4. The program consists of a job class file and a weight file and will execute a computer analysis to determine if the subfactors are being applied consistently. It is highly subjective method and depends upon the experience of the people doing the ranking; a committee usually carries out the procedure. It is not concerned with the internal equity of pay, compensable factors, or assigning relative worth to jobs except in relation to the going rate in the labour market. b. The Responsibility factor for different items measures responsibility for preventing damage to machinery or equipment which might result from error or negligence, and also to the probability of damage to materials, parts in process or finished goods. Thus, job evaluation is the basis for rational wage and salary administration. You can present evidence that perhaps your boss forgot. In it, for instance, much more value is given to responsibility and education than to physical requirements. In the second stage, the evaluation committee rank-orders compensable factors in terms of their relative importance in each job. The difference in the various systems arises mainly from the number of characteristics used in establishing the relative requirements of the various jobs. To ensure that like wages are paid to all qualified employees on like work. Information and facts about the job are all evaluated in the same way within established parameters. Thus, it is clear that job-evaluation promotes industrial relations by resolving several personnel problems through a sound, rational and consistent wage and salary structure. If your business does this and does evaluations based on your service anniversary, you can find that employees hired at the end of the year receive disproportionate raises compared to their coworkers. It should be devised and administered with due regard to the conditions of the employment market, which cannot be ignored if the scheme is to be successful. Having a job evaluation approach that is easily understood and systematic is essential to communicating or explaining the requirements for career growth in your organization. Classification method. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. 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. If one job were ranked above another for the skill factor, it should also be ranked higher monetarily, or the differences should be reconciled. Any type when carefully used will give satisfactory results. As it eliminates wage inequalities within the organization so it helps in maintaining harmonious relationship between labour and management. Labor market supply and demand forces are strong influences in the setting of wages. If education is used as a compensable factor, a bachelor’s degree might be worth 200 points, a junior college degree 150, a high school diploma 100, and an elementary diploma 50 points. The detailed job description is particularly helpful when ranking of jobs is done by different individuals and there is a disagreement among them. a. Evaluate the job as it is defined now, not as it was or will be. Further, they may find themselves training people who leave for higher paid positions. Job Evaluation: A computer-assisted job evaluation plan, measuring 17 dimensions of nonexempt work and 28 dimensions of exempt work, is used to evaluate the relative worth of staff positions. Thus, job values are established only after taking various job-factors into consideration. Read More: Point Rating Method of Job Evaluation Classify Jobs – This requires groping or arranging jobs in a current sequence in terms of value to certain their relative value. In this case mental (intelligence) requirements might be credited with 40 P.; skill requirements, 10 P.; physical requirements, 50 P.; responsibility, 10 P.; and working conditions 15 P. This process is followed for each key job with due attention being given to the factor rankings of the previous survey. f. Minimum education requirement – amount of schooling or study absolutely necessary to fill successfully the occupation. Job evaluation is an orderly and systematic technique of determining the relative worth of the various jobs within the organisation so as to develop an equitable wage and salary structure. Under the Factor Comparison System of job evaluation the analyst or evaluation committee selects key jobs for which there- exist clearly understood job descriptions and counterparts in other organisations, and for which the money rates are considered satisfactory. Posted: (1 months ago) Posted: (3 days ago) The purpose of job evaluation is to produce a ranking of jobs on which a rational and acceptable pay structure can be built. You can arrive at appropriate wages for positions on your farm on the basis of two main management tools: (1) Job evaluations (based on compensable factors such as education, skill, experience, and responsibility), and (2) The going rate (or market value) of a job. Merit-rating or personnel appraisal selection and training of workers, determining working conditions, simplification of jobs and introducing incentive wage systems are based on job evaluation data. She has covered HR for The Balance Careers since 2000. In practice, the bureaucratic nature of job evaluation makes it time consuming and less efficient. