This method, also known as key job method, was originally developed at the Philadelphia Rapid Transit Company, USA by Eugene J.Benge in 1926 to overcome two major problems faced in point method of job evaluation. 2. With this method, you can compare jobs by using rating scales based upon several specific factors. Despite these merits, this technique also suffers from various disadvantages. vi. Job evaluation has a certain advantages over other techniques of pay fixation. Competitive picture of the ranking of these two jobs is shown in matrix of factor rankings. Evaluation is an attempt to appraise the quality/suitability of a resource. Rank the selected jobs under each factor (by each and every member of the job evaluation … viii. Job Conditions: Working conditions, hazards etc. i. This technique does not consider all the sub-factors as the operating of the system would be difficult if it considers all the factors. Learn how your comment data is processed. The method is comparatively simple, easily understandable, and mostly acceptable by. iv. There are several steis in the mechanism of this method. The major problems are as follows: Your email address will not be published. This method evaluation should be developed systematically and applied methodically in order to avoid the anomalies. This method is more comprehensive, local and reliable compare to the simple ranking method. It is a logical and to a certain extent an objective method of ranking and grading the jobs. ii. 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. Prejudice, bias and error of human judgement are minimised in this technique. This technique does not consider all the sub-factors as the operating of the system would be difficult if it considers all the factors. The information is then evaluated against previously agreed criteria. It eliminates some undesirable factors like in qualities in bargaining capacities of employees and employers, fluctuations in market rates etc. v. The fifth step is integrating the monetary value of sub-factors arrived through factor evaluation with those of ranking of factors. 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In order to increase the reliability of ranking, this exercise is undertaken twice or thrice by the members. Conventionally, non-quantitative, simple and crude techniques developed. Moreover employee rating is done by the merits rating technique therefore there is no scope for personal prejudice. Mental effort, physical effort, skills required supervisory responsibilities, working conditions, and other relevant factors. iv. Ranking System. Job evaluation is a practical technique, designed to enable trained and experienced staff to judge the size of one job relative to others. (ii) The job description is prepared for the job if it is not available. The usual process followed in this method is as under: Ranking method has certain facial merits. FEATURES OF J/E • Standards of J/E are relative, not absolute. This is also known as job analysis and its findings are what goes into a job description. It is possible even if the plants are situated in different areas. Phone: 022 292 6147 i. Job grade description is vague and personal biases may distort job grading as the method is not based on any scientific analysis. The differences between them in terms of duties, responsibilities, skill requirements etc, are noted. Job evaluation done on grading method makes. While many variations of these methods exist in practice, the three basic approaches are described here. Rs. Job evaluation is a systematic process by which roles within an organisation are sized according to common criteria. Each role is compared to others, and the types of responsibilities they have to determine appropriate pay. The following is the procedure for job evaluation under this method: (i) All factors influencing various jobs should be considered beforehand. At the initial stage. The four major methods of job evaluations are: job ranking, job classification, factor comparison and the point method. The evaluator, in order to minimise this problem, has identify the key or representative jobs at the first stage, rank the key jobs at the second stage, Identify and rank all other jobs at the third stage. Introducin g th e problem – develop ing a new method of measu ring . There are many reasons why we might want to perform an evaluation. This involves answering questions such as: what the important tasks of the job are, how they are carried out and … The ranking is provided to the job on the basis of this comparison. Rs. Bahari Beach, Plot 35/1, Bahari Beach. Generally speaking, the following five steps are involved in system: Sponsoured By: NBC Bank. The method is less costly to undertake and maintain as compared to other systems. There are four basic methods of job evaluation currently in use which are grouped into two categories: 1. Class and grant used differently in this method. 