Module 3 - Recruiment and selectionJob Evaluation. ppt

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1. Module -3 Job Evaluation

2. Job Evaluation Job evaluation is a systematic way of determining the value/worth of a job in an organisation.

3. Process of systematically determining the relative worth of jobs to create a job structure for the organization. Evaluation is based on a combination of job content, skills required, value to the organization, organizational culture and the external market.

4. Job Evaluation consists of the following Job Analysis. 2. Job Description. 3. Job specification 4. Job Grading. 5. Job Classification. 6. Job Assessment/Job Pricing.

5. Major Decisions in Job Evaluation Establish purpose of evaluation. Decide whether to use single or multiple plans. Choose among alternative approaches. Obtain involvement of relevant stakeholders. Evaluate plan’s usefulness .

6. Job Evaluation Process Gaining Acceptance Creating job evaluation committee Finding the jobs to be evaluated Analysing and preparing job description Selecting the method of evaluation Classifying jobs Installing the programme Reviewing periodically

7. Features of Job Evaluation It tries to assess jobs, not people. The standards of job evaluation are relative, not absolute. The basic information on which job evaluations are made is obtained from job analysis.

8. Features of Job Evaluation Job evaluations are carried out by groups, not by individuals. Some degree of subjectivity is always present in job evaluation. Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure.

9. Benefits of job evaluation It tries to link pay with the requirements of the job. It offers a systematic procedure for determining the relative worth of jobs. An equitable wage structure is a natural outcome of job evaluation An unbiased job evaluation tends to eliminate salary inequalities by placing jobs having similar requirements in the same salary range.

10. Benefits of job evaluation Employees as well as unions participate as members of job evaluation committee. Job evaluation, when conducted properly and with care, helps in the evaluation of new jobs. It points out possibilities of more appropriate use of the plant’s labour force by indicating jobs that need more or less skilled workers than those who are manning these jobs currently.

11. Job Evaluation Methods Job Evaluation methods are divided into mainly 2 categories:- Conventional Innovative/Non-Conventional. 1.Conventional Methods:- Non Q uantitative methods:- i) Ranking Method ii) Classification Method. b) Quantative methods :- Points Ranking method. Factor Comparison method.

12. Innovative/Non-conventional:- Time Span of Discretion Method Decision Band Method. Direct consensus method. Guide Chart Profile Method. Urwick Orr Profile Method .

13. RANKING METHOD It is the simplest method of job evaluation. In this method, jobs are arranged from highest to lowest, in order of their value or merit to the organisation. Jobs can also be arranged according to the relative difficulty in performing them. Jobs are usually ranked in each department and then the department rankings are combined to develop an organisational ranking.

14. JOB CLASSIFICATION According to this method, a predetermined number of job groups or job classes are established and jobs are assigned to these classifications. This method places groups of jobs into job classes or job grades. Separate classes may include office, clerical, managerial, personnel, etc.

15. JOB CLASSIFICATION Following is a brief description of classification in an office: Class 1- Executives : Office manager, deputy office manager, department supervisor, etc. Class 2- Skilled workers : Purchasing assistant, cashier, receipts clerk, etc. Class 3- Semiskilled workers : Stenotypists, machine operators, switchboard operator, etc. Class 4- Semiskilled workers : file clerks, office boys, etc.

16. POINT METHOD or POINTS RANKING METHOD This method is widely used currently. In this method jobs are expressed in terms of key factors. Points are assigned to each factor after prioritizing each factor in order of importance. The points are summed up to determine the wage rate for the job. Jobs with similar point totals are placed in similar pay grades

17. Steps in Point Method Create Job Evaluation Committee Select Benchmark Jobs Choose Compensable Factors Define Factor Degrees Determine Weight of each Factor Determine Point Values Verify Factor Degrees and Point Values Evaluate All Jobs

18. Steps in Point Method Create Job Evaluation Committee Advantages of JE Committees Broader job knowledge from different perspectives Increased participation leads to increased understanding and commitment to the Job Evaluations. Selecting members to be on the JE committee Job incumbents, managers, HR expert, union reps Employees who have knowledge of jobs Manageable size

19. Steps in Point Method Select Benchmark Jobs “Generic” jobs with similar and agreed upon characteristics Relatively stable Represent entire range of jobs in company Generally accepted in the labor market for purposes of setting pay levels

20. Steps in Point Method Choose Compensable Factors “Universal” factors: Skill Effort Responsibility Working Conditions Custom factors Sub-Factors

21. Steps in Point Method Define Factor Degrees Provides levels within each factor or subfactor Best to define each level in job-specific terms Fewer degrees required if system only needs to cover a smaller range of jobs Determine Weight of each Factor

22. Steps in Point Method Determine Point Values Set arbitrary maximum (1000 pts) Determine weighted maximum per factor If responsibility was weighted 10%, it can have maximum score of 100 Divide factor maximum by number of degrees If 4 factors, 25 pts per degree

23. Steps in Point Method Verify Factor Degrees and Point Values Committee members score random set of jobs Review scores to determine logical consistency and fairness Make sure points are consistent with business strategy of your firm Adjust as necessary

24. Factor Comparison Method It is more systematic and scientific method of job evaluation. Though it is the most complex method of all, it is consistent and appreciable. Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors.

25. These factors include: >mental effort. >physical effort. >skills needed. >responsibility. >working conditions. >know-how. >problem solving abilities. > accountibility , etc. Wages are assigned to the job in comparison to its ranking on each job factor.

26. Comparison of Job Evaluation Methods Advantage Disadvantage Ranking Fast, simple, easy to explain, suitable for small org, not expensive. Not very accurate , not useful for large org.,least used method Classification Can group a wide range of work together in one system, simple, more accurate than raking method. Not useful for large org, time consuming, not involved detailed job analysis. Point Compensable factors call out basis for comparisons. Compensable factors communicate what is valued. Can become bureaucratic and rule-bound.

