Pricing the jobs can be done by any of the methods of job- evaluation taking into consideration the internal and external consistencies. Of all job evaluation methods, the point-factor method is probably the best known. This is unrelated to performance reviews, as the goal is to evaluate the job itself, not the person who is performing the job. Method of Job Evaluation – 4 Main Methods (With Comparison) The four major methods of job evaluation are listed below: 1. There are non-analytical and analytical job evaluation methods that are employed by the organizations to realize the worth of a set of jobs. And also, the entire job is compared against the other jobs and is not broken into factors. 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. Plagiarism Prevention 5. 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. In the case of … (b) Select the key jobs — Key jobs serve as standard against which all other jobs are compared. The jobs are then grouped by total point score and assigned to wage/salary grades so that similarly rated jobs would be placed in the wage/salary grade level. A job factor, according to Flippo, is “a specific requirement levied upon the job holder, which she or he must contribute, assume, or endure”. Job factors are selected and measured and job specifications are definitely given consideration. However, each factor which represents a certain characteristics of the job which management feels is worth compensating, can be selected with maximum care so that ambiguity can be minimised. Factor comparison . Much subjective judgement is required to determine the relations and position of job, in the rank order. 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. Job Grading Method: Also known as Job-Classification Method. 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. 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. Does not consider market compensation rates. In large organisations, it is the responsibility of a committee to make evaluation. There are many methods by which job evaluation is done. He then determines which job requires next higher amount of characteristics and places it next to preceding job’s rank, and so on. Job analysis works in identifying, compiling and analyzing three main important component of Job i.e. A Few HR Evaluation Methods. These factors are assumed to be constant for each set of jobs. The number of factors may be more than five also. On the basis of the closeness of job y to x, the former is located at some selected distance from x, in the above figure; y is placed near- 80. The system becomes difficult to operate as the number of jobs increases. It tries to make a systematic comparison b/w jobs to assess their relative worth for the purpose of establishing a rational pay structure. Job Analysis in HRM – Meaning and Definition Job analysis is a systematic and detailed examination of jobs. The major limitation of this method is that the jobs may differ with respect to their content and the complexity and by placing all under one category the results may be overestimated or underestimated. (d) Develop a job comparison scale and insert key jobs in them. (i) Specific job requirements (such as skill, effort and responsibility) are not normally analysed separately. 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. (iii) It is far less expensive to put into effect than other systems, and requires little effort for maintenance. Process of Job Evaluation – Job Analysis, Appointment of … Workers find it difficult to fully comprehend the meaning of concepts and terms, such as factors, degrees and points. The Committee consists of an Independent Chair, a representative of the employer and an employee designate. The ranking is provided to the job on the basis of this comparison. The most common are job ranking, factor comparison, point evaluation and job comparison methods. It is here that the job evaluation moves from general to the specific. After establishing the grade level, each job is assigned to an appropriate grade level on the basis of the complexity of duties, non-supervisory responsibilities and supervisory responsibilities. Generally speaking, such factors are more useful in evaluating executive or supervisory jobs than in evaluating manual jobs or clerical jobs. (e) Evaluate the job in question factor by factor in relation to key jobs on job comparison scale. If the size of the organisation is relatively smaller, the job raters will be in a better position to grasp the job descriptions without experiencing much difficulty. The following five steps are generally involved: The Preparation of Job Descriptions, which gives us basic job information, usually derived from a job analysis. Actually speaking, every individual executive would like to stick to the tasks specifically associated with the job title. Grade descriptions are the result of the basic job information which is usually derived from a job analysis. It is essentially a combination of the ranking and point systems. 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. Qualitative Methods of Job Evaluation: Evaluation of a thing can be done by keeping in view the qualitative as well quantitative aspects. After analyzing and preparing the Job Description, now the Committee has to choose the Job Evaluation Method which suits their works whether it is a qualitative or quantitative method. General grade descriptions are written for each job classification, and finally these are used as a standard for assigning all the other jobs to a particular pay scale. (1) The task of defining job factors and factor degrees is a time consuming and difficult task. Prohibited Content 3. Before answering these questions, we need to define what we mean by evaluation. The second approach to human resource management evaluation is the analytical one. This comparison is usually made by having the raters meet as a committee and discuss with each other their respective rankings. Of course, rating is totally a matter of judgment and it is subject to human bias and limitations. Evaluation of human resources management. (ii) The system merely produces a job order and does not indicate to what extent it is more important than the one below it. Evaluation is “a set of planned, information-gathering, and