5. Its main objective is to adopt suitable wage structure. 3. International Labor Organization (ILO) has defined a job evaluation as: “Job evaluation is an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual performance of the workers concerned”. These factors are called compensable factors—which determine the definition of job content; that determine how jobs compare to each other; and they also help determine the compensation paid for each jobs. It is based on an initial definition of the number and characteristics of the grades into which jobs will be placed. Focus – Focus should be on rating the job and not the job holder. Programme 11. It is a process which is helpful even for framing compensation plans by the personnel manager. 2. (ii) Simplifies wage structure – Job evaluation helps to simplify wage administration by establishing uniformity in wage rates. Study the jobs or evaluate the jobs objectively and open-mindedly. 2. After deciding and dividing key factors, the factors are assigned the points according to their importance. Grade descriptions are the result of the basic job information which is usually derived from a job analysis. (6) Maximum co-operation can be obtained from employees when they themselves have an opportunity to discuss job ratings. (2) Rankingby job title and jobcontent.Here,thejobcontent is used toassistin judging the relative importance ofthe jobs. The job classification re-evaluation is generally requested by an employee through his or her supervisor. Job evaluations may be carried out in order to help businesses: 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. After formulating and studying job descriptions and job specifications, jobs are grouped into classes or grades which represent different pay levels ranging from low to high. It is a process which is helpful even for framing compensation plans by the personnel manager. To Classify Key Factors for Key Jobs: After determining the rate of wages for every job, key factors of the enterprise are classified for some key jobs of the enterprise. On the basis of analytical study of above definitions, it may be concluded that job evaluation is a technique by which different job of an enterprise are evaluated for the specific purpose of determining the wages and salary structure of enterprise. Disclaimer 8. Education may again be sub-divide into following sub-factors: The jobs are evaluated only on the basis of education. It should also include a review procedure for cases where employees or managers question evaluations of certain jobs. How Covid-19 caused a psychological pandemic, 7 ways to cultivate a trans inclusive workplace. (1) The task of defining job factors and factor degrees is a time-consuming and difficult task. Fore mostly, the job evaluation serves a number of purposes which may be grouped into three categories – wage and salary fixation, restructuring job hierarchy and overcoming anomalies. Job evaluation system came into common use during the World War II. Other stakeholders, such as employees and unions, may ascribe greater importance to certain factors than employers. In brief 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. Step # 3. Companies should have established procedures – separate from the standard grievance procedures – for dealing with these appeals. 5. Learn more. Enrich your vocabulary with the English Definition dictionary Account Disable 11. Reduce inefficiencies in remuneration e.g. Together, these distinguish job evaluation as a category of wages and salary determination. Supervisors should receive training in advance of actual intro­duction of the plan, to enable them to explain the policies, principles and procedures. totherelativepositionofitsjob-titlecardinthestack. The objective of this process is to determine the correct rate of pay. The basic objective of job evaluation is to determine the relative contributions that the performance of different jobs makes towards the realization of organisational objectives. Each element should be rated of the basis of what the job itself requires. Plagiarism Prevention 5. (iv) It may give scope for doubt or suspicion – If the job evaluation process is applied for the first time in the organization it may create doubt in the minds of workers who may feel that it will do away with collective bargaining for fixing wage rate. (v) Since no detailed analysis of a job is done, the judgment in respect of a whole range of jobs may produce an incorrect classification. ; According to Alford and Beatty, “Job Evaluation is the … It is a systematic method of evaluating or appraising the value of one job in relation to the other jobs. Organisation chart showing the location of the job under review. Job evaluation offers advantages of job analy­sis process such as proper recruitment, selec­tion, training, promotion, transfers etc. The issue is whether job evaluation should be viewed as a measurement device, and therefore be valued according to _____ standards, or as an administrative procedure that invites discussion and consensus.Some researchers say that if job value can be quantified, then job evaluation takes on the trappings of measurements and can be judged according to technical standards. Under such circumstances human error may considerably influence on the fixation of suitable wage structure. iv. ADVERTISEMENTS: Job-Evaluation: it’s Meaning and Definition! Job evaluation is a method for comparing different jobs to provide a basis for grading and pay structure. (iii) It is difficult to know how much of a job’s rank is influenced by the man on the job. Definition: The Job Evaluation is the process of assessing the relative worth of the jobs in an organization. defines job evaluation as an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned. During a job evaluation, a combination of factors is used to determine the relative worth of a job and how it compares to other jobs in the organization. Job evaluation is a methodical way of confirming the value of job in relation to other jobs in an organisation. The term Job Evaluation has been defined by some eminent scholars as follows: Kimball & Kimball, “Job Evaluation represents an effort to determine the relative value of every job in a planned way and to determine what the fair basic wage for such a job should be.”, John A. Shubin, “Job Evaluation is a systematic procedure of measuring the relative value and importance of occupations on the basis of their common factors like skill, training, efforts etc. For example, the “Equal pay for equal Work” Act focuses on four factors: Working conditions responsibility, efforts and skills. Since it has immense potentialities, the efficient handling of this resource can produce unthinkable results and can crown the business organisation with success. In other words it is the rating of jobs in an organization. Job analysis also provides the required information that is necessary for evaluating the worthiness of jobs. A consistent policy can be pursued through job evaluation. (vi) Helps in determining the training need and type of persons required – As job evaluation involves