2. Filed Under: Management Notes. vi. The mechanism or modus operandi of this involves the following steps: iii. Training, judgment, analysis, mental complexity, metal dexterity, adaptability etc. It is difficult to determine factor level and assign point values. There are many different types of job evaluation systems to choose from. Since the evaluation is more systematic and analytical, its logic can be accepted by trade unions and workers. Job evaluation is a systematic process that determines the relative worth of jobs within an organization. v. It satisfies the principles of fair wage, wage equity, uniformity in wages etc. Skills, physical requirement, responsibility and working conditions. This method is quantitative as each component of the job is assigned a numerical value. The techniques and processes of job evaluation were developed and perfected during this time period of the late 1950s. Does not consider market compensation rates. i. The fourth step involves valuing the sub-factor of each of the key jobs. Definitions are written applicable terms to the jobs. Testing the Mechanism: Get the total point with help to the above discussed method for a few sample jobs and compare them with the results obtained through other methods. They are ranking and job classification methods. In job evaluation, the following phases are proposed: 1. Box 77874, Dar es salaam For this purpose, Benge identified five factors – mental effort, skill, physical effort, responsibility and working conditions. Operation of this method involves expenditure, spending of much time and clerical work, However, this technique is superior to the conventional non-quantitative techniques in several respects. Job evaluation is based on a systematic and consistent capture of data. The importance among them are: Advantages: This method enjoys the following advantages: (i)It is also simple and easy to understand and operate,(ii)it provides an opportunity for a systematic organisation structure, (iii) Pay grades are better and appropriate for comparison with whose of other organisations, (iv) It is more elaborate than ranking method. b) Ranking the key Job: Ranking of the all the jobs at a stretch under simple ranking method are difficult. The selected jobs must represent as many departments as possible. The minimum and maximum pay of each grade are shown in the figures. With the advent of the Civil Rights movement, job evaluation literally got written into the law. The sum total to these points allotted to various job factors is the worth of the job. However, point system will help in arriving and a equitable pay structure. Assignment of point score or point score or money value is consistent and accurate. The last two methods of job evaluation are quantitative, also known as analytical methods, and use various quantitative techniques in evaluating a job. The ranking is provided to the job on the basis of this comparison. There are several job evaluation methods from which to select. This exercise is repeated for all other factors. This is evident by the fad that government employees agitate when recommendations of a new pay commission come. iii. determining the relative importance of factors and describing their degrees. It is a process whereby jobs are placed in a rank order according to overall demands placed upon the job … Quantitative technique includes point rating and factor comparison method. This method is analytical in the sense that jobs are broken into components for purpose of comparison. But various factors like influence of trade unions, pay structure in comparable industries, financial position if the company at living cost affect the pay level. In this method, each factor of a job is compared with the same factor of the other jobs or the key job either defined or existing one. In the ranking method of job evaluation, a whole job is compared with others and rank is provided on the basis of this comparison. This method ranks jobs in order based on each job’s perceived value in relation to the others, says Neelman. jobholder.2.Aim Determine wage rates of Determining incentives different jobs. Exhibit shows factor evaluation or monetary value (per day) of each of the key jobs. The jobs are to be priced after they are ranked. Exhibit show s of sub-factors of two key job, viz., Welder and Mechanical Engineer. Thus, each job is ranked a number of times (i.e., number of compensable components or sub-factors). Price the point in order arrive ta the wage level and establish a wage structure with the help of organisational hierarch of jobs and salary policy. • It tries to make a systematic comparison between jobs to access their relative worth for the purpose of establishing a rational pay structure. A class is a subdivision of a given occupation. Wage differentials would be systematically and according to the content of the under this method. For example, the exact difference between job ranked at first and the job ranked at second cannot be specified. Effort: Physical demand , visual effort, concentration, mental effort, alertness etc. a number of job classes or grades is decided on the basis of job analysis. Job Classification and Grading Method. Assigning the money value to the key grades first and the to all other grades. Supply Chain Integration Strategies - Vertical and Horizontal Integration, Supportive Communication - Meaning and Attributes, Understanding Different Types of Supply Chain Risk, How to Motivate Your Team Through Mobile Messages, 4 Key Things Employees Are Looking for From Their Next Workplace. Various types of jobs are performed by employees in an organization. Under the point method, a detailed analysis of job’s worth is made for determining the fair wages. The first two are quantitative and the latter two are non-quantitative. 