Job Evaluation..pptxbgffgjudwsbloihtsazbnkoy

Job Evaluation..pptxbgffgjudwsbloihtsazbnkoy

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  JOB EVALUATION Presented ByGroup 4 • Deepak Pathak • Shivam Mishra • Aman Kanaujia • Satya Prakash Dubey • Prakul Maurya • Nitin Yadav • Sandeep Kumar • Karan Verma
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  WHAT IS JOB EVALUATION? •Job evaluation is a process of analysing and assessing the various jobs systematically to ascertain their relative worth in an organization. • Jobs are evaluated on the basis of their content and are placed in order of their importance. • According to Edwin B. Flippo, “job evaluation is a systematic and orderly process of determining the worth of the job in a relation to other job” • Kimball & Kimball define job evaluation as “an effort to determine the relative value of every job in a plant to determine what the fair basic wage for such a job should be” • It should be noted that in a job evaluation program, the jobs are ranked and not the job holders. Jobholders are rated through performance appraisal.
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  OBJECTIVES 1. To Analysethe Job Factors and Requirement. 2. To Facilitate Comparison and Survey. 3. To Eliminate Inequalities. 4. Determination of Wage Structure. 5. Objectivity and Rationality in Wage Structure. 6. To Solve Wage Controversies of Job Evaluation. 7. To Eliminate Personal Prejudices. . 3
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  JOB EVALUATION PROCESS 4 •The job evaluation process starts with defining objectives of evaluation & ends with establishing wages and salary differentials.
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  QUESTIONS INVOLVED INJOB EVALUATION PROGRAM. Several Questions are as follows:- 1. Which jobs are to be evaluated ? 2. Who should evaluate the job ? 3. What trainings to the evaluated needs ? 4. How much time is involved ? 5. What should be the criteria for evaluation ? 6. What methods evaluations are to be employed ? 5
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  METHOD OF JOBEVALUATION Job Evaluation methods are of two types:- Analytical method • Point ranking method • Factor Comparison method Non-Analytical method • Ranking method • Job- Grading method 6
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  1. NON-ANALYTICAL METHOD Rankingand job-classifications methods come under this category because they make no use of detailed job factors. Each job is treated as a whole in determining its relative ranking. 1.A. Ranking Method. This is the simplest, the most inexpensive and the most expedient method of evaluation. The evaluation committee assesses the worth of each job on the basis of its title or on its content, if the letter are available. But the job is not broken down into elements or factors. Each job is compared with others and its place is determined. Merits. 1. This method is simple and easy to understand and easy to explain to employees. 2. Less time consuming. 3. It involve little paper work. Demerits. 1. It does not indicates the degree of difference between different jobs. 2. It involves subjective judgement, because a job is not analyzed and key factors are not considered.
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  THE FOLLOWING TABLEIS AN ILLUSTRATION OF RANKING METHODS OF JOBS 8 Rank Monthly Salaries 1. Accountant Rs 3000 2. Accounts clerk Rs 1800 3. Purchase assistant Rs 1700 4. Machine-operator Rs 1400 5. Typist Rs 900 6. Office boy Rs 600 Array of Jobs according to the Ranking Method The variation in payment of salaries depends on the variation of the nature of the job performed by the employees. The ranking method is simple to understand and practice and it is best suited for a small organisation. Its simplicity however works to its disadvantage in big organisations because rankings are difficult to develop in a large, complex organisation. Moreover, this kind of ranking is highly subjective in nature and may offend many employees. Therefore, a more scientific and fruitful way of job evaluation is called for.
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  1.B. JOB-GRADING METHOD. 9 Asthe ranking method, the Job-grading method(job-classification method) does not call for a detailed or quantitative analysis of job factors. It is based on the job as a whole. The difference between the two is that in the job ranking method there is no yardstick for evaluation, while in the classification method , there is such an yardstick in the form of job classes or grades. Under the classification method, the number of grades is first decided upon, and the factors corresponding to these grades are then determined. Facts about jobs are collected and are matched with the grades which have been established. Merits: 1. This method is easy to understand and simple to operate. 2. It is more accurate and more systematic than ranking method. 3. This method is used in government offices. Demerits: 1. It is very difficult to write accurate and precise description of job grades. 2. Some jobs may involved tasks which overlap more than one grades.
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  FOLLOWING IS BRIEFDESCRIPTION OF SUCH CLASSIFICATION IN AN OFFICE 10 a). Class I - Executives: Further classification under this category may be Office Manager, Deputy office manager, Office superintendent, Departmental supervisor, etc. b). Class II - Skilled workers: Under this category may come the Purchasing assistant, Cashier, Receipts clerk, etc. c). Class III - Semiskilled workers: Under this category may come Stenotypists, Machine-operators, Switchboard operator etc. d). Class IV - Semiskilled workers: This category comprises Daftaris, File clerks, Office boys, etc. The job classification method is less subjective when compared to the earlier ranking method. The system is very easy to understand and acceptable to almost all employees without hesitation. One strong point in favour of the method is that it takes into account all the factors that a job comprises. This system can be effectively used for a variety of jobs.
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  2. ANALYTICAL METHODS: 11 Thisincludes the point-ranking methods and the factor-comparison method. 2.A. Point- Ranking Methods: This method is widely used currently. Here, jobs are expressed in terms of key factors. Points are assigned to each factor after prioritising each factor in order of importance. The points are summed up to determine the wage rate for the job. Jobs with similar point totals are placed in similar pay grades. The National Electrical Manufacturer Associations(NEMA), USA, has given the factors, degree and the point for hourly rated and salaries jobs. MERITS: 1. Point method is most comprehensive and accurate. 2. Assignment of point scores and money value is consistent. 3. Being the systematic methods, workers of the organization favor this method. DEMERITS: 1. It is both time consuming and expensive methods. 2. It is difficult to understand for an average worker. 3. A lot of clerical work is involved in recording rating scales.