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. Although factual evidence is die bases of job evaluations this has to be interpreted. Job evaluation systems are useful in achieving internal equity of pay between different jobs in the organisations. Simplicity – It is relatively easy to understand by the workers and supervisors. For compensation purposes, it provides information needed to compare positions externally through salary surveys, and also to evaluate positions in relation to other similar types of jobs within the university. An obvious disadvantage is that jobs may be ranked without the benefit of well-defined standards. Rating the jobs, by ranking method, should also ignore the qualifications of the person filling the jobs at the time, since the ranking is of the jobs and not of the workers. However, it is important to have a valid system which results in a structure acceptable to both employee and employer. It is the technique of analysis and assessment of jobs to determine their relative value within the firm so that a fair wage and salary structure can be established for various jobs. You generally can meet with a Human Resources manager and your manager, and sometimes your boss's boss, to go over the reasons for your rating. Those who pay at or below the market may have difficulty attracting workers. The Experience factor pertains to the amount of job training necessary to gain satisfactory proficiency. A job evaluation scheme should be chosen cautiously. You may depend more heavily on the job market for common jobs. So a well-written self-evaluation with successes and complex projects listed can inform, or remind, your manager about the goals you've accomplished and the contributions you've made during the year. Job evaluation is a methodical way of confirming the value of job in relation to other jobs in an organisation. Job Evaluation (JE) is the analysis and evaluation of work for the purpose of determining the relative value of each job in an organization. 1.2 JOB EVALUATION AND ITS PURPOSE Coetzee and Schreuder (2016:102) defined job evaluation as the formal assessment and systematic comparison of the relative value or worth of a job to an organisation with the aim of determining appropriate compensation, or reward and remuneration. Each of these categories is then broken up into subgroups. Sometimes installation of job evaluation suddenly gives rise to immediate increase in the number of grievances concerning wages as it turns a spotlight on wages. b. Second, market prices of jobs vary from time to time. Does the tentative evaluation match your expectations? It does not focus on how well an employee is doing the job. Similarly, morale survey also could be of great use. A job evaluation plan is a technique of using a common set of generic factors to evaluate all jobs (or a set of jobs) for the purpose of assigning a pay grade/range to the jobs. In a proper and rational job-evaluation system the position of job is fixed. To provide a factual basis for the consideration of wage rates for similar jobs both within the community and within the industry. Reasons for Job Evaluation. By job evaluation we mean using the information in job analysis to systematically determine the value of each job in relation to all jobs within the organisation. c. The system tends to be used without adequate job descriptions having been made, thus the ranking is likely to be severely biased by general opinions and existing wage rates. While they may be perceived as focusing only an individual's performance, they actually help the organization take a look at its structure, allowing it to make changes to improve its competitiveness or efficiency. Perhaps data collection and data analysis on employee complaints and grievances concerning pay would serve the purpose. This factor should not be confused with experience or on-the-job training. Grade groups then can be designated and salaries assigned. In the job evaluation plan, you rank a job’s duties and responsibilities relative to other jobs in an organization. We suggest the following measures and steps for improving the working of evaluation programmes: 1. A scheme which provides for single rates and for definite ratios between the rates for classes of workers (A, B, C, etc.) Purposes:. 9. The determination of the relative value or size of the job is set on the basis of information on the characteristics of the job. and (iv) Does a proper atmosphere exist for launching of the programme? The process of job evaluation uses selected criteria to compare jobs within an organisation so that they can be ordered for the purpose of assigning differential pay. By writing this up, you can influence your manager's final decision about your performance rating. Legal constraints affect wages (e.g., equal pay, minimum wage). (b) It must have the full approval and continued support and backing of the top management. The purpose of job evaluation is to objectively determine the relative value of jobs within the University through a systematic study and detailed analysis of job duties, relationships and requirements. These grades can then be defined and jobs classified by the selection of a particular grade for each job to correspond to its work. It is the process of analysis and assessment of jobs to ascertain reliably their relative worth, using the assessment as a basis for a fair and equitable wage structure. Rather, it involves examining the functions of the job itself. Market price fluctuations can also make cost control more difficult since labour costs are less predictable under this system. These managers rate their employees lower than they should. Job evaluation is concerned with differences in the work itself, not in differences that are found between people. The final stage in the