For example, for the mental requirements factor, the welder job ranks first, while the security guard job ranks last. These factors are the job elements common to all the jobs being evaluated. There are obvious flaws in this system. A compensable factor is one used to identify a job value that is commonly present throughout a group of jobs. These methods are discussed in the next section. For each class, a general description is written indicating the nature of work and responsibility that are included. This is where you get down to the nitty-gritty and where the job analysis from your first step becomes essential, as you assign numbers to each factor for each job you are evaluating. The points for each sub-factor are added to find the total number of points for the job. It's important to focus on getting this right for a couple of reasons. Finally, you can also represent your company as forward-thinking, fair and clear in its values. For example, mental requirements include mental traits, intelligence, memory, reasoning, imagination, general education, specialized knowledge, etc. Judgment refers to the use of knowledge and experience in making the decisions. There are four widely used job evaluation methods. This is also known as job analysis and its findings are what goes into a job description. STAGES IN THE JOB ANALYSIS PROCESS Understand the purpose of the job analysis Determine how to collect job analysis information Review draft with supervisor Develop draft Seek clarification Understand the role of job … You risk having very different jobs in the same classification, poorly fitting class descriptors to specific jobs, and oversimplification of the differences between jobs and grades. For example, Figure I shows that the factor of responsibility can be broken down into the safety of others, equipment, and materials, assisting trainee and product quality. You have invested significant resources in building the pay structure through your job evaluations so you need to optimise its effectiveness by using it. The point method is complex. It is a scheme that incorporates money value and determines wage rates automatically. In the words of Dale Yoder “Job Evaluation is a practice which seeks to provide a degree of objectivity in measuring the comparative value of jobs within an organisation and among organisations.” It is essentially a job … The pay structure you can develop through this step by step guide is a fundamental reflection of what you value from your employees. You will have to go over each, in turn, to find out why your evaluation isn’t giving you the expected outcome. Each job … 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. This particular form is used by more or less every industry to evaluate their … To make sure the ranking and structure does this properly, it's a good idea to gather a team from across the spectrum of expertise and skillsets within your company to assess this. The evaluation can be company-wide, looking at the needs of the organization as a whole or specific to one position within it, where a business seeks to add or eliminate job … (a) Objectives of job evaluation (i) In basic terms, job evaluation is a process of comparing jobs with one another. This method is quantitative as each of the compensable factors is assigned a numerical value. Job evaluation is an assessment of the relative worth of various jobs on the basis of a consistent set of job and personal factors, such as qualifications and skills required. This is also known as job analysis and its findings are what goes into a job description. These are listed below: The point rating system is not without limitations. These factors will become the unit of measurement for each role to allow you to standardise your evaluation. It considers the components of a job rather than the total job and is much more comprehensive than either ranking or classification method. When this method is employed, the job rater simply compares two jobs, one against another and asks which of the two is more difficult. Conducting an employee appraisal … ... As you read job … This method is comparatively complicated to apply and it is difficult to explain to the workers. This method determines the relative rank of the jobs is evaluated in relation to the monetary scale. There may be four levels namely, minimum, low, moderate and high. Preparing a manual for various jobs, fixing values for key and sub-factors, establishing wage rates for different grades, etc. Job evaluation is a practical technique, designed to enable trained and experienced staff to judge the size of one job relative to others. It does not take a great deal of time and does not require technical help. This site teaches … Selecting a number of keys- jobs in the organization as standards. The “point method” job evaluation approach provides the framework for a quantification of each job’s relative importance for the company (internal job value); this quantification will then provide the basis … It is obvious that arbitrary weights are attached to various degrees and to the factors by specifying maximum and minimum limits. Job evaluation essentially seeks to (a) determine the relative worth of various jobs in an organization in monetary terms (b) evaluate the performance of employees on their respective jobs (c) evaluate the importance of various … Once the worth of a job in terms of total points is expressed, the points are converted into money values keeping in view the hourly/daily wage rates. In spite of the above-mentioned merits, this method suffers from the following limitations: It sometimes seems to be arbitrary, though it takes the views of representatives of trade unions. The committee members have to divide up the present wage now being paid for each key job, distributing it among the five compensable factors. The usual process followed in this method is as under: 1. In order to increase the reliability of ranking, this exercise is undertaken twice or thrice b… This technique does not consider all the sub-factors as the operation of the system would be difficult if it considers all the factors. The system results in more accurate job evaluation because weights are not selected arbitrarily. The evaluation is requested as a means to reward high performance in the job. It is a process which is helpful even for framing compensation plans by the personnel manager. So, Job … In the points system various aspects or parts o… The committee agrees upon the base rate, (usually expressed on an hourly basis) for each of the key jobs and then allocates this base rate among the five criteria. Complexity refers to the variety and relative difficulty of the material or information upon which decisions are based. Outlining the job. The usefulness of job evaluation is that it provides a framework for an exchange of views – open discussion and communication. It is essential that this task is done well and analytically, without being vague. Methods of Job Evaluation Job-evaluation methods are of two categories:- a) Analytical Methods Point Ranking Methods Factor Comparison Method b) Non-analytical Methods Ranking Method Job-grading Method Non-analytical Methods Ranking and job-classification methods come under this category because they make no use of detailed job factors. The points rating system has many advantages over ranking and classification systems. The factor comparison method permits a more systematic comparison of jobs than