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  THE STEPS INVOLVEDIN POINT RANKING METHOD 1 2 3 4 5 Skill 10 20 30 40 50 150 Phyisical effort 8 16 24 32 40 120 Mental effort 5 10 15 20 25 75 Responsibility 7 14 21 28 35 105 Working conditions 6 12 18 24 30 90 Factor Point values for Degrees Total Maximum total points of all factors depending on their importance job = 540 1. Select Key Jobs: • Identify key jobs. • Determine common factors such as skill, effort, and responsibility. 2. Define Major and Sub Factors: • Break down each major factor into sub-factors. • Clearly define each sub-factor and rank them by importance.
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  Example factors: • Skill:Education, experience, social skills, problem-solving, discretion, creative thinking. • Responsibility/Accountability: Breadth, specialized responsibility, work complexity, freedom to act, subordinate staff, accountability for equipment/products. • Effort: Mental demands, physical demands, potential stress. 3. Assign Points to Jobs: • Determine maximum points for each job by adding points for all sub-factors. • Compare jobs based on total points (e.g., Officer: 550 points, Manager I Scale: 775 points). 4. Convert Points to Money Values: • Translate points into monetary values considering wage rates. • Conduct a wage survey to gather wage rates for key jobs. Point Range Daily Wage Rate (Rs) Job grades of key bank officials 500-600 300-400 1 Officer 600-700 400-500 2 Accountant 700-800 500-600 3 Manager I Scale 800-900 600-700 4 Manager II Scale 900-1000 700-800 5 Manager III Scale Conversion of Job Grade Point into Money Value
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  14 2.B. FACTOR-COMPARISON METHOD: TheFactor-Comparison methods is yet another approach for job evaluation in the analytical group. Under this method, one begins with the selections of factors, usually five of them- mental health, skill requirements, physical exertion, responsibility, and job condition. These factors are assumed to be constant for all jobs. Each factors is ranked individually with other jobs. For example, all the jobs may be compared first by the factors “ mental requirements”. Then the skill factors , physical requirements responsibility, and working conditions are ranked . Thus a job may rank near the top skills but low in physical requirements. Then total point values are then assigned to each factors. The worth of a job is then obtained by adding together all together point values. MERITS: 1. It is more objective method of job evaluation. 2. It is fairly easy method is flexible as there is no upper limit on the rating. 3. It uses limited factors (usually five). DEMERITS: 1. It is expensive and time consuming. 2. Using the same five factors for evaluating jobs may not always be appropriate because jobs differ across and within organization. 3. It is difficult to understand and operate.
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  THE STEPS INVOLVEDIN FACTOR COMPARISION METHOD 1. Select Key Jobs: Choose 15-20 jobs across departments representing different wage/salary levels. 2. Identify Evaluation Factors: Determine evaluation factors such as skill, mental effort, responsibility, physical effort, and working conditions. 3. Rank Jobs by Factor: Each committee member independently ranks the selected jobs under each factor. 4. Assign Monetary Value: Assign money values to each factor and calculate wage rates for each key job. 5. Apportion Wage Rate: Distribute the wage rate of each job across the identified factors. 6. Compare and Determine Rates: Compare all other jobs to the key jobs and establish wage rates accordingly. Factor KeyJob DailyWage Rate PhysicalEffort Factors mentoleffort Skill Responsibility WorkingConditions Electrician 60 11(3) 14(1) 15(1) 12(1) 8(2) Fitter 50 14(1) 10(2) 9(2) 8(2) 9(1) Weider 40 12(2) 7(3) 8(3) 7(3) 6(3) Cleaner 30 9(4) 6(4) 4(5) 6(4) 5(4) Labourer 25 8(5) 4(5) 6(4) 3(5) 4(5) An Example of Factor Comparision Method
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  WAGE SURVEY: Now thatthe job hierarchy has been established with the help of evaluation methods, next step is to fix the wages and the salaries. Some basic steps are being taken to set the wages for different jobs are as follow. Step 1st: Select key job, the duties of which are clearly defined, reasonably stable and representative of all levels of jobs. Step 2nd: A sample of firm in the labour market are must be chosen. The labour market for different job can vary from local to regional to national in scope. Step 3rd: With both sample being selected, the final task is to obtain appropriate wage information, taking care to ensure that the job comparisons being made are valid. 16
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  EMPLOYEES CLASSIFICATION: The lastphase in the job-evaluation process is to establish employee classification. Employee classification is the process of assigning a job title to every employee in the organization. For clearly definable jobs, employee classification is easy. For example, the cashier in a bank. The cashier’s job is to handle cash and not to maintain ledgers. Employee classifications typically refer to categories or types of employees within an organization, often based on factors such as job duties, employment status, or compensation structure. Here are some common classifications 17
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  18 CONCLUSION • Job Evaluation: Jobevaluation is a process of analysing and assessing the various jobs systematically to ascertain their relative worth in an organization • Job Evaluation Process: It starts with objectives of evaluation & ends at Employees classification. • Job Evaluation Methods: • Wage Survey: A wage survey of job evaluation gathers data on compensation for different positions, informing fair pay and competitiveness. • Employees Classification: Employee classification is the process of assigning a job title to every employee in the organization. For clearly definable jobs, employee classification is easy. Analytical Method Non-Analytical Method a) Point Ranking Method b) Factor Comparison Method a) Ranking Method b) Job-Grading Method
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  THANK YOU 19 o REFERENCES:- BOOK-VSP RAO 2021 EDITION INTERNET CHAT GPT