job evaluation

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JOB EVALUATION:

JOB EVALUATION Prof Prabha Jayoti Vidyapeeth Women’s University Jaipur

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Job Evaluation is a system wherein a particular job of an enterprise is compared with its other jobs. In the present industrial era, there are different types of jobs which are performed in every business and industrial enterprise. Comparative study of these jobs is very essential because on the basis of such study the structure of wages for different types of jobs is prepared.

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The comparison of jobs may be made on the basis of different factors such as duties, responsibilities, working conditions, efforts, etc. In nut shell, it may be said that job evaluation is a process in which a particular job of a business and industrial enterprise is compared with other jobs of the enterprise. Some scholars name it the determination of job rate.

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Definitions : Some eminent scholars have defined Job evaluation as follow : 1 . Kimball and Kimball define job evaluation as “an effort to determine the relative value of every job in a plant to determine what the fair basic wage for such a job should be .”

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2. According to Wendell French, “job evaluation is a process of determining the relative worth of the various jobs within the organization, so that differential wages may be paid to jobs of different worth .” The relative worth of a job means relative value produced. The variables which are assumed to be related to value produced are such factors as responsibility, skill, effort and working conditions.

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Job evaluation is a process of comparing jobs with other jobs in terms of the demand a job makes on the worker. lt does not set the price of a job; it merely fixes its relative worth. It presents an effort to determine the relative value of every job in a plant, and to determine what the fair basic wage for such a job should be. It is not evaluating the ,merit of the worker who is doing the work. It rates the job and not the qualities of the individual worker on the job, which is the task of employee rating.

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We may define job evaluation as a process of analyzing and describing positions, grouping them and determining their relative value of comparing the duties of different position in terms of their different responsibilities and other requirements

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OBJECTIVES OF JOB EVALUATION The following are the objectives of job evaluation : ( i) To secure and maintain complete, accurate and impersonal descriptions of each distinct job or occupation in the entire plant; ( ii) To provide a standard procedure for determining the relative worth of each job in a plant; ( iii) To determine the rate of pay for each job which is fair and equitable with relation to other jobs in the plant, community or industry;

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(iv) To ensure that like wages are paid to all qualified employees for like work; (v) To promote a fair and accurate consideration of all employees for advancement and transfer; (vi) To provide a factual basis for the consideration of wage rates for similar jobs in a community and industry; and (vii) To provide‘ information for work organization, employees‘ selection, placement, training and numerous other similar problems.

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In fact the primary purpose of job evaluation is to set wages. It does this by providing a basis for the following matters: (a) Equity and objectivity of salary administration, ie., paying the people whose work is alike the same wages, and establishing appropriate wage differentials between jobs calling for different skills and responsibilities;

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(b) Effective wage and salary control; (c) Union-management negotiations on wages; and (d) Comparison of wage and salary rates with those of other employees.

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Besides setting wages, job evaluation also help in : (a) Providing standardization and improvement of working conditions; ( b) Clarifying the functions, authority and responsibility of employees;

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(c) Establishing references for the settlement of grievances arising out of individual rates and for negotiations with a trade union on internal wage structure and differentials; (d) Developing machinery for a systematic reviewing of job rates as job contents change; and (e) Developing personnel statistics.

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Principles of Job Evaluation There are certain broad principles, which should be kept in mind before putting the job evaluation programme into practice. These principles are : (i) Rate the job and not the man. Each element should be rated on the basis of what the job itself requires. ( ii) The elements selected for, rating purposes should be easily explainable in terms and as few in number as will cover the necessary requisites for every job without any overlapping.

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(iii) The elements should be clearly defined and properly selected. (iv) Any job rating plan must be sold to foremen and employees. The success in selling it will depend on a clear-cut-cut explanation and illustration of the plan. (v) Foremen should participate in the rating of jobs in their own departments.

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(vi) Maximum co-operation can be obtained from employees when they themselves have an opportunity to discuss job ratings. (vii) In talking to foremen and employees, any discussion of money value should be avoided. Only point values and degrees of each element should be discussed. (viii) Too many occupational wages should not be established. It would be unwise to adopt an occupational wage for each total of point values.

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Advantages of Job Evaluation Job evaluation enjoys the following advantages : (i) Job evaluation is a logical and to some. extent an objective method of ranking jobs relative to one another. It may help in removing inequalities in existing wage structures and in maintaining sound and consistent wag differentials a plant or industry. ( ii) In the case of new jobs, the method often facilitates fitting them into the existing wage structure.

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(iii) The method helps in removing grievances arising out of relative wages; and it improves labour-management relations. (iv) The method replaces the many accidental factors, occurring in less systematic procedures, of wage bargaining by more impersonal and objective standards, thus establishing a clear basis for negotiations. (v) The method may lead to greater uniformity in wage rates, thus simplifying wage administration.

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(vi) The information collected in the process of job description and analysis may a1so be used for the improvement of selection, transfer and promotion procedures on the basis of comparative job requirements. (vii) Such information also reveals that workers are engaged on jobs requiring less skill and other qualities than they possess, thereby pointing to the possibility of making more efficient me of the plants‘ labour force;

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Methods of Job Evaluation : The following are the methods of Job Evaluations 1. Ranking Method : The ranking method requires a committee typically composed of both management and employee representatives of job in a simple rank order, from highest to lowest. Rating specialists review the job analysis information and thereafter appraise each job subjectively according to its general importance in comparison with other jobs.

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In other words, an overall judgment is made of the relative worth of each job, and the job is ranked accordingly. These are overall rankings, although raters may consider individually the responsibility, skill, effort, and working conditions and each job. No attempt is made to determine the critical factors in each job. Therefore, it is quite possible that important elements of some jobs may be overlooked while unimportant items are weighed too heavily.

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It may be noted that because of the difficulties in ranking a large number of jobs at the time, the paired comparison technique of ranking is sometimes used. With this technique, decisions are made about the relative worth of only two jobs at a time. However, since each job is compared with every other jobs, the number of comparisons to be made increases rapidly with the addition of each job to the list.

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2. Job Grading or Job Classification Method : This method works by assigning each job a grade, level or class that corresponds to a pay grade for instance Grade I, Grade II, Grade III and so forth. These grades or classifications are created by identifying gradations of some common denominations, such as job responsibility, skill, knowledge, education required, and so on. Then, for each job grade so created standard job descriptions are determined.

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Thereafter, such standard description is matched with job descriptions in the organization. The standard description that most nearly matches the job description determines the job‘s grading. This method requires a decision at the initial stage on the number of pay grades to be included in the wage and salary plan. Of course, the actual amount to be assigned to pay grades made after the job evaluation is completed.

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3. Factor-comparison Method : This method is a combination of ranking and point systems. All jobs are compared to each other for the purpose of determining their relative importance by selecting four or five major job elements or factors which are more or less common to all jobs. These elements are not predetermined. These are chosen on the basis of job analysis.

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The few factors which are customarily used are : (i) mental requirements (ii) skill (iii) physical requirements (iv) responsibilities (v) working conditions, etc.

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A few jobs are selected as key jobs which serve as standard against which all other jobs are compared. key job is one whose contents have been stabilized over a period of time and whose wage rate is considered to be presently correct by the management and the union.

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Evaluation of Various Methods : None of the systems is free from defects. None is the best in all conditions and for all types of organizations. However, the point system is the best in the present circumstances. It is widely used in almost all the enterprises as a technique of job evaluation since it presents an analytical approach to the measurement of job worth. It is better not to insist on a particular system of job evaluation. A mix of all the methods should be adopted.

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The beginning………..happily ever after Thank you