factor comparison method is to evaluate other non-key jobs in the organisation using the factor comparison scales. The demand made on the workers by a particular job is the worth of that job. Selection and placement can be made objectively by matching the qualifications of the candidate with job specification. The basis of a sound wage structure is job evaluation. An accurate low rating can help weed out bad employees, but an inaccurate one can drive high performers out of the company. It is a significant task to determine the value or worth of each job … For good industrial relations, each employee should – (i) receive sufficient wages or salaries to sustain himself and his dependents, and (ii) feel satisfied with the relationship between his wages and the wages of other people performing the same type of work in some other organisation. 4. An obvious advantage of the market pricing method is that the job evaluation committees’ and management bias in pricing jobs is avoided. In such cases, the prevalent compensation practices are adopted instead of taking job evaluation in a formal way, v. Leads to differentiation in perception of the employees, trade union leaders, management, and the program operators in selecting the compensable factors and giving them weightage, vi. In any organization a sound, systematic, consistent system of compensation determination plays a crucial role to promote equity and satisfaction, provided that such a system receives good understanding and acceptance from employees. b. Co-operation with associates outside the line of authority- exchange of opinion on controversial matters involving tact, diplomacy, appreciation of the other person’s point of view; necessity for and degree of teamwork, exchange of information, etc. Unique jobs are more appropriately priced on the basis of job evaluations. In other winds, it tries to make the assessment of jobs, not people. Importance 8. Under-reward, over-reward, and inconsistency in reward not only tend to lead to lower satisfaction but encourage behaviour that often proves dysfunctional to organizational objectives.”. Job evaluation is therefore the basis for fair compensation. 5 B. 10 steps to developing a successful job evaluation 1. Points given to each degree of a sub-factor vary from one sub-factor to another according to the relative importance placed upon each. (ii) Who will evaluate a job — outside consultants or trade analysts or the personnel of the personnel department? The process of job evaluation is very systematic but it is not an exact science; it relies on subjective judgement. Job-evaluation evolves standard rates for similar or comparable jobs in the organisation and thus inequalities in base compensation are removed by this technique. Following are the main features of job evaluation: When it is used within an organisation, job evaluation in the true sense (i.e., not market pricing) can only assess the relative size of jobs in that organisation. The sum total to these points allotted to various job factors is the worth of the job. The job evaluation process will be periodically audited to ensure that it is being applied consistently and fairly and that the duties described in job descriptions correspond to the work performed. Account Disable 12. b. The system attempts to relate the amount of an employee’s pay to the contribution made by his/her job to the effectiveness of the organization. Surveys should seek information about benefits given employees (e.g., farm products, housing). Rather, it involves examining the functions of the job itself. Consideration will be given to the presence, relative amount and continuity of exposure to dust, dirt, heat, fumes, cold, noise, vibration, wet, or other unpleasant conditions. The particular worker may have qualifications that are higher than those required for the job. Job Evaluation Committee. The basic information on which job evaluations are made is obtained from the job analysis. In short, job evaluation seeks to rank all the jobs in the organisation and place them in a hierarchy that will reflect the relative worth of each. One of the primary purposes of a job evaluation is to analyze the needs of the organization. At times wages are driven so high that corporations cannot compete in a broader international market. Flexibility – There are no limits to the value that may be assigned to each factor. Its advantage is that it can be done quickly and inexpensively. 7. Statistics collected for job evaluation by job analysis; job grading and job classification techniques are used in other spheres of personnel management. To determine what positions and job responsibilities are similar for purposes of pay, promotions, lateral moves, transfers, assignments and assigned work, and other internal parity issues. Purpose Of Job Evaluation - CareHealthJobs.com. When there are many more pickers than available jobs, for instance, the going wage decreases. This total is compared with that of other jobs and relative worth of various jobs is determined. In practice, results of job evaluations are often compromised or even overshadowed by market considerations. To provide a standard procedure for determining the relative worth or value of each job in a plant. Labor groups, in the form of unions, can combine forces to protect their earnings. Similar ratings of jobs would be made for responsibility and other factors worth compensating. Takes too much time. Meaning of Job Evaluation 2. Each job is considered factor by factor in the process, the factor being evaluated