The objectives of job evaluation are enumerated below: 1. If they are not, a scheme becomes too inflexible because of the narrow coverage of the job descriptions. Managers cannot possibly know everything you do every day. Content Guidelines 2. A scheme which provides for single rates and for definite ratios between the rates for classes of workers (A, B, C, etc.) The most complex and yet the most frequently used major job evaluation method is the point method. Job evaluation is an orderly and systematic technique of determining the relative worth of the various jobs within the organisation so as to develop an equitable wage and salary structure. The factors used in the job rating in another plan are grouped under 4 headings, namely- (a) skill; (b) effort, (c) responsibility, and (d) job conditions. Managers should keep in mind that low-performance ratings lessen an employee's chances of promotion and growth within the company. Each job is compared as an entity with each other job. evaluation committee will be asked to review and evaluate the term job description. The process of job evaluation is very systematic but it is not an exact science; it relies on subjective judgement. It is a conventional method in which jobs are compared one with another, and arranged or ranked in the order of their importance, their difficulty, or their value to the organisation. It is also too easy to use because evaluators rate jobs in terms of well-known jobs in their own organisation. The third step involves assignment of a monetary value to each factor for each key job. With the result, better workers join the firm more willingly. Does the tentative evaluation match your expectations? It does not focus on how well an employee is doing the job. Purposes:. A job evaluation scheme should be chosen cautiously. For example, the prevailing wage for the filing clerk may be established at Rs.1.25 per hour. Job Evaluation helps to determine wages and salary grades for all jobs. Job evaluation ranks all positions within the organization on the same set of criteria and ultimately results in an internal ranking of all positions within the university. This total is compared with that of other jobs and relative worth of various jobs is determined. Further, they may find themselves training people who leave for higher paid positions. Human Resource Management, Employees, Job Evaluation. Through a job evaluation she rates the jobs on the farm according to their relative ”importance.” Each job might be given its own rate, or jobs of comparable importance may be grouped or banded into a single wage classification, or pay grade. Job evaluation systems must measure work in terms of Skill, Effort, Responsibility and Working conditions - these 4 factors are required by the Pay Equity Act. Disclaimer 8. viii. Some of the jobs in the ranch might require a high school diploma, thus earning 100 points in this category, while others might have no education requirement. If your business does this and does evaluations based on your service anniversary, you can find that employees hired at the end of the year receive disproportionate raises compared to their coworkers. 2. Job evaluation does not fix pay scales. 5. A job evaluation allows an organization to make well-informed decisions on recruitment, retention and compensation. For example, the first degree under education may be defined as “the ability to read, or add or subtract” – and be awarded 14 points. A. The Factor Comparison Plan, or the Weighted-in Money Method; and. Settlement of Wage Disputes. In this method, each factor of a job is compared with the same factor of the other jobs or the … Does not consider the impact of technology, industry standards, government policies, and values and aspirations of employers on their job evaluation, iv. Getting the acceptance from employees once explained them the aim and use of the job evaluation … Job evaluation is the systematic process for assessing the relative worth of jobs within an organization. Leads to increased costs that arise because expensive technical processes used in many organizations. The fundamental aim at any process of job evaluation which ensures, as for as possible, that consistent judgements are made based on objectively assessed information. Types. Limitations of Job Evaluation. What you evaluate is the position and not the employee occupying the position. Job evaluations have many purposes within business organizations. A job evaluation is a tool used by an organization, often by the human resources department, to identify the value of a job. According to Alford and Beatty, “Job Evaluation is the application of the Job Analysis technique to the qualitative measurement of relative job worth, for the purpose of establishing consistent wage rate differentials by objective means. What is job evaluation? Job evaluation systems may be classified into 3 major groups, namely: ii. In order that a job evaluation system works efficiently, it is necessary that all those who are concerned with job evaluation should be fully conversant with the techniques and implications of the different available systems. It is always applied to jobs rather than the qualities of individuals on the jobs.”. It is an analytical and quantitative method which determines the relative worth of a job on the basis of points alloted to each specific factor of a job. The Job Evaluation System is a point rating system that, through formal and systematic analysis, provides equity in the value of each job in the employee group relative to other jobs at the University. Importance 8. Job evaluation (or job rating) is a systematic procedure for measuring the relative value and importance of occupations on the basis of their common factors (skill, training, effort) for the purpose of determining wage differentials. Wage levels change from time to time, and thus adjustments are required. One can write the title of each job on a card, with one card being used for each job, and then arrange the cards so that the top one holds the most important job title, the next holds the next most important job title, and so on. Due to the accuracy and comprehensiveness of the method, employee acceptance is relatively high. Job evaluation is a methodical way of confirming the value of job in relation to other jobs in an organisation. 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