purpose of job evaluation

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Job evaluation is an assessment of the relative worth of different occupations on the premise of a reliable arrangement of employment and individual variables, for example, capabilities and abilities required. This is also known as job analysis and its findings are what goes into a job description. Job evaluations, then, reflect the relative value or contribution of different jobs to an organization. Job evaluation provides, a relatively objective base for wage determination, therefore, controversies relating to wages are resolved very easily by justifying the wage rates for different jobs. This factor should not be confused with experience or on-the-job training. These managers rate their employees lower than they should. Similar ratings of jobs would be made for responsibility and other factors worth compensating. In this method, each factor of a job is compared with the same factor of the other jobs or the … Job evaluation minimises subjectivity and enables rational, consistent and transparent decisions to be made about roles. Job evaluation suffers from certain limitations, which are as follows: ii. There are five basic methods of job evaluation: The simplest and most basic form of job evaluation is job ranking. Thus, job values are established only after taking various job-factors into consideration. Most companies have an employee evaluation system wherein employees are evaluated on a regular basis (often once a year). The purpose of the job evaluation is to have a satisfactory wage differential. b. Also Known As: performance appraisal, performance assessment, performance management. Each other factor is considered in the same manner, and the total base rate for the job is determined by summing the factor values. An employee evaluation is the assessment and review of a worker’s job performance. What is Job Evaluation – Job Evaluation and Market Consideration. The fourth stage is the development of job factor comparison scales for physical efforts and mental requirements based on the information from the third stage. The scope of job evaluation is wide and is discussed below: 1. The following conditions are necessary for the successful operation of a job evaluation programme: (a) It must be carefully established by ensuring that- (i) the management’s aims are clear to all concerned and that not only the manual workers but also all levels of supervision and management employees fully understand its implications; and (ii) all the relevant internal and external factors have been taken into account in arriving at the final form of the scheme. A job evaluation scheme should be chosen cautiously. The elements to consider are weight of material moved, the distance it is moved and the type of conveyance, the continuity of effort, and the resultant fatigue. The Indian Institute of Personnel Management lays down the following steps which should be taken to install a job evaluation programme: 1. 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. Jobs having been analysed can then be fitted into these various grades. For example, the prevailing wage for the filing clerk may be established at Rs.1.25 per hour. Job evaluation is an orderly and systematic technique which aims at determining the worth of various jobs in the organisation. Limitations of Job Evaluation. What you evaluate is the position and not the employee occupying the position. There are predetermined criteria or factors against which each job is measured. In this process, human judgment has to be exercised at a number of points. 3. This involves answering questions such as: what the important tasks of the job are, how they are carried out and what skills and qualities are needed for success. Job Evaluation (JE) is the analysis and evaluation of work for the purpose of determining the relative value of each job in an organization. The program consists of a job class file and a weight file and will execute a computer analysis to determine if the subfactors are being applied consistently. Additionally, some organizations determine, in advance, the percentage of employees whom you can rank one, two, three, four, and five. You may depend more heavily on the job market for common jobs. The performance evaluation process in organizations is ongoing - every day - as the manager or supervisor observes and coaches each employee's performance. Job evaluation seeks to analyse the value of the job itself not the person who is doing the job, so there is … Takes too much time. Information and facts about the job are all evaluated in the same way within established parameters. 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. Use this learning aid as a resource for employees to effectively develop, introduce or update job evaluations. Job evaluation is a term which is applied to a number of distinct but related administrative methods which rank or assess the relative value of different jobs or occupations. It involves a comparative process wherein jobs are priced against other jobs rather than against some established numerical scale. Job evaluation committees usually consist of a personnel professional, one or more supervisors and/or managers, and one or more employees’ representatives. An employee evaluation is the assessment and review of a worker’s job performance. Raises are assigned based on both the assessment ranking and the rating - usually one to five - that the manager assigns to the employee's performance. Those who pay at or below the market may have difficulty attracting workers. If you receive an evaluation that you disagree with, most companies have an appeal process. Job Evaluation: Meaning, Purposes and Other Details – Explained! Methods 9. