Job Grading Method: Also known as Job-Classification Method. 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. He has identified four major job factors viz., skill, and responsibility, effort and working conditions. As the factors and their grades are assigned in a subjective manner, there is possibility for the job evaluation manual to suffer from ambiguity. (i) The use of fully described job classes meets the need for employing systematic criteria in ordering jobs to their importance. (iii) It is far less expensive to put into effect than other systems, and requires little effort for maintenance. The comparatives with the other methods are … Content Guidelines 2. A job factor, according to Flippo, is “a specific requirement levied upon the job holder, which she or he must contribute, assume, or endure”. Of course, some Indian companies give very respectable job titles like business development executive, market development executive, territorial sales executive, and so on, while their actual cask is only of a salesman. There are many methods by which job evaluation is done. The process is initially based on judgment and, therefore, tends to be influenced by variety of personal biases. The rater determines which job in the series requires least amount of various characteristics used for comparison, and places that job in the lowest rank position. In this method, the overall job is compared with the other set of jobs and then is given a rank on the basis of its content and complexity in performing it. The second approach to human resource management evaluation is the analytical one. In order to measure the job worth, point system backed by the factor comparison system is an effective tool. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Training Methods in Human Resource Management. If it is qualitative, then what will be better- Ranking Method or Grading Method. 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. 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. The Different Kinds of Job Evaluation Methods Job evaluation is a systematic and objective process used by companies to compare jobs within their organization to assess the relative value or worth of each job. Final rankings may be done by majority vote or averaging the rankings of raters. Selecting degrees, and assigning weights to factors and degrees, come under manual setting. Jump to: Position Classification Staff Wage Grade Determination When is a Job Evaluation Strauss observed, “Seemingly irrational decisions that are consistent with each other may be better than more rational decisions that are inconsistent”. The training methods in HRM are selected based on following three components 1. Disclaimer 8. The point ranking method is less subjective and is an error free as the rater sees the job from all the perspectives. Following qualitative methods are generally used in job evaluation: ADVERTISEMENTS: (i) Ranking Method and (ii) Job Grading Method. He then determines which job requires next higher amount of characteristics and places it next to preceding job’s rank, and so on. (4) If many rates are used, considerable clerical work is entailed in recording and summarising the rating scales. 1. 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. 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. However, the ranking method has limited usefulness. There are non-analytical and analytical job evaluation methods that are employed by the organizations to realize the worth of a set of jobs. The 360-Degree Review: This is a feedback process where it’ll incorporate input from people all around the employee in question – direct managers, peers, adjacent managers and reporting staff – so there’s a truly comprehensive look. A key job is one whose content has become stabilized over a period of time and whose wage rate is considered to be presently correct by the management and the union. Internal consistency is concerned with the concept of relative wages within the firm, for example if a supervisor is paid less than a subordinate; it is inconsistency in wage rates. JOB EVALUATION Presented by- Sandeep Singh 2. In the case of … It is a procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it. Job evaluation determines the value of one job in relation to others in the organization in order to ensure a fair job hierarchy and/or salary system is in place. This class description broadly reflects level of education, mental skill, profit impact or some combination of these. After a rater’s judgment is strongly influenced by present wage rates. Job factors are selected and measured and job specifications are definitely given consideration. The system becomes difficult to operate as the number of jobs increases. Another advantage of this method is that it utilises procedure of rating new jobs by comparing with other standard or key jobs is logical and not too difficult. Generally speaking, job titles go with what each job is expected to do. Presumably the jobs already have wage rates attached to them, the ranking system is used to judge whether these are equitable. Next step is to draw up job specifications for evaluating the performance in comparison with the specifications made. Copyright 10. (b) Select the key jobs — Key jobs serve as standard against which all other jobs are compared. To establish the rates of pay for these specific jobs, the rates of pay can be associated with those jobs in the rank order. Job Evaluation and Position Classification Procedures The following information is provided to assist managers with understanding the processes for job evaluation as it relates to determining position classification and staff wage grade. 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. About 10 to 20 jobs are selected, which include all the major departments and functions and cover all the grades. Report a Violation 11. Generally speaking, such factors are more useful in evaluating executive or supervisory jobs than in evaluating manual jobs or clerical jobs. Job Evaluation 1. Quantitative Methods: (a) Point Rating. (vii) Definitions are written in terms applicable to the type of jobs being evaluated, and these can be understood by all. The main advantage of the ranking method is, it is very easy to understand and is least expensive. Mental effort, physical effort, skills required supervisory responsibilities, working conditions, and other relevant factors. (ii) The system merely produces a job order and does not indicate to what extent it is more important than the one below it. In order to increase the reliability of ranking, this exercise is und… Detailed job specifications facilitate the accuracy of rating. In a larger organization, it is more complex to use, but sometimes it can still work if jobs are grouped by job families—professional level, etc. Then each job is to be evaluated and compared to other jobs in terms of each factor. Point method . Selecting a Method for Evaluation- This is the most important step in the Job Evaluation process in HRM. Jobs … The point system can be utilised in the following five steps viz. Of all job evaluation methods, the point-factor method is probably the best known. The analytical approach relies on cost-benefit analysis, also called the utility analysis. This comparison is usually made by having the raters meet as a committee and discuss with each other their respective rankings. (iv) If an organisation consists of 500 people holding to different jobs, the jobs might be broken up into perhaps 5 classes, arranged in order of importance from high to low, and described class by class. Uploader Agreement. (i) Specific job requirements (such as skill, effort and responsibility) are not normally analysed separately. Before answering these questions, we need to define what we mean by evaluation. a job description summarizes the duties of a position and staes the essential responsibilities….. 