Job Evaluation: Objectives, ... Clean definition of elements and consistency of degrees of such elements, improve accuracy of job evaluation. In the words of the Netherlands Committee of Experts on Job Evaluation, “job evaluation is a method which helps to establish a justified rank order of jobs as a whole, being a foundation for the setting of wages. Key jobs are assigned to an appropriate grade level and their relationship to each other studied. What is Job Evaluation? © 2012 Farlex, Inc. Cost of job evaluation – It should not involve high cost of installation and administration. by deciding that one job is “more important” than another, and not going any deeper in why—in terms of specific job-related factors; or by comparing one job to another by focusing on certain basic factor, which may be common in each job. 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. In other words it is the rating of jobs in an organization. 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. The system suffers from the following shortcomings: (1) The use of five factors is a growth of the technique developed by its organisations. Advantages and Disadvantages. Job evaluation manual become more effective if “Job description” and Job specification can be redrafted in terms of factors identified for each cluster. for the purpose of determining wage and salary differentials.”, Edwin B. Flippo, “The system and Orderly process of .measuring the work of jobs within an’ organisation, is called job evaluation,”, Dale Yoder, “Job Evaluation is a practice which seeks to provide a category of objectivity in measuring the comparative value on jobs within an organisation and among similar organisations. Top management support – The support of top management should be secured. Definitions of Job Evaluation. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. vi. 1.2 Equal Pay for Equal Value – the Legal Position (iv) It may give scope for doubt or suspicion – If the job evaluation process is applied for the first time in the organization it may create doubt in the minds of workers who may feel that it will do away with collective bargaining for fixing wage rate. 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. First, the focus of job evaluation is upon the job itself, its content or its demands upon the normal average or standard worker performing it rather than upon the person doing it and what he/she may choose to put into it. Supervisors should have full knowledge of the system. This is obtained by selling this idea among them and obtains this participation in the process. One of the biggest criticisms of job evaluation is that it is conducted from the employer’s point of view. In India, the Indian Institute of Personnel Management, Calcutta, has laid down the following steps: Step # 1. Above analysis makes it clear that job A is most important from the point of view of skill. Companies should have established procedures – separate from the standard grievance procedures – for dealing with these appeals. It may be explained by the following tables: Above table makes it clear that the jobs having a total of points between 100 to 200, will be paid the basic wages of Rs. Install the Programme – This involves explaining it to employees and putting it into operation. Job evaluation is a method of evaluating the relative worth of jobs in an organization. Common tasks, responsibilities, knowledge blind experience can be identified by the process of job analysis. 4. The following are the important advantages of job evaluation: (i) It helps to minimise wage inequalities – Job evaluation is a process of ranking the job which in turn helps to develop equitable wage and salary structure based on the relative worth of jobs. Information and translations of JOB EVALUATION in the most comprehensive dictionary definitions resource on the web. The variables which are assumed to be related to value produced. The basic procedure of job evaluation is to compare the content of jobs in relation to one another, in terms of their responsibility or skills. (ii) This method is simple to operate and understand, for it does not take much time or require technical help. 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. 2. To install effective evaluation programme the following measures may be adopted: 1. ii. Separate pay structure should be maintained for major groups of employees. (ii) Simplifies wage structure – Job evaluation helps to simplify wage administration by establishing uniformity in wage rates. Though job evaluation cannot be regarded as exact science, yet it is a scientific and systematic technique of determining the relative worth of the job within the organisation taking into consideration the following two factors i.e. Job B is most important from the point of view of responsibilities. The term Job Evaluation has been defined by some eminent scholars as follows: Kimball & Kimball, “Job Evaluation represents an effort to determine the relative value of every job in a planned way and to determine what the fair basic wage for such a job should be.”, John A. Shubin, “Job Evaluation is a systematic procedure of measuring the relative value and importance of occupations on the basis of their common factors like skill, training, efforts etc. (d) Job evaluation is carried out by groups, not by individuals. But making decisions about relative value is complex. 3. For example, the “Equal pay for equal Work” Act focuses on four factors: Working conditions responsibility, efforts and skills. 9. The details of administration of the plan should be as simple, as possible. These factors are called compensable factors—which determine the definition of job content; that determine how jobs compare to each other; and they also help determine the compensation paid for each jobs. Features 5. job evaluation meaning: 1. the process of comparing a job with other jobs in an organization and deciding how much the…. The jobs are evaluated on the basis of its content and the complexity involved in its operations and thus, positioned according to its importance. 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). 