analytical activities … Jobs … … Certain jobs may then be grouped together into a common grade or classification. (c) Allocate wage for each key job to different factors. Common tasks, responsibilities, knowledge and experience can be identified by the process of job analysis. Under this system, a number of pre-determined grades or classifications are first established by a committee and then the various jobs are assigned within each grade or class. (iv) If an organisation consists of 500 people holding to different jobs, the jobs might be broken up into perhaps 5 classes, arranged in order of importance from high to low, and described class by class. It means that a manual may have a number of yardsticks portraying various factors relating to a specific job. (iii) This method is simple to operate and understand, for it does not take much time or require technical help. In this method, the overall job is compared with the other set of jobs and then is given a rank on the basis of its content and complexity in performing it. 2. Jobs are classified by grade definitions. “These are the values for which an employer pays money”. Ideally, these should be offered anonymously and confidentially. (v) The grouping of jobs into classifications makes pay determination problems administratively easier to handle. In this method, five factors are generally evaluated for each job. The point system, being an analytical approach, is more concerned with job factors or components. Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization. All the jobs in the same grade receive the same wage or range of rates. He has identified four major job factors viz., skill, and responsibility, effort and working conditions. Since many workers think of jobs in, or related to, clusters or groups, this method makes it easier for them to understand rankings. Quantitative Methods: (a) Point Rating. But they remain in the minds of the evaluators and thus affect the results. The second method is one of awarding points for various aspects of the job. Job evaluation is a process of determining the relative worth of a job. Workers fear that job evaluation will do away with collective bargaining. These sub-factors are then assigned the points by its importance. 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. JOB EVALUATION Presented by- Sandeep Singh 2. The usual process followed in this method is as under: 1. Privacy Policy 9. 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… 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. When the various factors, on which each job can be rated (each factor can be broken down into a number of degrees and each degree is worth specific points) are listed together it becomes a manual. Job Ranking: Job ranking is the simplest method. This method ranks jobs in order based on each job’s perceived value in relation to the others, says Neelman. Since job evaluation is a process of determining relative standing of every job, the rater must be equally considerate to each job. Pur… But however it is the most complex and an expensive method. (i) It has the ability of handing a large number of jobs and enjoys stability as long as the factors remain relevant. Then each job is to be evaluated and compared to other jobs in terms of each factor. It is a process which is helpful even for framing compensation plans by the personnel manager. Job Evaluation 1. 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 360-Degree Review: This is a feedback process where it’ll incorporate input from people all around the employee in question – direct managers, peers, adjacent managers and reporting staff – so there’s a truly comprehensive look. 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. Key jobs are assigned to an appropriate grade level and their relationship to each other studied. The Preparation of Grade Descriptions, which has different levels or grades of jobs, may be identified. 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. Job classification . Point system is perhaps the most widely used job evaluation method. Method # 1. The advantage of this method is that it is less subjective as compared to the raking method and is acceptable to the employees. But the methods under the second category use a detailed approach. (i) It requires less time, fewer forms and less work, unless it is carried to a detailed point used by company. The designate is chosen by the appellant, and must be trained in the evaluation … A committee of several executives is constituted which evaluates the job descriptions and ranks them in order of importance beginning with the most important job to the least important job in the organisation. Pay grades are determined for, and assigned, to all the job classification. Instead, comparison is made on the basis of whole jobs. You have to rank from highest to lowest in order of their values or merit to the organization. Job evaluation is regarded by the trade unions with suspicion because it is made on certain principles and the results are generally ignored. Internal consistency is concerned with the concept of relative wages within the firm, for example if a supervisor is paid less than a subordinate; it is inconsistency in wage rates. (3) It is difficult to determine the factor levels within factors and assigned values to them. Thus, each job is compared against each other on this basis and is ranked accordingly.The advantage of this method … Terms of Service 7. In order to measure the job worth, point system backed by the factor comparison system is an effective tool. The analytical approach relies on cost-benefit analysis, also called the utility analysis. The ranking method is one of the simplest methods of job evaluation. 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. 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. c) Evaluation criteria Why is it important to know how well HR works? 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. Presumably the jobs already have wage rates attached to them, the ranking system is used to judge whether these are equitable. Job evaluation is an assessment of the relative worth of various jobs on the basis of a consistent set of job and personal factors, such as qualifications and skills required. Content Filtration 6. But this task may become difficult as the number of jobs increases. