HRM-Part-VII-Job Evaluation-A brief Concept

Human Resource Management (HRM)-Part-VII

JOB EVALUATION – A brief concept

Basically ‘Job Evaluation’ is a technique to assess and grouping of different jobs within an organization and determining their relative worth.

JOB CONTENTS: - are determined by

                                    -- simply overviewing the jobs i.e. which job is more important to others.

-- by comparing one job to another by taking into consideration some factors set as standards, which may be common in each job called ‘Compensable Factors’.

Job Evaluation Methods: -

1. Job Ranking Method: - In this method, jobs are ranked from simplest to hardest or from hardest to simplest. Job descriptions are not required and also ranking is done without comparing the compensable factors.

Advantages: -

-- Requires less time, effort and less work.

-- Suitable for smaller organization.

-- Less expensive.

Disadvantages: -

-- As there is no standards for analysis, the process is based on judgment and hence tends to be  influenced by personal biasness.

-- Specific job requirements are not analysed.

2. Job Classification or Grading Method: - In this method, first job is analyzed in an organization and on the basis of job description and job specification groups are described and determined. After that each job is assigned classes or grades representing different pay and pay differentials.

Advantages: -

-- Does not take much time and simple to operate.

-- Grouping of jobs into classification makes pay administration easier.

-- Used in Govt. services but rarely used in industrial perspective.

Disadvantages: -

-- There is no detailed analysis hence classification of whole range of jobs may be incorrect.

-- Grade description is difficult to write.

-- Difficult to operate when no of jobs increases.

-- Unsuitable for large organization as the process is very rigid in nature.

3. The Point System: - This method of job evaluation is most widely used plan. It focuses on several compensable factors and characteristics of jobs and then determine to what degree these characteristics are present in a job. Each compensable factors are assigned a number of point and the degree of a job is checked against each of these point. No of each factor assigned are added finally to determine the relative significance of the job.

Advantage: -

-- More accurate.

-- Gives numerical basis for wage differentials.

-- Widely accepted by workers as because it is very understandable.

Disadvantage: -

-- Associated high cost.

-- Time consuming analysis.

4. Factor Comparison Method: - In this method, some key jobs are selected incorporating in them some factors i.e. compensable factors such as skills, responsibility, effort, working conditions etc. Such key jobs form the basis on which other jobs are compared factor wise. Such 20-30 key jobs are generally selected which are accepted by both management and worker i.e. there is no controversy. Each job is compared with separate factors of these key jobs and assigned a point of number for each factors. Finally, these assigned numbers are added to reach to a value which can be converted to monetary value and used for wage differentials.

Advantage: -

-- Usually used to evaluate white collar, professionals and managerial positions.

-- A systematic, quantitative approach method.

-- Very easy to explain to employees.

-- No limit of value assigned to each factor.

-- More reliability and validity.

Disadvantage: -

-- Costly to install and operate.

-- System is complex and not easy to explain.

-- Use of 5 factors (Mental, Physical Requirement, Skills, Responsibility and work condition) is not always the same in each job in every establishment.

 **Wage Range or Wage Differential – is the difference between maximum and minimum wage. 

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