10. The first two systems are called the non-analytical or non-quantitative or summary systems, because they utilise new-quantitative methods of listing jobs in order of difficulty and are, therefore, simple. The management must give widest publicity to every phase of the programme. Job evaluation is a method for comparing different jobs to provide a basis for grading and pay structure. Focus – Focus should be on rating the job and not the job holder. This may be made clear from the following table: Thus, the rate of wages for Job X will be Rs. These factors may again be sub-divided into sub factors. Job evaluation is a term which is applied to a number of distinct but related administrative methods which rank or assess the relative value of different jobs or occupations. Grade descriptions are the result of the basic job information which is usually derived from a job analysis. defines job evaluation as an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned. It also works as a safeguard against industrial disputes. Under this method of job evaluation—key factors are selected. Job evaluation as a process is advantageous to a company in many ways: This method of job evaluation is most popular method for evaluating different jobs of an enterprise. A good relationship with unions and employees is important. 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. Reduce inefficiencies in remuneration e.g. Job Evaluation – Definitions by Some Eminent Scholars Like Kimball & Kimball, John A. Shubin, Flippo, Dale Yoder, Wendell French and Other Institutions, Job Evaluation  – Factors that Job Evaluators Consider while Evaluating a Job, Job Evaluation – Principles: According to Kress, Job Evaluation – 4 Important Methods: Ranking System, Grading Method, Point Method and Factors Comparison Method (With Merits & Demerits). What is Job Evaluation – Meaning Job evaluation is a term which is applied to a number of distinct but related administrative methods which rank or assess the relative value of different jobs or occupations. Job evaluation and its objective. (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. (e) Some degree of subjectivity is always present in job evaluation. The GNWT complies with equal pay for work of equal value and ensures that jobs are assessed in a gender-neutral manner and based on skill, effort, responsibility and working conditions. Job evaluation definition is - systematic qualitative appraisal of each job or position in an establishment either through the assignment of points for job characteristics or through comparison of job factors (as mental effort, experience, and responsibility required) for the purpose of determining the relative position of the job in the job hierarchy and for fixing wage rates. For example, the “Equal pay for equal Work” Act focuses on four factors: Working conditions responsibility, efforts and skills. It may, however, be noted that a job evaluation system does not accomplish all the purpose; rather it facilitates them. Comprehensibility of job evaluation programme – Job evaluation programme should be understandable to all categories of employees. It is based on an initial definition of the number and characteristics of the grades into which jobs will be placed. The process is initially based on judgment and, therefore, tends to be influenced by variety of personal biases. This means that a job must be broken down into its components part, i.e., it should be involve the selection of factors, elements need for the performance of all jobs for which money is paid, determining their value and preparing written instructions for evaluation. Job Evaluation. Job evaluation methods being lacking in scientific basis are often looked upon as suspicious about the efficacy of methods of job evaluation. Each job is compared with all the on sub- factors, and number of degrees. Before uploading and sharing your knowledge on this site, please read the following pages: 1. (3) Rate the job and not the man. The system suffers from the following shortcomings: (1) The use of five factors is a growth of the technique developed by its organisations. Often several basic factors are chose initially and then sub-divided into sub-factors. The Committee consists of an Independent Chair, a representative of the employer and an employee designate. : Ranking System, Grading Method, Point Method and Factors Comparison Method (With Merits & Demerits), Prerequisites of a Job Evaluation Programme, Guidelines for Conducting Job Evaluation Programme. The following, five steps are generally involved: (i) The preparation of job descriptions, which gives us basic job information, usually derived form a job analysis. Often a rater’s judgment is strongly influenced by present wage rates. (d) Secure willing co-operation and support of supervisors on job evaluation. (2) External factors- like demand and supply of labour, existing wage structure in the industry and the region and so on. In fact, the primary purpose of job evaluation is to set wages and salary on the basis of the relative work or jobs in the organisation. Companies should have established procedures – separate from the standard grievance procedures – for dealing with these appeals. This is obtained by selling this idea among them and obtains this participation in the process. Job evaluation is a technique of personnel management whose subject matter is man. (v) Classification of all Jobs. (1) Consideration of the ‘job as a whole’, versus consideration of compensable factors; and (2) judging and comparing jobs with each other rather than assigning numerical scores on a rating scale. Job evaluation is a time-consuming process requiring specialised technical personnel to undertake it and, thus, is likely to be costly also. 7. 5. These rates must be determined on the basis of points. This method involves the following four steps: After selecting key factors of all the jobs, some key jobs are selected on the basis of these key factors. 200%. 5. (i) It considers all the aspects related to a particular job. It makes a systematic comparison between jobs to come to a continuation of their relative expectancy or worth for the purpose of making a logical pay structure. International Labor Organization (ILO) has defined a job evaluation as: “Job evaluation is an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual performance of the workers concerned”. (iv) Selection of Grades and Key Jobs. Job evaluation is often seen as the foundation for a fair and efficient pay framework. In other words, Job Evaluation measures the worth of each job in terms of money. This job evaluation process helps to determine the true qualities and efficiency of work in the given work field. Job evaluation is the process of determining the relative worth of different categories of jobs by analyzing their responsibilities and consequently, fixation of their remuneration. It is a process which is helpful even for framing compensation plans by the personnel manager. the process of comparing jobs in an organization to decide what is involved in each one and the salary that should