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. 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. 4. Utility analysis seeks to express evaluations in economic terms, which are more useful for decision makers. Selecting a Method for Evaluation- This is the most important step in the Job Evaluation process in HRM. 2. About 10 to 20 jobs are selected, which include all the major departments and functions and cover all the grades. (iii) Prejudice and human judgment are minimised, i.e., the system cannot be easily manipulated. Factors included will be general … Here the job is not broken into the factors, an overall analysis of the job is done. Jump to: Position Classification Staff Wage Grade Determination When is a Job Evaluation This method determines the relative ranks of the jobs to be evaluated in relation to monetary scale. Then these points are computed and added together. The point ranking method is less subjective and is an error free as the rater sees the job from all the perspectives. The Job Analysis process to conduct a study on the data collected on the job to find out the real human requirement of the Job such as Job activities its attributes and other important tasks required for performing a specific Job. Actually speaking, there are many factors like knowledge, commitment, interpersonal capabilities, achievement motivation, physical capabilities, and so on, which influence individual performance. This class description broadly reflects level of education, mental skill, profit impact or some combination of these. 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. In the preceding method, a rater is required to keep in mind all the jobs being ranked in order to place them in their correct relationship to each other. Some of the methods of job evaluation are not easily understood by workers. Image Guidelines 4. : (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. Info: 2960 words (12 pages) Essay Published: 1st Jan 1970 in Business. Non-quantitative Methods: (a) Ranking or Job Comparison. Please direct all questions to your HR Manager. The training methods in HRM are selected based on following three components 1. Selecting degrees, and assigning weights to factors and degrees, come under manual setting. May work well for smaller companies. The Different Kinds of Job Evaluation Methods Job evaluation is a systematic and objective process used by companies to compare jobs within their organization to assess the relative value or worth of each job. In this method, jobs are not split up into their component parts. Job specifications and job evaluation manual would, however, be instrumental to make rating systematic and easier. Job evaluation typically … It enables to make clear-cut demarcation of every specific job. Human Resource Management, Functions, Job Evaluation, Methods of Job Evaluation. 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. This would result in less accurate evaluation. In the ranking method of job evaluation, a whole job is compared with others and rank is provided on the basis of this comparison. Ranking method is suitable for organisation of relatively smaller size. The more skill, education and responsibility required in a job, the more is its worth. Job ranking . If it is qualitative, then what will be better- Ranking Method or Grading Method. The purpose of ranking is to determine whether a job involves the same level of duties, responsibilities and requirements as others in the series or a higher or lower level than they do. These factors are assumed to be constant for each set of jobs. 1. When using this particular method, a job analyst observes an employee and records what they do and do not do. This method is very simple since the raters are fully familiar with the job and workers also understand the process, and installation of this system is not a difficult task. (iii) Although it represents an advance in accuracy over the ranking method, it still leaves much to be desired because personal evaluation by executives (unskilled in such work) establishes the major classes, and determine into which classes each job should be placed. The differences between them are noted with respect to the key points selected for comparison. Analytical Job Evaluation Methods Account Disable 12. 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. Disclaimer 8. Mental effort, physical effort, skills required supervisory responsibilities, working conditions, and other relevant factors. Jobs are often arranged according to the relative difficulty in performing them. 2. 1. In necessitates proper evaluation of every job. 2. These are comparatively fewer than the point system but are nevertheless sufficient, because each factor is defined broadly. (iv) It gives us a numerical basis for wage differentials; by analysis a job by factors it is usually possible to obtain a high measure of agreement on job value. Here ranks obtained from job descriptions or paired comparison is spaced along a number line. (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. This is nothing but a method of rating each job by assigning a certain number of degrees to each factor. No specific factors are used for consideration. Jobs within the organization are arranged in some order from the most difficult to … Training Methods in Human Resource Management. Generally speaking, job titles go with what each job is expected to do. Mental effort, physical effort, skills required supervisory responsibilities, working conditions, and other relevant factors. 