16. benefits of job description 17. selectingthemethodofevaluation four methods of job evaluation the most important method of evaluating the jobs must be identified now,keeping the job factors as well as organisational demands in mind 18. The jobs are then grouped by total point score and assigned to wage/salary grades so that similarly rated jobs would be placed in the wage/salary grade level. When the various factors, on which each job can be rated (each factor can be broken down into a number of degrees and each degree is worth specific points) are listed together it becomes a manual. Once the job specifications are available and the scales are constructed, evaluation of jobs becomes easier. The job ranking method is the simplest of all the methods. The strategy of HRM department shapes the framework of training methods within the organization. In addition, judgment is needed in determining what the pay rates should be since a statistical method of interpolation is not employed. Pur… 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. Certain jobs may then be grouped together into a common grade or classification. Image Guidelines 4. Here ranks obtained from job descriptions or paired comparison is spaced along a number line. Human Resource Management, Functions, Job Evaluation, Methods of Job Evaluation. Under this system, the job raters simply rank one job against another without assigning point values. Much subjective judgement is required to determine the relations and position of job, in the rank order. But however it is a complex method and is time-consuming since the points and wage scale has to be decided for each factor and the sub factors. Process of Job Evaluation – Job Analysis, Appointment of … It is essentially a combination of the ranking and point systems. In this process the aspects like job titles, job descriptions and job specifications are important. (d) Develop a job comparison scale and insert key jobs in them. In the ranking method of job evaluation, a whole job is compared with others and rank is provided on the basis of this comparison. The differences between them are noted with respect to the key points selected for comparison. Of course, rating is totally a matter of judgment and it is subject to human bias and limitations. This is unrelated to performance reviews, as the goal is to evaluate the job itself, not the person who is performing the job. Which of these do you feel is most useful and why? Non-quantitative Methods: (a) Ranking or Job Comparison. It only gives us its rank or tells us that it is higher or more difficult than another, but it does not indicate how much higher or more difficult. A committee of several executives is constituted which evaluates the job descriptions and ranks them in order of importance beginning with the most important job to the least important job in the organisation. Question 1 Discuss the evaluation of HRM’s functions under the following headings: a) Approaches to evaluation b) Methods of Evaluation. Plagiarism Prevention 5. A Few HR Evaluation Methods. It means that a manual may have a number of yardsticks portraying various factors relating to a specific job. After establishing the grade level, each job is assigned to an appropriate grade level on the basis of the complexity of duties, non-supervisory responsibilities and supervisory responsibilities. Job specifications and job evaluation manual would, however, be instrumental to make rating systematic and easier. (e) Evaluate the job in question factor by factor in relation to key jobs on job comparison scale. When all of the key jobs have been evaluated and wages allocated in this manner, a job comparison scale can be constructed. Point system is perhaps the most widely used job evaluation method. Job Ranking: Job ranking is the simplest method. (v) The grouping of jobs into classifications makes pay determination problems administratively easier to handle. Each job specific is rated using the job evaluation instrument and the points for each factor are summed to form a total point score for the particular job. Responses Responses are listed below in the following order: response, author and … Under this method the job grades or classes are predetermined and then each job is assigned to these and is evaluated accordingly. Job evaluation as a process is advantageous to a company in many ways: Reduction in inequalities in salary structure - It is found that people and their motivation is dependent upon how well they are being paid. No specific factors are used for consideration. Since many workers think of jobs in, or related to, clusters or groups, this method makes it easier for them to understand rankings. ADVERTISEMENTS: (b) Grading or Job Classification. Ranking method is suitable for organisation of relatively smaller size. It is flexible also and has not upper limit on the rating that a job may receive on a factor. … (c) Allocate wage for each key job to different factors. (i) Ranking … All the jobs in the same grade receive the same wage or range of rates. The two most common methods of job evaluation that have been used are first, whole job ranking, where jobs are taken as a whole and ranked against each other. For Example Class, I, comprise of the managerial level people under which sub-classification is done on the basis of the job roles such as office manager, department managers, departmental supervisor, etc. The five factors which are customarily used are mental requirements, skills, physical requirements, responsibilities and working conditions. These factors are assumed to be constant for each set of jobs. Reference this Share this: Facebook Twitter Reddit LinkedIn WhatsApp Human resource management (HRM) is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and … (v) Once the scales are developed, they can be used for a long time. Level and their relationship to each factor efficiently ; but it is more concerned with job factors,... 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