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JOB EVALUATION

Job Evaluation
Job evaluation is a systematic way of determining the value/worth of a job in an organization.

Process of Job evaluation


Decide which jobs are to be evaluated Job Analysis and preparing job

description.
systematically rate each job based on the job

evaluation factors selected. The points assigned


for each of the factors are totalled for each job.
A Job is evaluated in the following three

categories

1. Know-how
Know-how is the sum total of every kind of knowledge and

skill required to do the job, e.g. experience, education, etc. needed for accept-able job performance. Know-how includes three elements:
A. Specialized, technical or practical know-how: the basic job

knowledge needed.
B. Managerial know-how: The degree with which the job

deals with planning and organizing the employees activities and coordinating with others.
C. Human relations skills: The persuasion and communication

skills for motivating, training, and

developing others.

2. Problem Solving
Problem solving is the amount of original self-starting thinking required by the job for analyzing, evaluating, creating, reasoning, arriving at and coming to conclusions. Problemsolving has two elements:
A. Thinking environment defines the degree to which the

incumbent faces problems.


B. Thinking challenge defines the complexity and uniqueness

of problems and may range from repetitive to highly creative.

Accountability is the answerability for action and for

the consequences of that action. Accountability has three elements:


a) Freedom to act is the degree to which the position

can take action without consulting a higher authority.


b) Impact on end results- advisory or decision

c) Magnitude is the size of the area in which the job

functions, i.e, whole organization, single department,


etc.

Compare and see how much value does this job

have in the industry .


Decide the amount of compensation to be given

Features of Job Evaluation


It tries to assess jobs, not people.
The standards of job evaluation

are relative, not absolute.


The basic information on which

job evaluations are made is obtained from job analysis.

Features of Job Evaluation


Job evaluations are carried out by groups, not by

individuals.
Some degree of subjectivity is always present in job

evaluation.
Job evaluation does not fix pay scales, but merely

provides a basis for evaluating a rational wage structure.

Benefits of job evaluation


It tries to link pay with the requirements of the job.

It offers a systematic procedure for determining the

relative worth of jobs.


An equitable wage structure is a natural outcome of

job evaluation
An unbiased job evaluation tends to eliminate salary

inequalities by placing jobs having similar requirements in the same salary range.

Benefits of job evaluation


Employees as well as unions participate as members of

job evaluation committee.


It points out possibilities of more appropriate use of

the plants labour force by indicating jobs that need more or less skilled workers than those who are manning these jobs currently.

Process of Job evaluation


Selecting the method of evaluation.
Classifying jobs. Installing the programme. Reviewing periodically.

RANKING METHOD
It is the simplest method of job evaluation. Jobs can also be arranged according to the relative difficulty

in performing them.
Jobs are usually ranked in each department and then the

department rankings are combined to develop an organizational ranking.

JOB CLASSIFICATION
According to this method, a predetermined number of

job groups or job classes are established and jobs are assigned to these classifications.
This method places groups of jobs into job classes or job

grades.
Separate classes may include office, clerical, managerial,

personnel, etc.

JOB CLASSIFICATION
Following is a brief description of classification in an office: Class 1- Executives: Office manager, deputy office manager, department supervisor, etc.
Class 2- Skilled workers: Purchasing assistant, cashier,

receipts clerk, etc.


Class 3- Semiskilled workers: Stenotypists, machine

operators, switchboard operator, etc.


Class 4- unskilled workers: file clerks, office boys, etc.

POINT METHOD
In this method jobs are expressed in terms of key

factors.
Points are assigned to each factor after priortising 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

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