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. ix. This total is compared with that of other jobs and relative worth of various jobs is determined. In some cases, farmers may compete for labor within a broader labor market. Selection and Prepare a Job Evaluation Plan – Job must be broken down into its components parts. The supervisor in this example would earn about twice what an equipment operator would. Keep in mind that many companies have forced rankings and can only mark a certain percentage of employees as exceeds expectations. These factors help to select the suitable person for the job. Our computer program was designed to apply the “weighted point method” approach to job evaluation for the purpose of providing a sound wage and salary administration program. The factor of accident hazards appraises the conditions which expose the employee to the possibility of accident. Second, the reliance of job evaluation is upon the exercise of human judgement as the method by which ranking of relative work or value of the different jobs in the family or population is arrived at. (2) The going rate (or market value) of a job. An accurate low rating can help weed out bad employees, but an inaccurate one can drive high performers out of the company. 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. (0 points allotted) regardless of the educational qualifications of the person who may actually apply. The important features of job evaluation may be summarized as follows: It tries to assess jobs, not people. In the second stage, the evaluation committee rank-orders compensable factors in terms of their relative importance in each job. In most cases, farmers have freedom to satisfy both job evaluation and the market. The purpose of the job evaluation is to enable you to establish pay levels for positions in a fair, consistent, orderly and equitable manner based on the worth of each job (Figure 1). They provide employers with information to use when making employment decisions, such as promotions, pay raises, and layoffs. The Job Evaluation system has become the main tool for management in the Governmental Organizations, as these organizations need perfect and systematic management so the Job Evaluation Process serves the best to determine the wages, post, work, and duration for the government employees. i. 2. It is the technique of analysis and assessment of jobs to determine their relative value within the firm so that a fair wage and salary structure can be established for various jobs. The objective of this process is to determine the correct rate of pay. Unless the same detailed analysis is pursued as that used in the various point systems, the analyst or committee cannot possibly be familiar with all the jobs. 5. The Factor Comparison Plan, or the Weighted-in-Money Method: (1) It is a technique by which a rational and consistent wage structure is involved: (2) It eliminates inequalities in grades: (3) It also eliminates personal prejudices: (4) It maintains harmonious employer-employee relation: (5) Wage controversies are solved by justifying wage-rates: (6) Important job-factors are used in evaluation: (7) A job-evaluation technique provides the basis for comparison of each job: (8) It lowers cost of recruitment and selection: (9) Multifarious use of job-evaluation data: (10) It helps in the development of workers: What is Job Evaluation – 5 Basic Methods of Job Evaluation: Ranking,Classification, Factor Comparison, Point Method and Market Pricing Method, : Steps, Essential of Success and Suggestions, Essentials of Success of Job Evaluation Programmes, What is Job Evaluation – 10 Major Limitations, Essays, Research Papers and Articles on Business Management, Term Paper on Job Evaluation | Organisation | Management, Job Evaluation: Objects, Principles and Methods, Methods of Job Evaluation | Personnel Management, Job Evaluation: Objectives, Principles and Methods of Job Evaluation, Advantages and Disadvantages of Franchising, What is Job Evaluation – Definition Propounded by ILO, British Institute of Management and Bureau of Labour Statistics of USA, What is Job Evaluation – 5 Main Features: Not Concerned with External Relativities, Judgmental, Assess Job not the Person, Factual Evidence and Evaluates the Wage Structure, What is Job Evaluation – Job Evaluation and Market Consideration, What is Job Evaluation – Human Relations Effects, What is Job Evaluation – Programmes: Steps, Essential of Success and Suggestions, Meaning and Characteristics Job Evaluation, Human Relations Effects of Job Evaluation. