Table of Contents
- Steps in Job Evaluation Programme
- Various Job Evaluation Methods
- 1. Job Evaluation by Ranking Method or Grading Method
- 2. Job Evaluation by Job Classification Method
- 3. Job Evaluation by Point System
- 4. Job Evaluation by Factor Comparison System
Steps in Job Evaluation Programme
A Job Evaluation Programme, which is generally conducted by the job analyst involves three steps. They are as follows:
- Selection of the factors common to all jobs.
- Clear-cut definition of the factors
- Selection of a suitable rating method.
1. Selection of Common Factors
In order to measure one job in terms of other jobs or with reference to other jobs, it is necessary to select factors common to all occupations. Even though Occupations vary in duties, operations, routine, equipment and materials, the basic nature of all jobs can be expressed in terms of attributes such as skill, efforts, responsibility etc.
By breaking down each job into factors, required number of attributes can be ascertained. These factors should also be classified into two namely, major factors and minor factors. This is because all the factors contained in a single job are not of equal importance.
2. Defining the Factors
To ensure proper understanding of the job, the factors of a job should be properly defined. This is the duty of the job analyst to stipulate the limits of each factor. A clear-cut definition enables the worker to understand the relative weight of each factor. This will avoid overlapping.
3. Selection of a Suitable Method
Finally, the analyst should select a suitable method for job evaluation. There are four methods of job evaluation. They are:
- Job Evaluation by Ranking Method.
- Job Evaluation by Classification Method.
- Job Evaluation by Point Method.
- Job Evaluation by Factor Comparison Method.
The ranking and classification methods provide the evaluation of jobs in non-quantitative terms, whereas the point method and factor comparison method furnish the result in quantitative job values. The analyst, however, can combine two or more methods for counter checking the balance.
Various Job Evaluation Methods
1. Job Evaluation by Ranking Method or Grading Method
This is the simplest method of job evaluation. Under this method, each job is given a rank. The ranking is done in the order of importance of each job. A list beginning with the most important job and ending with the least important is then prepared. No points or weights are used. The importance of each job is generally decided by a committee consisting of persons familiar with all the jobs.
The importance of each job should be determined with reference to the factors such as skill, experience, working conditions etc. Each job should be considered in its entirety.
Merits of Ranking Method
The merits of the Ranking method of job evaluation system are as follows:
1. This is the most simplest method of job evaluation.
2. The time-required for grading the jobs is very little when compared with other methods.
Demerits of Ranking Method
Ranking Method of Job Evaluation system, though simple, suffers from various defects. They are:
1. The job analyst should be familiar with all jobs. Otherwise, misleading results will be produced.
2. This system does not tell how much one job differs from another. It merely says that one job is higher and the other is lower.
3. This method is highly unreliable in cases where the jobs to be evaluated are widely dissimilar. Hence, this method can be used only when the jobs belong to the same class or the same department.
4. This method provides record of the factors considered on the basis for rating and therefore it is not useful in explaining the employees and union representatives why one job is rated higher than the other.
Suitability of Ranking Method
In spite of the serious limitations referred above, this system does provide an overall review of jobs at one time. This method is highly suitable and less expensive in case of small organization or where the jobs are few in number. Especially, it is more suitable for rating supervisory and executive job positions where intangible factors are to be taken into account for purpose of evaluation.
2. Job Evaluation by Job Classification Method
Under Job Classification method, all jobs are divided into various classes. For example, selecting functions, accounting, correspondence, engineering services etc. For each of these classes, a general specification is prepared with reference to the nature of the work, responsibilities involved and skill required etc.
The major classes can also be divided into various sub-classes. Salary and wage ranges are also fixed for each class. The job evaluation committee or job analyst, then allocate each and every job to the approximate predetermined class.
Like ranking system, this system is also very simple. In fact, it is only an extended idea of the simple ranking system. Hence, it has the same merits and subject to the same limitations. However this system is suitable for smaller concerns, where jobs are few in number. This system is widely used in Government departments.