27. Comparison of Job Evaluation Methods Advantage Disadvantage Factor comparison method Finds wages for a job, wages can be calculated speedily, greater consistency in the judgment, size of jobs can be measured. Expensive, time consuming

28. The Urwick Orr Profile Method This method was originated by the British firm of management consultants, Urwick Orr and partners. It combines the feature of point rating and ranking methods.

29. The Direct Consensus Method It relies on the Paired Comparison techniques. An important feature of this method is members of the valuation panel record their individual assessments of whole job rankings and these assessments are fed into a computer.

30. Direct Consensus Method Here the workman and evaluator reach the value by mutual consensus.

31. Time span of Discretion Method This system uses the concept that all make decisions in their work and the effect of such a decision on their work/organisation is felt after a certain period for taking a follow up action. For example:- Unskilled worker – few hours. Marketing Manager – 2-3 years. Board of Directors – 10 years.

32. Decision Band Method Here the type of decision to be made by the job is considered and placed in the applicable band. For ex:- Band E – Policy making decision – Top Management. Band D – Programming decision – By senior managers. Band C – Interpretive decisions – By middle managers. Band B – Routine decisions – By skilled operators. Band A – Automatic decisions regarding when, how and where – By semi skilled workers.

33. Guide Chart profile method Hay plan or Hay Guide chart Profile method is for managerial pay. It emphasizes on three critical factors:- Know-how. Problem – solving. Accountability.

34. Know-how:- Practical experience, specialized expertise and technological depth. Width of managerial knowledge. Human Relations. 2)Problem – solving:- Thinking environment Challenging environment 3) Accountability:- Freedom to act. Impact on results. Magnitude of success annually etc.

35. Obtain Job KSAOs Knowledge Skills Abilities Other Characteristics

36. Hay Group—Pioneer in Job Evaluation The Korn Ferry Hay Group Guide Charts are  proprietary instruments  that yield consistent and legally defensible evaluations of the content of jobs. Korn Ferry Hay Group's job evaluation approach is the world's most widely utilized, accepted, and tested over time as a fair and unbiased way to determine job worth. Hay Job Evaluation  is a method used by corporates and organizations to map out their job roles in the context of the organizational structure.

37. The general purpose for carrying out job evaluations using this or similar job evaluation methods is to enable organizations to map and align their roles/jobs. This can deliver the following key benefits: Clarity in result areas and accountabilities in the processes of the organization Enabling salary and benefit grading or benchmarking due to standardization of job levels Improved succession planning or mobility within the organization Creation of more useful and focused job descriptions

38. Steps in Hay Job Evaluation Training for representatives from major operational departments and HR functions in the use of the method. This will include practical exercises where a mix of people will act as a "job evaluation board“ Revision of all job descriptions across the enterprise under HR guidance. Typically a single standard (format) will be required if it is not already in existence. Creation of job evaluation boards – mix of line management, HR and experts to decide on plotting of jobs.

39. Organization map and banding proposal – Typically the HR function will work with senior management to put together a proposal for banding (scales expressed in Hay points) or grading staff and describing the benefits that will be attracted by each band. Board review – once the jobs are all rated and the organization map is completed, the company board or equivalent will review the summary, the banding proposals, cost if any, to the company and recommended activities to go live. Assuming these are approved, the overall project manager will then move to implementation.

40. Know-how:- Practical experience, specialized expertise and technological depth. Width of managerial knowledge. Human Relations. 2)Problem – solving:- Thinking environment Challenging environment 3) Accountability:- Freedom to act. Impact on results. Magnitude of success annually etc.

41. Online Salary Survey A  salary survey  is a tool specifically for remuneration specialists and managers to define a fair and competitive salary for the employees of a company. The survey output is data on the average or median salary for a specific position, taking into consideration the region, industry, company size, etc

42. Pay Policy Alternatives Companies can choose from three pay level policies Market lead : The market lead policy distinguishes a company from the competition by compensating employees more highly than most competitors. Market lag : It distinguishes a company from the competition, but by compensating employees less than most competitors. Market match : This policy most closely follows the typical market pay rates because companies pay according to the market pay line.

43. Salary Survey A salary survey is a systematic process of collecting & making judgments about the compensation paid by other employers. They provide the data for setting the pay policy relative to competition

44. Reasons for conducting salary survey 1. To make adjustments to employees pay on the overall movement of pay rates caused by the competition foe people in the market. 2. To set the mix of pay forms relative to that paid by competitors. 3. To analyze pay related problems.

45. 4. To estimate the labour costs of product/services market competitors-to select relevant market competitors, based on the following areas The same occupations or skills. Employees within the same geographic area. Thee same products and service.

46. Design the Survey Consulting firms offer a wide choice of ongoing surveys covering almost every job family and industry group. Designing a survey requires answering he following questions:- 1) Who should be involved in the survey design? 2) How many employers should be included? 3) Which jobs should be included? 4) What information should be collected?

47. Interpreting survey results 1. The policy on competitive position is translated into practice by pay policy lines.   2. The use of grades & ranges recognizes both internal & external pressures on pay decisions. 3. Pay ranges permit the employers to value & recognize these differences with pay.

48. Pay-Policy Line A mathematical expression that describes the relationship between a job’s pay & its evaluation points. Now you can define a pay-policy line by plotting points reflecting the jobs in your organizations based on two dimensions: compensation value and a job ranking (or job evaluation result).

49. The  line  that illustrates the relationship between the external value of a job (from salary  survey information) and the internal value of jobs (from job evaluation) represents the market  line . A  pay policy line  portrays an organization's  pay policy with respect to the market  line