Selecting method of evaluation, according to the job factors and organisational demand… Job evaluations can help you create an equitable compensation system through appropriate job classification. Here we detail about the meaning, purpose, advantages, limitations, steps and methods of job evaluation! What you evaluate is the position and not the employee occupying the position. The Purpose and Nature of Job Evaluation Job evaluation is a systematic process for deciding on the relative worth or size of jobs within an organization. This method is useful in a small unit where jobs are a few and are known to raters. As it eliminates wage inequalities within the organization so it helps in maintaining harmonious relationship between labour and management. The usual process followed in this method is as under: 1. The objective of job evaluation is to price the ob rather than the man. 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. It is a process which is helpful even for framing compensation plans by the personnel manager. Image Guidelines 5. Here is a clear step by step guide to undertaking a job evaluation that should help you on your way to providing a fair and equal pay structure that will benefit you in all of these ways. 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. To determine what positions and job responsibilities are similar for purposes of pay, promotions, lateral moves, transfers, assignments and assigned work, and other internal parity issues. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. In fact, the role of some Human Resources staff consists primarily of job evaluation and job classification. Job Review and Analysis includes job review, job analysis and job classification. Proper job evaluation helps in divising a wage structure which is acceptable to the workers as well as the organisation. But jobs involving high degree of mental applications or hazards cannot be accurately evaluated in fixed factor points. Outlining the job. (iv) Responsibility for achievement and failures etc. The Balance Careers uses cookies to provide you with a great user experience. Before publishing your articles on this site, please read the following pages: 1. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Job classification is the procedure of sorting the standard job-description specifications into a small number of groups. Job analysis is analysis and synthesis of the data obtained by job review in order to determine degree of duties, skills, exertion, responsibilities, conditions etc. Copyright 10. TOS 7. By using The Balance Careers, you accept our. • A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. (These are also factors in point rating method). Content Guidelines 2. Laura was hired as a human resources administrator at a local company. Learn the Difference Between an Exempt and a Non-Exempt Employee. He examined the characteristics of work and pay, the primary focus of the job evaluation system is to relate these two aspects of productivity in a way which both management and workers find reasonable, equitable and fair. Invention and Construction involve the timely development, design and production of the right type of jigs, tools, gauges and auxiliaries required for performing the jobs. She has covered HR for The Balance Careers since 2000. In a job evaluation that results in decisions about a job classification, factors such as decision-making authority, the scope, and range of the responsibilities performed, the level of the duties performed, and the relationship of the position to other jobs in the organization are considered and compared. Want to Understand the Basic Job Description and Duties of a Manager? Each job is reviewed to place the job in its appropriate grade. Job evaluation is a process of determining the relative worth of a job. Its greatest merit is simplicity, which is also its great limitation that is the measurement is quite crude. In job evaluation there are some major steps to be carried out in sequence: (3) Job review and analysis, comprising determination of relative values of jobs and grouping of jobs into classes for which minimum and maximum remuneration are established. Purposes: Job evaluation helps following purposes: (2) Wage rates can be reviewed easily if a job evaluation machinery exists in the organisation. The last two methods are analytical in approach. Job evaluation is concerned with assessing the value of one jot in relation to another in order to build a sound wage or salary structure. Besides, there is no pre-determined scale of values for the rates to be used. Job analysis is a systematic way of gathering information about a job. It is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. In the ranking method of job evaluation, a whole job is compared with others and rank is provided on the basis of this comparison. What Is Job Classification and How Do Employers Use It to Pay Staff? 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). Tetra Images - Erik Isakson/Brand X Pictures/Getty Images. Job evaluations are performed for these reasons. Under this method, certain key jobs are selected and each selected job is further analyzed into: (v) Working conditions. On the basis of job analysis, each member of the job evaluation committee ranks each job independently either against the benchmark job or against all other jobs. It is to be noted that first two methods are simple and suitable for application in small factories. Especially in larger organizations, job evaluation and classification is a moving target. Thus, the job evaluation results in a job classification that remains the same. In many cases, job evaluation is done is order to help in assigning the appropriate salary group and range to all job groups in an organization. Ever wondered how members of an organisation undertake job evaluation, and for what purpose this exercise is done? Evaluation in one form or the other is inevitable in teaching-learning, as in all fields of activity of education judgements need to be made. Purpose of Job Analysis. Job requirements, job specifications, and employee specifications are not considered in the evaluation. Job evaluation is a procedure for developing a wage structure that is somehow based upon an evaluation of the job. In job classification, a job analysis and evaluation occurs when a new position is created. Plagiarism Prevention 4. Job evaluation is the systematic process for assessing the relative worth of jobs within an organization. Likewise, you'll also get feedback telling you about the … The objective of job evaluation is to determine which jobs should get more pay than others. (2) By Job evaluation, right worker is put in the right place, with the result there is reduction in the labour turnover. There are certain limitations. The objective of this process is to determine the correct rate of pay. Why Would an Employer Perform a Job Evaluation? (1) By bringing uniformity in wage rates, it brings about simplification of wage administration. Deciding the job to be evaluated, which may represent the type of work performed in the organisation. Job evaluation is a systematic and orderly process of determining the worth of a job in relation to other jobs. (v) Job-hazards or complex nature of job and. For each class or grade a general specification is prepared, indicating the types of responsibility and work that may be included. What is Job Evaluation 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. A job evaluation is a tool used by an organization, often by the human resources department, to identify the value of a job. (5) It helps to avoid wage and other discrimination for similar jobs in same organisation or a group of organisations under the same management. (2) Job factors should be clearly defined- The job factors should be in limited numbers should be clearly defined and explained. It helps in forming the values of judgement, educational status, or achievement of student. • It tries to make a systematic comparison between jobs to access their relative worth for the purpose of establishing a rational pay structure. With the result, better workers join the firm more willingly. 