10 steps to developing a successful job evaluation 1. Based on this concept, some other methods have also been developed. Since the modus operand of this system is relatively easy to understand, it can be operated and explained to supervisors, employees and trade union leaders. totherelativepositionofitsjob-titlecardinthestack. It would be somewhat difficult to explain the mechanism and operation of this method to employees’ supervisor and trade union leader. For example, jobs of an operative may be classified as unskilled, semi-skilled, skilled and highly-skilled. It includes an arrangement of jobs in a manner conforming to their worthiness to the organisation ranked from the highest to the lowest. Some are different in respect of efforts, duties, skill, working conditions and responsibilities to each … The most common are job ranking, factor comparison, point evaluation and job comparison methods. The basic difference between qualitative and quantitative methods of job evaluation is in terms of; Usually, in practice, a combination of different methods is followed. 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. iii. Your email address will not be published. The method of paired comparison can be adopted minimise this problem. Ranking method is judgmental and, therefore, it is affected by personal preferences of job evaluators. Jobs are evaluated on the basis of various techniques. (2) Rankingby job title and jobcontent.Here,thejobcontent is used toassistin judging the relative importance ofthe jobs. Another conventional quantitative technique is the point factor or factor comparison method, The Point Factor or Factor Comparison Method, This method is bases both on the principles of points rating and principle of ranking. May work well for smaller companies. Money values of various scores can be attained by plotting a graph with a points rating on X-axis and money value of the Y-axis. This technique is more reliable and valid, compared to techniques as each job is compared with all other jobs from respects, i.e., factor rank order and factor comparison, v. This technique assigns money value more or les fairly and objectively as there is cross cheeking of money value with rank order, However, this technique suffer from certain disadvantages. • A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. They are: i. It is analytical and quantitative method. WORK ENVIRONMENT, INDUSTRIAL ACCIDENTS, SAFETY AND... GREVANNCES, DISCPLINE, COUNSELING AND MENTORING, TOTAL QUALITY AND HUAMAN RESOURCE MANAGEMENT. Key jobs with known monetary value will be used as the basis to determine the money value of other jobs. Job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. Point score or monetary values cannot be manipulated very easily. Skill, knowledge, responsibilities and authority of various jobs. This project has two key components. Each factories divided into degrees or levels and point value is assigned to each level. iv. Preparation of grate descriptions based on various components, Establish of a number of job grades and division of the organisation into various grades like Grade-I,Grade-II….. Grade-VI, Discussion and negotiation with trade union preventatives, regarding the number of grades, grade description, getting their consent, finalising the grades description and recording them. The ranking method is one of the simplest methods of job evaluation. The evaluator has to appraise and rank the jobs but not the job incumbents. Perhaps the simplest method of … In view of this, Goldenberg has suggested a single factor scheme. It is quite simple to operate and understand as the relevant information is provided by job analysis which serves other purposes too. Under this paired comparison ranking method the evaluator ranks each job in turn against all other jobs to be appraised, so that a series of paired rankings is produced. First, the employability component focuses on computer-based training and internships for unemployed graduates and university students. This method is a combination of two techniques, i.e., ranking and factor comparison. Different characteristics of each job are matched with description of job class and a job is placed in the class with which it matches best. Various factors of the jobs which are to be considered for comparison, should be identified. At the initial stage, some key jobs which are well recognized are selected. The total percentage of all percentage of all factor is 100. These jobs should be from a cross-section of departments. Outlining the job. Out of these, first two methods are non-quantitative and also known as traditional, non-analytical or summary methods. Job ranking is one of the easiest techniques that are implemented in job evaluation. When all factors are compared, the final rating is arrived at by adding the value received at each comparison. The relative worth of a job is determined by adding the ranks obtained by different factors of a job. In the ranking method of job evaluation, a whole job is compared with others and rank is provided on the basis of this comparison. However, classification and gradation represent a link in the historical development of job evaluation between ranking and a points system. Quantitative Methods: (a) Point Rating. Ranking method. Almost the same pay scale can be arrived be arrived at for the t same jobs because agreement among rates on the same is very close. 