TOS 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. (iv) Responsibility for materials, tools, equipment and product; c. The break down each factor into degree and to assign a point value to each degree. Typically the number of compensable factors is small (4 or 5). 4. In this method, jobs are expressed in terms of key component factors then points are assigned to each factor according to the degree of its importance. It all depends on employer’s compensation philosophy. f. All other jobs are then compared with the key jobs and to determine their money value. 7), Welder in mental requirements (Rs. Analytical Job Evaluation Methods. Read More: Point Rating Method of Job Evaluation When raters have ranked jobs department-wise, the next step involves combining department-wise ratings into a composite rating. It was developed by E.J Benge in 1926. Evaluating jobs: The relative worth of various jobs in an organization may be determined by applying the job evaluation method. (vi) New jobs can easily be evaluated and ranked in the hierarchy. v. It is a more objective method of job evaluation, as it rates various factors of a job on some predetermined criteria fixed after deep analysis and examination. A. Job evaluation is a systematic method by which compensation professionals compare jobs to determine pay rates that are internally equitable and externally competitive. Third, it is also necessary that the raters are trained adequately before implementing the method. (iii) It needs expert persons to its development. The application of the scale enables the placing of all the jobs in their appropriate positions in the hierarchy. According to this method, all the jobs are sorted out into classes or grades predetermined and arranged in order of importance. The points of different jobs are converted into money value or wage rate. The aim of factor comparison is to assign financial value to the relative parts of each job role. As evaluation progresses, these definitions help the raters in making correct decision about the points to be allotted to the factor along with the consideration of the degree or level earmarked. Job Evaluation Methods - Free download as Powerpoint Presentation (.ppt), PDF File (.pdf), Text File (.txt) or view presentation slides online. (i) A major disadvantage of the method is only the use of certain well-recognized compensable factors. Ranking “Key Jobs” by Compensable Factors: In this step, “key jobs” are ranked on the basis of compensable factor selected. Other organizations are asked to match comparable jobs that have similar job activities and incumbent requirements for fixing pay rates. (a) It is most complicated and time consuming method. An idea of the “key jobs” in terms of compensable factors in a jute mill is given in Table 7.1. iv. According to I.L.O. The scores given for each factor are added to obtain a point total for a job. (ii) In this method “key jobs” are selected on the basis of a combination of criteria. Job Evaluation PPT 1. i. 0000006903 00000 n Methods of Job Evaluation Non-Analytical. KNOW HOW= Knowlegde+Skills + Experience Job analysis is the process of collecting information about job while job evaluation begins with job analysis and ends where the worth of a job is ascertained for achieving pay equity between jobs. (iv) It is also conducive to ensure agreement among the raters. It is economical to operate. H�|R]o�0�����#N�݉TA���cZһлKɅF����i� Er�ٝٙ���� �#�-���آ�KxӳO�V�! In this step, compensable factors, such as job-complexity, responsibility involved and mental ability required, are selected. (vii) The pricing of jobs becomes easy under this method. For example, you may determine that skill is one of the factors. The employer has a choice of being the best-paymaster, average pay master or pay-at-par with the market. The jobs are ranked with each of the factors. Determining Relative Values of Job Factors: The relative values of various factors depend upon their significance to the job. (iv) The use of a limited number of compensable factors reduces the scope of overlapping. Job ranking . (v) It is unsuited to large organizations having a wide variety of jobs. The jobs may be graded as skilled, unskilled, clerical, administrative and the like. No matter which method is used, the result of the evaluation procedure is the ranking of jobs in order of importance. Then final rank for each job factor is found through consensus agreement; e. Allocate the current money to each factor and determine the wage rates for each key job; and. (iv) The method is inappropriate in organisations having a cluster of heterogeneous jobs. Factors of factor comparison. It includes a scale for each element by means of which varying degrees are to be appraised. Particular organisations may find other compensable factors more appropriate. Does not consider market compensation rates. Factors like skill, effort, responsibility, etc., are not analyzed separately. Although the number of jobs may be numerous, these are squeezable only to a few identical or similar groups for the purpose of remuneration. (b) It is costly to install and time consuming procedure. It is also called Benge Plan. The template can be used by anyone from HR executives, project managers to startup owners who can explain the audience, or guide the employees about the Evaluation. Rank is then assigned in terms of number of times a job is rated difficult. Since job factor is scaled into degrees, wage and salary fixation is easier. For instance, menial job is put in grade 4, clerical job is assigned to grade 3, technical job is taken to grade 2 and decision/making policy formulation job is assigned grade 1. i. (d) It is very economical and less time consuming. Conduct job evaluation useful as a number of. A number of factors are to be considered in each and every job determined. Key jobs which serve as representative jobs against which other jobs can be compared are selected. Second, wherever possible, associating employees’ representatives at various stages of the application of the method will be conducive to make it more acceptable. For assigning points to each degree, two procedures may be followed. Some groups of jobs in the hierarchy may include many jobs and others only one or a few. Job analysis is