according to their positions along the pre-established scales. If you've received praise from clients, either internal or external, include them in your self-evaluation to let your manager know that others appreciate your work. Most companies have an employee evaluation system wherein employees are evaluated on a regular basis (often once a year). In order to create an effective performance evaluation, take into consideration the following components: Performance analysis; Descriptive phrases; Strengths and weaknesses; Employee potential; Constructive feedback; Goals; 1. Definition: The Job Evaluation is the process of assessing the relative worth of the jobs in an organization. Job evaluation rates the job, not the man. Plagiarism Prevention 5. Outlining the job. The farmer has fewer viable options when the market would pay a higher wage than the job evaluation. That is, if you were hired in February, your evaluation is in February, and if you were hired in December, your evaluation is in December. evaluation committee will be asked to review and evaluate the term job description. Introduction 5 1. The Attention Factor appraises the degree of mental or visual concentration required. Suits to large organizations where HR practices are formalized. Everything you need to know about job evaluation. There are predetermined criteria or factors against which each job is measured. The factor comparison method is a quantitative method of job evaluation which evaluates jobs according to several compensable factors. The point method is the most accurate job evaluation system and remains relatively stable over time, unlike the factor comparison method whose key jobs are subject to change. Leads to increased costs that arise because expensive technical processes used in many organizations. In the job evaluation plan, you rank a job’s duties and responsibilities relative to other jobs in an organization. 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. Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization. Self-evaluations are often critical to your good performance rating. One Plan uses three major divisions under which the various job characteristics are classified, namely- (a) Job conditions, (b) Physical ability required, and (c) Mental requirements. Disclaimer 8. Farmers who pay too much may find it difficult to remain competitive. Merely paying more than another farm enterprise, however, does not automatically result in higher performance and lower labor costs. For the job evaluation to be useful, a detailed list of compensable factors needs to be articulated. Managers should keep in mind that low-performance ratings lessen an employee's chances of promotion and growth within the company. (e) The importance of factors, other than job content, in wage rate determination (employment market conditions, sex, wage differentials, geographical wage differentials, and the relative bargaining power of the management and the trade union) must be recognised and taken into consideration while launching a job evaluation programme. Job Evaluation (JE) is the analysis and evaluation of work for the purpose of determining the relative value of each job in an organization. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Determination of an equitable wage and salary structure is one of the most important phases of employer-employee relations. viz. Furthermore, there are other factors valued by employees besides pay, such as working for an organization that values their ideas and allows them to grow on the job. When it is finally decided to install a formal system of job evaluation irrespective of which system is decided upon, the utmost care must be exercised to ensure that human as well as technical aspects are taken into account. The purpose of a performance evaluation is to show your team members where they excel and where they can improve. The performance evaluation process in organizations is ongoing - every day - as the manager or supervisor observes and coaches each employee's performance. Getting the acceptance from employees once explained them the aim and use of the job evaluation … In this, the worker, who has been assigned the job will get the wages fixed for the job, by job evaluation process hence, it leaves no chance of favouritism to any worker. It removes not only the internal inconsistency but external inconsistency also. The ranking or grading system of job evaluation consists primarily in arranging the various jobs in the enterprise in an order from the simplest to the highest or the reverse, each successive job being either higher or lower than the previous one in the sequence. However, comparison method has several limitations. Understanding the knowledge, skills, abilities and behaviors needed to perform the job responsibilities of a promotional opportunity with their current employer can be a powerful motivator for employees and creates a clear line of sight for career growth. Jobs are evaluated by joint job evaluation committees using a modified Aiken Plan. There are five basic methods of job evaluation: The simplest and most basic form of job evaluation is job ranking. They may prevent employers from taking advantage of a large supply of workers. He tries to develop his personality so as to occupy the higher position. If you receive an evaluation that you disagree with, most companies have an appeal process. Even when well paid, workers may not see the connection between wages and their performance. The standards of job evaluation are relative, not absolute.