200. As because the nature of man is never exact, hence techniques or principle of social sciences can never produce exact results in all circumstances. On other basis of wage scales prepared above, different jobs are compared, and on the basis of such comparison the rate of wages for these jobs is determined. These are the factors which affect a job. (5) Foremen should participate in the rating of jobs in their own departments. Only point values and degrees of each element should be discussed. (2) It is costly to install, and somewhat difficult to operate for anyone who is not acquainted with the general nature of job evaluation techniques. Job evaluation as a process is advantageous to a company in many ways: (iii) If an organisation consists of 500 people holding to different jobs, the jobs might be brown up into perhaps 5 classes, arranged in order of importance from high to low, and described class by class. 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. 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. Under this method of job evaluation—key factors are selected. The job contents may be decided upon in two ways, i.e. Job evaluation rates the job, not the man. Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization. Job Evaluation questionnaire: this must be completed by the current role holder and verified by the line manager. It is a process which is helpful even for framing compensation plans by the personnel manager. All the jobs in the same grade receive the same wage orange of rates. Job Evaluation is a systematic method of assessing the relative sizes of jobs within an organisation by comparing a job or group of jobs with other jobs. 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. (3) The development and installing of the system calls for heavy expenditure. Here is a clear step by step guide to undertaking a job evaluation that should help you on your way to providing a fair and equal pay structure that will benefit you in all of these ways. Job evaluation is not found suitable for establishing the relative worth of the managerial jobs which are skill-oriented. Principles 8. It should not affect adversely the terms and conditions of the existing worker. 1. It is a systematic method of evaluating or appraising the value of one job in relation to the other jobs. Essentials of the Success of Job Evaluation Programmes: Learn Accounting: Notes, Procedures, Problems and Solutions, Job Evaluation: Definition, Objectives and Steps. Kimball and Kimball define job evaluation “as an effort to determine the relative value of every job in a plant to determine what the fair basic wage for such a job should be.” Job evaluation is defined as the systematic process of assessing the value of each job in relation to other jobs in an organisation. The wages for all other jobs may be determined on the similar base. It is an attempt to assess and compare the 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. The purpose of the job evaluation is to have a satisfactory wage differential. It is a systematic method of evaluating or appraising the value of one job in relation to the other jobs. What is a job evaluation? Content Filtration 6. Our job evaluation method (Korn Ferry Hay Guide Chart - Profile Method) is the most widely used and accepted in the world and has already enabled tens of thousands of organizations across all industry sectors to create effective job evaluation frameworks. Job Evaluation : Definition, Objectives, Features, Importance, Factors , Principles, Procedure, Steps, Programme and More.. Job Evaluation Meaning – What is Job Evaluation? determination of job worth for the purpose of compensation through a comprehensive job evaluation system. Job evaluation is a methodical way of confirming the value of job in relation to other jobs in an organisation. Job Analysis and Job Evaluation are important to an organization to ensure a sound organizational structure, internal pay equity and external market competitiveness. Job evaluation needs to be differentiated from job analysis. Define job evaluation. The comparison of jobs may be made on the basis of different factors like duties, liabilities, working conditions, efforts, etc. (5) Definitions are written in terms applicable to the type of jobs being evaluated, and these can be understood by all. (2) The system is simple, easily understood, and easy to explain to employees (or a union). 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. 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. Job evaluation is the systematic process of determining the relative value of different jobs in an organization. Knowles and Thomson state that job evaluation is useful in eliminating many of the evils to which nearly all systems of wage and salary payments are subject. The job classification re-evaluation is generally requested by an employee through his or her supervisor. In brief it may be said that job evaluation is a process in which a particular job of a business and industrial enterprise is compared with other jobs of the enterprise. Education of employees on job evaluation technique – All employees should be enlightened on job evaluation techniques and programme. (5) The system is complex and cannot be easily explained to, and understood by, every day non- supervisory organisational employee. (3) As there is no standard for an analysis of the whole job position, different bases of comparison between rates occur. The grade definitions may refer to such job characteristics as skill, decision making and responsibility. Job evaluation suffers from the following disadvantages: (i) It may fail to consider all the factors – Job evaluation may not consider all the factors like skill required, service condition, social status etc., which influence the value of job. Grade descriptions are the result of the basic job information which is usually derived from a job analysis. (2) The system merely produces a job order and does not indicate to what extent it is more important than the one below it. 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. Jobs are then grouped by total point score and assigned to wage/salary grades so that similarly rated jobs would be placed in the same wage/salary grade. A definition. Job evaluation and compensation. Each job is rated using the job evaluation instrument. 