be paid for it: 85% of workplaces have no job evaluation. While some other system (say Hay system in the States) focuses on know-how, problem-solving and accountability. One of the biggest criticisms of job evaluation is that it is conducted from the employer’s point of view. 4. (1) Payment of high wages and salaries of persons who hold jobs and positions not requiring great skill, effort and responsibility; (2) Paying beginners less that they are entitled to receive in terms of what is required of them; (3) Payment of widely varied wages and salary for the same or closely related jobs and positions; (4) Giving a raise to persons whose performance does not justify the raise; (5) Deciding rates of pay on the basis of seniority rather than ability; (6) Payment of unequal wages and salaries on the basis of race, sex, religion or political differences. It ensures rational wage and salary structure. (iii) This method is more scientific than other methods. Meaning: Job evaluation is an orderly and systematic process of determining the wages (or worth) of the job in relation to other jobs.It is a process of rewarding the job after it has been analysed. In India, the Indian Institute of Personnel Management, Calcutta, has laid down the following steps: Step # 1. It is a systematic method of evaluating or appraising the value of one job in relation to the other jobs. Account Disable 11. Job Evaluation definition A systematic, formal process that allows organisations to compare jobs to others across the company and the industry. But it is to be seen whether this resource is being properly utilised. It helps a company decide the extent to which a job produces revenue, improves efficiency or adds value in some other way. 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. (ii) This method is simple to operate and understand, for it does not take much time or require technical help. Step # 2. Workers find it difficult to fully comprehend the meaning of concepts and terms, such as factors degrees and points. Together, these distinguish job evaluation as a category of wages and salary determination. Look it up now! 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. Plans commonly used today represent variations of these basic methods. The results of job evaluation must be fair, rational and unbiased to individual. Job-Evaluation: it’s Meaning and Definition! Job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. 5. Since many workers think of jobs in, or related to, clusters or groups, this method makes it easier for them to understand makings. (c) The basic information on which job evaluation are made is obtained from job analysis. It is a complex of job analysis, the study of jobs, job description, the statements of the results of the analysis upon which follows job grading, the placing of jobs in a sequence or ranking which is the basis of job assessment and the establishment of fair pay based on job grading. 2. Job evaluation definition at Dictionary.com, a free online dictionary with pronunciation, synonyms and translation. Besides setting wages, job evaluation also helps in: (a) Establishing references for the settlement of grievances arising out of individual rates and for negotiations with a trade union of internal wage structure and differentials; (b) Clarifying the functions, authority and responsibility of employees; (c) Providing standardisation of and improvement in, working conditions; (d) Developing machinery for a systematic reviewing of job rates as job contents changes. Its main objective is to adopt suitable wage structure. Cooperation of Unions – The cooperation of trade unions is important for a job evaluation programme. Meaning of JOB EVALUATION. Job evaluation eventually results in a wage or salary structure or hierarchy (this shows … (iv) It is relatively difficult to write a grade description. Supervisors should receive training in advance of actual intro­duction of the plan, to enable them to explain the policies, principles and procedures. 6. Farlex Financial Dictionary. In other words it is the rating of jobs in an organization. Job evaluation is the systematic process of determining the relative value of different jobs in an organization. Job evaluation system came into common use during the World War II. International labour organisation describes the objects of job evaluation in its report as, “The object of job evaluation is to determine the relative value of jobs of an enterprise and to determine the equal wage for equal jobs on the basis of some rational facts.” The principle upon which all job evaluation schemes are based is that of describing and assessing the value of all jobs in the firms in terms of a number of factors, the relative importance of which varies from job to job. Please direct all questions to your HR Manager. Job evaluation is the process of assessing the worth of a job to decide on how much should be paid for it. If the total of points of job is 150, it will be in this category and its wages will be Rs. Though two separate processes, Job Analysis data will be needed and used during the Job Evaluation process. The job classification is evaluated each time a significant change occurs in a job. 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. Main key factors of the jobs may be as under: (i) Skill; (ii) Responsibility; (iii) Efforts; (iv) Working Conditions. Evaluation factors – The factors selected for evaluation should be measurable and definable and represent job content. The importance of job evaluation may be enu­merated as follows: 1. This requires the preparations of a job description and also an analysis of job requirement for successful performance. In job classification, a job analysis and evaluation occurs when a new position is created. Learn more. (vi) Helps in determining the training need and type of persons required – As job evaluation involves analysis of different components of job, it enables organization to determine training need and type of persons required to handle such job. What does JOB EVALUATION mean? The job evaluation process defines the wages for the work to be done by the workers, which helps the works to be specific about their work and wages that they are going to get after the decided time. It is the line manager’s responsibility to ensure that all documents are complete in final form prior to making a request for job … But making decisions about relative value is complex. . The availability of a number of ready-made plans probably accounts for the wide use of points plans in job evaluation. THE BASIC STEPS FOR DEVELOPING A JOB EVALUATION IN YOUR ORGANIZATION: STEP 1: Define the jobs STEP 2: Select a job evaluation method The process of defining a job is called job analysis. These factors may age in be sub-divided into sub-factors as follows: Skill = Education, Training and Experience. Job evaluation aims to determine a job’s relative worth.The job evaluation is a formal and systematic comparison of jobs to determine the worth of one job relative to another. Learn about:- 1. 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