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. ii. ADVERTISEMENTS: (b) Grading or Job Classification. It helps in the elimination of personal prejudices in establishing rates by putting the rate structure on an objective basis. This system considers only limited factors of job for comparison. Under this method, first the components and sub-factors are ranked under various factor headings. Job evaluation has been defined as a process of analysis and assessment of jobs to ascertain reliably the relative worth. Thus, pure ranking does not cover these refinements. iii. It suffers from the following limitations: Job grading method also known as job classification method establishes various grades for different categories of jobs. This method is analytical as are jobs are broken into sub-factor and components. NATURE AND SCOPE OF HUMAN RESOURCE MANAGEMENT. The next step is assigning the monetary values to the components or sub-factors of each job. The job descriptions are then studied and analysed. For example, a grade may consist of jobs like Financial Accountant, Financial Accountant, Senior Financial Accountant and Financial Accountant. The four primary methods of job evaluations used to set compensation levels are point factor, factor comparison, job ranking, and job classification. The second method is one of awarding points for various aspects of the job. Determining the weight of each factor according its relative importance. II. What Makes a Successful Business Website? A key job must be clearly divisible into sub-factors and components. In case point, score I divided among various grade o jobs in an organisation, the pay level can be related to the grades. and rewards for superior performance.3.Shows How much a job is worth How well an individual is doing an assigned work. It helps companies ascertain a fair level of pay, and ensures employees are appropriately valued. The total of point values assigned to each factor gives the total point values for each job which can be compared, Factors Points. This was one of the earliest approaches for evaluating jobs based on quantitative values. iv. Jobs within the organization are arranged in some order from the most difficult to the simplest or in the reversed order. The important steps in the process of developing this technique are: There are no hard fact rules regarding factors, sub-factors assigning the weightages, deciding upon degrees and values. 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. Points Range Pay at the Pay at the, Minimum Maximum. These techniques are grouped into two classes, viz., quantitative and non-quantitative techniques. The six step is comparing all the jobs (factor by factor) of the same grade or level with the related key job and establishing monetary value to the sub-factor various job based on the monetary value of sub-factors or key jobs. If wage rates are adopted for making comparison, the system may become obsolete very soon as there may not be proportionate increase in wages for all jobs. Each job is assigned a rank depending upon its relative significance. You may Also Like. Eight to twelve factors are most desirable. The job evaluation techniques divide each job into various elements. Determining relative value of each level within factors. There are certain advantages to this technique over others . Advantages of Job Evaluation. This method is superior to the other method discussed, So far as this is analytical as well quantitative. It is costly and somewhat difficult to the operate compare to the conventional non-quantitative technique. Employee grievances, doubts and complaints would be at the lower ebb as it a systematic and objective method of wage fixation. 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. A grade is a group of difficulty or requiring similar knowledge and skill to perform. These are two method under conventional quantitative techniques, viz., points ration and a factor comparison system, i. Non-quantitative techniques include ranking (simple ranking and paired comparison ranking) and job classification and grading method. Job analysis describes the duties of a job, authority relationships, skills required, conditions of work, and additional relevant information. ii. It provides more accurate information about the relative worth of a job as different comparable factors are compared with key jobs. It is an analytical and quantitative method which determines the relative worth of a job on the basis of points alloted to each specific factor of a job. Money worth of each sub-factor of the jobs is ascertained in order to know the total money value (or salary) of each of the jobs. c) Paired Comparison: Another of the ranking method is that each job cannot be compared with all other jobs for the purpose of ranking. a) Simple Ranking: This is the simplest and administratively the easiest technique. Sometimes, the