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. Prerequisites of a Job Evaluation Programme: Guidelines for Conducting Job Evaluation Programme: Job Evaluation – Advantages and Disadvantages, Factors that Job Evaluators Consider for Evaluating Job, Steps Involved in Job Evaluation Procedure, Advantages and Disadvantages of Job Evaluation. Therefore job evaluation is not suitable for determining the relative worth of managerial job. Often several basic factors are chose initially and then sub-divided into sub-factors. (1) Specific job requirements (such as skill, effort and responsibility) are not normally analysed separately. The organisation might develop its own compensable factors or use those factors adopted by others. (1) To provide a standard procedure for determining the relative worth of each job in a plant; (2) To secure and maintain complete, accurate and impersonal descriptions of each distinct job or occupation in the entire plant; (3) To ensure that like wages are paid to all qualified employees for like work; (4) To promote a fair and accurate consideration of all employees for advancement and transfer; (5) To determine the rate of pay for each job which is fair and equitable with relation to other jobs in the plant, community of industry? The availability of a number of ready-made plans probably accounts for the wide use of points plans in job evaluation. Fore mostly, the job evaluation serves a number of purposes which may be grouped into three categories – wage and salary fixation, restructuring job hierarchy and overcoming anomalies. 200%. The last two systems are known the analytical or quantitative systems, because they use quantitative techniques in listing the jobs. (iii) It is time consuming and expensive – Due to change in contents and work conditions, frequent evaluation of job is necessary by an expert or competent persons. Learn about:- 1. Positions are measured in relation to each other, usually hierarchical and with related or comparable roles. Rate of wages is determined on the basis of importance of job. Each job is compared with all the on sub- factors, and number of degrees. 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. It is based on an initial definition of the number and characteristics of the grades into which jobs will be placed. Job evaluation is the process of assessing or measuring the relative worth of Jobs. 8. Report a Violation 10. Education may again be sub-divide into following sub-factors: The jobs are evaluated only on the basis of education. The objective of this process is to determine the correct rate of pay. Plans commonly used today represent variations of these basic methods. 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. ADVERTISEMENTS: Job-Evaluation: it’s Meaning and Definition! But it has been called that job-evaluation is a systematic technique. The job of highest importance to the enterprise is paid the wages at highest rate and the job of comparatively less importance to the enterprise is paid the wages at lower rate. Job evaluation definition: the analysis of the relationship between jobs in an organization: often used as a basis... | Meaning, pronunciation, translations and examples (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. 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. Study the jobs or evaluate the jobs objectively and open-mindedly. Job analysis also provides the required information that is necessary for evaluating the worthiness of jobs. Do you know the four basic components of EI? Enrich your vocabulary with the English Definition dictionary During a job evaluation, a combination of factors is used to determine the relative worth of a job and how it compares to other jobs in the organization. This requires the preparations of a job description and also an analysis of job requirement for successful performance. It does this by providing a ground for the following matters: (i) Equity and objectivity of salary administration, i.e. Consultation with operating manager – Operating manager should be taken into confidence about the techniques and programme of job evaluation. John Beatty and Henri Fayol are of this opinion that by exact science, we mean direct relationship between cause and effect. Formal job evaluation aims to make these decisions objectively. Job evaluation as a process is advantageous to a company in many ways: (ii) Although it represents an advance in accuracy over the ranking method, it still leaves much to be desired because personal evaluations by executives (unskilled in such work) establish the major classes, and determine into which classes each job should be placed. Job evaluation ensures harmonious structural relationships in the organisation. In job classification, a job analysis and evaluation occurs when a new position is created. (iv) It is relatively difficult to write a grade description. This involves explaining it to employees and putting it into operation. It is the line manager’s responsibility to ensure that all documents are complete in final form prior to making a request for job … The variables which are assumed to be related to value produced are such factors as responsibility, skill, effort and working conditions. Some scholars name it the determination of job rate also. The evaluation process measures the different elements of a job and produces an overall score. (v) It is an important tool in fixing wages – Job evaluation involves rating or ranking of the jobs which enables organization to fix suitable wage or salary for the job. Definition of JOB EVALUATION in the Definitions.net dictionary. Human Resource Management, Employees, Job Evaluation. This requires grouping or arranging jobs in a correct sequence in terms of value to the firm, and relating them to the money terms in order to ascertain their relative value. Prohibited Content 3. Job evaluation describes "a systematic process that enables the design and establishment of human resources improvement procedures and fair reward systems" and thereby "concerns the assessment of a value system that encapsulates the importance of the parameters that reflect the global responsibilities and duties of a job" (Spyridakos et al., 2001: 376). (6) To provide a factual, basis for the consideration of wage rates for & similar jobs in a community and in an industry; (7) To provide information for work organisation, employees selection, placement, training and numerous other similar problems. There are four basic, traditional systems of job evaluation: (1) the ranking system; (2) the grading or job classification system; (3) the point system; and (4) the factor comparison system. Analyse and Prepare Job Description – This requires the preparations of a job description and also an analysis of job requirement for successful performance. (v) The grouping of jobs into classifications makes pay determination problems administratively easier to handle. The important features of job evaluation may be summarised thus: (b) The standards of job evaluation are relative, not absolute. Managerial jobs which are assumed to be differentiated from job analysis Calcutta, has laid down the following may! 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