What is a formal and systematic comparison of jobs to determine the worth of one job relative to another?
Job evaluation is a formal and systematic comparison, technique of jobs to determine the worth of one job relative to another. Job evaluation aims to determine a job s relative worth. Job evaluation eventually results in a wage or salary structure or hierarchy (this shows the pay rate for various jobs or groups of jobs). The basic principle of job evaluation is this Jobs that require greater qualifications, more responsibilities, and more complex job duties should receive more pay than jobs with lesser requirements Show
Importance of Job Evaluation:
Job evaluation can have many uses, but it is equally important to remember what it is not. It is not concerned with the total volume of work, the number of people required to do it, the scheduling of work, or the ability of the position holder. It is not a performance appraisal system. Preparing for the Job Evaluation: Job evaluation is a judgmental process and demands close cooperation among supervisors, HR specialists, and employees and union representatives. The main steps include identifying the need for the program, getting cooperation, and then choosing an evaluation committee. The committee then performs the actual evaluation. Identifying the need for job evaluation should not be difficult. For example, dissatisfaction reflected in high turnover, work stoppages, or arguments may result from paying employees different rates for similar jobs. Employees may fear that a systematic evaluation of their jobs may reduce their pay rates, so getting employees to cooperate in the evaluation is important and he should know the actual aims of job evaluation. Third, choose a job evaluation committee. The committee usually consists of about five members, most of whom are employees. Management has the right to serve on such committees, but employees may view this with suspicion. Each committee member should receive a manual explaining the job evaluation process, and how to conduct the job evaluation. Methods of Job Evaluations Several techniques of job evaluation have been developed. Each has its advantages and disadvantages, costs and risks.
This method is one of the simplest to administer. Jobs are compared (in rank order) to each other on the basis of skill, effort (physical and mental), responsibility (supervisory and budgetary), which collectively are deemed to determined the overall worth of a job to the organization. Working conditions can also be taken into account in assessing the difficulty of the job. Job Ranking Steps:
Job description (duties) but not the job specifications (skills, decision making or problem solving).
Usually we rank jobs per department (not the whole organization) and this eliminates the need for direct comparison.
It’s common to use one factor (e.g. job difficulty) and to rank jobs based on that.
Each rater is given a set of cards with brief job descriptions, and they are asked to rank these cards from lowest to highest. They may also use “alternation ranking method” to be more accurate, and we can then slot additional jobs between those already ranked.
The rating committee (or employer) then takes averages. Usage of Job Ranking Method: Small companies with less than 20 job to rank. Advantages:
Disadvantages:
Job classification: With this method jobs are classified into a pre-existing hierarchy of grades/categories. So some work already has to have been completed to identify and describe layers of competency and responsibility throughout the organization. Each level in the grade/category structure would typically have a detailed description associated with a particular level in the organization and associated job. The classification of an individual position is decided by comparing the ‘whole job’ against the corresponding grade providing the closest match to the job. To ensure equity in job grading and remuneration, a common set of job grading standards and instructions are often used. The standards do not attempt to describe every aspect of each position in the jobs covered, but to identify and describe those key characteristics that are significant for distinguishing different levels of competency and responsibility. They define these key characteristics in such a way as to provide a basis for assigning the appropriate grade level to all positions in the organization Steps:
Usage of Job classification Method: Governmental companies Advantages:
Disadvantages:
Factor Comparison Method: This is a more sophisticated version of classification, but is considered by many to be the most robust job evaluation method. Typically a small number of compensable factors such as skill, responsibilities, effort, working conditions, expertise, judgment, accountability are identified. Then each of these is defined and described. Usage of factor comparison method: Widely used more than the previous methods. Advantages:
Disadvantages:
The point methods: Overall aim is to determine the degree to which the jobs you are evaluating contain selected compensable factors. It involves identifying several compensable factors for the jobs, as well as the degree to which each factor is present in each job. A quantitative job-to-predetermined standard comparison technique that involves:
Usage of point method: Widely used Advantage:
Disadvantage:
What is a systematic comparison done to determine the value of one job relative to another within the same Organisation?A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.
What is the process of determining the relative worth of jobs?Job evaluation is the systematic process of determining the relative value of different jobs in an organization. The goal of job evaluation is to compare jobs with each other in order to create a pay structure that is fair, equitable, and consistent for everyone.
What does job evaluation determine?Job evaluation is a systematic process of assessing the value of jobs in an organization in order to determine the worth of individual jobs and the compensation to be paid to employees who hold those jobs. The purpose of job evaluation is to ensure that employees are paid fairly for the work they do.
Which factors provide the basis for assessing and comparing the relative overall worth of different jobs?Relative worth is determined mainly on the basis of Job Description and Job Specification only. Job Evaluation helps to determine wages and salary grades for all jobs. Employees need to be compensated depending on the grades of jobs they perform. Remuneration must be based on the relative worth of each job.
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