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. It measures the differences between jobs on the job requirements, and establishes the differential numerically (job rating), so that it can be converted to … When should a job description be submitted to the Job Evaluation & Organizational Design unit? It does not focus on how well an employee is doing the job. A Job Profile Outlines the Key Components of a Job—Use It Wisely, How Unconscious Bias Can Impact the Workplace and Job Search, Understanding the Chain of Command in Your Workplace, To determine what positions and job responsibilities are similar for purposes of. The finding of this mid-term evaluation will inform the development of the fourth phase of the Global Programme along with the final evaluation. Points are allocated to each of the factor or characteristics. Under this method of job evaluation jobs are analyzed into its various characteristics or factors and then evaluated in terms of points. It is a standardize process of determining the wage differentials for various jobs. Take a Look at What It Means to Have Exempt Employee Status. In order to increase the reliability of ranking, this exercise is undertaken twice or thrice b… It’s the bridging gap between the relative worth of a position to the organization and the pay range structure into which the position falls. It is an exercise undertaken by an employer where he/she asks employees to rate their job performance and accomplishment. One of her first tasks was to perform a Wages scales or ranges are fixed for each of these grades. Job review is to identify person needed to fill the job and conditions which affect the rate of pay of the person needed to fill it. (4) By job evaluation proper and rational wage structure can be formulated and implemented. In other words job evaluation grades all jobs with reference to their main characteristics so that the relative merit of each job in terms of work value may be determined. Job evaluations are performed for these reasons. Rather, it involves examining the functions of the job itself. Adopting new technology, employees taking on additional responsibilities, downsizing and layoffs, new programs, new procedures, increased authority, and team leader or supervisory responsibilities can cause the job classification of an employee to change. Job Analysis plays an important role in recruitment and selection, job evaluation, job designing, deciding compensation and benefits packages, performance appraisal, analyzing training and development needs, assessing the worth of a job and increasing personnel as well as organizational productivity. (3) It helps the personnel department to recruit the right person for a job since requirement of each job are clearly indicated. The key purpose of a job evaluation is for you to get feedback to help you tweak your modus operandi in any areas where you are drifting from the company's expectations or falling short of them entirely. Salary or wage ranges are thereafter fixed for each class or sub-class. Every job has its own characteristics. (2) Grading or Job Classification Method: In this method individual jobs are classified into a number of grades or classes, for example: skilled, semi-skilled, unskilled, assistant foreman, foreman executives and work manager etc. Why might an organization adopt a system of job evaluations for job classification? (2) It helps in proper placement of workers in job. Job evaluation is a valuable technique by which a more rational and consistent wages and salary structure can be evolved. 10 steps to developing a successful job evaluation 1. There are mainly three methods of job classification: Under this system different jobs are graded from the highest to the lowest ranks on some basis. The Bureau of Labour Statistics of USA has described job evaluation as follows – “Job evaluation is the evaluation or rating of jobs to determine their position in a job hierarchy. (1) Job evaluation rates the job and not the man- Under this techniques the evaluator has to rate the job by considering the requirements of the job. The chief merit of the method is its simplicity but this is useful only in small units, since in large organisation job-specifications are quite complicated. As the name suggests, employee self-evaluation involves an employee self-appraising. The most common request for job classification re-evaluation that I have experienced occurs when an employee has taken on new responsibilities or more work. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Purpose and audience: This mid-term evaluation is being undertaken to inform UNDP and its partners of lessons learned, results achieved and areas for improvements. Analysing and preparing job description. (1) Workers are rewarded on the basis of their performances. For example, some jobs require physical ability; others may need a high degree of mental ability, while a third category may need skill, experience and high education. (1) It helps in devising an acceptable wage. Proper job evaluation helps in divising a wage structure which is acceptable to the workers as well as the organisation. How Is a Salary Range Determined and How Does It Work? 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. Job Evaluation (JE) is the analysis and evaluation of work for the purpose of determining the relative value of each job in an organization. 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. The purpose of job evaluation is also to weigh the value of a given job in a consistent and uniform manner (Understanding the Job Evaluation Process, n.d.). In other words job evaluation grades all jobs with reference to their main characteristics so that the relative merit of each job in terms of work value may be determined. Job standardisation is the development and standardisation of the most suitable arrangements, motions and times for production based on time and motion study. It provides effective motivation to workers. Job evaluation differs from job analysis – the latter is the process of gathering information about a job, whereas job evaluation goes a stage further by placing a relative value on a job so that a fair and suitable pay framework can be produced. needed in relation to a job. The job classification is evaluated each time a significant change occurs in a job. Job evaluation needs to be differentiated from job analysis. Disclaimer 9. Job Evaluation (JE) is the analysis and evaluation of work for the purpose of determining the relative value of each job in an organization. (4) It helps in formulating the internal training plan. Sometimes, it is seen that workers are not available at the wage suggested by the job evaluation. The Paterson Job Evaluation System was developed by Dr. T. T. Paterson in Scotland. 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. 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