3. Job Evaluation by Point System
This is the most popular method of job evaluation. Unlike the first two methods, this method makes a quantitative evaluation of different jobs in terms of certain factors common to all jobs.
For purpose of ascertaining the common factors, the job manual is used. The job manual also specifies the sub-divisions of each factor i.e. degrees, and provides the scales by which each degree of each factor is to be valued. These degrees determine the number of points to be credited to each job. The total of these points establishes the point value of each job.
There are four factors common to point method of job rating. They are skill, effort, responsibility and job conditions, These factors can be again sub-divided into eleven characteristics. They are the following:
- Skill – Education, Experience, Initiative and ingenuity.
- Effort – Physical demand, Mental or visual demand.
- Responsibility – Equipment or Process , Materials or product, Safety of others, Work of others.
- Job Conditions – Working conditions, Unavoidable hazards.
Under this method, a point-value is assigned to each characteristics of a job..Much care is needed in giving proper weight to each factor and each job should be considered individually on the basis of the job specifications. The total points value is then used in setting up the monetary wage scale.
For instance, if a job worth, 200 points and monetary value of each point is Rs.2, the wage for the job shall be Rs.400.
Merits of Point System
The merits of point system are as follows:
1. Of the various methods of job evaluation, the point method is more popular all over the world.
2. This system gives a deep analysis of all the factors in the job and the points assigned to each job constitutes an accurate and realistic appraisal of each job.
3. The basis and guidelines of evaluation are standardized by experts and so the management can justify the rating of a job to the Trade Union authorities.
Demerits of Point System
This system is also subject to severe limitations. They are:
1. Installation of this system is highly expensive and unjustifiable. Experts should be appointed for rating the job factors.
2. This system, though claims accuracy, is never accurate in fact. The job factors are assumed to be independent. But in reality, these factors are not independent and hence the weight assigned to each factor does not reflect the realities of the situation.
3. The factors and their sub-divisions are more in number. The multiplicity of factors creates confusion and acts against precision in decision.
4. The mental bias of the analyst may also affect the validity of the findings of job evaluation.
4. Job Evaluation by Factor Comparison System
This is another quantitative method of job evaluation. This system was first evolved by E.J.Benye and S.L.H. Burk. This is essentially an expert’s method and so its adoption calls for rich experience and knowledge.
Under this system, the jobs are just selected on the basis of the job analysis. Generally, fifteen to twenty key jobs are first selected. Then the key jobs or basic factors are ranked in order. The ranking should be made independently.
The key factors generally used under this method are
- Mental requirements
- Skill requirements
- Physical Requirements
- Responsibility and
- Working conditions.
The rating process should be done by an expert committee. Joseph Tiffin says that the ranking should be done at least by ten raters and each rater should rank each job three times. The time gap between two rankings should be at least one week. This procedure adds accuracy to the rating process.
Any job, which does not come out essentially with the same rank, is eliminated from the list of key factors. After ranking the key factors, weights are assigned to the factors. In the rating process, each job should be compared with others (one factor at a time), and point values to each job should be assigned. The job ratings are then computed by totaling the points received by each job.
After making minor adjustments to arrive at uniform wage scales, the ratings are converted into a money scale with reference to the prevailing wage level.
Merits of Factor Comparison System
The merits of factor comparison system are as follows:
1. This system is more accurate and systematic than the simple ranking system. Since expert raters are assigned with the rating process, the rating under this system is bound to be realistic and accurate.
2. Even dissimilar jobs can be rated on the basis of common factors.
3. Weightages are given on the basis of prevailing wage and salary practices and hence cannot be held absolutely arbitrary.
Demerits of Factor Comparison System
The demerits of factor comparison system are given below:
1. This method is highly expensive because expert raters are to be employed.
2. Since this system is highly complex, it cannot be easily explained to the employees.
3. Assignment of weightages and monetary values may sometimes be colored by the bias of experts.
4. This system is laborious, because it requires that a single factor for one job is to be compared with the same factor in a large number of different jobs.
5. This system usually gives equal weight to all factors. This practice tends to under value the jobs that are high in the skill factor and to over value jobs that receive many points for the working conditional factor.
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