HRM-Job Evaluation.ppt

PPT on Job evaluation

1. Job Evaluation

2. Job Evaluation
Technique for comparing JOBS
rather than employees.
“system for comparing different jobs
systematically to assess their
relative worth, so providing a basis
for a grading and reward structure”.

3. Job Evaluation
Good remuneration systems must be
seen as fair –especially by employees!
The law also demands that jobs of
equal worth should attract equal pay.
A key factor in fairness will be linking
the degree of difficulty of the job with
the reward. Job evaluation can be
used to assess the relative difficulty of
the job.

4. JobEvaluationMethods
A.Rankingmethod:Thejobrankingmethodarrangesjobsin
numericalorderonthebasisoftheimportanceofthejob's
dutiesandresponsibilitiestotheorganization.Thismethod,
thougheasytounderstand,ishighlysubjectiveinnature.
B.Classificationmethod:Thejobclassificationmethodslots
jobsinto.preestablishedgrades.Higher-ratedgradesdemand
moreresponsibilities,tougherworkingconditionsandvariedjob
duties.Thismethodiseasytounderstandandtakescareofall
relevantfactorsaffectingtheperformanceofajob.However,it
isnoteasytowriteallinclusivedescriptionsofagrade.
Further,themethodoversimplifiessharpdifferencesbetween
differentjobsanddifferentgrades.

5. C.Factorcomparisonmethod:Inthis
method,jobsarerankedaccordingtoa
seriesoffactorssuchasmentaleffort,
physicaleffort,skillneeded,responsibility,
supervisoryresponsibility,working
conditions,etc.paywillbeassignedinthis
methodbycomparingtheweightsofthe
factorsrequiredforeachjob.

6. D.Pointmethod:Thepointsystemofjobevaluationusesapoint
schemebasedonthecompensablejobfactorsofskill,effort,
responsibilityandworkingconditions.Themorecompensable
factorsajobpossesses,themorepointsareassignedtoit.Jobs
withhigheraccumulatedpointsareconsideredmorevaluableto
theorganization.
Selectkeyjobs
Identifythefactorstoallidentifiedjobssuchasskill,effort,
responsibilityetc.
Divideeachmajorfactorintoanumberofsubfactors.Each
subfactorisdefinedandexpressedinorderofimportance.
Findthemaximumnumberofpointsassignedtoeachjob
Oncetheworthofajobintermsoftotalpointsisknown,the
pointsareconvertedintomoneyvalues,keepingthewagerates
inmind.
JobEvaluationMethods

7. Job Evaluation Advantages
Provides a systematic and rational
procedure for valuing each job
Ensures a degree of equity and
objectiveness in remuneration
Job descriptions generated are useful for
other activities
Helps motivation and morale
Both employee and employer needs are
addressed
Scope for union/employee involvement

8. Job Evaluation Disadvantages
Lack of allowance for differences in
performance
Assessment can be costly & time-
consuming especially at the start
Assessment can be inaccurate or
approximate
It’s still subjective!