JOB EVALUATION marketing for students bcom

job eveluation

1. JOB EVALUATION & JOB RESTRUCTURING S RAMESH ASSISTANT PROFESSOR

2. CONCEPT & DEFINITION avoids any inconsistency in job rates achieving uniformity in the entire wage structure is a systematic process of determining the worth of one job in relation to another job in the organisation . the relative worth of various jobs are assessed so that wages can be paid depending upon the worth of the job.

3. To improve the performance and maintain the high level of efficiency in work, employee should be compensated with wages and salaries depending upon the job he is performing . the systematic process of assessing the value of each job in relation to other jobs in an organisation .  The factors used to assess a job’s worth are identified, defined, and weighted in the company’s job evaluation plan.

4. job description and job specification are undertaken . In job description – duties, responsibilities and job conditions are described and in job specification – human qualities needed for the job are described. In the next stage, job rating is done  As per planned system or scale, a money rate of pay to each job is allotted.

5. components of job evaluation Job analysis, job description , job specification, job rating, money allocation, and employee classification.

6. Knowles and Thompson - evaluation is useful in eliminating the following discrepancies of a wage payment system: (a) Paying high wages and salaries to persons who hold jobs and positions not requiring great skill, effort and responsibility; (b) Paying beginners, less than they are entitled to receive in terms of what is required of them; (c) Giving a raise to persons whose performance does not justify the raise; (d) Deciding rates of pay on the basis of seniority rather than ability; (e) Paying widely varied wages for the same or closely related jobs and positions; and ( f) Paying unequal wages and salaries on the basis of race, sex, religion or political differences.

7. MAIN CHARACTERISTICS OF JOB EVALUATION 1 . It is a method with a systematic approach. 2. It is an analysis of the work involved in its starting point. 3. It is an attempt to determine the requirements of the work involved for any incumbent. 4. It is a process by which jobs in an organisation are appraised. 5. It is a process of analysing and describing positions, grouping them, and determining their relative value by comparing the duties of different positions in terms of their different responsibilities and other requirements. 6 . It is a system to deal exclusively with assessment of the job and not concerned with employees assigned to the job. 7. It is designed only to establish wage differentials and is not concerned with the absolute wage level.

8. OBJECTIVES OF JOB EVALUATION 1 . To secure and maintain complete, accurate and impersonal descriptions of each distinct job or occupation in the entire plant. 2 . To provide a standard procedure for determining the relative worth or value of each job in a plant. 3. To determine a rate of pay for each job which is fair and equitable with relation to other jobs in the plant, community and industry. 4. To ensure that like wages are paid to all qualified employees on like work. 5. To promote fair and accurate consideration of all employees for advancement and transfer. 6. To provide a factual basis for the consideration of wage rates for similar jobs both within the community and within the industry. 7. To provide information for the work organisation , employee’s selection and training and numerous other important purposes.

9. significance of job evaluation i . Taking account of all the factors that are useful in determining wages and salaries ii. Maintaining harmony between the union and the management iii . Standardizing the wage determination process iv. Compensating the employees as per the requirements of the job to avoid biasness and promote equality in payment of wages v. Minimizing the cost of recruitment .

10. Pre-Requisites for Effective Job Evaluation i . Determining the job system and design ii. Facilitating participation of recognized unions iii. Ensuring simplicity in job evaluation system iv. Ensuring that market surveys are carried out successfully before job evaluation v. Assuring that the committee has representatives from all the parties, labour , staff, and management vi. Encouraging active participation from each member vii. Communicating clearly the objectives of job evaluation process viii. Facilitating the hiring of outside professionals to bring expertise to the process.

11. ix. Availability of job analysis information, i.e. job description and job specification. x. Job evaluation system should be simple and easy to understand. xi. The job evaluation system should be taken as an adjustment to collective bargaining. xii. Active involvement of a trade union and employees is essential. xiii. Availability of industry rates (through labour market survey) to know the prevailing salary rates. xiv. Selection of groups of employees and jobs to be covered by the evaluation system. xv. Proper communication of objectives and implication of job evaluation to employees and unions to avoid any misunderstanding. xvi. Involvement of outsider experts/consultants such as specialists from National Productivity Council, administrative staff college of India, etc. These people have a rich experience in job evaluation.

12. Job Evaluation Methods 1. Ranking Method This method ranks jobs in order based on each job’s perceived value in relation to the others 2 . Classification/Grading Method generic job characteristics are grouped to reflect levels of skill/responsibility at a number of predetermined grade classifications Individual jobs are compared to groups of job characteristics, then matched to specific grade classification.

13. 3. Point–Factor Method This approach identifies job factors that add value and worth to a position. The job factors are separated into groups (i.e., skill, responsibility, effort) and assigned a numerical or weighted point value. The points for individual factors are added up to get a point value for the whole job. 4 . Factor Comparison Method With this method, job factors are identified under primary groups (i.e., skill, effort, responsibilities, working conditions) typically up to five groups. Each factor is assigned a dollar value (as opposed to point value). This is a complex system used only by a few organizations. It is hard to communicate to employees. There is an inherent degree of subjectivity.

14. 5. Competitive Market Analysis Method This approach looks at external data. Job evaluation forms the basis for market pricing. You utilize job descriptions to compare jobs to like positions within the external marketplace. Pay data are collected from published sources and the value of the position within the competitive market is determined.

15. LIMITATIONS Job evaluation is not completely scientific. Different job evaluators may reach different results, requiring validation More complex systems, such as point factor, may be difficult to explain to managers or employees

16. JOB RESTRUCTURING an employer changes the nature and responsibilities of an employee’s position.  might add similar tasks to an employee’s workload. Or might give higher-level responsibilities to an employee

17. HORIZONTAL RESTRUCTURING Horizontal restructuring consists of adding new tasks to an employee’s workload that fall into the same level as their current responsibilities. VERTICAL RESTRUCTURING Vertical restructuring is when you change up an employee’s position to take on higher level responsibilities along with their regular tasks.

18. REASONS FOR JOB RESTRUCTURING Company reorganization Reasonable accommodation Satisfy and benefit employees

19. ADVANTAGES OF JOB RESTRUCTURING Meeting  equal employment opportunity requirements (EEO) Aligning with company reorganization Improving employee satisfaction and benefits

20. DISADVANTAGES OF JOB RESTRUCTURING Costs Spending time making adjustments (e.g., spending time adjusting job descriptions and duties) Overlapping positions Employees being uncertain about their responsibilities Potential conflict in the workplace

21. STEPS FOR RESTRUCTURING A JOB Notify the employee(s) Inform necessary departments about any changes (e.g., HR) Have the employee fill out or sign paperwork (e.g., contract or notification of changes) Adjust the employee’s pay (if applicable) Make updates to payroll (if applicable) Implement job restructuring in the workplace