the non-analytical methods. It is a systematic and quantifiable method for which detailed step by step instructions are available. When people talk of a job evaluation, it can be unclear what they are actually referring to. Ranking key jobs, according to wages assigned to each factor. Thus, according to this system, the clerks may be put into one class, supervisors in a higher class and higher executives on the top class. Job evaluation as a process is … It forces the raters to consider individual factors rather than the jobs as a whole. This method is analytical as jobs are broken into sub-factors and components. The second method is one of awarding points for various aspects of the job. Identifying the critical factors of key jobs. Evaluation of clerical, technical, professional and supervisory jobs handled more or less on the principles that are used in evaluating manual or factory jobs. .The weights selected are not arbitrary but reflected existing wage and salary practice. Another drawback is subjectivity, as there are no definite or consistent standards by which to justify the rankings and the fact that because jobs are only ranked in terms of the order, we have no knowledge of the distance between the ranks. To do this ask what makes one job more valuable to your company than another. Firstly, a clear, rational pay structure and obvious progression helps your employees to understand what qualities and skills you value. There are four widely used job evaluation methods. It does not measure the value of jobs but establishes their ranks only. The structure should correspond with rewards for the values, skills, and qualities that you value in your employees. This factor deals with the decision-making aspects of the position. A Job Evaluation form is a type of form which is solely used as a document for the purpose of evaluation of jobs. Each committee member usually makes this ranking individually and then a meeting is held to develop a consensus on each job. Dale Yoder, “Job Evaluation is a practice which seeks to provide a category of objectivity in measuring the comparative value on jobs within an organisation and among similar organisations. It is a sophisticated and quantitative ranking method. Jobs are expressed in terms of fundamental ‘factors’ for instance skills, problem-solving and accountability. The job evaluation committee subjectively assigns the maximum possible points to each sub-factor. You should endeavor to use it within HR development programs, recruitment drives and in PR to best show what you value and that you are thorough and fair in the way you reward employees. These amounts then became the standards by which other jobs in the organization could be evaluated. Jobs within the organization are arranged in some order from the most difficult to the simplest or in the reversed order. Job evaluation seeks to rank all the jobs in the organization and place them in a hierarchy that will reflect the relative worth of each. Job Analysis is a comprehensive process while Job Evaluation is a … You should always, at the end of your job evaluation make the pay structure clear to your employees and use it to develop your teams in the direction your company wants to go. That is, all other jobs with similar responsibilities were assigned Dollar 250 for that criterion. This is the step where you formalise the hierarchy of your pay structure and use it to highlight how individuals can develop over their careers by moving up through your pay structure. All rights reserved, Download now: 360 degree feedback template + what you need to know, Attract, engage and retain the best talent. Common jobs are selected because it is easier to discover the market rate for them. Each class or grade is assigned a salary range with maximum and minimum limits. The job structure is divided into a number of classes. Basically, a company will set up a pre-determined number of classifications, for instance, three classifications: low-skilled, high-skilled and executive. Specifically it means job … The committee appraises all other jobs and assigns a value on each factor by comparing them with key jobs. You then find the number of points that a job gets from the number of points assigned to each sub-factor for a job. It is a very expensive method/system of job evaluation because experts have to be appointed particularly in selecting weights which are based on actual analysis. Werther, B.W and Davis, K (1998) point out that the factor comparison method involves the following steps: Preparing clear-cut job descriptions and job specifications. The factors are mental requirements, skill requirements, physical requirements, responsibility, and working conditions. The methodology underlying the approach contributes to a minimum of rating error (Robbins, 2005). The reliability and validity of the system are greater than the same statistical measures obtained from group standardized job analysis plans. The weight given to an employees role will then provide the basis for deciding their salary. The method’s problem is it is too broad in its classification of jobs. is a time-consuming process. The Objective of Job Evaluation The purpose of conducting job evaluation is to fairly determine the monetary value / worth of a job in relation to other jobs in an organization. Date Yoder, “Job Evaluation is a practice which seeks to provide a degree objectivity in measuring the organization value of jobs within organization and among similar organizations. Given that you choose to use the Hay Method mentioned in the previous step, you need to choose the factors that you value most highly within the roles that you are evaluating. To give a straight definition, it's the procedure of weighing up an employee's role and orientating it in the wider company structure. It also defines what is expected for the four levels of each sub-factor. Since the amount of responsibility or other factors may vary from job to job, the point system creates several levels associated with each factor. A final and very important consideration is, if your job evaluation process is rigorous it ensures equity between jobs relative to their worth to the company. This ranking procedure is based on job descriptions and job specifications. The main demerits are discussed below: Job Evaluation: Definition, Schemes, Process, Job Analysis: Definition, Importance, Components, Methods, Purpose, Process, Performance Evaluation: Definition, Characteristics, Steps. Under this system, the job raters simply rank one job against another without assigning point values. To illustrate, in one organization the job of maintenance electrician was chosen as a key job and had an hourly rate of Dollar 1300.00. This method is also subjective in ranking jobs because they are judged as a whole. The use of fixed and predetermined factors forces the raters to consider the same job elements when rating jobs. Valuable technique for management to … Analysts then develop a point manual that contains a written explanation of each job element. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. This involves answering questions such as: what the important tasks of the job … It is important to offer insightful and constructive feedback in the evaluation to ensure your team members remain motivated and continue to develop valuable skills. Once that question has been settled, another job is compared against the first two and a similar determination is made.