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methods of job evaluation in hrm

Before answering these questions, we need to define what we mean by evaluation. Selecting degrees, and assigning weights to factors and degrees, come under manual setting. By comparing the jobs, the rank order of importance of each can be determined. After each rater has assigned the ranks independently, their rankings can be compared. Of course, rating is totally a matter of judgment and it is subject to human bias and limitations. (iii) As there is no standard for an analysis of the whole job position, different bases of comparison between rates occur. (i) It has the ability of handing a large number of jobs and enjoys stability as long as the factors remain relevant. 2. Then each job is to be evaluated and compared to other jobs in terms of each factor. (i) The use of fully described job classes meets the need for employing systematic criteria in ordering jobs to their importance. ADVERTISEMENTS: (b) Grading or Job Classification. Job Evaluation 1. Grade descriptions are the result of the basic job information which is usually derived from a job analysis. Thomas E. Hitten was the first to originate factor comparison method of job evaluation. Mental effort, physical effort, skills required supervisory responsibilities, working conditions, and other relevant factors. The main advantage of the ranking method is, it is very easy to understand and is least expensive. Quantitative Methods: (a) Point Rating. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Now another job, say y, is picked up, and a decision is made regarding its closeness to the highest ranked job which is x in the present case. It is a process which is helpful even for framing compensation plans by the personnel manager. A job factor, according to Flippo, is “a specific requirement levied upon the job holder, which she or he must contribute, assume, or endure”. The training methods in HRM are selected based on following three components 1. Ranking Method: This is the simplest and an inexpensive job evaluation method, wherein the jobs are ranked from he highest to the lowest on the basis of their importance in the organization. Method # 1. Content Guidelines 2. (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. The designate is chosen by the appellant, and must be trained in the evaluation … There are many methods by which job evaluation is done. Key jobs are assigned to an appropriate grade level and their relationship to each other studied. In the ranking method of job evaluation, a whole job is compared with others and rank is provided on the basis of this comparison. (iv) It gives us a numerical basis for wage differentials; by analysis a job by factors it is usually possible to obtain a high measure of agreement on job value. “These are the values for which an employer pays money”. Job Analysis in HRM – Meaning and Definition Job analysis is a systematic and detailed examination of jobs. It is flexible also and has not upper limit on the rating that a job may receive on a factor. JOB EVALUATION Presented by- Sandeep Singh 2. Image Guidelines 4. … 2. Under this system, the job raters simply rank one job against another without assigning point values. (ii) The system is simple, easily understood, and easy to explain to employees (or a union). Evaluation is “a set of planned, information-gathering, and analytical activities … Job evaluation is regarded by the trade unions with suspicion because it is made on certain principles and the results are generally ignored. In large organisations, it is the responsibility of a committee to make evaluation. It is essentially a combination of the ranking and point systems. Since many workers think of jobs in, or related to, clusters or groups, this method makes it easier for them to understand rankings. Like rank order method, it rates job by comparing one job with another and, like the point system, it is more analytical in the sense of subdividing jobs into compensable factors. The most common are job ranking, factor comparison, point evaluation and job comparison methods. All the jobs in the same grade receive the same wage or range of rates. He then determines which job requires next higher amount of characteristics and places it next to preceding job’s rank, and so on. This is nothing but a method of rating each job by assigning a certain number of degrees to each factor. A Manual or yardstick provides’ a set of standards against which each job can be compared. Ideally, these should be offered anonymously and confidentially. Evaluation of human resources management. You have to rank from highest to lowest in order of their values or merit to the organization. In the case of … For example, the key factor to perform a job is skills, and then it can be further classified into sub-factors such as training required, communication skills, social skills, persuasion skills, etc. Non-analytical Job Evaluation Methods If the job descriptions are not accurate, serious errors in ranking can occur. Factor comparison . 1. Observation is the only job analysis method that allows the job analyst or HR professional to directly obtain the data, whereas other job analysis methods collect data indirectly and in an orchestrated environment. (iii) Although it represents an advance in accuracy over the ranking method, it still leaves much to be desired because personal evaluation by executives (unskilled in such work) establishes the major classes, and determine into which classes each job should be placed. He has identified four major job factors viz., skill, and responsibility, effort and working conditions. Common tasks, responsibilities, knowledge and experience can be identified by the process of job analysis. The point ranking method is less subjective and is an error free as the rater sees the job from all the perspectives. Detailed job specifications facilitate the accuracy of rating. It enables to make clear-cut demarcation of every specific job. On the basis of the closeness of job y to x, the former is located at some selected distance from x, in the above figure; y is placed near- 80. 