Uni it VI Job Evaluation Overview In this unit, you will lear about job advantages and methods. This unit also d evaluation including its objectives, principles, iscusses merit rating with its objectives and methods. You will see how this helps organization make decisions of establishing a rational pay structure. Learning Objectives: At the end of the unit, I am able to: 1. Understand meaning and definition of Job Evaluation 2. Know the objectives of Job Evaluation 3. Understand basis in setting wages and its use 4, Study Job Evaluation principles, methods and its advantages 5. Highlight distinction between Job Evaluation and Merit Rating and limitations Setting Up Name: Score: Year/ Section! Date: Direction: Complete the crossword by filling in a word that fits each elue, ‘Across (1) Job is particular job of an enterprise compared with its other jobs (2) a thing that one is required to do as part of a job, role, or legal obligation. (3) the quality of being particularly good or worthy, especially so as to deserve praise or reward, (4) extremely good; outstanding. (5) fulfilling expectations or needs; acceptable, though not outstanding or perfect. system wherein a is Down (©) fixed regular payment, typically paid ‘on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white- collar worker. (7) the process of making something conform to a standard (8) a paid position of regular employment. (9) the quality of being fair and impartial (10) the process of learning the skills you need to do a particular job or activity 86Job Evaluation Lesson Proper Introduction Job Evaluation is vital in Human Resource Management; inmenciaiiaaiiiadanaiianle: ‘ehnaly qpiesnitniscompundswiteierodeictn ‘At present, there are different types of jobs which are performed in every business and industrial enterprise. Comparative study of these jobs is very essential because on the basis of such study the structure of wages for different types of jobs is prepared. The comparison of jobs may be made on the basis of different factors such as duties, responsibilities, working conditions, efforts, and others. In nut shell, 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. Some of scholars name it the determination of job rate. 87Defini According to Kimball and Kimball they 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. According to Wendell French, he define it as a ious jobs withi ion, so that differential wages may be paid to jobs of different worth, The relative worth of a job means relative value produced. The variables which are assumed to be related to value produced are such factors as responsibility, skill, effort and working conditions. Job Evaluation is a process of comparing jobs with other jobs in terms of the demand a job “makes on the worker. Job Evaluation merely fixes its relative worth. It rates the job and not the qualities of the individual worker on the job, which is the task of employee rating, In short, Job evaluation as a it i fe ive f the "job. Its primary purpose is to set wages. Object e of Job Evaluation 2) To secure and maintain complete, accurate and impersonal descriptions of each distinct job or occupation. 3) To provide a standard procedure for determining the relative worth of each job. 4) To determine the rate of pay for each job with fair and equitable in relation to other jobs in the organization, community or industry. 5) To ensure that employees receives correct rate pay 6) To promote fair and accurate consideration of all employees for advancement and transfer. 7) To provide factual basis for the consideration of all employees for advancement and transfer 8) To provide information for work organization, employees selection, placement, training and numerous other similar problems Basis in Setting Wages 1. Equity and objectivity of salary administration Examples : + paying the people whose work is alike the same wages «establishing appropriate wage differentials between jobs calling for different skills and responsibilities 88.2. Effective wage and salary control 3. Union management negotiations on wages 4. Comparison of wage and salary rates with those of other employees. Uses of Job Evaluation and Setting Wages 1. Providing standardization and improvement of working conditions; 2. Clarifying the functions, authority and responsibility of employees; 3. Establishing references for the settlement of grievances arising out of individual rates and for negotiations with a trade union on internal wage structure and differentials 4. Developing machinery for a systema changes 5. Developing personnel statistics reviewing of job rates as job contents Principles of Job Evaluation There are certain broad principles, which should be kept in mind before putting the job evaluation programme into practice. These are the following: a) Rate the job and not the man 'b) The elements selected for rating purposes should be easily explainable and as few in number as will cover the necessary requisites for every job without any overlapping. ©) The elements should be clearly defined and properly selected. d) Any job rating plan must be sold to employees. ¢) Supervisors should participate in the rating of jobs in their own departments £) Maximum cooperation can be obtained from employees when they themselves have an opportunity to discuss job ratings. g) In taking to supervisors and employees, any discussion of money value should be avoided h) Too many occupational wages should not be established. Advantage of Job Evaluation 1. Job Evaluation is a logical and to some extent an objective method of ranking jobs relative to one another. 