analysis of different components of job, it enables organization to determine training need and type of persons required to handle such job. Coverage of all aspects of job content – Compensation factors should reflect all major aspects of job content. These rates must be determined on the basis of points. (iii) This method is more scientific than other methods. (6) To provide a factual, basis for the consideration of wage rates for & similar jobs in a community and in an industry; (7) To provide information for work organisation, employees selection, placement, training and numerous other similar problems. The important features of job evaluation may be summarised thus: (b) The standards of job evaluation are relative, not absolute. Classify Jobs – This requires grouping or arranging jobs in a correct sequence in terms of value to the firm, and relating them to the money terms in order to ascertain their relative value. (c) The basic information on which job evaluation are made is obtained from job analysis. v. Conduct job evaluation systematically based on facts and figures. The organisation might develop its own compensable factors or use those factors adopted by others. (3) It is far less expensive to put into effect than other systems, and requires little effort for maintenance. Meaning of JOB EVALUATION. Job evaluation methods being lacking in scientific basis are often looked upon as suspicious about the efficacy of methods of job evaluation. It is a complex of job analysis, the study of jobs, job description, the statements of the results of the analysis upon which follows job grading, the placing of jobs in a sequence or ranking which is the basis of job assessment and the establishment of fair pay based on job grading. Now we shall discuss these methods in detail: Under this system, all jobs are arranged or ranked in the order of their importance from the simplest to the hardest, or in the reverse order, each successive job being higher or lower than the previous one in the sequence. In spite of these drawbacks, this system is used by most organisations because its greater accuracy possibly justifies the large expenditure of time and money. Job Evaluation – Definitions by Some Eminent Scholars Like Kimball & Kimball, John A. Shubin, Flippo, Dale Yoder, Wendell French and Other Institutions, Job Evaluation  – Factors that Job Evaluators Consider while Evaluating a Job, Job Evaluation – Principles: According to Kress, Job Evaluation – 4 Important Methods: Ranking System, Grading Method, Point Method and Factors Comparison Method (With Merits & Demerits). Its main objective is to adopt suitable wage structure. Definitions of Job Evaluation. (iv) Selection of Grades and Key Jobs. vi. Job evaluation is a system in which a particular job of an enterprise is compared with its other jobs. Evaluation factors – The factors selected for evaluation should be measurable and definable and represent job content. All the jobs in the same grade receive the same wage orange of rates. Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization. Job evaluation manual become more effective if “Job description” and Job specification can be redrafted in terms of factors identified for each cluster. The I.L.O. (iv) It is relatively difficult to write a grade description. (iv) It is used in important government services and operates efficiently; but it is rarely used in an industry. Job Evaluation 1.1 Job evaluation is a method of comparing different jobs and placing them into a rank order according to their size. Besides setting wages, job evaluation also helps in: (a) Establishing references for the settlement of grievances arising out of individual rates and for negotiations with a trade union of internal wage structure and differentials; (b) Clarifying the functions, authority and responsibility of employees; (c) Providing standardisation of and improvement in, working conditions; (d) Developing machinery for a systematic reviewing of job rates as job contents changes. Prerequisites of a Job Evaluation Programme: Guidelines for Conducting Job Evaluation Programme: Job Evaluation – Advantages and Disadvantages, Factors that Job Evaluators Consider for Evaluating Job, Steps Involved in Job Evaluation Procedure, Advantages and Disadvantages of Job Evaluation. Sometimes, a series of grades or zones are established, and all the jobs in the organisation are arranged into these. Define job evaluation. The objective of this process is to determine the correct rate of pay. There are two essential features or characteristics of job evaluation. Job evaluation is a time-consuming process requiring specialised technical personnel to undertake it and, thus, is likely to be costly also. How to use evaluation in a sentence. This system suffers from the following defects: (i) The system is rather rigid and unsuitable for a large organisation or for very varied work. The job classification is evaluated each time a significant change occurs in a job. This is also known as job analysis and its findings are what goes into a job description. (f) Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure. International labour organisation describes the objects of job evaluation in its report as, “The object of job evaluation is to determine the relative value of jobs of an enterprise and to determine the equal wage for equal jobs on the basis of some rational facts.” The principle upon which all job evaluation schemes are based is that of describing and assessing the value of all jobs in the firms in terms of a number of factors, the relative importance of which varies from job to job. In other words it is the rating of jobs in an organization. (3) The development and installing of the system calls for heavy expenditure. Hay Job Evaluation: Foundations H ay Group pioneered the “factor comparison”job evaluation method and modified it in its Guide Charts in the early 1950s. (v) The grouping of jobs into classifications makes pay determination problems administratively easier to handle. We measure jobs by size AND shape. iii. Do you know the four basic components of EI? A more common practice is to arrange all the jobs according to their requirements by rating them and then to establish the group or classification. Often several basic factors are chose initially and then sub-divided into sub-factors. (7) In talking to foremen and employees, any discussion of money value should be avoided. in which the job is performed. In India, the Indian Institute of Personnel Management, Calcutta, has laid down the following steps: Step # 1. Each job should be paid (or priced) according to its real value i.e., a […] 2. Each grade level must be distinct from the grade level adjacent to it; at the same time, it should represent a typical step in a continuous way and not a big jump or gap. 5. Job evaluation definition: the analysis of the relationship between jobs in an organization: often used as a basis... | Meaning, pronunciation, translations and examples Determination of Rate of Wages for Key Jobs: After making a selection of key jobs, the rate of wages for these jobs is determined.