method of job evaluation

In HRM there are mainly 2 methods of job evaluation. there methods have been discussed here

1. Methods of Job Evalutaion By:- Manjeet Kushwaha Human Resource Management Institute of Management studies, FMS (BHU)

2. Content Introduction Job evaluation method Non Analytical Ranking method Job grading method Analytical Point method Factor comparison

3. Introduction Job evaluation is a systematic way of determining the value or worth of a job in relation to other jobs in an organization Basis of job evaluation is job analysis It tries to make a systematic comparison between jobs for the purpose of establishing a rational pay structure

4. Job Evaluation Method

5. Ranking Method A committee of several executive is constituted, which analyze the data collected from job analysis and then rank the job based on their worth All the jobs are evaluated and ranked in order based on- Toughness Importance

6. Merits & Demerits of Ranking Method Merits It’s an easy process This method is economical Time required quite less Demerits Always subjective and high chances of human error Under this system the jobs are only ranked in some order and the exact difference between different jobs is not determined

7. Job Grading Method Jobs are put on different grades as per their nature, importance, responsibility For each grade/class there is different rate of wages The job may be graded as skilled, unskilled, clerical, administrative etc.

8. Merit & Demerit of Job Grading Merits Simplicity and inexpensiveness. In organizations where number of jobs is small, this method yields satisfactory results. Easy to understand the standard used Demerits Job grade descriptions are vague and are not quantified Chance of biasness Possibility of wrong classification of job Can’t practice for large number

9. Point Method A quantitative technique that involves:- Identifying the degree to which each compensable factors are present in the job Awarding points for each degree of each factor The points are summed up to determine the wage rate for the job Jobs having total point similar are placed in similar pay grade

10. Sample Table for Point Distribution Factors 1 st degree 2 nd degree 3 rd degree 4 th degree 5 th degree Skills Education 14 28 42 56 70 Experience 22 44 66 88 110 Initiative 14 28 42 56 70 Efforts Physical effort 10 20 30 40 50 Mental or visual effort 5 10 15 20 25 Job condition 10 20 30 40 50 Responsibility 5 10 15 20 25

11. Advantage & Disadvantage of Point Method Advantages Give us a numerical basis for wage differential The scale, once used can be used for fairly a long period Easy evaluation in money terms as they are assigned according to point connected with the job The method is systematic and objective (widely accepted by worker and the management) Disadvantage Can’t be adopted by medium and small scale units Defining factors and degree is time consuming Difficult and time consuming Allotting marks/point is a difficult process

12. Factor Comparison Method Developed by E. J. Benge in 1926 Include 5 factors for job evaluation Mental efforts Skill Physical efforts Responsibility Working condition

13. Factor Comparison Process

14. Merit & Demerit of Factor Comparison Merits This system is systematic where every job factor is quantified The relative value of each job is determined by Job of unlike nature can also be evaluated Less number of factors which makes this evaluation easy Demerits Its difficult understood by non-supervisory staff or unskilled Can’t be used for small unit

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