The importance of order of job is judged in terms of duties, responsibilities and demands on the job holder. Typically the compensable factors include the major categories of: Skill ; Responsibilities ; Effort ; Working Conditions. Privacy Policy 8. 54 (Rs.5 + Rs. HRM BY, kevimedo Job Evaluation Methods 2. 4. job evaluation method also serves as the basis for many other important human capital applications, such as clarifying organization structures, defining job interdependencies and accountabilities; identifying capability requirements needed for talent development, and setting competitive pay practices. These factors can then be further defined. For the purpose of job evaluation, the whole-job description is compared to the grade definitions. In non-quantitative methods, a job is compared as a whole with … Job grades are determined on the basis of information derived from job analysis. Prejudice and human judgment are minimised, i.e. The method is flexible as there is no upper limit on the rating of a factor. Job evaluations are primarily internal evaluations that don't consider the comparison to external jobs and salaries. It facilitates determining the relative worth of different jobs. 3. She’s the founder of Workology, a workplace HR resource and host of the Workology Podcast. 4. Points or weightage are assigned to each factor depending on the degree of its importance in a particular job. The job classification method ranks job based on a pre-determined grade comparison. There are four basic methods of job evaluation currently in use which are grouped into two categories: 1. Define the factors clearly in written. Under this method, job grades or classes are established by an authorised body or committee appointed for this purpose. Then, different wage/salary rate is fixed for each grade. This method is a combination of both ranking and point methods in the sense that it rates jobs by comparing them and makes analysis by breaking jobs into compensable factors. 2. 1. Image Guidelines 5. According to this method, jobs are arranged from highest to lowest, in order of their … The first two are quantitative and the latter two are non-quantitative. The factors common to all jobs are identified, selected and defined precisely. 3. Content Filtrations 6. There are primarily three methods of job evaluation: (1) ranking, (2) classification, (3) Factor comparison method or Point method. The method suffers from the following demerits: 1. Methods of Job Evaluation Job-evaluation methods are of two categories:- a) Analytical Methods Point Ranking Methods Factor Comparison Method b) Non-analytical Methods Ranking Method Job-grading Method Non-analytical Methods Ranking and job-classification methods come under this category because they make no use of detailed job factors. Its primary goal is to produce a systematic and equitable means to determine a job’s overall worth, which lends itself to an increase in employee satisfaction. Here, the employees are asked to judge their own performance. The … A lot of clerical work is involved in recording rating scales. The ranking method is one of the simplest methods of job evaluation. 2. The key jobs selected should have standards contents, well accepted pay rates in the community, and should consist of a representative cross-section of all jobs that are being evaluated-from the lowest to the highest paid job, from the most important to the least important—and cover the full range of requirements of each factor, as agreed upon by a Committee representing workers and management. The scores given for each factor are added to obtain a point total for a job. 1. It suffers from its sheer unmanageability when there are a large number of jobs. Now, all the four methods are summarised as follows: Before publishing your articles on this site, please read the following pages: 1. This level is performed by a committee of experts named as raters. 12 + Rs.24 + Rs.3). The next step is to determine a fair and equitable base rate (usually expressed on an hourly basis) and, then, allocate this base rate among the five common factors as mentioned earlier. The use of limited number of factors (usually five) ensures less chances of overlapping and over-weighting of factors. The mechanism for evaluating jobs under this method involves the following steps: 1. 3. The four primary methods of job evaluations used to set compensation levels are point factor, factor comparison, job ranking, and job classification. Pay Grades and Pay Structures Market Pricing Salary Surveys On-Line Documents Compensation Administration Develop salary admin plan: Job Descriptions On-Line Forms Content On-line Descriptions Classification Systems Action Verbs: Uses of Job Evaluation … This method is useful for Government jobs. The method suffers from personal bias of the committee members. It is difficult to understand for an average worker. Decide on the factors to be used in analysing and evaluating the jobs. 1. Non-quantitative Methods: (a) Ranking or Job Comparison ADVERTISEMENTS: (b) Grading or Job Classification 2. This method is easy to understand and simple to operate. Following is a specimen of base rate and its allocation scheme: 5. The scales developed in this method can be used for long time. For this purpose, points are added to give the total value of a job. The final step in factor comparison method is to compare and evaluate the remaining jobs in the organisation. Methods used for job evaluations include the job ranking method, the classification method, the point-factor method and factor comparison method… 3. It is expensive and time-consuming method. Ranking System. After com­parison, it is found that its skill is similar to electrician (5), mental requirements to welder (10) Physical requirements to again electrician (12), working conditions to mecha­nist (24) and responsibility also to mechanist (3). 2. Its value is then translated into money terms with a predetermined formula. While many variations of these methods exist in practice, the three basic approaches are described here. The system of job evaluation is a powerful tool in the hands of management in managing manpower. There are five basic methods of job evaluation: (1) Ranking, (2) Classification, (3) Factor comparison, (4) Point method, and (5) Market pricing method. Site Design by The Spinbird Group. 3. 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