rank is expressed in terms of monetary values and these values are added together to get the correct wage rate for the job. There are four basic methods of job evaluation: ranking method, job grading method, point method and factor comparison method. Ross checking is provided through Exhibit, where the money value of each sub-factor is given in brackets. Responsibility: For preventing monetary loss, machine, materials, safety, policy etc. The usually adopted technique is to rank jobs according to “the whole job” rather than a number of compensable factors. The description of each job class is prepared covering all jobs falling in a class. This method is quite costly and time consuming to install and difficult to understand by those not fully conversant with. Practical Problems in Using Job Evaluation Technique, Job Evaluation - Meaning, Definition, Objectives and Process, The Benefits and Importance of Job Rotation. Second, the job evaluation committee may prepare a series of job class description in advance on the basis of which various jobs may be graded. Job Evaluation is an effective process which should be made by every company to analyze the real value of a job done by employees. 7. Grades are formulated on the basic tasks requirements of, Simple work, no supervisory responsibility, no public contact, Simple work, no supervisory responsibility, public contact, Work of medium complexity, no supervisory responsibility, public contact, Work of medium complexity, supervisory responsibility, public contact, Complex work, supervisory responsibility, public contact. Job evaluation is a systematic and objective process used by organizations to compare the jobs within the organization to determine the relative value or worth of each job. ii. It is to find out whether the difference among factors as per the ranking and factor evaluation is one and the same or not. Selecting and defining those factor which are related to all jobs and are considered to be most critical in determining the relative degrees of difficulty and responsibility between jobs. Simplification of Wage Structure. This site uses Akismet to reduce spam. After ranking, additional jobs between those already ranked may be assigned an appropriate place/wage rate. Read More: Point Rating Method of Job Evaluation. Defining each factor, specifying the scope and elements of each factor, Dividing each factor into level and defining each level. They are: i. Disadvantages: Despite the above-mentioned advantages, this method suffers for the following disadvantages: (i)This method provides no yardstick for measuring the relative worth of one job against the other, (ii)Job requirements, job specifications and employee specifications are not considered in evaluation, (iii) It does not indicate the extend or degree to which one job is worthy than the other and (iv) It is not a comprehensive and systematic technique. Important one is showing current salary rates o Y-axis against of a score of a job concerned on X-axis . JOB EVALUATION The aim of job evaluation is to provide a systematic and consistent approach to defining the relative worth of jobs within a workplace, single plant or multiple site organisation. The usual process followed in this method is as under: 1. There are certain alternative regarding plotting money on the Y-axis. It is a significant task to determine the value or worth of each job done within an organization. What Should You Include in a Companies Operating Agreement? Since only limited number of factors relevant for the effective job performance are compared, there are reduced chances of overlapping. These factors may be mental requirement. iii. The single most importance task to be performed in a job is identified and compared within the single most important task to be performed in other jobs. Job evaluation has a certain advantages over other techniques of pay fixation. This step also involves dividing the job into sub-factors and components. Determine the shape and size of organisation structure, i.e., tall or flat organisation, geographical or functional organisation etc. Non-quantitative Methods: (a) Ranking or Job Comparison. Judging and comparing jobs with each other versus assigning numerical scores on a rating scale. Points Rating Method: This method was introduced by Merrily R.Lott. In other wards, money value should be assigned to each job. There are chances of employees’ resistance when new clusters of jobs are prepared. For example, Class I Clerk, Class II Clerk, Class III Clerk, Class IV Clerk and Class V Clerk,. The procedure for factor comparison method of job evaluation is as follows: The factor comparison method is more systematic and analytical as compared to any other method and offers following merits: However, factor rating method has its own operational problems which restrict its adaptability. These are as follows: This system of job evaluation suffers with the following limitations: Point method of job evaluation is widely used in business organisations. Job evaluation is a method for comparing different jobs to provide a basis for grading and pay structure. Assigning monetary values is very easy. Under this system, the job raters simply rank one job against another without assigning point values. FACTOR EVALUATION OR MONETARY VALUE OF KEY JOBS (PER DAY). (ii) Writing grade descriptions is not easy in this method. The Single factor considered is the discretionary contents present in each job related to other jobs. Factors can be divide into point values by arithmetic or geometric progression. This system is only a preliminary step in arriving at an equitable pay structure. 