defined as a process of determining the skills, duties and responsibilities, in a systematic way, required for a particular job. Adjusting salary structure 2. i. Each job is placed along the line on the basis of its closeness to the highest ranked job. Find the maximum number of points assigned to each and every job (after adding up the point values of all sub-factors of such a job). The final wage value of a job depends therefore not only upon facts but also upon a varying amount of bias.”, According to I.L.O. In the first place, the employees and their union must have confidence in the reliability of the method adopted, and the element of objectivity involved. The wage-rate of the major criterion is accepted as correct. In this method a job is ranked related to other jobs in an organization. Neelman is a principal and executive vice president with Compensation Resources, Inc. (CRI) in Upper Saddle River, New Jersey. vi. There are three methods of job evaluation and they are as follows: The job description are arranged and ranked according to the value of work as judged by the analyst. 76 = Rs.25 + 7+ 14 + 12 + 18). At the end, composite ranks of “key jobs” are worked out. Customize the job comparison with the job evaluation can add significant areas are ranked. You have to rank from highest to lowest in order of their values or merit to the organization. The jobs, which are similar in respect of particular compensable factors according to job comparison scale, will be assigned the same monetary value. ii. iv. Job evaluation is a systematic method of determining a job’s relative worth within an organization. These jobs should not be compared with one another. The selection of factors and sub-factors is a challenging task. Hay Job Evaluation is a method used by corporates and organizations to map out their job roles in the context of the organizational structure. Last, the method must be easily understandable and easily explainable. ii. Job evaluation: methods: factor comparison. Ranking each job by arranging them in ascending order starting with the one with the minimum needs and ending up with the maximum needs. The success of the method depends mainly on the clarity with which job descriptions in respect of each job are written. (iii) When the grades of each job are defined, wage and salary administration become easier. Since only limited number of factors are compared, chances for overlapping of factors are reduced. )�j�J�5)������x~�2|\����J���B%]ҩ�]]�� ?�kz���b���~K������a�r��8��T��%����ax���rE�qM���{D!V%! The first step in the method is to obtain job information. It was originated by Eugene in 1928. Having ranked all the jobs, they are classified into 8 to 12 categories. Hay Group’s job evaluation approach,in fact,is the world’s most widely accepted—used by an estimated 8,000 organizations,including half of the Fortune 50 companies. Method of Job Evaluation – 4 Main Methods (With Comparison) The four major methods of job evaluation are listed below: 1. Each factor may include certain degrees, to which varying scores are assigned. The Paterson System requires written job descriptions that should be read and signed by the workers. Job descriptions and job specifications are written for selected jobs; c. Find the factors in terms of which the jobs are evaluated. The “point method” of job evaluation generally involves the following steps: The first step in the method is to select the type of jobs to be evaluated. v. Pay grades can be compared with those of other organisations. It gives numerical basis for wage differentials. 0 Determination of degrees of various job factors and assigning points to these degrees call for specialised skills. vii. (b) It is not suited for large organisation because rater will not be thoroughly familiar with all the jobs. The methods of job evaluation can be studied under the following heads:- 1. 25), Machinist in physical effort (Rs. Specific factors have job evaluation methods ppt, comparison are misused in interpretation of its place! 0000002404 00000 n PreserveArticles.com is an online article publishing site that helps you to submit your knowledge so that it may be preserved for eternity. (iii) The scales used in the method are generally reliable. This is again a simple method in concept. It answers the question of Hay’s thinking behind his purpose to develop an alternative (and in his view) more effective system for measuring and For ensuring correctness of the results, it is desirable to repeat the ranking. In either event, you are encouraged to work with your HR Rep/Contact to determine the best course of action. a list of all functions needed of employee who fills each job. Four basic methods have traditionally been mentioned. This is achieved mainly through the use of “job analysis” and “job descriptions.”. All jobs are evaluated not only by the interpretation of the factor descriptions but within the context of all other First, detailed information about various jobs in an organization is obtained, then jobs are grouped based on their similarity and difference. These pay- scales or pay-ranges generally contain minimum and maximum pay with provision of increments in the middle. These groups or classes then help in determining the value of different jobs. Factor Comparison method is another quantitative approach for job- evaluation. This method is a combination of ranking and point system of job evaluation. As a matter of fact, the success of job evaluation programme depends on a number of factors. Committee takes into account the factors like nature of job, working condition, supervision needed, responsibilities involved, etc., in the matter of ranking the jobs. In ranking the jobs, care is taken to a number of factors like (a) Volume of Work (b) Difficulty of work (c) Monotony of work (d) Responsibility involved (e) Supervision needed (f) Knowledge and experience heeded (g) Working conditions. It is simple to adopt. D. Rate Each Job using Point Table – Each job is then rated using the point table and the total points are calculated. There may be frequent changes in wage levels, which may warrant corresponding adjustments in key jobs. (c) This system has ability to handle large number of jobs. 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