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. The more scarce the labour supply and higher the demand, the more a job is worth. It only gives us its rank or tells us that it is higher or more difficult than another, but it does not indicate how much higher or more difficult. (f) Design, adjust and operate the wage structure. It is often used for evaluating white collar, professional and managerial positions, although it is equally suitable for grading other jobs as well. (vi) Jobs can be easily placed in distinct categories. (ii) It is used in important government services and operates efficiently; but it is rarely used in an industry. A Manual or yardstick provides’ a set of standards against which each job can be compared. Point-Ranking Method: Under this method, each job’s key factor is identified and then the subfactors are determined. Point method . The ranking of job is done by a committee of experts called raters. The job ranking method is the simplest of all the methods. Similarly, other jobs can also be spaced by considering their closeness with the highest ranked and preceding job. In the points system various aspects or parts of the job such as education and experience required to perform the job are assessed … In addition, judgment is needed in determining what the pay rates should be since a statistical method of interpolation is not employed. 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. (iii) As there is no standard for an analysis of the whole job position, different bases of comparison between rates occur. It is flexible also and has not upper limit on the rating that a job may receive on a factor. The job descriptions are then studied and analysed. (2) The development and installing of the system calls for heavy expenditure. Strauss observed, “Seemingly irrational decisions that are consistent with each other may be better than more rational decisions that are inconsistent”. The main advantage of the ranking method is, it is very easy to understand and is least expensive. Detailed job specifications facilitate the accuracy of rating. 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. The comparatives with the other methods are … The point system can be utilised in the following five steps viz. (4) If many rates are used, considerable clerical work is entailed in recording and summarising the rating scales. Job Description, Job Specification and Job Evaluation. Next step is to draw up job specifications for evaluating the performance in comparison with the specifications made. Now another job, say y, is picked up, and a decision is made regarding its closeness to the highest ranked job which is x in the present case. … Responses Responses are listed below in the following order: response, author and … There are four basic methods of job evaluation currently in use which are grouped into two categories: 1. Three techniques are generally used for ranking purpose, namely: When this procedure is followed, each rater is given a set of job descriptions, one for each job to be ranked. In this method, the overall job is compared with the other set of jobs and then is given a rank on the basis of its content and complexity in performing it. Copyright 10. 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. Which of these do you feel is most useful and why? Another advantage of this method is that it utilises procedure of rating new jobs by comparing with other standard or key jobs is logical and not too difficult. Once the job specifications are available and the scales are constructed, evaluation of jobs becomes easier. Job Evaluation and Position Classification Procedures The following information is provided to assist managers with understanding the processes for job evaluation as it relates to determining position classification and staff wage grade. It is difficult to explain to supervisors and employers. In general, the more difficult the job, the more is its worth. (ii) The system is simple, easily understood, and easy to explain to employees (or a union). Ranking / Grading Method: Under ranking method, jobs are organized in descending order of importance with the help of job description and job specification. The objective of job evaluation is to determine which jobs should get more … A job title mainly considers two aspects viz., what does a particular job consist of? In this process the aspects like job titles, job descriptions and job specifications are important. This method is, in fact, an extension of job description and paired comparison method. The human resource department is responsible for the choice and selection of training methods used for entire organization. Factor-Comparison Method: Under this method, the job is evaluated, and the ranks are given on the basis of a series of factors Viz. Report a Violation 11. Under this system, the job raters simply rank one job against another without assigning point values. Meaning of Job Evaluation Job evaluation : Systematic way of determining the value or worth of a job in relation to other jobs in an organization. Before uploading and sharing your knowledge on this site, please read the following pages: 1. After a rater’s judgment is strongly influenced by present wage rates. However, the ranking method has limited usefulness. The strategy of HRM department shapes the framework of training methods within the organization. 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. The job is treated as a whole, and job descriptions rather than job specifications are often utilised. 3. When all of the key jobs have been evaluated and wages allocated in this manner, a job comparison scale can be constructed. Question 1 Discuss the evaluation of HRM’s functions under the following headings: a) Approaches to evaluation b) Methods of Evaluation. ADVERTISEMENTS: (b) Grading or Job Classification. After each rater has assigned the ranks independently, their rankings can be compared. Yardstick is a scale on which the assigned points of the relevant sub-factors of a specific factor are marked. Under this method the job grades or classes are predetermined and then each job is assigned to these and is evaluated accordingly. The five factors which are customarily used are mental requirements, skills, physical requirements, responsibilities and working conditions. The evaluation of job under this method consists of following steps: (a) Select the factors and define them clearly. a job description summarizes the duties of a position and staes the essential responsibilities….. 16. benefits of job description 17. selectingthemethodofevaluation four methods of job evaluation the most important method of evaluating the jobs must be identified now,keeping the job factors as well as organisational demands in mind 18. Published: 1st Jan 1970 in Business may then be grouped together into a common grade or.! 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