – Meaning and Definition Job analysis is a systematic and detailed examination of jobs. In order to increase the reliability of ranking, this exercise is und… This is nothing but a method of rating each job by assigning a certain number of degrees to each factor. As a result of research in the field of training, a number of programs are available some among these are new methods while others are improvements over the traditional methods. (iv) It is difficult to know how much of a job’s rank is influenced by the man on the job. Factor-Comparison Method: Under this method, the job is evaluated, and the ranks are given on the basis of a series of factors Viz. Ideally, these should be offered anonymously and confidentially. Review the choices of job evaluation methods such as job ranking, classification, factor comparison and point factor analysis and select the method most appropriate to meet the organization’s needs. Training Methods in Human Resource Management. The advocates of factor comparison method point out that it usually results in accurate job evaluation because it is relatively more objective because weight are not selected arbitrarily. Jobs … Each grade level must be distinct from the grade level adjacent to it; at the same time, it should represent a typical step in a continuous way and not a big jump or gap. Selecting a Method for Evaluation- This is the most important step in the Job Evaluation process in HRM. For example, menials may be put into one class; clerks in another; junior officers in a higher class; and the top executive the top class. Six steps suggested by Flippo are- Select job factors or characteristics, construct a scale or yardstick of values for each job factor, evaluate all jobs in terms of the yardsticks, conduct a wage survey for selected key jobs, design the wage structure, and adjust and operate the wage structure. The point system can be utilised in the following five steps viz. Here the job is not broken into the factors, an overall analysis of the job is done. The two most common methods of job evaluation that have been used are first, whole job ranking, where jobs are taken as a whole and ranked against each other. (c) Allocate wage for each key job to different factors. Since many workers think of jobs in, or related to, clusters or groups, this method makes it easier for them to understand rankings. The job descriptions are then studied and analysed. : (a) Select job factors or characteristics; Six steps suggested by Flippo are- Select job factors or characteristics, construct a scale or yardstick of values for each job factor, evaluate all jobs in terms of the yardsticks, conduct a wage survey for selected key jobs, design the wage structure, and adjust and operate the wage structure. Pay grades are determined for, and assigned, to all the job classification. Subscribe to our e-mail newsletter to receive updates. But however it is not free from the limitations, it is subjective in nature due to which employees may feel offended, and also, it may not be fruitful in the case of big organizations. (i) Specific job requirements (such as skill, effort and responsibility) are not normally analysed separately. Point system is perhaps the most widely used job evaluation method. Pur… Uploader Agreement. Ranking Method: This is the simplest and an inexpensive job evaluation method, wherein the jobs are ranked from he highest to the lowest on the basis of their importance in the organization. (3) It is difficult to determine the factor levels within factors and assigned values to them. Key jobs are assigned to an appropriate grade level and their relationship to each other studied. (v) Since no detailed analysis of a job is done, the judgment in respect of a whole range of jobs may produce an incorrect classification. The evaluation of job under this method consists of following steps: (a) Select the factors and define them clearly. This system suffers from the following defects: (i) The system is rather rigid and unsuitable for a large organisation or for very varied work. Jobs are often arranged according to the relative difficulty in performing them. Before answering these questions, we need to define what we mean by evaluation. Like rank order method, it rates job by comparing one job with another and, like the point system, it is more analytical in the sense of subdividing jobs into compensable factors. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. 2. Image Guidelines 4. 1. Report a Violation 11. These generalisations usually hold true for most jobs and serve as indicators of what the level of payment should be, but they are so general that they are of little use in translating specific jobs into rates of monetary compensation. (e) Evaluate the job in question factor by factor in relation to key jobs on job comparison scale. Content Guidelines 2. This is unrelated to performance reviews, as the goal is to evaluate the job itself, not the person who is performing the job. (i) Ranking … (iii) This method is simple to operate and understand, for it does not take much time or require technical help. (4) If many rates are used, considerable clerical work is entailed in recording and summarising the rating scales. Evaluation of human resources management. There are four types of job evaluation methods: There can be divided into two categories: The first category covers the simple methods which apparently make no use of detailed job factors. In this method, jobs are not split up into their component parts. Factors included will be general … The main advantage of the ranking method is, it is very easy to understand and is least expensive. In the points system various aspects or parts of the job such as education and experience required to perform the job are assessed … The ranking is provided to the job on the basis of this comparison. But the methods under the second category use a detailed approach. Reference this Share this: Facebook Twitter Reddit LinkedIn WhatsApp Human resource management (HRM) is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and … (v) Once the scales are developed, they can be used for a long time. Copyright 10. Here ranks obtained from job descriptions or paired comparison is spaced along a number line. The duties, responsibilities and details of every job must be described and a detailed list of all such jobs must be prepared as job description at this stage. Once the job specifications are available and the scales are constructed, evaluation of jobs becomes easier. About 10 to 20 jobs are selected, which include all the major departments and functions and cover all the grades. The Committee consists of an Independent Chair, a representative of the employer and an employee designate. It is a procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it. Terms of Service 7. It enables to make clear-cut demarcation of every specific job. The usual process followed in this method is as under: 1. But however it is the most complex and an expensive method. He has identified four major job factors viz., skill, and responsibility, effort and working conditions. There are many methods by which job evaluation is done. The job ranking method is the simplest of all the methods. JOB EVALUATION Presented by- Sandeep Singh 2. Does not consider market compensation rates. Job Evaluation 1. Ranking / Grading Method: Under ranking method, jobs are organized in descending order of importance with the help of job description and job specification. He then determines which job requires next higher amount of characteristics and places it next to preceding job’s rank, and so on. To establish the rates of pay for these specific jobs, the rates of pay can be associated with those jobs in the rank order. All the jobs in the same grade receive the same wage or range of rates. The point ranking method is less subjective and is an error free as the rater sees the job from all the perspectives. The most common are job ranking, factor comparison, point evaluation and job comparison methods. Some of the methods of job evaluation are not easily understood by workers. (f) Design, adjust and operate the wage structure. Thus, each job is compared against each other on this basis and is ranked accordingly.The advantage of this method … Job evaluation typically … But however it is a complex method and is time-consuming since the points and wage scale has to be decided for each factor and the sub factors. The job is treated as a whole, and job descriptions rather than job specifications are often utilised. 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