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. Six steps suggested by Flippo are- Select job factors or characteristics, construct a scale or yardstick of values for each job factor, evaluate all jobs in terms of the yardsticks, conduct a wage survey for selected key jobs, design the wage structure, and adjust and operate the wage structure. It tries to make a systematic comparison b/w jobs to assess their relative worth for the purpose of establishing a rational pay structure. (i) Specific job requirements (such as skill, effort and responsibility) are not normally analysed separately. In this method, jobs are not split up into their component parts. Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization. The job is treated as a whole, and job descriptions rather than job specifications are often utilised. Distinguishing differences among jobs may be overlooked or forgotten. Selecting a Method for Evaluation- This is the most important step in the Job Evaluation process in HRM. And how should one draw the boundaries around a specific job title? Actually speaking, every individual executive would like to stick to the tasks specifically associated with the job title. In this process the aspects like job titles, job descriptions and job specifications are important. (i) It requires less time, fewer forms and less work, unless it is carried to a detailed point used by company. There are many options of training methods available hence it is important to conduct Training needs Analysisto select the suitable training method in a careful manner. By arranging the jobs in an array, necessary adjustments can be made in wage rates to correct any apparent discrepancy. However, each factor which represents a certain characteristics of the job which management feels is worth compensating, can be selected with maximum care so that ambiguity can be minimised. The ranking of job is done by a committee of experts called raters. The Committee consists of an Independent Chair, a representative of the employer and an employee designate. Meaning of Job Evaluation Job evaluation : Systematic way of determining the value or worth of a job in relation to other jobs in an organization. (vii) Definitions are written in terms applicable to the type of jobs being evaluated, and these can be understood by all. Utility analysis seeks to express evaluations in economic terms, which are more useful for decision makers. (v) Once the scales are developed, they can be used for a long time. The ranking method is one of the simplest methods of job evaluation. These sub-factors are then assigned the points by its importance. … Of all job evaluation methods, the point-factor method is probably the best known. General grade descriptions are written for each job classification, and finally these are used as a standard for assigning all the other jobs to a particular pay scale. (iii) Prejudice and human judgment are minimised, i.e., the system cannot be easily manipulated. Consistency must be the most essential characteristic of point determination. This class description broadly reflects level of education, mental skill, profit impact or some combination of these. The more scarce the labour supply and higher the demand, the more a job is worth. Point system is perhaps the most widely used job evaluation method. Pay grades are determined for, and assigned, to all the job classification. Analytical Job Evaluation Methods Factor-Comparison Method: Under this method, the job is evaluated, and the ranks are given on the basis of a series of factors Viz. Plagiarism Prevention 5. It is often used for evaluating white collar, professional and managerial positions, although it is equally suitable for grading other jobs as well. Prohibited Content 3. Jobs are often arranged according to the relative difficulty in performing them. (ii) It is used in important government services and operates efficiently; but it is rarely used in an industry. (2) The development and installing of the system calls for heavy expenditure. Week 5: HRM: Performance Management and Compensation - Discussion Methods of Job Evaluation (graded) Compare and contrast the following methods of job evaluation: ranking, classification, factor comparison, and point method. Workers find it difficult to fully comprehend the meaning of concepts and terms, such as factors, degrees and points. The second method is one of awarding points for various aspects of the job. But this task may become difficult as the number of jobs increases. The point system, being an analytical approach, is more concerned with job factors or components. These factors are assumed to be constant for each set of jobs. Yardstick is a scale on which the assigned points of the relevant sub-factors of a specific factor are marked. Much subjective judgement is required to determine the relations and position of job, in the rank order. Generally speaking, such factors are more useful in evaluating executive or supervisory jobs than in evaluating manual jobs or clerical jobs. (b) Select the key jobs — Key jobs serve as standard against which all other jobs are compared. As the factors and their grades are assigned in a subjective manner, there is possibility for the job evaluation manual to suffer from ambiguity. Since job evaluation is a systematic and objective than other systems, and assigning weights factors. “ these are the result of the methods of job evaluation are listed below: 1 to... 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