2. The method often facilitates fitting them into the existing wage structure The method helps in removing grievances arising out of relative wages and improves labor management relation 4. The method replaces the many accidental factors, occurring in less systematic procedures, of wage bargaining by more impersonal and objective standards 5. The method may lead to greater uniformity in wage rates 896. The information collected in the process of job description and analysis may also bbe used for the improvement of selection, transfer and promotion procedures on the baiss of comparative job requirements. Information also reveals that workers are engage on job requiring less skill and other qualities than they possess. Methods of Job Evaluation Ranking Method The ranking method requires a committee typically composed of both management and employee representatives of job in a simple rank order, from highest to lowest. Job Grading or Job Classification Method This method works by assigning each job a grade, level or class that corresponds to a pay grade for instance Grade I, Grade II, Grade III and so forth. Factor — comparison Method This method is a combination of ranking and point systems. All jobs are compared to each other for the purpose of determining their relative importance by selecting four or five major job elements or factors which are more or less common to all jobs. Merit Rating ‘Merit rating is a technique to evaluate the merits of duals according to job request merit. It is a process through which the ability, efficiency and the potentiality of an employee are evaluated for the purpose of determining wage rate, need of training and for determining the policy for promotions and transfers. The definitions of merit rating are given as follow: a) According to Edward Flippo, Merit rating is a systematic, periodic and as humanly possible, an impartial rating of an employee's excellence in matters pertaining to his present job to his potentialities for a job. b) According to Scot, Clothier and Spriegal, merit rating of an employee is the process of evaluating the employee’s performance on the job in terms of the requirements of the job. c) Alford and Beatty held that employees or personnel rating is the evaluation or appraisal of the relative worth to the company of a man’s services of his better job. 90Objects of Merit Rating The objects of Merit Rating are as follows a) To make a comparative study of the abilities of different employees; b) To provide higher reward to the more efficient employees; ©) To prove the justification of different rate of wage to different employees according to their abilities 4) To establish harmonious relation between employees and employers. e) To motivate the employees to do better and more work; £) To determine policy for promotions and transfer 2) To evaluate the success of training program h) To forecast the need of training to the employces and to determine the nature of training Methods of Merit Rating Ll. Rating Method: the abilities of an employee are compared with other employees. ‘Under this method, the employees are divided into efficient and inefficient employees. This method adopts the technique of paired comparison. Grading Method: In this method different grades are divided for evaluating the ability of different employees and then the employees are placed in these grades. Examples of grades are: © Excellent * Very Good * Good + Average © Bad © Worst (any grades may again sub-divided into three grades) © Highly Satisfactory © Satisfactory + Non Satisfactory Man to Man Comparison Method: This is the method where, a master scale is used to evaluate the qualities of different employees. The five scales of performance are determined for every job in the master scale, For example, to measure the efficiency of employees, first the most efficient and the least efficient employee are selected; after that, another one whose efficiency can be considered average is chosen, then two more who are respectively more efficient than average and less efficient than average are identified. These five employees become the base for measuring the efficiency of the total employees. Every employees of the enterprise is compared with these five employees to evaluate their ability and efficiency. a1Graphic Rating Method: In this method, the abilities of employees are evaluated through graph Check-List Method: A list of ne prepared under this method. Descript Evaluation Method: In this method supervisor prepares a detailed report of the abilities, efficiency and potentialities of the employees under his supervision, All employees are evaluated on the basis of these reports. Forced Choice Descriptive Method: Some details are collected regarding the performance of an employee on the given job. After gathering data some standards are fixed with the consent of evaluations. The performance, ability and efficiency of an employee is evaluated on the basis of these standards. sary qualities for the performance of a job is Distinction between Job Evaluation and Merit Rating The objective of Job Evaluation and Merit Rating are almost the same, both the techniques aim at making comparative study of the abilities and performance of an employee. Here are some of technical differences between them; Limitation of Job Evaluation 1. Though many ways of applying the job evaluation technique are available, rapid changes in technology and in the supply and demand of particular skills have given rise to problems of adjustments, Substantial differences exist between job factors and the factors emphasized in the market. These differences are wider in cases in which the average pay offered by a company is lower than that prevalent in other companies in the same industry or in the same geographical area, ‘A job evaluation frequently favors group diferent from those which are favored by the market. This is evident from the observations of Kerr and Fisher. According to them, the jobs which tend to rate high as compared with the market are those of janitor, nurse and typist, while craft rates are relatively low. Weaker group are better served by an evaluation plan than by the market; the former places the emphasis is not on force but on inquiry. Job factors fluctuate because of changes in production technology, information system, and division of labor and such other factors, and does not reflect the time job value in the future. In other words, continuing attention and frequent evaluation of a job are essential, Higher rates of pay for some jobs at the earlier stages than other jobs or the evaluation of a job higher in the organizational hierarchy at a lower rate than another job relatively lower in the organization hierarchy often give rise to human relations problems and lead to grievances among those holding these jobs. Assessing Learning 92