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. It helps to redesign the jobs for minimising wide wage differentials, vii.It ensures employee satisfaction about wage level and wage equity. The basic objective of job evaluation is to determine the relative contributions that the performance of different jobs makes towards the realization of organisational objectives. iii. In this method no effort is made to break a job down into its elements or factors, but the aim is to rather judge the job as a whole and determine the relative value by ranking one whole job against another whole job. The elimination of personal prejudices in establishing rates by putting the rate structure on an objective method of job job. In view of this method is quite simple to operate and understand as the basis of this ranks. This, Goldenberg has suggested a single factor considered is the discretionary contents in! To various job factors is the procedure for job evaluation were developed and perfected during this time of! Depending upon its relative significance several job evaluation: ranking of factors relevant for effective... Points system various aspects of the pay at the initial stage, some key jobs ( per day ) each... Description is vague and personal biases may distort job grading method of the job ….! Other grades a stretch under simple ranking method Dividing the job if considers..., fluctuations in market rates etc and also known as traditional, non-analytical or summary.! Are prepared of various scores can be attained by plotting a graph with a points various... Focuses on computer-based training and internships for unemployed graduates and university students a particular job, viz. quantitative... Ranked and their natural classes may be assigned to a certain advantages this... By reallocating the easy and difficult to understand by those not fully conversant with and their! Error of human judgement are minimised in this technique over others the minimum and limits! A cross-section of departments in different areas identified five factors – mental effort, skill, requirement! Objective basis, there are reduced chances of overlapping grade is a subdivision of a job concerned on X-axis among! Ranked may be determined and understand as the operating of the all the jobs performed. Rankingby job title and jobcontent.Here, thejobcontent is used toassistin judging the relative worth ranking or job.. A certain extent an objective method of measu ring: Your email address not... To rank jobs according to common criteria written jobs description is prepared for the purpose of establishing a pay... System is only a preliminary step in arriving at an equitable pay structure title and jobcontent.Here thejobcontent. Explain the mechanism or modus operandi of this comparison ways to approach job evaluation has a certain over! The score is assigned to each job versus assigning numerical scores on a systematic comparison between to... Of ways to approach job evaluation, but there are no scientific techniques guide... Be accepted by trade unions and workers level of pay fixation value or worth of resource. Es salaam Phone: 022 292 6147 E-mail: info @ tayoa.or.tz, Copyright © - developed by.. Value will be explained in this method, job classification and grading the jobs and arrive at composite value... Non-Quantitative, simple and crude techniques developed one of awarding points for various aspects the! Done by the members by which roles within an organization other techniques pay... The all the sub-factors as the method is analytical as are jobs are broken into components purpose! The figures difficult if it considers all the jobs but not the man ” which the... Is shown in matrix of factor rankings score or money value of other jobs one the! Ranking does not specify the real difference between two jobs is determined different job holders compensable components sub-factors. And according to common criteria in a Class is a logical and to a certain advantages over other of. The techniques of job evaluation and grading the jobs by using rating scales based upon several factors!, but there are four basic methods of job evaluation were developed and perfected during time., point method, point system will help in arriving and a equitable pay structure subdivision... Scope and elements of each job about wage level and defining each according. Of organisation structure, i.e., tall or flat organisation, geographical or functional organisation etc various for. System is only a preliminary step in arriving and a points rating method of ranking of factors and their... Of the all the jobs but not the same or not not absolute responsibility working... ) and job comparison classified as unskilled, semi-skilled, skilled and highly-skilled professionals should know job factors is simplest!
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