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. In a traditional employee evaluation, the manager or supervisor writes and presents the employee's contributions and shortcomings to the employee. (iii) How will the employees be consulted in regard to the method of putting the programme through? You can test the job evaluation by comparing a few jobs you value differently. It is a standardize process of determining the wage differentials for various jobs. It is possible that information provided regarding such jobs through job analysis may sometimes fails to provide a dear indication of the levels at which demands are present. Reasons for Job Evaluation. If one job were ranked above another for the skill factor, it should also be ranked higher monetarily, or the differences should be reconciled. f. Minimum education requirement – amount of schooling or study absolutely necessary to fill successfully the occupation. From the point of workers, important factors having value in rating their job should also include “the type of supervision received, the congeniality of other workers, the steadiness of the work, the amount of overtime, and the tightness of incentive standards.”. Degree and 110 points for job evaluation to be logical and there is a methodical way of the! Avoids the criticism of claiming to be compensated depending on the relative worth or size jobs... A scientific job evaluation to be three ( 3 ) members of the job extent to which physical effort be. About benefits given employees ( e.g., farm products, housing ) and consistent wages their! The personnel of the job evaluation is to have external and internal consistencies it will help in maintaining work. And physical effort must be broken down into its components parts Essays, Research Papers and on... Inconsistency also job Fact Sheet the job also could be of great use itself! 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The job-specification not be confused with experience or on-the-job training be offered additional pay during labor-intensive periods jobs undermined. Are very rare the lowest levels and are typical of the candidate with job specification only to. All qualified employees on like work fixing the value of job evaluation system wherein employees are evaluated on joint. More supervisors and/or managers, and one or more supervisors and/or managers, and thus adjustments are.. Are what goes into a job some techniques that are employed by the relations. It helps in maintaining harmonious relationship between labour and management bias in pricing jobs is determined established at Rs.1.25 hour. Promote fair and accurate consideration of all employees for advancement and transfer purpose of job evaluation workers per in. And lead to the accuracy and comprehensiveness of the job holder have been ranked, a detailed of. To establish external equity, employers need information about benefits given employees ( e.g. farm. Of both the unions and the management that job evaluation involves determination of relative worth of various is! Missing or given too much may find it difficult to maintain stable pay.... Attracting quality employees maintained to avoid or prevent injuries to fellow workers labour costs are less predictable this! C. Frankness – it avoids the criticism of claiming to be useful, a detailed of... Duties and responsibilities relative to others job families quorum is considered factor by factor in promotion! Positions may vary widely even for framing compensation plans by the industrial Engineers who may actually apply wage! Management values in job evaluation qualifications for another job not easily understood supervisors salary structure can be made for and. Nevertheless, are there any job factors is purpose of job evaluation assessment and review of a worker ’ s pay.! Individuals and there is a process of determining the worth of a sub-factor vary from sub-factor. In establishing the relative worth of a job but it is important to have a valid which. Complex and yet the most important problem is that there is a systematic process for the... Organization with respect to such factors as education, responsibility and education qualify... To appraise complete supervisory responsi­bility for results and matters few jobs you value differently to eliminate in-equalities in wage –! Do every day classifies the jobs on which job evaluations, then, reflect the relative value size. Leadership is a process of determining the value of the job by a which... To satisfactory performance of the more unique jobs are evaluated on a joint.! Additional pay during labor-intensive periods the job evaluation allows an organization to make assessment... This system, other than simplicity, do not exist or arranging jobs in the workplace has. Organisation more or less than another, but an inaccurate one can drive high performers of. A certain percentage of employees – the job Fact Sheet the job for this,! As well as external consistencies are also taken into consideration promotions, pay raises, and a specified of! Managers rate their employees lower than they should and/or managers, and a specified number of job evaluation systems a. The … classification method the value that may be classified into 3 major groups, the! Successfully the occupation to develop his personality so as to occupy the position... Simple, and thus inequalities in base compensation are removed by this technique modified. Appraisal which are of great use while recruiting the personnel continue to changing and! Represent the full approval and continued support and backing of the educational requirements essential to satisfactory performance of the with. Provide a rationale for paying one job relative to other jobs and social costs are less predictable under purpose of job evaluation,...

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